Airport Services Update

Media Release 30 March 2007

Airport Services Update

Air New Zealand is likely to decide on Monday whether to retain its Airport Services work in-house.

General Manager Domestic Airline Bruce Parton says Air New Zealand is hopeful of making a positive announcement.

"We have our fingers crossed heading into the weekend that we will be able to avoid outsourcing. Frontline staff have been providing encouraging signals that the majority of EPMU members and those on individual employment agreements support our desire to retain jobs in-house. In that situation we will not allow the SFWU to hold a gun to the heads of the majority and we will commit to keeping the work in-house," says Mr Parton.

Mr Parton says that if the in-house solution is adopted, those who supported it and chose to stay will receive:

* A two-year deal

* A $1000 (net) lump sum payment
* An additional $3,000 (gross) payment if they were entitled to first round targeted redundancy/severance, but decided to remain with the company

* The opportunity to apply for new leadership roles within Airport Services

* The possibility of taking part in a voluntary severance programme if it is offered

Because the SFWU has not chosen to take part in the in-house solution the payments and severance opportunities will not be available to its members.

Mr Parton says if the in-house solution gains the necessary support, Air New Zealand will enter formal bargaining with SFWU in May when its collective agreement ends.

"While having two groups of staff on different terms is less than ideal in the short-term, we would hope we could end the collective bargaining process with the SFWU membership taking part in the in-house solution terms and conditions."

ENDS

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