KEY POINTS:
Telecom has been criticised by a union over a wage dispute involving staff at one of the company's contractors, Downer EDI.
Downer is contracted by Telecom to help maintain its broadband network but the Engineering, Printing and Manufacturing Union (EPMU) said it was concerned at low wage levels among about 250 of its members.
EPMU national secretary Andrew Little said it appeared contracting out arrangements in the telecommunications sector were being used to drive down wages at a time when a skills shortage was biting.
Mr Little said the situation did not bode well for Telecom's new network management company, Chorus.
"If Telecom is serious about Chorus working to achieve the kind of broadband capacity we need to be internationally competitive they'll increase their funding to ensure we keep the skilled and experienced workers we need to do it."
He said some Downer staff were being paid up to 50 per cent less than their Australian counterparts.
The union said negotiations had been going since the middle of last year and there was still a significant gap between what staff were being offered and what they considered fair.
Downer has told the union its profit margin for the work it does for Telecom has left it no room to move on wages.
Meanwhile, union members at US-owned chemical manufacturer Ecolab, in Hamilton, have put industrial action on hold as they wait to meet for mediation with the company tomorrow.
The industrial action involves workers who want to join a multi-employer collective agreement.
- NZPA
