Mark Ratcliffe: Impressive early results from revamp

Mark Ratcliffe. Photo / Kenny Rodger

In last week's column, Chris Barton recycled a number of claims about changes to Chorus' service company contracts.

While it's easy to automatically assume that a business makes changes to cut costs, that's not the case here. In this industry and climate, few if any, have made the kind of 10-year, $3 billion commitment we have.

We're not spending less on these contracts. We have put a greater focus on quality, productivity and training. It's all about providing a better customer experience and network performance, not a cheaper one.

At the heart of this issue is the introduction of Visionstream in Northland and Auckland and their preference to have a mix of employees and owner-operators; a model that isn't new.

Many New Zealanders in the telecommunications and other industries are comfortable and successful working this way.

We appreciate this change can be upsetting for some, but many have also embraced it with enthusiasm.

Visionstream have instances of brothers setting up business together, and owner-operators employing wives or other relations to do the books.

Chorus has also been through the numbers with accounting firm, Deloitte. We are comfortable that with Visionstream's new model the only way you lose 60 per cent income is if you choose to work 60 per cent less.

An average person working a full day will generally earn the same. More importantly those with better productivity can earn much more.

Visionstream listened to what newly signed owner-operators had to say and revised or clarified some terms, including work hours and rate reviews, to ensure that they offer their workforce a contract that makes sense for everyone and is sustainable.

After all, it's in Visionstream's interests to attract and retain a skilled workforce that can get the job done.

Visionstream's recruitment is progressing well. They have 80 per cent of their workforce signed up and have taken over responsibility for much of Auckland.

Early results have been impressive. Faults are being fixed faster and owner-operators are getting increased income based on what they've done these past few weeks.

Barton does get one thing right. He says a strong telecommunications service industry and skills base is crucial to New Zealand's future.

Chorus couldn't agree more. Our service company changes are driven by two things: our commitment to a world-class telecommunications network for all New Zealanders and the increasing demand from customers for better services, more choice and increased flexibility - and that's a fact.

* Mark Ratcliffe is chief executive of Telecom's Chorus network division.