Telecom to axe Chch jobs

Press, 2 June 1988, Page 1

Telecom to axe Chch jobs

By NIGEL MALTHUS Telecom Corporation plans to trim at least 97 jobs from the Christchurch district. . It announced yesterday that staff numbers at its messaging centre in Cathedral Square would fall from 29 to 12 as “part of the corporation’s restructuring to become more competitive.” Staff at the centre, which handles telegrams and facsimile messages, were informed at 2 p.m. yesterday. The announcement came soon after it was revealed that 80 jobs were to be axed from Telecom’s Christchurch workshops. Staff in those areas were informed on Tuesday : A spokeswoman could not comment last evening on the likelihood of further cuts. Assessments were being made of the needs of various sections and decisions would be made as soon as possible, she said; Telecom said that because of the increasing popularity of electronic messaging and the subsequent decline in telegrams, the messaging section had been running at a substantial loss for some time, and Telecom proposed to reduce numbers to equate with demand. The delivery of facsimile mes-

sages and telegrams would be done in future by contract, resulting in the loss of seven delivery jobs. Four out of five supervisors’ jobs and six out of 16 clerks’ jobs would go, while the manager’s job would be downgraded.

In its earlier announcement, Telecom said it proposed reducing trades and engineering staff in Christchurch from 139 to 85, and transport section staff from 69 to 43.

The district manager, Mr Brian Finn, said the restructuring? plans were necessary to reduce costs and improve efficiency. Telecom wanted to focus on its own business rather than peripheral areas.” ■ - . The workshop cuts would represent the end of some entire sections, including typewriter and clock repair, plumbing, engraving, and cycle mechanics. The motor-vehicle workshops, equipped for full mechanical, panel repair and bodybuilding work, would be reduced to handle minor repairs only. Such areas were not part of Telecom’s core business, said Mr Finn.

The reductions were also necessary because the workshops were no longer handling wbrk from the old Post Office’s postal

and banking arms, he said. telecom planned to advertise all positions within the new structure, and offer the options of redeployment, retraining, relocation, early retirement, or voluntary severance to the “unsuccessful applicants.” Telecom emphasised that the cuts were only “proposals” still subject to staff and union input

The Post Office Union was informed last Friday, and was given two weeks to register coun-ter-proposals and a further two weeks for consultation. The r , hew structure was planned to be in place by midJuly.

The union’s Canterbury section . chairman, Mr Phil. Yarrelt sald : that the 'union* was - against the loss of the seven delivery jobs. It opposed people losing their jobs, when there was work available.

Mr Yarrell said that some of the other areas, though not part of Telecom’s core business, were nevertheless profitable. The panel shop, for example, was paying its way by taking in outside work. •

Getting severance pay of a year’s wages in the hand would not be a good deal, considering Telecom’s profit, which he predicted could be $5OO to $6OO million this year.