Clark knew of plan to slash airline jobs

Prime Minister Helen Clark says she was warned of Air New Zealand's plan to slash 600 staff from its engineering division, but did not get a detailed briefing.

The national airline's share price fell to a fresh year low yesterday after chairman John Palmer announced an expected 57 per cent fall in profit and the likelihood of up to 600 redundancies from its engineering division -- mostly in Auckland.

The proposal to outsource heavy maintenance and large fan aero maintenance work would save more than US$100 million over five years, Air NZ chief executive Rob Fyfe said.

The airline will now consult with the Engineering Printing and Manufacturing Union before coming to a final decision.

Helen Clark said today the move saddened her. "I'm very very sad to see the proposal," she said on National Radio.

"This is a long-serving and highly skilled workforce. Obviously now they go into a couple of months consultation with the engineers union and I'm sure the union will be looking at this at all angles to see if there is any chance of retaining the work."

She said the Government -- a major shareholder in the airline -- received a "headsup", but she did not get any detailed briefing.

She did not say when she learned of the plan to slash staff.

Maori Party co-leader Tariana Turia said the Government should intervene.

She said: "The Labour Party has grown out of the union movement. Given the massive support of the unions over the years I am sure there will be an expectation for the Government to intervene, particularly as it is a majority shareholder in Air New Zealand."

Mrs Turia also questioned what impact the decision would have on the safety and standards of aircraft maintenance.

- NZPA