Unions reject improved company offer of 4.2%, 3.0% and 3.3% over three years
September 28, 2009
Today the Auckland Combined Unions and NZ Bus attended mediation in an effort to agree a Collective Employment Agreement for the bus drivers and cleaners who work for Metrolink, North Star, Go West, Waka Pacific, LINK and City Circuit bus services.
The improved offer that NZ Bus put on the table in today’s mediation means drivers will receive 4.2% in the first year, 3.0 % in the second year and 3.3 % in the third and final year. This is a 10.5% increase over three years. The weightings of the reshaped offer and how that increase will be paid has been changed in order to allow drivers to access the larger increase earlier.
This “is a substantial offer in these tough economic times. One only has to look at other settlements in the market which range between 0 and 3% to illustrate this”
The company offer of 10.5 % means
• A trainee driver who is currently earning $14.05 an hour would receive a 10.9 % increase over a three year term
• A new driver who is currently earning $15.82 an hour would receive a 10.8 % increase over a three year term
• Drivers who have worked over 9 months who are currently earning $16.75 an hour would receive a 10.9 % increase over a three year term
Ninety percent of drivers have worked for the company for longer than 9 months and are paid at the top rate.
” After five months of negotiation, it became obvious that the Unions claims were increasing, and the gap was widening,” says Mr Emson. In order to avert industrial action which impacts on Auckland commuters, NZ Bus filed an application for facilitation with the Employment Relations Authority to assist both parties to reach an agreement.
“We invited the Unions to support us in applying to the Authority. They have declined. It is difficult to understand why they do not want to resolve this issue, both for their members and Auckland commuters,” says Emson.
“Despite this application being in process, we understand the Unions have made comment to the media tonight saying they are moving to provide notice of industrial action” Emson continues. “It is worthwhile pointing out -that at this stage no notice of industrial action has been received”
“We now need to consider the Unions actions,” Emson continues. ”Today’s media commentary is bitterly disappointing.”
“Our customers are dealing with this ongoing uncertainty. We have a responsibility to provide them with clarity and we apologize sincerely for this.”
Additional information
Background
NZ Bus has been negotiating with the Auckland Combined Unions since May 2009. The Auckland Combined Unions represent the bus drivers and cleaners who work for Metrolink, North Star, Go West, Waka Pacific, Link and City Circuit buses
NZ Bus employs approximately 900 drivers and cleaners in Auckland
The annual pay roll sits in excess of $41.5 million per annum
The Negotiation Process
Despite the difficult economic conditions, NZ Bus has put a series of improved offers on the table.
The company’s initial offer of 9.5% later moved to 9.9%
At mediation on Tuesday September 8th, in an effort to avert industrial action that would severely disrupt Auckland commuters, NZ Bus put an improved offer of 10.4% on the table. (3.6-3.5-3.3 % respectively)
On September 28th an increased and reshaped company offer of 10.5% over three years was put on the table. The weightings of how the increase will be paid have been changed in order to allow drivers to access the increase earlier. Drivers will receive 4.2% in the first year, 3.0 % in the second year and 3.3 % in the third and final year
The company offer of 10.5 % over three years is a substantial one and is highly competitive in today’s economic environment when you compare it to other settlements ranging between 0 and 3%.
Friday 4th September
The Unions issued a notice of strike action to commence September 9th. In response NZ Bus issued a notice of lockout to commence from September 9th.
Tuesday 8th September
NZ Bus and the Auckland Combined Unions attended mediation. In an effort to avert industrial action NZ Bus tabled an improved the offer of 10.4% over three years.
The notice of strike action was lifted by the Unions, and in response the Notice of lockout was lifted by NZ Bus.
The Unions agreed to take this to a stop work meeting on Friday 11 September.
Friday 11th September
The Auckland Combined Unions held their stop work meeting and voted against the offer. NZ Bus scheduled mediation to occur on Monday 14th at 3 pm. The Unions undertook to meet on Sunday evening to discuss their next course of action.
Sunday 13th September
The Auckland Combined Unions met to consider their next course of action. Post that meeting they said to media they would see what offer NZ Bus was prepared to put on the table at mediation on Monday 14th.
Monday 14th September
NZ Bus met with the Auckland Combined Unions at mediation. The Unions were asked to provide feedback around the stop work meeting.
They advised they had an amended position to present to the company and were asked to articulate their formal position in terms of claims.
The Unions requested more time to construct their position and mediation was adjourned until 10 am Tuesday 15th September
Tuesday 15th September
The Unions articulated an amended position and claims, which was an increase on their previous articulated position of Tuesday September 8.
The Unions starting position for was 12.95% on Wednesday 9th September. It then increased to 13.35 % on Friday 11th September and on Tuesday 15th had increased again to over 14%.
Wednesday 16th September
NZ Bus advised that an application would be filed with the Employment Relations Authority for facilitation assistance, in resolving the difficulties in concluding the collective bargaining.
NZ Bus formally seeks the Auckland Combined Unions support for this application.
Thursday 17th September
Both parties attended mediation and later adjourned to consider their positions.
Both parties agreed that they are available to attend mediation on Thursday 24th September.
In the interim NZ Bus said it would continue with its application to file for facilitation with the Employment Relations Authority
The Union delegates said they would meet on Tuesday 22 to discuss if they would support the application for facilitation or not.
Friday 18th September
NZ Bus files for application to the Employment Relations Authority
Monday 21st September
The Unions advise the mediation services they will not be attending mediation on Thursday 24th September as planned.
They decided instead to hold their delegate meeting on the evening of Thursday 24th
As a result mediation is rescheduled for Monday 28th
Monday 28th September
NZ Bus puts an increased and reshaped offer on the table of 10.5% over three years (4.2% 3.0% and 3.3%)
This is rejected by the Auckland Combined Unions who left mediation to go away and consider their options
Additionally the Auckland Combined Unions advised they do not want to be a joint party in the application for facilitation
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