Air NZ staff left in lurch, Aussie taxpayer to pay
Wed "The Australian" 22/1/03
Air NZ staff left in lurch
By Steve Creedy
January 22, 2003
THE airline that abandoned 16,000 Ansett employees has told its Australian workers it will not secure their entitlements because they have access to government safety nets similar to the scheme responsible for the $10 Ansett tax.
The rebuff by Air New Zealand has outraged union officials, who say the airline is basically telling local workers they should depend on the federal Government for their entitlements.
"Basically, the tenor of the whole thing is that the Australian taxpayer can pay," said Australian Services Union assistant national secretary Linda White.
The ASU sought additional security over entitlements during contract negotiations last year because of worries about the Kiwi carrier's history and its financial position.
Air NZ employs about 90 Australian workers at airports as well as in sales and reservations.
Air NZ is clawing its way back from a near financial disaster that forced the NZ Government to launch a costly rescue bid.
Because of the debacle the Australian Government imposed a $10 ticket levy on domestic flights to cover basic worker entitlements after Air NZ cut Ansett adrift and the airline was placed in administration.
More recently, airline officials have predicted a grim future for the Kiwi carrier if a controversial equity alliance with Qantas is not allowed to proceed.
The ASU proposed three alternatives - a trust fund scheme, an insurance scheme and a charge over assets - to secure the Air NZ workers' entitlements "given the history and precedent set by Air NZ and its former subsidiary Ansett".
But in a letter obtained by The Australian, Air NZ said it did not see why it should incur the additional costs of securing the Australian workers' entitlements.
The letter from human resources manager Allen Pascoe pointed to protections such as the corporations law and the General Employee Entitlements and Redundancy Scheme.
"Given the statutory protection of employee entitlements and access to safety net schemes such as GEERS, we consider that it is neither necessary nor appropriate for Air New Zealand to incur the additional costs associated with establishing any of the alternatives you canvass in your letter of November 12," the letter said.