Famous last words on airline

Press, 4 June 1982, Page 4

Famous last words on airline

By

LES BLOXHAM

travel editor

The threat of redundancy has hung over the heads o"f Air New Zealand's employees for ■ almost four years. Claims. counter-claims, threats, assurances, worries, warnings,. and reassurances relating to staff levels have frequently, appeared in the columns of “The Press" since before the merger of Air New Zealand and the National Airways Corporation early in 1978. The following chronology from the files 'reveals some interesting comments in view of the airline's decision to reduce staff by 1400 over the next three years:

December 15, 1977: The Prime Minister speculates that the proposed merger could produce a net saving of SIOM a year. January 30, 1978: The Minister of Transport (Mr McLachlan) assures deputation of Air New Zealand and N.A.C. employees that they will not be worse off after, tpe merger.A “All our fears have been cast ; aside." said«;‘ aspokesman for the delegation later. '

March 24. 1978: N.A.C. engineers in Christchurch call for an injunction to stop the merger and threaten industrial action unless given written assurances on job security. April 1, 1978: Airlines merged; total staff 8729. October 5, 1978: Mr J. G. O'Brien, M.P. for Island Bay, says in Parliament "that " Air New Zealand was “an old boys’ club oU war surplus moustaches and staffed by 700 people it does not need." February 1. 1980: Airline’s public affairs manager, Mr John Berry, “emphatically • denies" a television news assertion that 500 clerical and middlemanagement staff will have to be dismissed. He said that a clear understanding was given by the Government at the time of the merger that no-one would be laid off. August 18, 1980: Each Air New Zealand employee „was achieving about "a quarter-more in productivity than he was at the time of the merger, said the airline’s . chief executive, Mr M.

R. Davis. He was responding to criticism in Parliament that the total number of staff had risen by 250 to 8981 since the merger. "I gather some people expect us to wave a magic wand," said Mr Davis. "I think the results are pretty good without resorting to magic.". August 28, 1980: Airline announces operating loss of SI6M (international, $11M: domestic S4.BM). October 9, 1980:

“Had the merger hot occurred I am convinced that we would have been facing the same problem in the domestic field and contemplating the same remedial measures as we are today." — Mr D. A. Patterson, former genera] -manager of N.A.C., and now a board member of ■, Air New Zealand. November 18, 1980:

Airline informs unions that it wants.to lay off a “sizeable" number of staff. A 10 per cent reduction — 900 — is suggested. November 19, 1980: “Staff and their families, who probably number 25,000 people, work in

security because Air New Zealand exists." — Mr Davis. December 3, 1980: Airline sets February 28 deadline for reducing staff by 275. January 20, 1981: Union officials warn that unions and Air New’ Zea- . land could ’ clash over lay-off plans. March 31, 1981: Staff reduced to 8798. September 2, 1981: Airline announces operating loss of $43.5M (international, $33.5M: domestic, $10M). October 16, 1981:

Management warns staff that their refusal to accept pay' freezes and cuts in holidays would lead to “substantial" layoffs. November 16, 1981:

Plan’ presented to employee groups at private meeting for a "lean airline" with 900 fewer staff and greatly reduced fleet by October (1982). Unions reportedly “shocked and angry" by plan. April 1, 1982: Number of staff. 8018. April 26, 1982: Controversial Colker report released.

May 6, 1982: Airline's chairman. Mr R. A. Owens, attacks Colker recommendation of laying off 2000 and claims its destroying staff morale. “The best way to ruin the aims of a "company attempting to build itself up was to start talking about slashing a lot of staff." he told a businessmen’s meeting in Hong Kong. May 13, 1982: “The Press" speculates that staff will be cut to 6500 in several stages over the next three years.

May 15, 1982: Mr Owens seeks source of “leaked" false report published by some evening newspapers claiming that 500 will lose jobs.

May 17, 1982: Recovery plan revealed in part, but no details released on redundancies. June 2, 1982: Management finally informs unions that 1418 employees must go in stages over the next three years to reduce staff ceiling to 6600. Staff waiting to be identified.