Changes to KiwiRail Mechanical Business Unit

Changes to KiwiRail Mechanical Business Unit

KiwiRail’s Mechanical Business is undergoing a change process to better support the requirements of the new rollingstock arriving over the next ten years.

Currently this business is structured to support the ‘retain and refurbish’ needs of our existing, aged rollingstock fleet. It now has to deliver a service more focused on preventative maintenance and repair that is delivered closer to where the rollingstock is being used. This will ensure a faster, more efficient maintenance service for our customers.

Excluding the new DL locomotives and container flat top wagons, the youngest diesel locomotives in the KiwiRail fleet are 30 years old and the average age of wagons is between 25 and 30 years.

Chief Executive, Jim Quinn said improving the quality of rolling stock is essential and we must make these decisions on a commercial basis to contain costs.

“Purchasing new locomotives, wagons and containers from overseas is critical to improving transit times and reliability, realising productivity gains and growing revenue,” he said.

“Our Mechanical Business and their work keeps our rollingstock in working order, but it is not able to build this new rollingstock fast enough and at a competitive enough price to meet our current demand.”

It is envisaged that there may be up to 70 positions in total affected across the whole Mechanical Business in this right sizing process.

“In what has been a very difficult decision, due to a reduction in work at Hillside Workshops a staff reduction proposal has been announced for this site with consultation beginning today,” said Mr Quinn.

“The proposal is to make approximately 40 staff redundant out of the total workforce of 172 at Hillside.”

“The size of the Hillside workforce has always fluctuated according to the amount of work available and in recent years the workforce increased to build carriages for both Auckland and Wellington metro services.”

“Unfortunately this work has now been completed and their workload for the remainder of this year is greatly reduced.”

“We know this is difficult for our staff and we will be ensuring they have full access to the consultation process and any support services they require,” said Mr Quinn.

ENDS

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