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Thread: Air New Zealand laying off 600 staff

  1. #1
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    Air New Zealand laying off 600 staff

    Air New Zealand is laying off up to 600 of its ground and engineering staff while maintaining the current size of its fleet.
    anyone else kinda worried about this? im just thinking back to a little while ago when stuff was falling off the planes.... that was with full staff.

    seriously though, i hope no-one here is one of the unlucky ones. being layed off really bites.
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    'stuff falling off planes' has no direct correlation to staffing levels.

    What you have to understand is that the Air NZ facility isnt just for Air NZ they do a lot of work for other airlines too, and those airlines have to fly their aircraft all the way here to be serviced, hence why it is 'cheaper' to do it in asia or europe.

    Also the new 777 and 787 aircraft will be getting serviced overseas anyway which leaves the small prop aircraft to be serviced by AirWork and SafeAir (who i think do it already anyway) and the other midsized aircraft (737's and A320s) will probably still get done at Auckland.

    Im not sure on the full story so it might pay to wait this one out a bit. Im not sure if they are shutting down the whole operation of aircraft maintenance out there or just cutting it down. I know that the training side of that facility is a main supplier to the industry.

    On the other hand the RNZAF is looking for more aircraft and avionics technicians... just not 600 of them!
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    I heard the new CEO saying that they are trying to improve shareholder value. Seeing that the Govt is the major shareholder, is puting all these people out of work going to improve the Govt's financial position?
    How about a Govt's moral obligations to it's people?
    Particularly a left wing Govt.
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    Quote Originally Posted by hazard02
    ...laying off up to 600 of its ground and engineering staff while maintaining the current size of its fleet.
    anyone else kinda worried about this? ....
    No, they will contract out the services. Some of the redundant staff will be hired by whatever engineering company gets the contracting service as it will need to grow to take on the extra work. It's not like 600 engineers are getting the sack and the remainder will pick up all the slack.

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    Quote Originally Posted by Lou Girardin
    I heard the new CEO saying that they are trying to improve shareholder value. .
    Standard accounting practice, cut staff, makes the books looks better, even if you're now spending more contracting the services out to the same people. Happens all the time to big corporates in the USA. People get sacked, then re-hired as contractors, then their contacting position gets turned into a permanent one, then they get sacked...Easy way to farm out the inefficient workers. Yes I should say not everyone gets re-hired.

    Quote Originally Posted by Lou Girardin
    How about a Govt's moral obligations to it's people?
    Particularly a left wing Govt.
    That's the hypochrisy. Sounds like the unusually right-wing labour of the 80's, does it not?

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    No, they will contract out the services. Some of the redundant staff will be hired by whatever engineering company gets the contracting service as it will need to grow to take on the extra work. It's not like 600 engineers are getting the sack and the remainder will pick up all the slack.
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    Uh, they're contracting out the servicing all right. To China. Not much likelihood of any of the existing engineers being hired there.

    Nationalise 'em. Wouldnt even cost anything 'cos the State is the biggest shareholder.
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    Airnz has no choice. They have to restructure or face bankruptcy in the future. The airline industry around the world are facing huge input cost and competition with major airlines going into receivership.

    It will cost the tax payers both ways. If Airnz goes under, then the tax payers will have to bail them out. Airnz is a major asset to NZ in securing that we have a viable tourism industry. Tourism is one of our largest income earner.

    The fundamentals are stacked against the airline industry. The cost of air tickets are the same today as they were 15 years ago, yet the input cost of wages, fuel, airport tax, exchange rates.. etc have all gone up.

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    Quote Originally Posted by Drunken Monkey
    No, they will contract out the services. Some of the redundant staff will be hired by whatever engineering company gets the contracting service as it will need to grow to take on the extra work. It's not like 600 engineers are getting the sack and the remainder will pick up all the slack.
    Ahhh the old capitalist maxim that you can follow the job to whatever country it moves to. Bollocks. SOme people don't want to remove themselves from their country, or uproot their families.
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    Quote Originally Posted by Fart
    Airnz has no choice. They have to restructure or face bankruptcy in the future. The airline industry around the world are facing huge input cost and competition with major airlines going into receivership.

    It will cost the tax payers both ways. If Airnz goes under, then the tax payers will have to bail them out. Airnz is a major asset to NZ in securing that we have a viable tourism industry. Tourism is one of our largest income earner.

    The fundamentals are stacked against the airline industry. The cost of air tickets are the same today as they were 15 years ago, yet the input cost of wages, fuel, airport tax, exchange rates.. etc have all gone up.
    So close the airline. It won't stop tourism and it removes one of the major contributors to excessive Government spending.
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    Quote Originally Posted by Jim2
    So close the airline. It won't stop tourism and it removes one of the major contributors to excessive Government spending.
    It was Sir Selwin Cushion that fucked it up for Airnz with the investment in Ansett without doing proper due diligence. The more logical decision was to have SIA merge with AIRNZ five years back. That would have added value to airnz and secure a financial base. But thanks to Sir Cushion and company, it is all fucked up.

    Without Airnz we are at the mercy of Qantas. Do we really want a Aussie airline dictating our future?

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    Quote Originally Posted by Jim2
    Ahhh the old capitalist maxim that you can follow the job to whatever country it moves to. Bollocks. SOme people don't want to remove themselves from their country, or uproot their families.
    Firstly, I didn't know it was being outsourced to China. Secondly, whether you think its bollocks or not, it doesn't detract from the fact that you will have to adapt to survive. Yeah, some people don't want to follow work overseas. That's their choice. I don't have any patience for people who sit at home and whinge about losing their jobs. Yeah NZ's a great place to live, which is why I do what I do and why I do it this way. However in this situation, you could potentially look at it in a different way to "I don't want to leave NZ" by thinking "I have an opportunity to grow from simply a skilled engineer on an a respectable salary to a manager of many engineers in a foreign and exciting (and one of the world's fastest devloping) country, and earning a bucketload more money."

    I'll steal (and paraphrase) a quote = Opportunities are everywhere, sometimes they are hard to identify as they are often disguised by hard work.

    It's only bollocks if you let be bollocks.

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    Good luck to all the engineers being layed off. Most people who havent been down this road dont realise the full stress impacts it can have on ones self and family.
    Yes they may well get other jobs and depending on there skill levels may even be lucky enough to receive similiar money or more, however im sure facing uncertantity about that will not be much fun.
    :spudwave:

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    Quote Originally Posted by Drunken Monkey

    I'll steal (and paraphrase) a quote = Opportunities are everywhere, sometimes they are hard to identify as they are often disguised by hard work.

    It's only bollocks if you let be bollocks.
    Sorry I forgot that human beings should be referred to as interchangeable global human resources.

    My mistake.
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    Quote Originally Posted by Jim2
    Sorry I forgot that human beings should be referred to as interchangeable global human resources.

    My mistake.
    Interchangable global work units please!

    Human is so 90's.

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    Quote Originally Posted by gareth_d
    What you have to understand is that the Air NZ facility isnt just for Air NZ they do a lot of work for other airlines too, and those airlines have to fly their aircraft all the way here to be serviced, hence why it is 'cheaper' to do it in asia or europe.
    The problem appears to be that the AirNZ engineers have had a very strong union, which has done such a good job of getting good salaries and conditions for their members that they've effectively priced them off the market.
    AirNZ will still do much of its own servicing, but they can't compete any more with Asian competitors for servicing other airlines, solely due to labour costs. This has lost them some major contracts recently.
    ... and that's what I think.

    Or summat.


    Or maybe not...

    Dunno really....


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