Auckland Airport payback annoys workers

Union officials representing 70 striking Auckland Airport workers including aircraft marshalling staff are angry about the $200 million capital return to shareholders announced yesterday.

"We've said that this company is awash with cash and they have proved it again by announcing they will pay an extra $200 million in spare cash to shareholders," said Engineering, Printing and Manufacturing Union national secretary Andrew Little.

The workers are seeking a 5 per cent pay rise and have been offered 3.5 per cent to 4 per cent.

Little said the company's directors had had a 66 per cent rise in fees and shareholders' dividends were up 50 per cent. "We don't begrudge them a good income but workers are entitled to a decent pay rise too," Little said.

An overtime ban began on Wednesday and a 24-hour strike started last night.

Little said workers were sorry to disrupt travellers' plans "but there seemed to be no other way to make the company take the workers seriously".

Chief executive Don Huse said the company was "very concerned" to offer competitive, market rates of remuneration to its employees.

"We don't have trouble attracting workers and have strong retention - so we believe we are rewarding our people appropriately."

But he rejected any links between the wage dispute and the return of capital. The payout was "quite separate from issues about keeping our balance sheet efficient and paying shareholders back money that is essentially theirs", said Huse.

The increase in directors' fees was compensation for the fact directors had agreed to forgo their retirement allowances.

"That results in a significant reduction in their remuneration and their fees were adjusted accordingly."