lockout

Auckland bus passengers are assured of 2 years of industrial peace after drivers agreed yesterday to end a long and bitter pay dispute.

About 600 NZ Bus drivers and cleaners voted by an 80 per cent majority to accept a company offer amounting to a 20c hourly pay rise in three instalments. That will lift the top hourly rate for drivers with at least nine months service to $17.45 now, $18.15 next year and $18.75 in February 2012.

The deal includes a minimum of $560 in backpay dated from July 5 and a $500 contribution from the Auckland Regional Transport Authority to wages lost when NZ Bus locked out 875 workers and suspended all its services for seven days last month.

Although the pay rises are the same as offered in a package rejected by 55 per cent of drivers at a rowdy and emotional meeting three weeks ago, union negotiators welcoming a softening of "clawbacks" sought by Infratil subsidiary, which provides 70 per cent of Auckland bus services.

Auckland Tramways Union president Gary Froggatt said the company dropped its demand to be able to review the jobs of drivers absent because of incapacity for more than two months, and had reverted to an existing three-month threshold. It also agreed to add just 24 hours to an existing 48-hour time limit for submitting complaints to drivers, which was half of what it sought earlier.

The deal retains a new weight limit of 115kg for driver recruits but the unions say that is outside their control as a pre-employment requirement, even though Auckland University of Technology nutrition and obesity expert Professor Elaine Rush believes it will discriminate against Polynesians, with higher average weights than other ethnic groups.

Drivers spoken to outside a Tramways Union meeting at Alexandra Park were generally pleased to have settled up before Christmas, given the added financial strain the festive season puts on families, but one said he believed they should have held out for more money. He believed the length of an agreement locking drivers into what he still considered to be low wages would make the company an attractive sale proposition.

Mr Froggatt acknowledged a general suspicion that Infratil may be grooming NZ Bus for sale, but said that gave the drivers no great concern as they had lost confidence in the company. He said that although hourly pay rates were now higher than that of other Auckland bus company, NZ Bus drivers received just time and a quarter for overtime hours and were determined to fight for time and a half after the new agreement expired.

Company operations general manager Zane Fulljames said NZ Bus was confident it had secured an agreement that would meet the needs "of our customers, our people and the business" and looked forward to rebuilding long-term relations with the four bus unions is it reshaped its operation. "This agreement allows us the stability and certainty to move forward with confidence into the Rugby World Cup 2011 and beyond," he said.

Regional transport authority chief executive Fergus Gammie also welcomed the return of stability for bus passengers.

Mike Lee sounds weary. He, along with bus drivers and 80,000 Auckland commuters, is winding down from a long, tough week.

The Auckland Regional Council chairman has already made strong comments about home-grown infrastructure company Infratil, the successful group of investors behind the standstill of much of Auckland's bus system, and he's not finished.

Infratil invests in airports and energy offshore and public transport at home, running buses in Auckland and Wellington through subsidiary company NZ Bus.

On day five of the lockout of the bus drivers, Lee threatened to sack NZ Bus for not fulfilling route contracts, only to find this was not so easy.

The process is more drawn-out than he anticipated.

Lee sounds mystified about the tactics of the "reckless", "clumsy" and "ruthless" men in striped suits who are behind Infratil, the ones really calling the shots over required profit margins and future vision.

Though the buses are back on the street, for now, he says the seven-day lockout, which disrupted life for so many school students and workers, has taken other tolls.

He estimates the region will lose nearly a million passengers from the annual scoresheet, vital statistics which are needed to justify extra investment in public transport.

There's another big impact, too. When you have a dispute such as this, people go away from public transport.

"It's enormously disruptive but they do find alternatives and if they're going back to their cars then, you know, you've got to try to get them back out of their cars.

"There will be a lasting impact."

Lee hesitates at the next question. He's somewhat at a loss, he admits tiredly. He's not quite sure how to fix this problem of ensuring buses stay operating despite employment disputes.

Though this dispute between NZ Bus and its drivers is patched for now, it is only a plaster and could erupt again.

To be honest, Lee says, he has other important things to be doing, such as getting ready for the looming Super City instead of figuring out disputes involving buses.

So when he is asked how he plans to stop such massive disruption again in the future, he is thrown for a minute. "I would much prefer we didn't have this going on but, however, you ask a valid question. What is going to be done about it? "We need to sit down with Arta (the ARC's transport co-ordinating agency) and discuss that very point and resolve on a plan of action, a contingency plan. We can't hand over a mess to the Super City," he says.

Lee says he has been quite shocked at the hardline tactics of Infratil/NZ Bus. The drivers wanted to work to rule while their pay claim was on the table but the bosses locked them out - and, in doing so, locked out Aucklanders. Infratil/NZ Bus have taken such a militant approach, he says, he thinks they have done serious damage to their reputation.

Lee describes the Infratil directors as "guys with Beatle haircuts and striped suits" and "cheery chappies". "You know, if you meet them you're thinking you're dealing with Herman's Hermits, but actually these guys are ruthless operators."

Ratepayers and taxpayers spend around $94 million in subsidies for buses every year - and $58 million of this goes to NZ Bus.

Given the large public subsidies, we asked Infratil CEO Marko Bogoievski whether his organisation cares about bus drivers and Aucklanders.

Bogoievski explains Infratil is a huge investor in both New Zealand and overseas and has been for 20 years. The company's intention is to grow businesses and for them to flourish. He doesn't see how improving and upgrading bus fleets, rebranding buses and schedules, training bus drivers and introducing technology is anything other than a positive for Aucklanders.

He says he understands the havoc the dispute has caused Aucklanders and says this was not an outcome anyone wanted to see, "so obviously you're in the middle of a dispute and it's a live conversation, we're trying to get it resolved".

What about the perception that Infratil directors are ruthless, cold and hard-nosed?

He replies: "We've been around for a long time and we've earned every bit of our positive reputation as a high-quality investor, so the proof's in that really." Infratil is trying to get the best situation in Auckland too, he says. Employees, shareholders and customers of all their services are important parts of the overall equation but they're looking long-term, not just at whether buses run next week.

They have to manage the overall cost of delivering public transport services in the long run, he says.

Every time there is a tender from a local transport authority to run a major bus or public transport service, tenders are given to the lowest-priced operator.

In the process, service levels and the amount of compensation are determined - there is no free lunch for anyone.

He says if you end up increasing cost structures in the medium term, you end up increasing public subsidies for public transport, but that is a policy issue for planning agencies like Arta. Bogoievski also says he believes the bus drivers are quite well compensated relative to their peers.

"The average wage of a driver, if they were to accept our proposal, would be higher than the average wage of a New Zealander."

One of the accusations against Infratil is that they have been lobbying the Government to repeal parts of the new Public Transport Management Act, which would require them, as a commercial operation, to open their books regarding the public subsidies.

Bogoievski says the problem with the Act is that local authorities want to control every aspect of public transport, including confiscating commercial routes that NZ Bus and other operators have been investing in for a long time.

Infratil's preferred model is to let private provision of these services reduce the need for subsidies, "so in effect, Infratil's leading the charge, through NZ Bus, to try to manage the overall cost of public transport to Auckland ratepayers".

Bogoievski says the Infratil directors are not mean people, "no, I think we're pretty average blokes who are just trying to continue investing in New Zealand and we hope we can".

The company stands by its achievements, he says.

"I know it's provocative to refer to merchant bankers sitting in Wellington, but come down and have a look, have a cup of tea with us, we don't look anything like that."

Part of the problem with buses is division over the extent to which public transport should be publicly controlled and run, or whether private operations are best.

For Infratil, obviously private operators must have a big say in how they run.

Others, such as New Zealand urban researcher Dr Jago Dodson, say local authorities have far too little control.

The Brisbane-based Griffith University research fellow warns strongly against any watering-down of the Public Transport Management Act, saying we are already seeing Infratil starting to test its strength in the current dispute with the bus drivers.

Transport Minister Steven Joyce says he is certainly taking a look at the Act because of concerns from NZ Bus and other operators about the ability of councils to contract over the top of commercial services where they are operating successfully and don't require a subsidy.

He doesn't cosy up to anyone, he adds, pointing out that though he has talked to NZ Bus, he's probably talked "way more times" to Lee, "but no one accuses me of cosying up to Mike".

For Lee, the end is not in sight. Joyce has announced a new Auckland Transport Agency which will operate under the Super City, replacing existing Auckland transport entities.

Lee says though the river of public money will flow - "$160,000 a day into Infratil once normal services are resumed" - public control and accountability over it will be weakened by the Minister's new transport authority.

"So when there's another lockout in the Super City, people will ask the Super Mayor what's going on and the Super Mayor will probably have even less power than I do now to get it sorted."

SERVICE CHARGE

The contracting of services for bus routes is a complicated business and though many routes qualify for subsidies, others don't. Ratepayers and taxpayers pay around $94 million in subsidies for buses each year.

Around 26 per cent are commercially run, so don't get a subsidy, but even these will often get a concessionary fare top-up. The bulk of the services - 74 per cent of which are contracted services - are paid for through subsidies.

Even many of the main routes, including the Link bus, and main arterial corridors such as Dominion, Eden and Sandringham Roads, have parts of the service provided through subsidies.

Arta says without the subsidy the number of weekday peak period services offered along Dominion Rd, for example, would be significantly reduced and services after 9pm may not be provided.

About 700 hospital service and food workers have been issued with lockout notices by companies who contract for the district health boards (DHBs).

Earlier this week the Service and Food Workers Union (SFWU) announced 4160 separate strike actions on behalf of 2800 cleaning and catering staff and orderlies employed in public hospitals around New Zealand.

SFWU bargaining co-ordinator Alastair Duncan said ISS had issued seven days of lockout notices effective May 31, while two other contractors, Compass and OCS issued lockout notices for just one day, May 31.

The fourth contracting company, Spotless Services, did not issue a notice.

The four companies employ about two thirds of the workers. The rest are employed by the DHBs directly.

ISS chief executive officer Brian Young this morning confirmed a lockout notice had been issued to the staff.

The workers are seeking a Multi-Employer Collective Agreement (MECA) to standardise pay around the country.

Mr Duncan said the lockout targeted the lowest paid workers in the public sector and smacked of bully boy tactics and discrimination.

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"No one threatens to lock out doctors or nurses. But low paid service workers appear to be fair game."

Council of Trade Unions (CTU) president Ross Wilson said the lockout was the action of "corporate bullies who had a "callous disregard" for the low paid workers and their families.

"Service and support staff in hospitals are some of the lowest paid workers in the country," he said.

"It is an indictment of these huge multi-national companies that they have reacted with lockout notices, because these workers have organised together to claim a collective agreement to improve their pitiful wages."

Mr Wilson called on the companies to return to negotiations with an open mind.

The National Distribution Union (NDU) has condemned the lockout and pledged its support to a union movement campaign.

NDU national secretary Laila Harre said the workers needed practical solidarity.

"These essential hospital workers live and work in communities all over New Zealand and they need our support."

"The unions have not been responding to our counter proposals on the bargaining table, so we have responded by issuing lockout notices in support of our position," Mr Young said.

He was hopeful a settlement could be reached before the lockouts in two weeks.

"We're certainly willing to sit down and talk with the union at any time."

- NZPA

A union that succeeded against an extended lock out of 600 locked out supermarket distribution centre workers last year has condemned the lock out of low paid hospital workers and pledged its support to a union movement campaign to support them. The National Distribution Union’s pledge follows the issuing of lock out notices to around 700 service and support workers in district health boards in New Zealand by three overseas employers, OCS Ltd, ISS Ltd and Compass.

After months of organising and protesting Countdown, Foodtown and Woolworth supermarket retail workers won a real wage rise and kept their long service leave.

The scene has been set for tackling youth rates at the three brands through the working party. Union pay rises averaged 4.5% (50c to 55c an hour), and 5.5% for young workers.

Annual leave increases to five weeks after 10 years service.

The settlement came in the third week of the warehouse lockout, and only after employer attempts to pressure union members failed.

Among the tactics used by the employer was an offer of 3.5% to non-members. In some stores union members were told they too could be locked out.

Fortunately the work done this year to improve union communication in the supermarkets paid off – allowing information to get out to members quickly.

Although around 200 members resigned from the union after the employer misinformation, many quickly rejoined.

The supermarket campaign, Shelfrespect.org, used rallies outside supermarkets to increase member activism and build customer support.

Before negotiations started delegates in Auckland put the campaign on the 6 o'clock news with a noisy lunchtime rally at the Onehunga Foodtown.

One delegate said: "They're going to hate this. The only reason they don't expect it is because they're used to walking all over us."

A mid-year recruitment drive saw membership grow by hundreds, including among young workers who now have a $2 youth fee.

At Foodtown stores membership climbed from 22% to 27% in just a few weeks.

So with confidence and membership growing the union met the company for the first negotiations in July.

Management took a hardline: their best offer was 2.6% over 9 months, and they absolutely refused to increase annual leave to five weeks for long serving staff.

They wouldn't discuss other issues and even a company offer to remove youth rates for junior supervisors was withdrawn.

"It was clear from the start that the company wasn't going to budge and that we had to build activism in preparation for any future actions," said Retail Secretary Judy Attenburger.

The following week delegates and activists at meetings around the country rejected the company's "insulting" offer and endorsed a customer campaign and petition.

In Auckland, 500 members came to a stop work meeting.

When it came to discuss the next step in the campaign, one worker suggested short strikes of up to an hour during busy shopping times.

An indicative vote showed over 90% support for such action.

Over the following weeks the media captured union members in Auckland, Whangarei, Palmerston North, Gisborne, Lower Hutt, Wellington, Nelson, Christchurch and Dunedin plastering customers with stickers and handing out plastic shopping bags with "I support supermarket workers" printed on them.

One delegate, Jane, who has been a delegate at Foodtown Greenlane for 18 years said "I'm just sick of the crap the company's dealing us, and that's why I stand up for the people."

Just as the supermarket campaign took off, Progressive locked out their 600 distribution workers. Laila Harré explains that the lockout was also aimed at supermarket workers.

"The company saw the union getting more active everywhere and we are sure that the lock out was used to try and frighten supermarket workers," she said. "The cost of a living wage and equal pay for equal work for 17,000 supermarket workers was always going to be much greater than equal pay for equal work for the company's 600 warehouse workers."

But with supermarket workers in Auckland, Palmerston North and Christchurch joining the distribution workers on their picket lines and marches, the company's attempts to divide union members failed.

"The solidarity from our supermarket members during the lock out was great," says Karl Andersen, TES Sector secretary. "Supermarket workers were refusing to do the work of the locked out workers. Members called to tell us when supplies were arriving, allowing us to set up pickets outside stores.

The distribution centre workers appreciated seeing their supermarket co-workers at the picket lines, often bringing money and food.

In Mangere, the local Countdown delegate presented one of the first worksite donations.

In Wellington supermarket delegates and the Brass Razoo Band raised $1500 in just 30 minutes for the lockout fund."
A week after the supermarket negotiations resumed on the 7th & 8th of September a settlement was reached in mediation.

The settlement was a good result on key issues as well as providing a basis for the union and employer to continue work on developing a single pay scale across the three brands.

The strength that both the warehouse and the supermarket workers showed Progressive brought greater respect for them at the bargaining table.