Rail workers ready to take Toll on trust - for now

By PAM GRAHAM

The union representing 80 per cent of Tranz Rail's land-based workers does not know what is in store for its members after meeting the new Australian owner for the first time on Tuesday.

Rail and Maritime Transport Union general secretary Wayne Butson said new chief executive David Jackson answered all queries about the future by saying it was too early to be specific.

However, Butson said Toll seemed to be aware of the state of the locomotives and wagons and Jackson had a reputation with Australian unions for being open.

"My assessment, without knowing any detail, is I think we will be able to develop a very good working relationship," Butson said.

"I have to say that, without them doing wholesale service curtailments, I personally do not have any concerns about job losses. She is a bare-bones business."

Jackson told the union that Toll Holdings wanted to develop the business and Butson said workers had heard this before and were of the view that the $100 million Toll was planning to invest in rolling stock over five years was a conservative figure for the job in hand.

A new collective contract which runs until 2005 had just been implemented at Tranz Rail. There was no wage rise until April 1 and a rise of 3.75 per cent in the period to June 2005. Butson said members took the precarious situation of the company into account in agreeing to an effective rise of 1.75 per cent a year.

He told Toll that many of the work practices their rail joint venture with Patrick in Australia was trying to introduce already existed in New Zealand, including remote controlled shunting and driver-only trains.

Tranz Rail's annual report said the company had a workforce of 2960 after outsourcing. The total industry workforce is estimated to have declined from about 22,600 to about 4100.

Butson said he would not use the word trainspotters to describe his members, preferring to describe them as passionate about rail and angry about the company Tranz Rail had become.

Most workers were on wages and overtime, though train drivers were on an aggregate wage, with a constant rate for all hours worked. The average was $26 an hour. A two-level system was removed in the latest collective agreement.

Toll owns 83.46 per cent of Tranz Rail and has extended its takeover offer until November 7.