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Immigration NZ looking into claims Wellington’s foreign bus drivers are underpaid - The Post - 8/08/23
Immigration Minister Andrew Little has asked officials to look into claims foreign bus drivers in Wellington are being underpaid and made to clean buses.
Little was alerted to the issue by Tramways Union secretary Kevin O’Sullivan and his correspondence back to the union showed that, if the claims were correct, the Ministry of Business, Innovation and Employment (MBIE) “would move to suspend that’s employer’s accreditation” to use foreign workers.
The employer is NZ Bus, one of the two major bus companies servicing the capital, and it is alleged the company is paying foreign drivers less than New Zealanders for their first 30 days, which is putting them in breach of their visa requirements. NZ Bus has denied the allegations.
An NZ Bus driver pay slip seen by The Post shows one driver was paid a base rate of $21.54 per hour, before penal rates. This was topped up to $23.65 after a living wage adjustment.
Metlink — which oversees public transport for the Greater Wellington Regional Council — recently sweetened the deal for bus drivers with improvements to conditions and a wage top-up to $27 an hour. Then, in March, the council agreed to apply for Government money to take the hourly rate to $30 but, while this was agreed to, that money and back pay is yet to arrive in drivers’ accounts though will be back paid to April 1.
O’Sullivan wrote to Little alleging the foreign drivers needed to earn at least $28 an hour for visa requirements. But he said they were being paid significantly less for their first 30 days while they were trained, and were being made to refuel and clean buses.
Immigration Minister Andrew Little said it was important that immigration rules were adhered to and he had referred the matter to MBIE, which was investigating.
Immigration Minister Andrew Little has asked MBIE to look into claims of underpaid foreign bus drivers in Wellington.
“I have received correspondence from the NZ Tramways and Public Passenger Transport Employees Union Wellington Branch that raises a number of potential employment relations and immigration issues,” he said in a statement.
“Given the breadth of the issues raised, MBIE has undertaken to conduct a department-wide approach to determine the next appropriate steps.”
MBIE immigration, compliance and investigations general manager Steve Watson said the ministry was assessing the allegations to see what further action was required.
O’Sullivan also raised an issue that drivers were being paid a higher hourly rate - albeit without penal rates - if they ditched the collective agreement and went on to an individual agreement. Little referred this to Workplace Relations Minister Carmel Sepuloni who was seeking advice.
Little was alerted to the issue by Tramways Union secretary Kevin O’Sullivan and his correspondence back to the union showed that, if the claims were correct, the Ministry of Business, Innovation and Employment (MBIE) “would move to suspend that’s employer’s accreditation” to use foreign workers.
The employer is NZ Bus, one of the two major bus companies servicing the capital, and it is alleged the company is paying foreign drivers less than New Zealanders for their first 30 days, which is putting them in breach of their visa requirements. NZ Bus has denied the allegations.
An NZ Bus driver pay slip seen by The Post shows one driver was paid a base rate of $21.54 per hour, before penal rates. This was topped up to $23.65 after a living wage adjustment.
Metlink — which oversees public transport for the Greater Wellington Regional Council — recently sweetened the deal for bus drivers with improvements to conditions and a wage top-up to $27 an hour. Then, in March, the council agreed to apply for Government money to take the hourly rate to $30 but, while this was agreed to, that money and back pay is yet to arrive in drivers’ accounts though will be back paid to April 1.
O’Sullivan wrote to Little alleging the foreign drivers needed to earn at least $28 an hour for visa requirements. But he said they were being paid significantly less for their first 30 days while they were trained, and were being made to refuel and clean buses.
Immigration Minister Andrew Little said it was important that immigration rules were adhered to and he had referred the matter to MBIE, which was investigating.
Immigration Minister Andrew Little has asked MBIE to look into claims of underpaid foreign bus drivers in Wellington.
“I have received correspondence from the NZ Tramways and Public Passenger Transport Employees Union Wellington Branch that raises a number of potential employment relations and immigration issues,” he said in a statement.
“Given the breadth of the issues raised, MBIE has undertaken to conduct a department-wide approach to determine the next appropriate steps.”
MBIE immigration, compliance and investigations general manager Steve Watson said the ministry was assessing the allegations to see what further action was required.
O’Sullivan also raised an issue that drivers were being paid a higher hourly rate - albeit without penal rates - if they ditched the collective agreement and went on to an individual agreement. Little referred this to Workplace Relations Minister Carmel Sepuloni who was seeking advice.
LATEST NEWS 09/07/23
NZ Bus ordered to pay $30,000 to Paul Abigail - TU 06/04/23
Paul Abigail was dismissed by Ken Pearson on 14 July 2022 for allegedly failing to report an accident resulting in the Tramways Union filing a claim of unjustified dismissal on Paul's behalf. On 3 April 2023, the Employment Relations Authority agreed with the Tramways Union in finding that Paul Abigail's dismissal was unjustified and has ordered NZ Bus to pay nearly $30,000. Authority member Claire English stated in her written determination that...
"...my view is that Mr Abigail’s dismissal was motivated in substantial part by Mr Pearson’s determination to apply the new accident reporting policy strictly, and a concern that any decision by him short of dismissal would be perceived to indicate or inadvertently create a “loophole” in the policy, which would have the impact of undermining the impact of the policy when applied to other drivers in the future."
Click here to read the ERA's full determination
"...my view is that Mr Abigail’s dismissal was motivated in substantial part by Mr Pearson’s determination to apply the new accident reporting policy strictly, and a concern that any decision by him short of dismissal would be perceived to indicate or inadvertently create a “loophole” in the policy, which would have the impact of undermining the impact of the policy when applied to other drivers in the future."
Click here to read the ERA's full determination
Government to spend $61m to lift bus driver wages - Stuff 30/10/22
The Government will spend $61 million to push bus drivers' pay up, as cities around New Zealand battle with major shortages, cancellations, and service disruptions. Transport Minister Michael Wood announced on Sunday the Government would spend the money, allocated in this year’s Budget, with the aim of pushing urban bus drivers' pay up to $30 per hour, and regional drivers' pay up to $28 per hour.
The minister said there were some 800 drivers needed across the country, including 500 in Auckland and some 120 in Wellington, and raising drivers' pay would make it easier to both recruit and retain workers, and improve frequency and reliability of bus services.
"The Government is putting money on the table, from us, to make sure that we lift pay and conditions. But as a part of that, we're also requiring that operators and councils also come to the party,” Wood said.
“I will be pressing them all for implementation that is as fast as possible to get the benefit of Government investment to our bus drivers, who deserve it.”
Everyone involved agreed on the intention to reach the target $30 and $28 rates, he said.
Public transport authorities and operators could access a share of the $61m funding over the coming four years, provided they contribute to wage increases and continue to adjust rates in the future.
The funding may also be used by transport authorities to offer drivers a 1.2x pay rate for work after 9pm, and a split-shift allowance of $30.
The pay rise would not apply to school bus drivers, who were contracted to the Ministry of Education, though this was “probably” something the Government needed to look at, Wood said.
Wood said the former National Government’s operating model for public transport had incentivised councils to offer bus operators contracts “almost exclusively on commerciality”, which had led to a “race to the bottom”.
Government, unions and transport operators have been working for some time on an agreement to address the large scale shortages across the country.
Bay of Plenty bus drivers have become some of the highest paid in the country after an agreed wage hike to $28 an hour.
Fair pay agreement legislation passed on Wednesday, allowing the possibility of future sector-wide negotiations, which may include bus drivers.
Wood said the Government’s boost to driver wages would set “an improved bar” for pay rates in advance of any negotiations, which he believed was “really appropriate”. “If workers and unions and this sector see the value of a fair pay agreement, they will then have the ability to initiate that to try and lock in those gains, and I wouldn't be surprised to see that happen.”
Gordon Tait was the human resources manager at NZ Bus in Wellington for six years to 2020.
The financial boost was good but the underlying problems with bus work meant it would still be unpalatable work for many, he said. "Bus driving is not particularly pleasant work. It has anti-social hours, driving a large vehicle on narrow streets, with all types of people, ranging from young to old, commuters and the drunks.
"People may verbally or physically assault them. People rob them. People vomit on buses and fight on buses."
He had heard that the new owner of NZ Bus, Australian truck transport company Kinetic, had made some positive changes that were getting drivers more on-side.
Auckland Transport group manager Darek Koper said driver wages in the city had increased on average by 16% in the past three months, but more funding was needed.
“The Auckland bus driver shortage is greater than the entire driver workforce required or needed to operate in Wellington.”
First Union assistance general secretary Louisa Jones said there were some 800 driver vacancies across the country.
The minister said there were some 800 drivers needed across the country, including 500 in Auckland and some 120 in Wellington, and raising drivers' pay would make it easier to both recruit and retain workers, and improve frequency and reliability of bus services.
"The Government is putting money on the table, from us, to make sure that we lift pay and conditions. But as a part of that, we're also requiring that operators and councils also come to the party,” Wood said.
“I will be pressing them all for implementation that is as fast as possible to get the benefit of Government investment to our bus drivers, who deserve it.”
Everyone involved agreed on the intention to reach the target $30 and $28 rates, he said.
Public transport authorities and operators could access a share of the $61m funding over the coming four years, provided they contribute to wage increases and continue to adjust rates in the future.
The funding may also be used by transport authorities to offer drivers a 1.2x pay rate for work after 9pm, and a split-shift allowance of $30.
The pay rise would not apply to school bus drivers, who were contracted to the Ministry of Education, though this was “probably” something the Government needed to look at, Wood said.
Wood said the former National Government’s operating model for public transport had incentivised councils to offer bus operators contracts “almost exclusively on commerciality”, which had led to a “race to the bottom”.
Government, unions and transport operators have been working for some time on an agreement to address the large scale shortages across the country.
Bay of Plenty bus drivers have become some of the highest paid in the country after an agreed wage hike to $28 an hour.
Fair pay agreement legislation passed on Wednesday, allowing the possibility of future sector-wide negotiations, which may include bus drivers.
Wood said the Government’s boost to driver wages would set “an improved bar” for pay rates in advance of any negotiations, which he believed was “really appropriate”. “If workers and unions and this sector see the value of a fair pay agreement, they will then have the ability to initiate that to try and lock in those gains, and I wouldn't be surprised to see that happen.”
Gordon Tait was the human resources manager at NZ Bus in Wellington for six years to 2020.
The financial boost was good but the underlying problems with bus work meant it would still be unpalatable work for many, he said. "Bus driving is not particularly pleasant work. It has anti-social hours, driving a large vehicle on narrow streets, with all types of people, ranging from young to old, commuters and the drunks.
"People may verbally or physically assault them. People rob them. People vomit on buses and fight on buses."
He had heard that the new owner of NZ Bus, Australian truck transport company Kinetic, had made some positive changes that were getting drivers more on-side.
Auckland Transport group manager Darek Koper said driver wages in the city had increased on average by 16% in the past three months, but more funding was needed.
“The Auckland bus driver shortage is greater than the entire driver workforce required or needed to operate in Wellington.”
First Union assistance general secretary Louisa Jones said there were some 800 driver vacancies across the country.
The Ghosts of PTOM come back to haunt GWRC's Halloween
Metlink, which is currently 120 drivers short, said 67 NZ Bus operated services on its network would be suspended from Monday. It warned Wellington commuters to expect further unplanned cancellations. There are 67 services during the morning and afternoon peaks ear-marked to be axed temporarily. The move was designed to minimise uncertainty, said Metlink's general manager Samantha Gain. Trips are being removed from both the most frequent and least popular routes, with some services being replaced with bigger buses to keep up with demand.
Gain said the national driver shortage had been affecting customers and operators across Metlink's entire network, particularly in Wellington city but failed to acknowledge that National's disasterous PTOM legislation coupled with GWRC's attempt to smash the Tramways Union by awarding contracts to the lowest priced tenderers resulted in scores of experienced drivers abandoning the industry in 2019 and disincentivised prospective job seekers.
Metlink was working on addressing the systemic issues of staffing, she said but failed to mention that GRWC's actions under the leadership of Chris Laidlaw, Wayne Hastie and Chief Executive Greg Campbell were largely responsible for the current crisis by creating redundancies and slashing drivers' pay and conditions with the introduction of PTOM.
Metlink is advising customers to check the website and app before they travel and plan their journey.
The bus routes affected are 2, 3, 14, 20, 21, 22, 33, 34, 35, 36, 83, 84, 30x, 31x.
Gain said the national driver shortage had been affecting customers and operators across Metlink's entire network, particularly in Wellington city but failed to acknowledge that National's disasterous PTOM legislation coupled with GWRC's attempt to smash the Tramways Union by awarding contracts to the lowest priced tenderers resulted in scores of experienced drivers abandoning the industry in 2019 and disincentivised prospective job seekers.
Metlink was working on addressing the systemic issues of staffing, she said but failed to mention that GRWC's actions under the leadership of Chris Laidlaw, Wayne Hastie and Chief Executive Greg Campbell were largely responsible for the current crisis by creating redundancies and slashing drivers' pay and conditions with the introduction of PTOM.
Metlink is advising customers to check the website and app before they travel and plan their journey.
The bus routes affected are 2, 3, 14, 20, 21, 22, 33, 34, 35, 36, 83, 84, 30x, 31x.
Bus shortage: 'Significant' driver agreement nearing as sector struggles for staff
A significant agreement for bus drivers looks imminent, as the Government attempts to improve conditions and wages for a sector plagued with shortages, causing huge disruptions in public transport networks across the country.
This comes as Metlink, which is currently 120 drivers short, said 67 bus services on its network would be suspended from Monday. It warned Wellington commuters to expect further unplanned cancellations.
An agreement on how to use the $61 million allocated in this year’s Budget is nearing completion in the coming weeks, according to people with knowledge of the deal. The intent is to improve both conditions and pay, they said on condition of anonymity to discuss the deal.
But any agreement is unlikely to provide a quick fix.Some industry players warn it could take years to reverse the crisis and are calling on the Government to review immigration rules in the meantime.
“Businesses are being stretched to breaking point,” the Bus and Coach Association, Waste Management Industry Forum and National Road Carriers said in a joint letter to Wood.
They estimated the sector was short of at least 8000 drivers for freight services, up to 600 for buses and 400 for waste collection vehicles.
“What is required immediately are changes to immigration settings,” they wrote in the letter.
Michael Wood, who is both transport and immigration minister, said that staffing challenges facing many cities “has been driven by a contracting system that forces operators to lower drivers’ pay and conditions in order to compete commercially”.
Improving driving conditions would make it easier to recruit and retain a strong workforce, “allowing frequent and reliable bus services,” he said.
“That’s why we are moving ahead with reforms to the public transport operating model, introducing Fair Pay Agreements, and have set aside $61m... to improve terms and conditions for drivers.
“We are currently working alongside unions, the Bus and Coach Association and local authorities to determine how this funding will be utilised.”
But the industry has warned that improvements will take time to be felt.
Ben McFadgen, the chief executive of the Bus & Coach Association NZ, said he was aware of a “gradual erosion of bus driver wages over time”, adding that it could take the industry two to three years to recover. “We’ve got a labour shortage that needs to be sorted now.”
Some regional councils had gone out on their own, unable to wait for central government, he said.
“There are inconsistencies around the country, some councils managed to get pay rates up... Others can't afford or haven't been able to.”
McFadgen feared should there not be a sizeable shift in conditions and pay, cancellations would increase further.
Kevin O’Sullivan, secretary of the Tramways bus drivers’ union, said he’d seen figures showing there had been only six new hires in Wellington between April and September.The real problem was that drivers needed to be treated better, he said.
“Money is just half of the equation, they have to be treated equally,” Sullivan said. “I'm optimistic it’ll kind of work out. There’s going to have to be some big and very fundamental changes to the way the industry works.”
Council of Trade Unions president Richard Wagstaff said the bus industry had been in a staffing crisis for several years and
the impending bus driver agreement was “hugely significant,” he said.
Wood said employers were able to recruit internationally provided they paid migrant workers at least the median wage.
From February 27 next year, a new median wage of $29.66 an hour is set to be adopted by Immigration NZ. Bay of Plenty bus drivers became some of the highest paid in the country this week after an agreed wage hike to $28/h.
Metlink had increased pay to $27/h and “took the lead role in ushering in rest and meal breaks for drivers”, said Metlink General Manager Samantha Gain.
But there was no short term fix, she said, calling for further pay increases and fair pay agreements, and changes to immigration settings.
This comes as Metlink, which is currently 120 drivers short, said 67 bus services on its network would be suspended from Monday. It warned Wellington commuters to expect further unplanned cancellations.
An agreement on how to use the $61 million allocated in this year’s Budget is nearing completion in the coming weeks, according to people with knowledge of the deal. The intent is to improve both conditions and pay, they said on condition of anonymity to discuss the deal.
But any agreement is unlikely to provide a quick fix.Some industry players warn it could take years to reverse the crisis and are calling on the Government to review immigration rules in the meantime.
“Businesses are being stretched to breaking point,” the Bus and Coach Association, Waste Management Industry Forum and National Road Carriers said in a joint letter to Wood.
They estimated the sector was short of at least 8000 drivers for freight services, up to 600 for buses and 400 for waste collection vehicles.
“What is required immediately are changes to immigration settings,” they wrote in the letter.
Michael Wood, who is both transport and immigration minister, said that staffing challenges facing many cities “has been driven by a contracting system that forces operators to lower drivers’ pay and conditions in order to compete commercially”.
Improving driving conditions would make it easier to recruit and retain a strong workforce, “allowing frequent and reliable bus services,” he said.
“That’s why we are moving ahead with reforms to the public transport operating model, introducing Fair Pay Agreements, and have set aside $61m... to improve terms and conditions for drivers.
“We are currently working alongside unions, the Bus and Coach Association and local authorities to determine how this funding will be utilised.”
But the industry has warned that improvements will take time to be felt.
Ben McFadgen, the chief executive of the Bus & Coach Association NZ, said he was aware of a “gradual erosion of bus driver wages over time”, adding that it could take the industry two to three years to recover. “We’ve got a labour shortage that needs to be sorted now.”
Some regional councils had gone out on their own, unable to wait for central government, he said.
“There are inconsistencies around the country, some councils managed to get pay rates up... Others can't afford or haven't been able to.”
McFadgen feared should there not be a sizeable shift in conditions and pay, cancellations would increase further.
Kevin O’Sullivan, secretary of the Tramways bus drivers’ union, said he’d seen figures showing there had been only six new hires in Wellington between April and September.The real problem was that drivers needed to be treated better, he said.
“Money is just half of the equation, they have to be treated equally,” Sullivan said. “I'm optimistic it’ll kind of work out. There’s going to have to be some big and very fundamental changes to the way the industry works.”
Council of Trade Unions president Richard Wagstaff said the bus industry had been in a staffing crisis for several years and
the impending bus driver agreement was “hugely significant,” he said.
Wood said employers were able to recruit internationally provided they paid migrant workers at least the median wage.
From February 27 next year, a new median wage of $29.66 an hour is set to be adopted by Immigration NZ. Bay of Plenty bus drivers became some of the highest paid in the country this week after an agreed wage hike to $28/h.
Metlink had increased pay to $27/h and “took the lead role in ushering in rest and meal breaks for drivers”, said Metlink General Manager Samantha Gain.
But there was no short term fix, she said, calling for further pay increases and fair pay agreements, and changes to immigration settings.
The Ghosts of PTOM
Greg Campbell, The Former Chief Executive of Greater Wellington Regional Council Who Awarded the Majority Of Wellington's Bus Operations To The Lowest Priced Tenderers Resulting In Declining Pay And Working Conditions For Drivers Now Leads The Charge In Increasing Bus Drivers Wages As A Result Of Few People Wanting to Work in What Has Become A Low Pay Job With Extremely Poor Terms and Conditions. 13/10/22
Bay of Plenty bus drivers are now amongst the highest paid in New Zealand after Bay of Plenty Regional Council recently agreed to sweeping wage rises, to $28 an hour. Bay of Plenty Regional Council’s Public Transport Director Greg Campbell said the approval to significantly raise the hourly wage was an emphatic step addressing the critical national shortage of bus drivers head on. “This wage rise will attract new drivers to the role,” Mr Campbell said.
“Across New Zealand, public transport operators are experiencing bus driver shortages and we see this as being a critical step in the right direction towards addressing that.
“We recognise the benefit a reliable, efficient public transport network can make to a town, city and region. By making sure we’re keeping up with what is expected and attractive to drivers in pay rates, we are confident that we will be able to lift our current recruitment situation, and in turn the contribution our networks make to growing and supporting the Bay of Plenty.”
Head of Kinetic NZ Calum Haslop said NZ Bus, which operates the Tauranga city bus services, had been working with its council partners for some time to improve wages for our drivers and they were delighted with this outcome. “We required council’s support as the way our contracts adjust for cost increases over time has made it difficult to keep pace with wage increases across other sectors. NZ Bus is committed to making bus driving an attractive opportunity for a broad range of people by maintaining competitive wages, being a well-regarded and trusted employer, and looking after our people.”
“NZ Bus is working hard to address the current shortage of drivers and a return to providing full timetables across our services in Tauranga.”
Louisa Jones, FIRST Union Assistant General Secretary said the pay increase recognises the importance bus drivers have to our communities and the uniquely challenging work environment that Bay of Plenty drivers have dealt with over the last few years.
“It’s crucial across Aotearoa that we recruit new bus drivers while recognising skills and long service, and with Bay of Plenty drivers now earning an average of around $28 per hour, the job is more attractive than ever in almost all of our major centres,” Ms Jones said.
“We’re calling on other outlier councils who have not yet done to do so to meet this new market rate to match these pay rises rather than fall behind the pack unnecessarily before Fair Pay Agreements are implemented nationally.”
The Bay of Plenty’s bus networks have been working on reduced timetables since the pandemic began and in some areas it is estimated that bus driver numbers are almost 30% less than the optimum number required to provide a full and reliable service.
“Across New Zealand, public transport operators are experiencing bus driver shortages and we see this as being a critical step in the right direction towards addressing that.
“We recognise the benefit a reliable, efficient public transport network can make to a town, city and region. By making sure we’re keeping up with what is expected and attractive to drivers in pay rates, we are confident that we will be able to lift our current recruitment situation, and in turn the contribution our networks make to growing and supporting the Bay of Plenty.”
Head of Kinetic NZ Calum Haslop said NZ Bus, which operates the Tauranga city bus services, had been working with its council partners for some time to improve wages for our drivers and they were delighted with this outcome. “We required council’s support as the way our contracts adjust for cost increases over time has made it difficult to keep pace with wage increases across other sectors. NZ Bus is committed to making bus driving an attractive opportunity for a broad range of people by maintaining competitive wages, being a well-regarded and trusted employer, and looking after our people.”
“NZ Bus is working hard to address the current shortage of drivers and a return to providing full timetables across our services in Tauranga.”
Louisa Jones, FIRST Union Assistant General Secretary said the pay increase recognises the importance bus drivers have to our communities and the uniquely challenging work environment that Bay of Plenty drivers have dealt with over the last few years.
“It’s crucial across Aotearoa that we recruit new bus drivers while recognising skills and long service, and with Bay of Plenty drivers now earning an average of around $28 per hour, the job is more attractive than ever in almost all of our major centres,” Ms Jones said.
“We’re calling on other outlier councils who have not yet done to do so to meet this new market rate to match these pay rises rather than fall behind the pack unnecessarily before Fair Pay Agreements are implemented nationally.”
The Bay of Plenty’s bus networks have been working on reduced timetables since the pandemic began and in some areas it is estimated that bus driver numbers are almost 30% less than the optimum number required to provide a full and reliable service.
Otago bus drivers to become some of the highest paid in NZ with surprise $5 pay rise Stuff – 30/09/22
More than 100 people will wake up on Saturday as some of the highest paid bus drivers in the country. In a surprise announcement by the Otago Regional Council on Friday, the average wage for a bus driver in Otago will become $27.76, effective October 1.
It was $5 more than what the ORC funded a few months ago, and a bigger boost than other councils had given drivers, such as the $4.25 increase for Wellington in December, the $2-3 recently given to Auckland drivers and the 75 cents given to Christchurch drivers.
Canterbury’s drivers were now some of the lowest paid in the country, with some drivers working 12-hour shifts to make ends meet.
Otago’s boost followed “a huge struggle, a long struggle” for better pay, Tramways Union Dunedin branch president Alan Savell said.
Services had been reduced for several months in many cities, with many bus drivers moving on to better paid jobs as Taxi or Uber drivers, Savell said.
While Covid-19 and illness had been attributed to service reduction, Savell said wages had been an issue for years.
He believed increased media exposure of their struggle, such as covering the Wellington bus driver strike, had helped.
“Drivers noticed a real difference in attitudes of our passengers. A lot more taking the effort to say thank you, good morning... some say ‘we didn’t realise you were paid so low’.” He was hopeful drivers who left would return to the industry, saying there were about 2000 people in the region who had the necessary licence and permits.
Otago Regional Council (ORC) interim chief executive Pim Borren said in a statement to media the new average was the minimum hourly rate of pay required by the Government to recruit overseas drivers. Borren said he believed the driver labour force had dried up because of Covid-19, as typically New Zealand relied on recruiting overseas. This move was him taking “direct responsibility and accountability” for improving service levels. The status quo was “not an option”, he said.
The wage increase was agreed at a private ORC meeting earlier this week. However, effective immediately wasn’t the same as an instant $5 in their pockets. An ORC spokesperson could not confirm if agreements had been reached with the drivers’ employers or NZTA, but there would be a backpay to October 1 if there were delays, they said.
The fight for better pay had been “tumultuous” for the Dunedin and Queenstown-based drivers, Savell said. It followed years of broken promises and delayed wage increases. In 2020 drivers were told they’d earn the living wage, but it took around 15 months to finalise it with providers.
Providers, like Go Bus and Ritchie, employed the bus drivers. They could increase wages above the council’s set average, and had done in Christchurch, said Lindsay Chappell of the Amalgamated Workers Union NZ (AWUNZ). He said the Christchurch drivers’ average was $24 an hour after top-ups from providers.
But he said providers and councils “don’t think about the drivers until passengers have them on,” as they had been doing after months of reduced services.
Savell was hopeful it signalled an increase in wages nationwide, as Dunedin may now attract drivers working elsewhere in the country, he said.
Clarification: This article was clarified to show the dollar average based on what councils funded the drivers. The figure may change depending on area, provider, union and contract.
It was $5 more than what the ORC funded a few months ago, and a bigger boost than other councils had given drivers, such as the $4.25 increase for Wellington in December, the $2-3 recently given to Auckland drivers and the 75 cents given to Christchurch drivers.
Canterbury’s drivers were now some of the lowest paid in the country, with some drivers working 12-hour shifts to make ends meet.
Otago’s boost followed “a huge struggle, a long struggle” for better pay, Tramways Union Dunedin branch president Alan Savell said.
Services had been reduced for several months in many cities, with many bus drivers moving on to better paid jobs as Taxi or Uber drivers, Savell said.
While Covid-19 and illness had been attributed to service reduction, Savell said wages had been an issue for years.
He believed increased media exposure of their struggle, such as covering the Wellington bus driver strike, had helped.
“Drivers noticed a real difference in attitudes of our passengers. A lot more taking the effort to say thank you, good morning... some say ‘we didn’t realise you were paid so low’.” He was hopeful drivers who left would return to the industry, saying there were about 2000 people in the region who had the necessary licence and permits.
Otago Regional Council (ORC) interim chief executive Pim Borren said in a statement to media the new average was the minimum hourly rate of pay required by the Government to recruit overseas drivers. Borren said he believed the driver labour force had dried up because of Covid-19, as typically New Zealand relied on recruiting overseas. This move was him taking “direct responsibility and accountability” for improving service levels. The status quo was “not an option”, he said.
The wage increase was agreed at a private ORC meeting earlier this week. However, effective immediately wasn’t the same as an instant $5 in their pockets. An ORC spokesperson could not confirm if agreements had been reached with the drivers’ employers or NZTA, but there would be a backpay to October 1 if there were delays, they said.
The fight for better pay had been “tumultuous” for the Dunedin and Queenstown-based drivers, Savell said. It followed years of broken promises and delayed wage increases. In 2020 drivers were told they’d earn the living wage, but it took around 15 months to finalise it with providers.
Providers, like Go Bus and Ritchie, employed the bus drivers. They could increase wages above the council’s set average, and had done in Christchurch, said Lindsay Chappell of the Amalgamated Workers Union NZ (AWUNZ). He said the Christchurch drivers’ average was $24 an hour after top-ups from providers.
But he said providers and councils “don’t think about the drivers until passengers have them on,” as they had been doing after months of reduced services.
Savell was hopeful it signalled an increase in wages nationwide, as Dunedin may now attract drivers working elsewhere in the country, he said.
Clarification: This article was clarified to show the dollar average based on what councils funded the drivers. The figure may change depending on area, provider, union and contract.
Wellington Branch President Election Results - TU 13/09/22
NZ Bus seeks to build new depot at Shelly Bay TU 22/06/22
NZ Bus Ltd has applied for resource consent to develop a new bus depot on land at Shelly Bay owned by Wellington property developer Eyal Aharoni. The development is intended to hold up to 120 buses, contain bus refuelling facilities, a bus wash, administration offices and parking for staff vehicles. The application will be controversial due to the nature of the road, its intersection at the Miramar Cutting, its proximity to the coastal environment and the interruption to what would have been a magnificent vista for purchasers of Ian Cassels' Shelly Bay housing development which has been likened previously to San Francisco's seaside town of Sausalito.
Click here for full details
Click here for full details
NZ Bus Wellington Tramways Union CEA available now... TU 30/11/21
Complete with its industry envied penal rates (time and a half and double time making for a top rate of $40+ per hour), controlled work hours, optional permanent shifts, a taxi agreement, 5 weeks annual leave, the option of 12 months unpaid leave with guaranteed re-employment and clauses that ensure procedural fairness in disciplinary matters. Click here to view the CEA
Tranzurban ordered to pay $23,672 to dismissed driver - TU 19/11/21
Andrew Ngovi was employed by Tranzurban Hutt Valley in June 2018 and dismissed in June 2019. Tranzurban claimed in the ERA that its dismissal of Mr. Ngovi was justified due to his inability to obtain his 'P' Endorsement.
Tranzurban's argument was found lacking in a number of areas and the procedures that Tranzurban used leading up to Mr. Ngovi's dismissal were also criticised by Employment Relations Authority Member Geoff O'Sullivan.
He described Tranzurban's dismissal of Mr Ngovi and both procedurally and substantively unjustified and ordered to pay Mr. Ngovi $15,000 for hurt and humiliation, $4,172 in lost wages and $4,500 costs making a total of $23,672.
Click here to read the full determination
Tranzurban's argument was found lacking in a number of areas and the procedures that Tranzurban used leading up to Mr. Ngovi's dismissal were also criticised by Employment Relations Authority Member Geoff O'Sullivan.
He described Tranzurban's dismissal of Mr Ngovi and both procedurally and substantively unjustified and ordered to pay Mr. Ngovi $15,000 for hurt and humiliation, $4,172 in lost wages and $4,500 costs making a total of $23,672.
Click here to read the full determination
Coming soon - your copy of the new NZ Bus Wellington CEA complete with penal rates (time and a half and double time making for a top rate of $40+ per hour), controlled work hours, optional permanent shifts, a taxi agreement, 5 weeks annual leave, the option of 12 months unpaid leave with guaranteed re-employment and clauses that ensure procedural fairness in disciplinary matters. Watch this space!!!
ERA finds against Tranzurban over 10 minute rest breaks - TU 04/08/21
The Tramways Union has succeeded in a claim against Tranzurban's failure to pay 10 minute rest breaks in circumstances where the union believed its members were entitled to such payment. The dispute centered on the company's interpretation of the Land Transport Rule regarding its application to members of the Tramways Union and how it affects their entitlement to 10 minute paid breaks particularly when working broken shifts.
At issue was whether there was a single work period each day (first sign on to last sign off), or whether there were multiple work periods each day (each leg of a broken shift being a separate work period).
The rule requires that ...if the work period is 10 hours or more but not more than 13 hours three 10 minute [paid] breaks must be allowed.
Tranzurban had not been paying the third break, arguing that the work period consisted of the actual time at work (including meal breaks) but not including time off between portions of broken shifts.
Michael Loftus of the Employment Relations Authority found that Tranzurban's argument relied heavily on implication and that the Union's argument was simple - read the various provisions. Theses provisions expressly state there is only one start and finish time for each period of work and that period may be interrupted by breaks be they paid or unpaid.
His determination concluded that the Tramways Union is correct and the term work period covers all time between an employee's initial commencement and final cessation on any given day.
Click here to read the full ERA decision
This case gives a clear example of why Union membership is so important. Employers often interpret agreements and legislation in their best interests and to the detriment to employees - particularly with regard to the Holidays Act, Health & Safety legislation and employment agreements. These interpretations can affect employees' financial remuneration and their health and safety, but individual employees do not have the resources or finances to discover and challenge these interpretations.
Join the Tramways Union now to ensure your employment rights are upheld. Visit our contact page by clicking here
At issue was whether there was a single work period each day (first sign on to last sign off), or whether there were multiple work periods each day (each leg of a broken shift being a separate work period).
The rule requires that ...if the work period is 10 hours or more but not more than 13 hours three 10 minute [paid] breaks must be allowed.
Tranzurban had not been paying the third break, arguing that the work period consisted of the actual time at work (including meal breaks) but not including time off between portions of broken shifts.
Michael Loftus of the Employment Relations Authority found that Tranzurban's argument relied heavily on implication and that the Union's argument was simple - read the various provisions. Theses provisions expressly state there is only one start and finish time for each period of work and that period may be interrupted by breaks be they paid or unpaid.
His determination concluded that the Tramways Union is correct and the term work period covers all time between an employee's initial commencement and final cessation on any given day.
Click here to read the full ERA decision
This case gives a clear example of why Union membership is so important. Employers often interpret agreements and legislation in their best interests and to the detriment to employees - particularly with regard to the Holidays Act, Health & Safety legislation and employment agreements. These interpretations can affect employees' financial remuneration and their health and safety, but individual employees do not have the resources or finances to discover and challenge these interpretations.
Join the Tramways Union now to ensure your employment rights are upheld. Visit our contact page by clicking here
Tranzurban cancels 2,342 bus services in July - TU 03/08/21
Wellington's commuters have suffered 3,350 bus cancellations in the month of July with Tranzurban being responsible for more than two-thirds of the missed trips.
It is the third consecutive month to see more than 3,000 services cancelled with Tranzurban cancelling 2,342 trips, NZ Bus cancelling 998 and Mana Coach Services cancelling only 10.
The cancellations are caused by a lack of drivers brought about by the poor pay and dreadful work conditions in the industry. In Wellington, it is a direct result of GWRC's decision to reward the lowest priced tenderer with the majority of the region's bus services.
In total, 3.6% of the 93,599 trips that should have run were cancelled with the vast majority being peak time services.
A new timetable that cuts peak hours services was introduced on 25 July for Tranzurban services with the same due to occur for NZ Bus services in several weeks time. The thinking behind the timetable reductions appears to be that the best way to avoid cancelling services is not to run them in the first place.
It is the third consecutive month to see more than 3,000 services cancelled with Tranzurban cancelling 2,342 trips, NZ Bus cancelling 998 and Mana Coach Services cancelling only 10.
The cancellations are caused by a lack of drivers brought about by the poor pay and dreadful work conditions in the industry. In Wellington, it is a direct result of GWRC's decision to reward the lowest priced tenderer with the majority of the region's bus services.
In total, 3.6% of the 93,599 trips that should have run were cancelled with the vast majority being peak time services.
A new timetable that cuts peak hours services was introduced on 25 July for Tranzurban services with the same due to occur for NZ Bus services in several weeks time. The thinking behind the timetable reductions appears to be that the best way to avoid cancelling services is not to run them in the first place.
Tramways Union Collective Agreement Settled - TU 29/07/21
Tramways Union members have accepted a new collective agreement offer from NZ Bus ending bitter months-long negotiations. Union secretary Kevin O'Sullivan said drivers were about 65 per cent in favour of the latest offer at Thursday's stopwork meeting. He said "the deal is that our existing terms and conditions were enshrined with a substantial pay increase".
It was the fourth in a series of offers put to Tramways Union members by NZ Bus with the three earlier ones being overwhelmingly rejected.
The deal is a major backdown by NZ Bus whose previous offers have mostly sought to remove historic terms and conditions that the union has safe guarded since deregulation in 1991. Overtime, holidays and penal rates were also in the gun in the company's previous offers, with NZ Bus hoping to entice members to forego these in return for a slightly higher hourly pay rate.
Members were resolute in their refusal to accept offers that reduced their terms and conditions (the gold standard envied by all other New Zealand bus drivers) knowing that once sold they were gone forever.
The union is fiercely protective of several highly valued benefits including double pay on Sundays, public holidays and after midnight, time and a half after 8 hours work, time and a half and double time when required to work on rostered days off, a taxi agreement, strict controls on hours of work without additional compensation, five weeks paid annual leave, the right to up to 12 months unpaid leave with guaranteed re-employment and clauses ensuring procedural fairness in disciplinary matters that were once described by an Employment Relations Authority member as "of Rolls Royce standard".
It was the fourth in a series of offers put to Tramways Union members by NZ Bus with the three earlier ones being overwhelmingly rejected.
The deal is a major backdown by NZ Bus whose previous offers have mostly sought to remove historic terms and conditions that the union has safe guarded since deregulation in 1991. Overtime, holidays and penal rates were also in the gun in the company's previous offers, with NZ Bus hoping to entice members to forego these in return for a slightly higher hourly pay rate.
Members were resolute in their refusal to accept offers that reduced their terms and conditions (the gold standard envied by all other New Zealand bus drivers) knowing that once sold they were gone forever.
The union is fiercely protective of several highly valued benefits including double pay on Sundays, public holidays and after midnight, time and a half after 8 hours work, time and a half and double time when required to work on rostered days off, a taxi agreement, strict controls on hours of work without additional compensation, five weeks paid annual leave, the right to up to 12 months unpaid leave with guaranteed re-employment and clauses ensuring procedural fairness in disciplinary matters that were once described by an Employment Relations Authority member as "of Rolls Royce standard".
New record - 3,572 bus cancellations in June - TU 07/07/21
More than 3500 buses were cancelled in Wellington last month as Tranzurban and NZ Bus struggle to employ drivers and GWRC prepares to reduce peak-hour timetables in response.
Wellington has long suffered an increasing shortage of drivers driven by poor wages, dreadful work hours and poor work conditions exacerbated by GWRC's awarding of contracts to the lowest priced tenders in the 2018 PTOM tender round.
Cancellations in Wellington have been steadily climbing since January when there were just 545 services which didn't go ahead.
In response, Metlink is working with operators on redesigning bus timetables to reduce rush-hour services and increase off-peak ones, but this will only lead to more commuters crammed into the fewer rush-hour services. GWRC needs to undertake a reality check and ask itself why it has so many "extra" peak hours services that it can now cancel. In truth, it doesn't and the changes will only result in overcrowding, angry passengers and increased stress for bus drivers.
COVID-19 has put a stop to greedy bus companies importing drivers from overseas to drive down wages and the Tramways Union's campaign to lift wages to a level that gives a real living wage and compensates for dreadful work hours and stress is the only way out of this mess. $920 per week for 40 hours work is not enough to live in what is arguably the most expensive city in New Zealand.
At the last Wellington Tramways Union stop work meeting, members resoundingly voted "NO" to the latest pay offer from operator NZ Bus.
It's the latest development in a long-lasting wrangle over the collective agreement, which has resulted in stop-work meetings, a strike, and a lockout.
Wellington has long suffered an increasing shortage of drivers driven by poor wages, dreadful work hours and poor work conditions exacerbated by GWRC's awarding of contracts to the lowest priced tenders in the 2018 PTOM tender round.
Cancellations in Wellington have been steadily climbing since January when there were just 545 services which didn't go ahead.
In response, Metlink is working with operators on redesigning bus timetables to reduce rush-hour services and increase off-peak ones, but this will only lead to more commuters crammed into the fewer rush-hour services. GWRC needs to undertake a reality check and ask itself why it has so many "extra" peak hours services that it can now cancel. In truth, it doesn't and the changes will only result in overcrowding, angry passengers and increased stress for bus drivers.
COVID-19 has put a stop to greedy bus companies importing drivers from overseas to drive down wages and the Tramways Union's campaign to lift wages to a level that gives a real living wage and compensates for dreadful work hours and stress is the only way out of this mess. $920 per week for 40 hours work is not enough to live in what is arguably the most expensive city in New Zealand.
At the last Wellington Tramways Union stop work meeting, members resoundingly voted "NO" to the latest pay offer from operator NZ Bus.
It's the latest development in a long-lasting wrangle over the collective agreement, which has resulted in stop-work meetings, a strike, and a lockout.
Bus drivers vote to reject third pay offer from NZ Bus - Dompost 23/06/21
Bus drivers have rejected a third pay offer from company NZ Bus, potentially setting the stage for a new round of strikes.
Drivers on Wednesday voted 150-73 against taking the offer, with two invalid votes.
The offer would have seen the base pay rate increased to the current living wage of $22.10, with penal rates of $30 an hour for overtime and $40 an hour on weekends which was a decrease from the time-and-a-half and double pay guaranteed in the existing agreement.
It was the third offer made in a series of pay negotiations between the Tramways Union and NZ Bus.
The first two offers made by NZ Bus were not recommended by the union and were overwhelmingly rejected by drivers with the first offer (labeled derisory by the Union) leading to a 24-hour strike and a lockout by the company.
Drivers have grown increasingly bitter towards NZ Bus since it was purchased by Australian private equity firm Next Capital in 2019 and the extended pay negotiations have made the situation more tense with the issue becoming as much about the attitude of the company to the drivers as well as wages and conditions.
The rejection means union leaders will return to negotiations. A strike could be on the cards if neither side is willing to budge. The Tramways Union has previously floated a free fares strike where services will continue to run, but drivers will not turn on the Snapper card readers and refuse to take payment.
Drivers on Wednesday voted 150-73 against taking the offer, with two invalid votes.
The offer would have seen the base pay rate increased to the current living wage of $22.10, with penal rates of $30 an hour for overtime and $40 an hour on weekends which was a decrease from the time-and-a-half and double pay guaranteed in the existing agreement.
It was the third offer made in a series of pay negotiations between the Tramways Union and NZ Bus.
The first two offers made by NZ Bus were not recommended by the union and were overwhelmingly rejected by drivers with the first offer (labeled derisory by the Union) leading to a 24-hour strike and a lockout by the company.
Drivers have grown increasingly bitter towards NZ Bus since it was purchased by Australian private equity firm Next Capital in 2019 and the extended pay negotiations have made the situation more tense with the issue becoming as much about the attitude of the company to the drivers as well as wages and conditions.
The rejection means union leaders will return to negotiations. A strike could be on the cards if neither side is willing to budge. The Tramways Union has previously floated a free fares strike where services will continue to run, but drivers will not turn on the Snapper card readers and refuse to take payment.
Tramways Union submission to the Public Transport Operating Model Review - 18/06/21
Driver shortage continues: 3,412 buses cancelled last month - Dompost 10/06/21
Wellington’s bus cancellations reached a new all-time high in May, as the capital’s bus companies struggled to recruit and retain drivers.
A total of 3,412 services were cancelled last month, the highest number of cancellations in at least the last three years, and more than double the 1500 buses a month cancelled during the peak of the “bustastrophe” in late 2018 and early 2019, when controversial network changes caused chaos for commuters. One Wellington bus driver, who spoke to Stuff anonymously, said there had been an increase in drivers calling in sick or quitting due to stress.
“Seeing the stress that we are going through every day, it just gets to you after a while. There’s probably a percentage of drivers feeling similar to me: they just don’t need the stress in their lives and can’t be buggered,” he said.
Wellington’s bus companies have been struggling to attract enough drivers to run the Metlink network optimally for several years and have recently been unable to bring workers from overseas due to border restrictions.
“People are leaving because they don’t want to put up with the drama. We tend to be losing more newer drivers, the older ones are just are carrying on,” the Wellington driver said.
Tramways union secretary Kevin O’Sullivan said the driver shortage was causing companies to overwork existing drivers. “The whole industry is in crisis in as far as getting people in. Because of the staff shortage they are driving everyone to death trying to do the work,” he said.
“That’s causing burnout and causing people to leave, and those people aren't being replaced. It’s an absolute disaster in every respect.”
Bus operators are fined for late or cancelled services by Greater Wellington Regional Council, which runs the public transport network. Last year they racked up a total of 30,000 breaches.
Roger Blakeley from the regional council said drivers were being attracted away to other industries which require heavy vehicle licences.
“There is an issue around wage levels of bus drivers given the public importance and stresses and skills of the job,” he said.
“Long haul freight would be attractive to some bus drivers and probably not as stressful as driving a bus around our narrow winding streets in Wellington.”
Meanwhile GWRC/Metlink claims it will have a "frequent and reliable" airport bus service running by July 2022. Just who will drive these additional buses is not clear.
A total of 3,412 services were cancelled last month, the highest number of cancellations in at least the last three years, and more than double the 1500 buses a month cancelled during the peak of the “bustastrophe” in late 2018 and early 2019, when controversial network changes caused chaos for commuters. One Wellington bus driver, who spoke to Stuff anonymously, said there had been an increase in drivers calling in sick or quitting due to stress.
“Seeing the stress that we are going through every day, it just gets to you after a while. There’s probably a percentage of drivers feeling similar to me: they just don’t need the stress in their lives and can’t be buggered,” he said.
Wellington’s bus companies have been struggling to attract enough drivers to run the Metlink network optimally for several years and have recently been unable to bring workers from overseas due to border restrictions.
“People are leaving because they don’t want to put up with the drama. We tend to be losing more newer drivers, the older ones are just are carrying on,” the Wellington driver said.
Tramways union secretary Kevin O’Sullivan said the driver shortage was causing companies to overwork existing drivers. “The whole industry is in crisis in as far as getting people in. Because of the staff shortage they are driving everyone to death trying to do the work,” he said.
“That’s causing burnout and causing people to leave, and those people aren't being replaced. It’s an absolute disaster in every respect.”
Bus operators are fined for late or cancelled services by Greater Wellington Regional Council, which runs the public transport network. Last year they racked up a total of 30,000 breaches.
Roger Blakeley from the regional council said drivers were being attracted away to other industries which require heavy vehicle licences.
“There is an issue around wage levels of bus drivers given the public importance and stresses and skills of the job,” he said.
“Long haul freight would be attractive to some bus drivers and probably not as stressful as driving a bus around our narrow winding streets in Wellington.”
Meanwhile GWRC/Metlink claims it will have a "frequent and reliable" airport bus service running by July 2022. Just who will drive these additional buses is not clear.
NZ Bus + Bay of Plenty = same bad employer - TU 23/05/21
NZ Bus' Bay of Plenty drivers say they are frustrated and bullied by the company. Any Wellington drivers expecting a new dawn of concern and respect from NZ Bus as a result of NZ Bus' proposal to strip out their terms and conditions should watch this! Click on the video................................
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NZ Bus pay offer resoundingly rejected - TU 20/05/21
NZ Bus' revised offer to settle the stalled collective agreement negotiations was resoundingly rejected at today's stopwork meeting. The meeting voting result was just 3 for the company's offer and 204 against.
The meeting authorised the union to resume industrial action if no improved offer is received by 27 May with 167 for and only 6 against.
Members also passed unanimously a motion of no confidence in the management of NZ Bus, declaring the Australian owned company was not fit to run public transport services in New Zealand.
The meeting authorised the union to resume industrial action if no improved offer is received by 27 May with 167 for and only 6 against.
Members also passed unanimously a motion of no confidence in the management of NZ Bus, declaring the Australian owned company was not fit to run public transport services in New Zealand.
Support the bus drivers - sign the petition for better pay and conditions - 04/05/21
Crunch time for bus drivers as negotiations between drivers and union near conclusion
- Dompost 04/05/21
Days of tense negotiations between bus drivers’ union Tramways and company NZ Bus could come to a head on Tuesday with a new pay offer being put to drivers by the company.
Tramways secretary Kevin O’Sullivan said he expected an offer to be put on the table on Tuesday, though it was too early to tell whether it would be substantially different to the previous deal which was rejected 204-2 by drivers in April. If drivers reject the new offer, it will likely trigger another round of industrial action and more disruption for Wellington commuters.
The two parties met for three days last week, and mediation meetings have continued this week. The meetings were arranged and facilitated by the Greater Wellington Regional Council and are being run by mediator Hayden Wilson, the chair of law firm Dentons Kensington Swan, and independent employment lawyer Maria Austen.
Once a formal offer is made by NZ Bus, drivers will vote on whether to accept the deal at a stop-work meeting, likely scheduled for next week. “We’ll just have to wait and see what comes out of Tuesday,” O’Sullivan said. “The terms and conditions are just as important as money ... we just want to maintain our current terms and conditions.”
One Wellington bus driver, who spoke on the condition of anonymity, said drivers were skeptical about the offer. “We’re not convinced much will change from what’s been put on the table. We’ll believe it when we see it,” they said.
Another driver said they were feeling incredibly bitter towards the company as negotiations dragged on.
“It’s not a happy place here. This would have to be the worst I’ve ever seen in terms of an employer's relationship with employees. We’re definitely not happy with what they’ve given us.”
O’Sullivan said the base rate rise offered by the company didn’t compensate for a big drop in terms and conditions. He estimated the flat rate would have to be around $27 or $28 to make the loss of conditions worth it.
NZ Bus was offered public funds to top up drivers’ pay to the level of the living wage earlier this year, but the company said it would only accept the subsidy if drivers accepted changes to conditions in the collective bargaining agreement.
Drivers have been back at work over the last week after the Employment Court ruled in favour of an injunction, lifting the lockout which NZ Bus imposed on drivers after a 24-hour strike.
NZ Bus said it would not comment while negotiations were ongoing.
Tramways secretary Kevin O’Sullivan said he expected an offer to be put on the table on Tuesday, though it was too early to tell whether it would be substantially different to the previous deal which was rejected 204-2 by drivers in April. If drivers reject the new offer, it will likely trigger another round of industrial action and more disruption for Wellington commuters.
The two parties met for three days last week, and mediation meetings have continued this week. The meetings were arranged and facilitated by the Greater Wellington Regional Council and are being run by mediator Hayden Wilson, the chair of law firm Dentons Kensington Swan, and independent employment lawyer Maria Austen.
Once a formal offer is made by NZ Bus, drivers will vote on whether to accept the deal at a stop-work meeting, likely scheduled for next week. “We’ll just have to wait and see what comes out of Tuesday,” O’Sullivan said. “The terms and conditions are just as important as money ... we just want to maintain our current terms and conditions.”
One Wellington bus driver, who spoke on the condition of anonymity, said drivers were skeptical about the offer. “We’re not convinced much will change from what’s been put on the table. We’ll believe it when we see it,” they said.
Another driver said they were feeling incredibly bitter towards the company as negotiations dragged on.
“It’s not a happy place here. This would have to be the worst I’ve ever seen in terms of an employer's relationship with employees. We’re definitely not happy with what they’ve given us.”
O’Sullivan said the base rate rise offered by the company didn’t compensate for a big drop in terms and conditions. He estimated the flat rate would have to be around $27 or $28 to make the loss of conditions worth it.
NZ Bus was offered public funds to top up drivers’ pay to the level of the living wage earlier this year, but the company said it would only accept the subsidy if drivers accepted changes to conditions in the collective bargaining agreement.
Drivers have been back at work over the last week after the Employment Court ruled in favour of an injunction, lifting the lockout which NZ Bus imposed on drivers after a 24-hour strike.
NZ Bus said it would not comment while negotiations were ongoing.
NZ Bus refused council funds to top up wages: GWRC, mayor, unions - Dompost 28/04/21
NZ Bus, the company that employs nearly half of Wellington’s bus drivers, was offered public funds to top up drivers’ pay to the level of the living wage, according to multiple people involved in the discussions, but the Australian private equity firm Next Capital, which bought NZ Bus for $229 million in 2018, rejected the offer, according to Wellington’s mayor, a regional councillor and two unions.
Next Capital said it wanted to accept the subsidy, but it did want to change some other driver conditions [in the drivers' collective employment agreement].
Agreeing to pay drivers the living wage could have helped stave off last week’s strike action and resulting lock-out, which led to an injunction against NZ Bus.The living wage increase would affect about 318 drivers, or more than half of the capital’s drivers. NZ Bus employed just under half of the city's drivers and they stood to be the big winners in the increase, GWRC Transport Committee Chairman Roger Blakeley said.
Drivers are currently paid an hourly base rate between $19.40 and $20.40. The living wage is currently $22.10 an hour but the pay boost would have taken the drivers’ hourly rate to $23.75, said Tramways Union secretary Kevin O’Sullivan.
But NZ Bus rejected the offer, Blakeley said. “I have wondered why they wouldn't accept the generous offer to top up the wages. I really don’t know what the reason is,” he said. “They haven’t explained themselves very well.”
Council of Trade Unions president Richard Wagstaff said Next Capital would only take the money if it could cut drivers' conditions in the collective contract. This would have meant a cut in annual leave, shift allowances, and weekend and overtime rates, he said.
Next Capital said it wanted to accept the subsidy, but it did want to change some other driver conditions [in the drivers' collective employment agreement].
Agreeing to pay drivers the living wage could have helped stave off last week’s strike action and resulting lock-out, which led to an injunction against NZ Bus.The living wage increase would affect about 318 drivers, or more than half of the capital’s drivers. NZ Bus employed just under half of the city's drivers and they stood to be the big winners in the increase, GWRC Transport Committee Chairman Roger Blakeley said.
Drivers are currently paid an hourly base rate between $19.40 and $20.40. The living wage is currently $22.10 an hour but the pay boost would have taken the drivers’ hourly rate to $23.75, said Tramways Union secretary Kevin O’Sullivan.
But NZ Bus rejected the offer, Blakeley said. “I have wondered why they wouldn't accept the generous offer to top up the wages. I really don’t know what the reason is,” he said. “They haven’t explained themselves very well.”
Council of Trade Unions president Richard Wagstaff said Next Capital would only take the money if it could cut drivers' conditions in the collective contract. This would have meant a cut in annual leave, shift allowances, and weekend and overtime rates, he said.
The NZBustastrophe battle might be over, but the war isn't - Dave Armstrong - Dompost - 27/04/21
OPINION: How do you repair leaky pipes? How do you improve a region’s economic development? How do you solve the city’s traffic congestion? How do you fix a bus driver shortage? If you live in Wellington, the answer is simple – you hire a PR company.
With a serious driver shortage and a breakdown in union negotiations, NZ Bus has employed Thompson Lewis, a PR company with links to the 2017 Ardern government, to help them through the NZBustastrophe, which NZ Bus itself created.
When I was a child, Thompson Lewis was a soft-drink manufacturer that produced a bland and saccharine creaming soda. The merchant bankers at First Capital, owner of NZ Bus, will be hoping their PR gurus will have a bit more fizz and bite than their carbonated namesakes.
Given how last week’s NZBustastrophe ended, NZ Bus either received very bad PR advice from Thompson Lewis or else ignored very good PR advice from Thompson Lewis and locked out its drivers.
It is quite difficult to unite GWRC (Greater Wellington Regional Council), the mayor, his councillors, the Tramways Union, the Council of Trade Unions, the minister of transport and the vast majority of the city’s highly annoyed bus commuters – but NZ Bus has done it.
Does it really think its serious staff shortage will improve if it pays its drivers less and strips their conditions?
The drivers, led by Kevin O’Sullivan, have tried to negotiate for months but met a ‘’take it or leave it’’ response. They suggested NZ Bus might accept the living wage money offered by GWRC, but the company was uninterested.
When the drivers were forced to take industrial action, they gave good notice and tried to cause the least public inconvenience. Unreasonable? I don’t think so.
Sadly, the NZBustastrophe is what can happen when venture capital companies run public transport.
First Capital has a lot on its website about delivering a 25 per cent annual return for ‘’all stakeholders’’, but little about running bus networks. I suspect it knows as much about buses as Wellington Electricity knows about electrons.
One of the ‘beauties’ of the Public Transport Operating Model (PTOM) is that you and I don’t know the financial position of NZ Bus.
But surely if NZ Bus can afford to pay a top PR company, then it could afford to pay drivers a little more? Or perhaps it is paying Thompson Lewis the current bus drivers’ wage of $19.40 an hour and expecting them to work weekends and after midnight for nothing extra? Yeah right.
GWRC, under the enlightened leadership of Daran Ponter and Roger Blakeley, condemned the lockout and supported the drivers. This was a far cry from the previous GWRC leadership, who spent millions of dollars back in 2017 to pay for the tender process – which deliberately left out the important clause in GWRC contracts retaining drivers’ existing conditions if operators changed.
Everyone reacted with shock and awe to last week’s lockout, but a closer look at NZ Bus reveals that it used the same tactics in Auckland in 2009, back when it was owned by Infratil. Auckland drivers were locked out for a week then went back to work and essentially accepted the lesser conditions offered.
I’m sure First Capital thought that if a lockout worked in Auckland in 2009 then why not in Wellington in 2021? Drivers are hardly wealthy, so a few weeks of no pay would persuade them to take a drop in conditions as it did in Auckland.
But we live in different times. Wellingtonians have experienced the failure of PTOM and the way it creates a race to the bottom in drivers’ wages and conditions. They have suffered because of driver shortages so know that the union is not the problem. Incentives are needed, not lockouts.
Worse, NZ Bus hasn’t even tried to win over the public. The company decided against appearing on National Radio last week, giving the union and GWRC representatives lots of time to jointly condemn the lockout.
But now the lockout is over thanks to some smart, swift legal work from the drivers, who scored a win in the Employment Court. Thank you, driver! But don’t rejoice too heartily. Even though the ridiculous NZBustastrophe has ended, winning a battle does not ensure victory in the war.
The drivers will go into negotiation and face a well-briefed, well-heeled management team. And NZ Bus could lock out the drivers again if it doesn’t get its way.
If I was transport minister, I would be quietly preparing an emergency management team to run the NZ Bus routes just in case. I’m sure the drivers would be open to it.
As for the PR battle, Thompson Lewis will give it their best, but I can’t help thinking that it will struggle against low-paid drivers led by an amiable guy in a woolly jersey called Kevin who used to drive council buses in the late 1970s and who is simply asking for a small wage rise and the retention of current conditions.
With a serious driver shortage and a breakdown in union negotiations, NZ Bus has employed Thompson Lewis, a PR company with links to the 2017 Ardern government, to help them through the NZBustastrophe, which NZ Bus itself created.
When I was a child, Thompson Lewis was a soft-drink manufacturer that produced a bland and saccharine creaming soda. The merchant bankers at First Capital, owner of NZ Bus, will be hoping their PR gurus will have a bit more fizz and bite than their carbonated namesakes.
Given how last week’s NZBustastrophe ended, NZ Bus either received very bad PR advice from Thompson Lewis or else ignored very good PR advice from Thompson Lewis and locked out its drivers.
It is quite difficult to unite GWRC (Greater Wellington Regional Council), the mayor, his councillors, the Tramways Union, the Council of Trade Unions, the minister of transport and the vast majority of the city’s highly annoyed bus commuters – but NZ Bus has done it.
Does it really think its serious staff shortage will improve if it pays its drivers less and strips their conditions?
The drivers, led by Kevin O’Sullivan, have tried to negotiate for months but met a ‘’take it or leave it’’ response. They suggested NZ Bus might accept the living wage money offered by GWRC, but the company was uninterested.
When the drivers were forced to take industrial action, they gave good notice and tried to cause the least public inconvenience. Unreasonable? I don’t think so.
Sadly, the NZBustastrophe is what can happen when venture capital companies run public transport.
First Capital has a lot on its website about delivering a 25 per cent annual return for ‘’all stakeholders’’, but little about running bus networks. I suspect it knows as much about buses as Wellington Electricity knows about electrons.
One of the ‘beauties’ of the Public Transport Operating Model (PTOM) is that you and I don’t know the financial position of NZ Bus.
But surely if NZ Bus can afford to pay a top PR company, then it could afford to pay drivers a little more? Or perhaps it is paying Thompson Lewis the current bus drivers’ wage of $19.40 an hour and expecting them to work weekends and after midnight for nothing extra? Yeah right.
GWRC, under the enlightened leadership of Daran Ponter and Roger Blakeley, condemned the lockout and supported the drivers. This was a far cry from the previous GWRC leadership, who spent millions of dollars back in 2017 to pay for the tender process – which deliberately left out the important clause in GWRC contracts retaining drivers’ existing conditions if operators changed.
Everyone reacted with shock and awe to last week’s lockout, but a closer look at NZ Bus reveals that it used the same tactics in Auckland in 2009, back when it was owned by Infratil. Auckland drivers were locked out for a week then went back to work and essentially accepted the lesser conditions offered.
I’m sure First Capital thought that if a lockout worked in Auckland in 2009 then why not in Wellington in 2021? Drivers are hardly wealthy, so a few weeks of no pay would persuade them to take a drop in conditions as it did in Auckland.
But we live in different times. Wellingtonians have experienced the failure of PTOM and the way it creates a race to the bottom in drivers’ wages and conditions. They have suffered because of driver shortages so know that the union is not the problem. Incentives are needed, not lockouts.
Worse, NZ Bus hasn’t even tried to win over the public. The company decided against appearing on National Radio last week, giving the union and GWRC representatives lots of time to jointly condemn the lockout.
But now the lockout is over thanks to some smart, swift legal work from the drivers, who scored a win in the Employment Court. Thank you, driver! But don’t rejoice too heartily. Even though the ridiculous NZBustastrophe has ended, winning a battle does not ensure victory in the war.
The drivers will go into negotiation and face a well-briefed, well-heeled management team. And NZ Bus could lock out the drivers again if it doesn’t get its way.
If I was transport minister, I would be quietly preparing an emergency management team to run the NZ Bus routes just in case. I’m sure the drivers would be open to it.
As for the PR battle, Thompson Lewis will give it their best, but I can’t help thinking that it will struggle against low-paid drivers led by an amiable guy in a woolly jersey called Kevin who used to drive council buses in the late 1970s and who is simply asking for a small wage rise and the retention of current conditions.
Tramways Union successfully injuncts NZ Bus - TU 24/04/21
The Employment Court has granted the Tramways Union’s interim injunction [below] against the lock out notices the Company issued last Thursday afternoon. The judge ruled that the Union has an arguable case that the lock out notices were unlawful and the Company is prohibited from locking out employees until further notice. A substantive hearing on the matter will be held shortly.
The Tramways Union has advised Scott Gallagher, General Manager Metlink, that they will now take up GWRC’s offer of mediation which will occur this coming week. The Union was due in the Employment Relations Authority on Wednesday Thursday & Friday in the coming week to discuss the matter of forced annual leave and roster issues but those three days have now been rescheduled to May.
The Tramways Union has advised Scott Gallagher, General Manager Metlink, that they will now take up GWRC’s offer of mediation which will occur this coming week. The Union was due in the Employment Relations Authority on Wednesday Thursday & Friday in the coming week to discuss the matter of forced annual leave and roster issues but those three days have now been rescheduled to May.
Public support for bus drivers
The two-faced CEO - what a difference a year makes
12 months ago, NZ Bus CEO Barry Hinkley was singing his praise of bus drivers for the exceptional job they were doing...
...fast forward a year and now he's locking out those very same people as he tries to slash their pay and remove hard earned terms and conditions that protect and reward them - all in the name of increased profits for Next Capital's already fabulously wealthy owners.
Support the drivers - click here to sign the petition
Tramways Union seeks court injunction - Stuff.co.nz 23/04/21
The Tramways Union is seeking an urgent injunction against NZ Bus, claiming its lockout of Wellington bus drivers is unlawful.
The union filed proceedings in the Employment Court on Friday after drivers were told the day before they would be locked out of depots until a proposed collective agreement, which had earlier been rejected, was signed.
"This lockout has offended the sensibilities of the public, threatened the livelihoods of the bus drivers and is now likely to be found in breach of New Zealand employment law," said Council of Trade Unions president Richard Wagstaff.
A hearing is scheduled for 10.30am on Saturday.
The union filed proceedings in the Employment Court on Friday after drivers were told the day before they would be locked out of depots until a proposed collective agreement, which had earlier been rejected, was signed.
"This lockout has offended the sensibilities of the public, threatened the livelihoods of the bus drivers and is now likely to be found in breach of New Zealand employment law," said Council of Trade Unions president Richard Wagstaff.
A hearing is scheduled for 10.30am on Saturday.
CTU, GWRC slam 'appalling' tactics from NZ Bus in locking out striking Wellington bus drivers - NZ Herald 23/04/21
Wellington's bus drivers are standing resolute against a "deeply frustrating" lockout notice issued by NZ Bus following their planned strike action today.
Following the Tramways Union's announcement that Wellington bus drivers would strike for 24 hours from 4am Friday, NZ Bus issued an indefinite lockout notice.
This would effectively bar striking bus drivers from returning to work after the planned strike was complete.
The Council of Trade Unions and Greater Wellington Regional Council were also "appalled" at the lockout notice issued to Wellington bus drivers following their notice of strike.
Greater Wellington Regional Council Chair Daran Ponter said NZ Bus had taken the "nuclear option", which was "entirely unnecessary". "I don't think that serving a notice on Wellington commuters that drivers are going to be indefinitely locked out - and therefore our Metlink service is going to be thrown up into the air for the foreseeable future - is a proportionate response to a one-day strike."
Council would be issuing a fine to NZ Bus, but Ponter was unsure if this would deter their actions. Their hope was to have Tramways Union and NZ Bus in a room to negotiate, which both parties had actually agreed to earlier on Thursday. "They agreed to a council-facilitated remediation so it is disappointing to see from NZ Bus Next Capital this notice of lockout," he said.
Council of Trade Unions President Richard Wagstaff said they were appalled NZ Bus had issued a lockout notice to their loyal workforce.
"To lock them out indefinitely is really just to bludgeon them into submission so they accept the terms of lower conditions of work," he said.
"These drivers have kept us going in Wellington during the pandemic – every day in, day out, they get us to work. People across Wellington will be appalled that the people who take them to work every day are being forced into reducing their conditions because of a big corporate bully.
With a shortage of bus drivers, Wagstaff said these tactics from NZ Bus, owned by Australian entity Next Capital, were "self-defeating".
"They can't attract enough people to the industry because the conditions are so poor, and what's the industry's solution? Reduce the conditions further still."
He did not see how the Australia-owned company could come back from this action.
"This is a case of a big Aussie capital venture fund, thinking they can play by these kinds of rules in our country, and it has no place here."
"People across Wellington will be appalled that the people who take them to work every day are being forced into reducing their conditions because of a big corporate bully."
Following the Tramways Union's announcement that Wellington bus drivers would strike for 24 hours from 4am Friday, NZ Bus issued an indefinite lockout notice.
This would effectively bar striking bus drivers from returning to work after the planned strike was complete.
The Council of Trade Unions and Greater Wellington Regional Council were also "appalled" at the lockout notice issued to Wellington bus drivers following their notice of strike.
Greater Wellington Regional Council Chair Daran Ponter said NZ Bus had taken the "nuclear option", which was "entirely unnecessary". "I don't think that serving a notice on Wellington commuters that drivers are going to be indefinitely locked out - and therefore our Metlink service is going to be thrown up into the air for the foreseeable future - is a proportionate response to a one-day strike."
Council would be issuing a fine to NZ Bus, but Ponter was unsure if this would deter their actions. Their hope was to have Tramways Union and NZ Bus in a room to negotiate, which both parties had actually agreed to earlier on Thursday. "They agreed to a council-facilitated remediation so it is disappointing to see from NZ Bus Next Capital this notice of lockout," he said.
Council of Trade Unions President Richard Wagstaff said they were appalled NZ Bus had issued a lockout notice to their loyal workforce.
"To lock them out indefinitely is really just to bludgeon them into submission so they accept the terms of lower conditions of work," he said.
"These drivers have kept us going in Wellington during the pandemic – every day in, day out, they get us to work. People across Wellington will be appalled that the people who take them to work every day are being forced into reducing their conditions because of a big corporate bully.
With a shortage of bus drivers, Wagstaff said these tactics from NZ Bus, owned by Australian entity Next Capital, were "self-defeating".
"They can't attract enough people to the industry because the conditions are so poor, and what's the industry's solution? Reduce the conditions further still."
He did not see how the Australia-owned company could come back from this action.
"This is a case of a big Aussie capital venture fund, thinking they can play by these kinds of rules in our country, and it has no place here."
"People across Wellington will be appalled that the people who take them to work every day are being forced into reducing their conditions because of a big corporate bully."
Wellington bus drivers vote to strike after pay talks break down - TU 14/04/21
At today's meeting in St Patrick's Hall, Kilbirnie, understandably angry Tramways Union members voted 204-2 in a secret ballot to take industrial action. The strikes will be announced with 24 hours notice and could begin as soon as Monday, Tramways Union secretary Kevin O’Sullivan said.
The Union has been locked in a bitter pay dispute with operator NZ Bus, who holds the contracts for most bus services within the Wellington city limits. Industrial action has been almost certain ever since pay negotiations with bus operator NZ Bus broke down last month.
Wellington bus drivers have among the highest union membership of any industry group and have repeatedly signalled they were willing to strike.
NZ Bus wants to move Wellington drivers on to a vastly inferior collective agreement similar to its Auckland one, which has a higher base rate but minimal penal rates, one week less annual leave, far fewer protections for hours of work and less fair disciplinary procedures.
Drivers in Wellington are fiercely protective of several highly valued benefits in their current collective agreement, including double pay on Sundays, public holidays and after midnight, time and a half after eight hours work and on Saturdays, time and a half and double time when required to work on rostored days off, a taxi agreement, strict controls around hours of work without additional compensation and clauses ensuring procedural fairness in disciplinary matters.
The Union has been locked in a bitter pay dispute with operator NZ Bus, who holds the contracts for most bus services within the Wellington city limits. Industrial action has been almost certain ever since pay negotiations with bus operator NZ Bus broke down last month.
Wellington bus drivers have among the highest union membership of any industry group and have repeatedly signalled they were willing to strike.
NZ Bus wants to move Wellington drivers on to a vastly inferior collective agreement similar to its Auckland one, which has a higher base rate but minimal penal rates, one week less annual leave, far fewer protections for hours of work and less fair disciplinary procedures.
Drivers in Wellington are fiercely protective of several highly valued benefits in their current collective agreement, including double pay on Sundays, public holidays and after midnight, time and a half after eight hours work and on Saturdays, time and a half and double time when required to work on rostored days off, a taxi agreement, strict controls around hours of work without additional compensation and clauses ensuring procedural fairness in disciplinary matters.
An accident waiting to happen - bus lights makes for unsafe driving conditions - a pictorial of the Scania problem in Wellington - TU 06/04/21
Following the weekend's tragic fatal accident, the photographs below illustrate serious night time visibility issues have been repeatedly raised with the company by various means including the regular business update meetings, the defect cards in each bus and verbally to operations staff. The culture of health and safety at NZ Bus is woefully short of an acceptable standard with the removal of hazard identification reporting forms coinciding with the requirement to report bus defects electronically for which members have received only rudimentary training. The Tramways Union has issued a safety alert so these buses will henceforth not be driven at night until there is a thorough investigation of work place health and safety culture and practice at NZ Bus.
The driver's view at night through the windscreen of a 2100 series Scania bus
Union instructs drivers to stop driving bus type involved in fatal accident - TU 04/04/21
One dead after crash involving bus, pedestrian in Wellington - Dompost & RNZ - 04/04/21
Emergency services in Wellington have spent the night responding to a fatal crash involving a bus and a male pedestrian in the central city.
Police were alerted to the incident on Taranaki St just before 10pm on Saturday night. The street was cordoned off between Vivian and Bidwell Streets on Saturday night and Sunday morning. Cordons have now been lifted and the road is open.
A police spokesperson said the bus driver was shaken but uninjured in the crash.
Police were alerted to the incident on Taranaki St just before 10pm on Saturday night. The street was cordoned off between Vivian and Bidwell Streets on Saturday night and Sunday morning. Cordons have now been lifted and the road is open.
A police spokesperson said the bus driver was shaken but uninjured in the crash.
Drivers warn of upcoming 'surprise' strikes - Wellington bus chaos will worsen - Dompost 02/04/21
After more than 70 services were cancelled in one day, bus cancellations are set to get even worse in the capital, with drivers warning of upcoming "surprise attack" strike action that will shut down almost all services in the city.
Tramways Union secretary Kevin O’Sullivan said Wellington bus drivers will launch a strike sometime after April 14, with a little as 24 hours notice, as pay negotiations with operator NZ Bus reached an impasse on Wednesday. Services in the rest of the Wellington region will not be affected.
It comes after 72 bus services were cancelled on Wednesday, an outcome regional transport provider Metlink said “wasn’t good enough”, and more than 30 cancellations on Thursday morning.
Talks between Tramways and NZ Bus over a new collective employment agreement have been tense in the past few months.
Wellington bus drivers have among the highest union membership of any industry group in the country and have repeatedly signalled they were willing to strike.
Drivers in Wellington are fiercely protective of several highly valued benefits in their current collective agreement, including double pay on Sundays, public holidays and after midnight, time and a half after eight hours work and on Saturdays, time and a half and double time when required to work on rostored days off, a taxi agreement, strict controls around hours of work without additional compensation and clauses ensuring procedural fairness in disciplinary matters.
NZ Bus wants to move Wellington drivers on to a vastly inferior collective agreement similar to its Auckland one, which has a higher base rate but minimal penal rates, one week less annual leave, far fewer protections for hours of work and less fair disciplinary procedures.
“We’re not going back to negotiation unless this changes. We are not going to accept the offer they put to us,” O’Sullivan said.
Drivers will meet at a stop-work meeting on April 14 where they will vote on industrial action. The vote is all but certain to pass, O’Sullivan said.
Tramways Union secretary Kevin O’Sullivan said Wellington bus drivers will launch a strike sometime after April 14, with a little as 24 hours notice, as pay negotiations with operator NZ Bus reached an impasse on Wednesday. Services in the rest of the Wellington region will not be affected.
It comes after 72 bus services were cancelled on Wednesday, an outcome regional transport provider Metlink said “wasn’t good enough”, and more than 30 cancellations on Thursday morning.
Talks between Tramways and NZ Bus over a new collective employment agreement have been tense in the past few months.
Wellington bus drivers have among the highest union membership of any industry group in the country and have repeatedly signalled they were willing to strike.
Drivers in Wellington are fiercely protective of several highly valued benefits in their current collective agreement, including double pay on Sundays, public holidays and after midnight, time and a half after eight hours work and on Saturdays, time and a half and double time when required to work on rostored days off, a taxi agreement, strict controls around hours of work without additional compensation and clauses ensuring procedural fairness in disciplinary matters.
NZ Bus wants to move Wellington drivers on to a vastly inferior collective agreement similar to its Auckland one, which has a higher base rate but minimal penal rates, one week less annual leave, far fewer protections for hours of work and less fair disciplinary procedures.
“We’re not going back to negotiation unless this changes. We are not going to accept the offer they put to us,” O’Sullivan said.
Drivers will meet at a stop-work meeting on April 14 where they will vote on industrial action. The vote is all but certain to pass, O’Sullivan said.
NZ Bus wage negotiations break down - TU 01/04/2021
Collective Agreement negotiations with NZ Bus Ltd to secure a renewal of the Tramways Union's terms and conditions with a Government and Greater Wellington Regional supported package to embrace the Living Wage in the agreement have broken down.
Tramways Union Secretary Kevin O'Sullivan has emailed GWRC detailing the problems encountered including NZ Bus's decision not to accept the Government's offer of funding to lift wage rates. He has requested that GWRC undertake an inquiry into the behaviour of NZ Bus.
He also states that the company's proposal would see members take a substantial cut in wages and conditions of employment and foresees severe service disruptions.
A stopwork meeting will be held on Wednesday 14 April to update members.
Tramways Union Secretary Kevin O'Sullivan has emailed GWRC detailing the problems encountered including NZ Bus's decision not to accept the Government's offer of funding to lift wage rates. He has requested that GWRC undertake an inquiry into the behaviour of NZ Bus.
He also states that the company's proposal would see members take a substantial cut in wages and conditions of employment and foresees severe service disruptions.
A stopwork meeting will be held on Wednesday 14 April to update members.
Tramways Union vindicated - National's PTOM is a failure that may be scrapped - Dompost 12/03/21
Transport Minister Michael Wood has indicated he could scrap a controversial policy put in place by the previous government to commercialise public transport.
The Public Transport Operation Model, introduced in 2011, encouraged councils to commercialise public transport services, and required councils to allow more bus companies to competitively tender for public transport contracts. The policy has been a lightning rod of controversy ever since it was introduced.
The Tramways Union has long argued the policy drove down wages and working conditions for bus drivers.
A recently released review of the policy by KPMG and Mott MacDonald found the policy had failed to achieve its core aims. When it was implemented, the National Government hoped it would mean public transport services would be run more cheaply, with more of the costs covered by fares rather than taxpayer-funded subsidies.
However, the review found the proportion of cost covered by fare revenues did not increase in most regions and in many areas, had decreased by a clear margin.
In the major centres of Auckland, Wellington and Otago, commerciality dropped by as much as 12 per cent and margins for bus operators declined.
In some regions, the total public funding for Public Transport has increased considerably, particularly in Auckland, Otago and the Bay of Plenty.
No recommendations were made in the first stage of the review, but Woods indicated that legislative changes were likely.
“We’ve always had concerns about the previous government’s PTOM policy, that’s why we’re reviewing it,” he said. “From the conversations I’ve had with local government, operators and unions, it’s obvious the policy has driven down wages and conditions for many.”
Bus drivers recently struck a deal with councils and Waka Kotahi NZTA which would see the Government ‘’top up’’ wages to ensure all drivers are paid at least the living wage of $22.10. However, Wood admitted it was a stop-gap measure. “I recognise that we need a more structural, enduring solution,” he said.
“The industry is still grappling with driver shortages at a time when investment into public transport has never been greater – something does need to change.”
The review into PTOM was announced by Transport Minister Phil Twyford in 2019, who said the policy had “set off a race to the bottom”.
The Public Transport Operation Model, introduced in 2011, encouraged councils to commercialise public transport services, and required councils to allow more bus companies to competitively tender for public transport contracts. The policy has been a lightning rod of controversy ever since it was introduced.
The Tramways Union has long argued the policy drove down wages and working conditions for bus drivers.
A recently released review of the policy by KPMG and Mott MacDonald found the policy had failed to achieve its core aims. When it was implemented, the National Government hoped it would mean public transport services would be run more cheaply, with more of the costs covered by fares rather than taxpayer-funded subsidies.
However, the review found the proportion of cost covered by fare revenues did not increase in most regions and in many areas, had decreased by a clear margin.
In the major centres of Auckland, Wellington and Otago, commerciality dropped by as much as 12 per cent and margins for bus operators declined.
In some regions, the total public funding for Public Transport has increased considerably, particularly in Auckland, Otago and the Bay of Plenty.
No recommendations were made in the first stage of the review, but Woods indicated that legislative changes were likely.
“We’ve always had concerns about the previous government’s PTOM policy, that’s why we’re reviewing it,” he said. “From the conversations I’ve had with local government, operators and unions, it’s obvious the policy has driven down wages and conditions for many.”
Bus drivers recently struck a deal with councils and Waka Kotahi NZTA which would see the Government ‘’top up’’ wages to ensure all drivers are paid at least the living wage of $22.10. However, Wood admitted it was a stop-gap measure. “I recognise that we need a more structural, enduring solution,” he said.
“The industry is still grappling with driver shortages at a time when investment into public transport has never been greater – something does need to change.”
The review into PTOM was announced by Transport Minister Phil Twyford in 2019, who said the policy had “set off a race to the bottom”.
Wellington bus drivers look forward to proposed living wage rule - RNZ Checkpoint 10/03/21
A proposal is being put forward that would see all Wellington bus drivers paid at least the Living Wage.
Around half of all bus drivers in the region are currently paid below that threshold, some as low as $19 an hour.
It is still awaiting final approval, but already being heralded as a significant moment for bus drivers.
Radio NZ Wellington reporter Harry Lock and video journalist Dom Thomas have the story.
Click on the video image to access the video hosting page...
Around half of all bus drivers in the region are currently paid below that threshold, some as low as $19 an hour.
It is still awaiting final approval, but already being heralded as a significant moment for bus drivers.
Radio NZ Wellington reporter Harry Lock and video journalist Dom Thomas have the story.
Click on the video image to access the video hosting page...
Bus cancellations continue apace - 200 last week - Dompost 11/03/21
More than 200 buses a week are being cancelled in Wellington as driver shortages cause chaos for the public transport network. In the week from Feb 28 to March 6, 203 services were cancelled.
The previous week saw 118 services cancelled in the space of four days. Greater Wellington Regional Council transport spokesperson Roger Blakeley said there had been an increase in drivers calling in sick, as well as other complaints about working conditions. There are also wider issues about wages and conditions for bus drivers,” he said.
Wellington has faced an ongoing bus driver shortage for several years, which was most prominently highlighted by mass cancellations during the 2018 ‘’bustastrophe’’. Both Metlink and bus operators had invested heavily in recruitment campaigns, but still hadn’t filled the gap.
A further 377 services were cancelled on Wednesday as drivers stopped work for a union meeting to discuss a pay deal.
A proposal discussed at the meeting outlined how the regional council and Waka Kotahi would top up bus driver base rates to bring them in line with the living wage which was now $22.10.
The previous week saw 118 services cancelled in the space of four days. Greater Wellington Regional Council transport spokesperson Roger Blakeley said there had been an increase in drivers calling in sick, as well as other complaints about working conditions. There are also wider issues about wages and conditions for bus drivers,” he said.
Wellington has faced an ongoing bus driver shortage for several years, which was most prominently highlighted by mass cancellations during the 2018 ‘’bustastrophe’’. Both Metlink and bus operators had invested heavily in recruitment campaigns, but still hadn’t filled the gap.
A further 377 services were cancelled on Wednesday as drivers stopped work for a union meeting to discuss a pay deal.
A proposal discussed at the meeting outlined how the regional council and Waka Kotahi would top up bus driver base rates to bring them in line with the living wage which was now $22.10.
Transport industry lobbies for vaccinations to protect drivers Dompost 09/03/21
The transport industry is pushing for its drivers to be next in line for Covid-19 vaccinations after frontline health staff.
Unions and industry groups argue that taxi, truck and bus drivers face greater risk of exposure and should be a high priority in terms of getting a jab.
According to the Government's proposed vaccination schedule, border, quarantine, managed isolation, and health workers at highest risk of exposure, plus their household contacts would be top priority. They would be followed by high risk frontline health, public sector and emergency services workers.
It was not clear whether bus drivers were part of that second group because the transport industry had been privatised.
Given that bus drivers are required to wear masks all day at work, then they are obviously regarded as high risk, so they should be given priority.
Unions and industry groups argue that taxi, truck and bus drivers face greater risk of exposure and should be a high priority in terms of getting a jab.
According to the Government's proposed vaccination schedule, border, quarantine, managed isolation, and health workers at highest risk of exposure, plus their household contacts would be top priority. They would be followed by high risk frontline health, public sector and emergency services workers.
It was not clear whether bus drivers were part of that second group because the transport industry had been privatised.
Given that bus drivers are required to wear masks all day at work, then they are obviously regarded as high risk, so they should be given priority.
Metlink says sorry after more than 100 buses cancelled in Wellington over four days
Dompost 26/02/21
Wellington’s bus service has apologised for increased cancellations, after more than 100 services were cancelled in a four-day period.
In a statement, Metlink general manager Scott Gallacher said that between Sunday and Thursday 118 bus services were cancelled, representing 0.95 per cent of total services. “This is a significant increase on pre-Covid-19 cancellations in the same period (2020), where we saw just 17 cancellations.”
Another 20 buses were cancelled on Friday morning.
Tramways Union secretary Kevin O’Sullivan said the cancellations were a symptom of a much wider problem. Drivers were fed-up with poor pay and conditions in the industry, he said.
Roger Blakeley, chair of Greater Wellington Regional Council’s Transport Committee, said they were acutely aware of the cancellations, and disruptions caused, and were working directly with the bus companies to solve the issue. It was not uncommon for an increase in cancellations at the end of a difficult year due to increased driver fatigue and illness, but Blakeley said at this stage in the year, the cancellations should have eased. The 23, 27 and 29 routes (all operated by Tranzit/Tranzurban) had been the most affected, and Blakeley said the bus companies should spread cancellations around the network, if they were going to happen.
Pay and conditions did appear to be a factor in driver absenteeism, he said.
It is less than three months since Metlink issued a similar apology. In December it said staff leave and increased illness had resulted in more cancellations, but O’Sullivan said it was due to 40 drivers resigning over poor working conditions.
In a statement, Metlink general manager Scott Gallacher said that between Sunday and Thursday 118 bus services were cancelled, representing 0.95 per cent of total services. “This is a significant increase on pre-Covid-19 cancellations in the same period (2020), where we saw just 17 cancellations.”
Another 20 buses were cancelled on Friday morning.
Tramways Union secretary Kevin O’Sullivan said the cancellations were a symptom of a much wider problem. Drivers were fed-up with poor pay and conditions in the industry, he said.
Roger Blakeley, chair of Greater Wellington Regional Council’s Transport Committee, said they were acutely aware of the cancellations, and disruptions caused, and were working directly with the bus companies to solve the issue. It was not uncommon for an increase in cancellations at the end of a difficult year due to increased driver fatigue and illness, but Blakeley said at this stage in the year, the cancellations should have eased. The 23, 27 and 29 routes (all operated by Tranzit/Tranzurban) had been the most affected, and Blakeley said the bus companies should spread cancellations around the network, if they were going to happen.
Pay and conditions did appear to be a factor in driver absenteeism, he said.
It is less than three months since Metlink issued a similar apology. In December it said staff leave and increased illness had resulted in more cancellations, but O’Sullivan said it was due to 40 drivers resigning over poor working conditions.
GWRC changes routes back to pre-2017 hubbing disaster - vindicates the Tramways Union's opposition - TU news 19/10/20
Back in 2016/2017, Greater Wellington Regional Council headed by Chris Laidlaw (Chair), Greg Campbell (Chief Executive) and Wayne Hastie (General Manager Public Transport) spent million of dollars of ratepayers' money on overseas consultants to redesign Wellington's public transport network. Ratepayers were told that hubbing was the way to go, trolley buses must be trashed and urban congestion caused by buses would become a thing of the past. All this would occur at the same time new competitive tenders would operate which would somehow save ratepayers' money all at the expense of bus drivers pay rates, terms and conditions.
The Tramways Union strenuously opposed the changes and embarked on a public awareness campaign delivering tens of thousands of leaflets and flyers to affected households, paid for newspaper advertisements and lobbied central government, the NZTA, the council and councillors to no avail. Regional councillors were reluctant to help, claiming probity and secrecy concerns with even Green councillor Sue Kedgley unwilling to save the clean green trolley buses. All that was really needed was a tweaking of the old system to cope with growing pains but GRWC instead threw the baby out with the bath water.
Now, two years after the failed and expensive experiment that saw the greatest increase in passenger dissatisfaction, the greatest number of passenger complaints ever, the largest fall in patronage ever and hundreds of experienced drivers desert the industry for ever, GRWC has decided to accept the reality spelt out by the Tramways Union and revert largely to the old bus system. From 25 October, gone will be the hated hubbing for Kowhai Park, Houghton Bay, Southgate, Vogeltown and Miramar.
Miramar Shops hubbing - GONE!
Miramar to University - Deleted services reinstated
Strathmore Park hubbing - GONE! Buses will run the old route to Wellington Station
Lyall Bay 36 (old route 6) - Deleted services reinstated
Kowhai Park hubbing - GONE! Buses will run the old route to Wellington Station
Houghton Bay hubbing - GONE! Buses will run to/from Wellington Station. 23z buses deleted
Vogeltown/Kingston hubbing - GONE! Buses will run to/from Wellington Station.
Southgate/Owhiro Bay route 29 hubbing - GONE! Buses will run to the city centre
There can be no doubt that GWRC would have liked to revert entirely to the old system in which Houghton Bay and Southgate buses "double ended" to Mairangi but that would have been too difficult to organise at the moment as a result of different bus companies (Tranzurban and NZ Bus) running the two component routes.
Clearly, there has been a big backtrack by GWRC and that's probably as close as we will ever see to a "mea culpa" from them. They have stylized the changes as "You asked, we listened", but the question remains why did they spend millions of dollars on faulty consutants' advice and choose to completely ignore the only sensible and authoritative voice on public transport in Wellington - the Tramways Union when we campaigned loud and clear against those disastrous changes of 2017? Had they listened to us two to three years ago, disaster would have been averted.
Two years on from the changes with most of the responsible regional councillors replaced and a new General Manager of Public Transport, the Tramways Union's relationship with the regional council is very much improved. We are working closely and collaboratively with the new council resulting in improved outcomes for members, the Metlink brand and Wellington's travelling public.
The Tramways Union strenuously opposed the changes and embarked on a public awareness campaign delivering tens of thousands of leaflets and flyers to affected households, paid for newspaper advertisements and lobbied central government, the NZTA, the council and councillors to no avail. Regional councillors were reluctant to help, claiming probity and secrecy concerns with even Green councillor Sue Kedgley unwilling to save the clean green trolley buses. All that was really needed was a tweaking of the old system to cope with growing pains but GRWC instead threw the baby out with the bath water.
Now, two years after the failed and expensive experiment that saw the greatest increase in passenger dissatisfaction, the greatest number of passenger complaints ever, the largest fall in patronage ever and hundreds of experienced drivers desert the industry for ever, GRWC has decided to accept the reality spelt out by the Tramways Union and revert largely to the old bus system. From 25 October, gone will be the hated hubbing for Kowhai Park, Houghton Bay, Southgate, Vogeltown and Miramar.
Miramar Shops hubbing - GONE!
Miramar to University - Deleted services reinstated
Strathmore Park hubbing - GONE! Buses will run the old route to Wellington Station
Lyall Bay 36 (old route 6) - Deleted services reinstated
Kowhai Park hubbing - GONE! Buses will run the old route to Wellington Station
Houghton Bay hubbing - GONE! Buses will run to/from Wellington Station. 23z buses deleted
Vogeltown/Kingston hubbing - GONE! Buses will run to/from Wellington Station.
Southgate/Owhiro Bay route 29 hubbing - GONE! Buses will run to the city centre
There can be no doubt that GWRC would have liked to revert entirely to the old system in which Houghton Bay and Southgate buses "double ended" to Mairangi but that would have been too difficult to organise at the moment as a result of different bus companies (Tranzurban and NZ Bus) running the two component routes.
Clearly, there has been a big backtrack by GWRC and that's probably as close as we will ever see to a "mea culpa" from them. They have stylized the changes as "You asked, we listened", but the question remains why did they spend millions of dollars on faulty consutants' advice and choose to completely ignore the only sensible and authoritative voice on public transport in Wellington - the Tramways Union when we campaigned loud and clear against those disastrous changes of 2017? Had they listened to us two to three years ago, disaster would have been averted.
Two years on from the changes with most of the responsible regional councillors replaced and a new General Manager of Public Transport, the Tramways Union's relationship with the regional council is very much improved. We are working closely and collaboratively with the new council resulting in improved outcomes for members, the Metlink brand and Wellington's travelling public.
“We aren’t going anywhere” - NZ Bus on Kilbirnie Depot's future - TU 21/12/2020
Despite the planned redevelopment of the Kilbirnie bus barns early next year by the property’s owners Infratil, Jay Zmijewski, the Chief Operating Officer of NZ Bus currently owned by Australian private equity company Next Capital Investments has confirmed to the Tramways Union that the bus depot will not be moving to another site.
“We aren’t going anywhere” he told the Tramways Union at a meeting with the Company on 13th December. Earlier, Infratil shareholders were advised that the iconic Kilbirnie property would be redeveloped in 2021.
Infratil's 2020 Annual Report released on 29 May stated...
Infratil Infrastructure Property has two property initiatives underway, construction at Halsey Street in Auckland’s Wynyard Quarter, and assessment of the alternative use of the old Kilbirnie Bus Depot site in Wellington...The Kilbirnie Bus Depot site will become available for alternative use as soon as the buses are relocated, which is expected to occur in mid 2021. During the year Infratil advanced $38.5 million to Infratil Infrastructure Property to fund construction, giving Infratil Infrastructure Property a 31 March 2020 valuation of $96.9 million.
“We aren’t going anywhere” he told the Tramways Union at a meeting with the Company on 13th December. Earlier, Infratil shareholders were advised that the iconic Kilbirnie property would be redeveloped in 2021.
Infratil's 2020 Annual Report released on 29 May stated...
Infratil Infrastructure Property has two property initiatives underway, construction at Halsey Street in Auckland’s Wynyard Quarter, and assessment of the alternative use of the old Kilbirnie Bus Depot site in Wellington...The Kilbirnie Bus Depot site will become available for alternative use as soon as the buses are relocated, which is expected to occur in mid 2021. During the year Infratil advanced $38.5 million to Infratil Infrastructure Property to fund construction, giving Infratil Infrastructure Property a 31 March 2020 valuation of $96.9 million.
Mass resignations behind Wellington bus cancellations - 15/12/20
Drivers resigning over poor working conditions are leading to an increase in cancelled bus services, the bus drivers union claims.
Tramways Union secretary Kevin O’Sullivan said around 40 drivers had resigned in the last two months from NZ Bus, leading to a shortage of drivers.
A Porirua-based bus driver said there was a major morale problem. “There is a huge surge in no-shows for work, drivers refusing to do complete shifts and the level of fatigue is really noticeable now. They have clicked to the ever-increasing lengthy shifts and big unpaid breaks and are opting to finish prior to the breaks,” the driver said.
O’Sullivan said dissatisfaction among drivers was increasing across all companies and he believed the problem would get worse. “There are going to be big problems next year once schools and universities are back,” he said. “It’s a shambles and it’s not getting better.”
The union is currently negotiating a new collective bargaining agreement with NZ Bus.
O’Sullivan said NZ Bus drivers were frustrated at the company and were “very, very close” to taking industrial action if they did not get the deal they wanted.
Tramways Union secretary Kevin O’Sullivan said around 40 drivers had resigned in the last two months from NZ Bus, leading to a shortage of drivers.
A Porirua-based bus driver said there was a major morale problem. “There is a huge surge in no-shows for work, drivers refusing to do complete shifts and the level of fatigue is really noticeable now. They have clicked to the ever-increasing lengthy shifts and big unpaid breaks and are opting to finish prior to the breaks,” the driver said.
O’Sullivan said dissatisfaction among drivers was increasing across all companies and he believed the problem would get worse. “There are going to be big problems next year once schools and universities are back,” he said. “It’s a shambles and it’s not getting better.”
The union is currently negotiating a new collective bargaining agreement with NZ Bus.
O’Sullivan said NZ Bus drivers were frustrated at the company and were “very, very close” to taking industrial action if they did not get the deal they wanted.
Bus cancellations - Metlink misses the point - TU 15/12/20
Metlink has issued a public apology over an increase in bus cancellations, claiming...
"There are a number of reasons why there are more cancellations at the moment; recent rest break legislation and route extensions into the CBD required additional drivers; heading towards Christmas a number of our drivers who worked through all alert levels are taking well-earned breaks, and we’re experiencing higher levels of sickness and fatigue."
However Tramways Union Wellington Branch Secretary Kevin O'Sullivan has highlighted the true reason that so many trips are being cancelled...
"The real reason for the cancellations is the record number of drivers leaving the industry (over 40 drivers have resigned from NZ Bus in Wellington in the last two months) and the situation is not going to improve in the new year. PTOM - the Public Transport Operating Model introduced in 2018 has been a complete failure and until that has been acknowledged and addressed, Wellingtons' public transport problems will continue to plague the City."
"There are a number of reasons why there are more cancellations at the moment; recent rest break legislation and route extensions into the CBD required additional drivers; heading towards Christmas a number of our drivers who worked through all alert levels are taking well-earned breaks, and we’re experiencing higher levels of sickness and fatigue."
However Tramways Union Wellington Branch Secretary Kevin O'Sullivan has highlighted the true reason that so many trips are being cancelled...
"The real reason for the cancellations is the record number of drivers leaving the industry (over 40 drivers have resigned from NZ Bus in Wellington in the last two months) and the situation is not going to improve in the new year. PTOM - the Public Transport Operating Model introduced in 2018 has been a complete failure and until that has been acknowledged and addressed, Wellingtons' public transport problems will continue to plague the City."
14 December 2020 - Mediation with NZ Bus - click here to read the outcome
7 December 2020 - Actions begins on toilet facilities
2 December 2020 - Under the Wires - A nostalgic look at trolley and other buses - Click here to read
2 December 2020 - Updates on NZ Bus legal matters - Click here to read
NZ Bus stop work meeting - summary
The Tramways Union NZ Bus Stop Work Meeting was held on 25th November
Guest speakers were Richard Wagstaff, President of the Council of Trade Unions and Scott Gallagher, General Manager Public Transport, GWRC.
The meeting passed the following resolution by a majority vote of 167 to 7:
In accordance with the Union’s rules this ballot authorises members to commence strike action in the event that collective bargaining is unsuccessful in reaching agreement for new Collective Employment Agreements for Cityline (NZ) Limited and Wellington City Transport Limited. In this event a strike notice in compliance with Sections 82, 83, 86A and 93 of the Employment Relations Act will be issued
The Unions claims for our agreement negotiations are:
Our claims are based on the government proposal to engage contractors to pay the living wage as a base rate across all sectors.
Guest speakers were Richard Wagstaff, President of the Council of Trade Unions and Scott Gallagher, General Manager Public Transport, GWRC.
The meeting passed the following resolution by a majority vote of 167 to 7:
In accordance with the Union’s rules this ballot authorises members to commence strike action in the event that collective bargaining is unsuccessful in reaching agreement for new Collective Employment Agreements for Cityline (NZ) Limited and Wellington City Transport Limited. In this event a strike notice in compliance with Sections 82, 83, 86A and 93 of the Employment Relations Act will be issued
The Unions claims for our agreement negotiations are:
- A base hourly rate of $22.10
- The existing collective agreements in their entirety
- A relativity adjustment for members employed on the flat hourly rate at Cityline and those covered by the M & C Union (workshops and shiftmen)
Our claims are based on the government proposal to engage contractors to pay the living wage as a base rate across all sectors.
Statement to the Tramways Union stop work meeting by the Hon. Michael Woods - Minister for Workplace Relations - 25 November 2020
Background to bargaining
CTU Briefing to the Incoming Minister for Workplace Relations and Safety
Council of Trade Unions - submission on Extension of Government Procurement Rules to the Broader Public Sector
To...Procurement New Zealand, Ministry of Business, Innovation and Employment
on the
Proposed Extension of the Government Procurement Rules to the Broader Public Sector
24 November 2020
This submission is made on behalf of the 27 unions affiliated to the New Zealand Council of Trade Unions Te Kauae Kaimahi (CTU). With 320,000 members, the CTU is one of the largest democratic organisations in New Zealand.
The CTU acknowledges Te Tiriti o Waitangi as the founding document of Aotearoa New Zealand and formally acknowledges this through Te Rūnanga o Ngā Kaimahi Māori o Aotearoa (Te Rūnanga), the Māori arm of Te Kauae Kaimahi (CTU) which represents approximately 60,000 Māori workers.
Contents
1. Summary of Recommendations. 3
2. Introduction.. 4
3. Support for a unified system of Government Procurement 4
4. Strengthening the Procurement Rules. 5
5. Conclusion. 6
on the
Proposed Extension of the Government Procurement Rules to the Broader Public Sector
24 November 2020
This submission is made on behalf of the 27 unions affiliated to the New Zealand Council of Trade Unions Te Kauae Kaimahi (CTU). With 320,000 members, the CTU is one of the largest democratic organisations in New Zealand.
The CTU acknowledges Te Tiriti o Waitangi as the founding document of Aotearoa New Zealand and formally acknowledges this through Te Rūnanga o Ngā Kaimahi Māori o Aotearoa (Te Rūnanga), the Māori arm of Te Kauae Kaimahi (CTU) which represents approximately 60,000 Māori workers.
Contents
1. Summary of Recommendations. 3
2. Introduction.. 4
3. Support for a unified system of Government Procurement 4
4. Strengthening the Procurement Rules. 5
5. Conclusion. 6
- Summary of Recommendations
- The CTU recommends that all state sector agencies be required to promote maximum public value in all procurement decisions, including by applying the broader outcome measures in Rules 16 to 20 of the Government Procurement Rules. This requires an amendment to Rule 13 on opt-out procurement, which should be done as a matter of priority and before the proposed extension of the Rules to cover the broader public sector.
- The CTU recommends further work to strengthen the broader outcome measures in the Government Procurement Rules, including to support improvement in employment outcomes, prior to the proposed extension of these rules to cover the broader public sector.
- The CTU recommends that support and resourcing as appropriate be made available to agencies in the broader public sector to assist in preparing systems and capacity for implementing Government Procurement Rules.
- The CTU recommends that the Government Procurement Rules be amended to require all agencies to consider options for “in house” direct provision of goods and services, including direct employment, prior to tendering or renewal of any contract for procurement.
- Following implementation of the above recommendations, the CTU supports the proposed extension of the Government Procurement Rules to the broader public sector.
- Introduction
- The CTU welcomes the opportunity to comment on this proposal to extend the Government Procurement Rules to cover the broader public sector.
- Government procurement is an important and under-utilised lever to achieve public value and contributions to the strategic objectives of government, including improvement in living standards and employment outcomes for New Zealanders.
- In principle, we support the intent of the proposal to extend the Government Procurement Rules to the broader public sector. We see this as part of a wider program of work to create a more unified and coordinated system of Government Procurement and to strengthen the procurement rules to more effectively promote public value. In this submission, we identify specific areas where we recommend work prior to the proposed extension being implemented.
- Support for a unified system of Government Procurement
- The CTU supports progress towards a unified system of government procurement that delivers public value for public money. All providers of goods and services to public agencies should be required to meet high standards of good employment, with particular regard to raising standards of employment for Māori and Pasifika workers. Providers should also be required to contribute to other broader outcomes of public value, including reduction of waste and Carbon emissions.
- We note that procurement of some goods and services for Education, Health, Welfare, Defence and Intelligence purposes are covered by an opt-out under Rule 13 of the Government Procurement Rules. We recommend that Rule 13 be amended to require all agencies to promote maximum public value in all procurement decisions, including by applying the broader outcome measures in Rules 16 to 20. This should be done as a matter of priority, and before the proposed extension of the Rules to cover the broader public sector.
- The CTU recommends that support and resourcing as appropriate be made available to agencies in the broader public sector to assist in preparing systems and capacity for implementing Government Procurement Rules. This should include support for School Principals, and other responsible managers of public entities, to make any necessary adjustments to procurement practices and systems. In addition to capacity-building support from Procurement NZ, funding agencies should be involved to identify and cover any additional costs.
- We recommend further work to develop capacity for Government Procurement to set standards, certify providers, and provide independent quality assurance and auditing. This work should include consideration of creating an independent agency with the necessary capacity and powers to manage this work across the state sector, in partnership with unions, employers and iwi.
- Strengthening the Procurement Rules
- In our submission on the 2019 review of the Government Procurement Rules, we welcomed the intention to include measures of broader outcomes, while also recommending that the criteria and requirements for each of the four outcomes needed to be strengthened to set substantive standards that are above existing legal minimum requirements.[1]
- Unfortunately, the recommendations we made for strengthening the Rules were not adopted in the Government Procurement Rules (4th Edition). As a result, we do not believe that the Rules in their current form are fit for purpose to ensure public value is achieved under the Broader Outcome categories.
- In summary, our recommended changes to Rules 16 to 20 would strengthen the Rules, by:
- requiring consideration of public value and broader outcomes in all procurement decisions, with prioritisation of particular outcomes as designated by Cabinet.
- setting substantive standards for broader outcomes, above legislated minima.
- requiring standards of good employment that include: raising wages and conditions above industry standard, with the Living Wage as a minimum; promotion of best practice for health and safety, including through worker participation; compliance with all applicable statutory and regulatory requirements; commitment to workforce training and skills development; commitment to equity and diversity in employment; continuity of employment, including in any transfer of undertakings; respect for workers’ rights to freedom of association and collective bargaining; and ensuring to the greatest extent practicable, that the above requirements are also followed in the supply chain.
- In addition, we recommend that the Government Procurement Rules be amended to require all agencies to consider options for “in house” direct provision of good and services, including direct employment, prior to tendering or renewal of any contract for procurement. This assessment should be built into the procurement planning process referred to in Rule 15 and include an assessment of public value and broader outcomes that could be gained through direct provision.
- We recommend further work to strengthen the Government Procurement Rules, with reference to this submission and our previous recommendations, prior to the proposed extension of the Rules to the broader public service.
- Conclusion
- The CTU has recommended further work on strengthening the Government Procurement Rules to promote broader outcomes of public value, including good employment outcomes, as part of a unified system of government procurement.
- Following satisfactory implementation of these recommendations, we support the proposed extension of the rules to the broader public service.
Fair Pay Agreements gathering speed
The attached report was completed in 2018 for the coalition government but Winston Peters' NZ First Party was instrumental in blocking, delaying, and watering down some of the recommendations. The government has now adopted the report in full as part of its manifesto, to work towards the implementation of Fair Pay Agreements. The document is a long read at 58 pages but contains important information in relation to this ground-breaking policy that will herald significant changes to industries such as ours, in which wages get hammered in the race to the bottom caused by the competitive tendering model.
Dying to go...no toilets for bus drivers - Dompost 13/11/20
Hundreds of Wellington bus drivers are threatening to abandon their routes in protest over a lack of toilet facilities.
Tranzurban drivers claim they have been forced to go to the toilet in bushes and behind their buses since changes in July 2018, which scheduled rest breaks at random bus stops and terminals without adequate facilities.
Tramways Union secretary Kevin O’Sullivan said the lack of toilet facilities was not something you would expect in a first-world country. “It’s not rocket science, it’s a basic amenity. If you work somewhere, you should have access to a bathroom. It’s not that hard,” he said.
“It’s pretty awful really...they keep saying they’ll fix it, but it’s been pretty slow.”
The structure of shifts meant drivers were usually away from the depot for four to five hours without access to a toilet. Some drivers had complained of dehydration, leading to kidney damage, headaches, and concentration issues.
The issue was made worse because of the age of the workforce, O’Sullivan said. Bus drivers are the oldest workers of any key industry, according to Stats NZ. The average age of bus drivers in New Zealand is 54, eight years older than the age for the next highest industry.
In a letter to the mayors of Wellington, Porirua and Lower Hutt, drivers said they would abandon their routes if toilet facilities were not provided by January 1, 2021.
“Drivers will have no further options but to drive to the nearest public convenience some distance away, incurring late running and disruption to timetabled services,” the letter read. At a minimum, drivers want good quality portaloos with combination locks and sensor lights at each location.
The letter was initiated by individual drivers, but has been endorsed by Tramways Union.
Tranzurban drivers claim they have been forced to go to the toilet in bushes and behind their buses since changes in July 2018, which scheduled rest breaks at random bus stops and terminals without adequate facilities.
Tramways Union secretary Kevin O’Sullivan said the lack of toilet facilities was not something you would expect in a first-world country. “It’s not rocket science, it’s a basic amenity. If you work somewhere, you should have access to a bathroom. It’s not that hard,” he said.
“It’s pretty awful really...they keep saying they’ll fix it, but it’s been pretty slow.”
The structure of shifts meant drivers were usually away from the depot for four to five hours without access to a toilet. Some drivers had complained of dehydration, leading to kidney damage, headaches, and concentration issues.
The issue was made worse because of the age of the workforce, O’Sullivan said. Bus drivers are the oldest workers of any key industry, according to Stats NZ. The average age of bus drivers in New Zealand is 54, eight years older than the age for the next highest industry.
In a letter to the mayors of Wellington, Porirua and Lower Hutt, drivers said they would abandon their routes if toilet facilities were not provided by January 1, 2021.
“Drivers will have no further options but to drive to the nearest public convenience some distance away, incurring late running and disruption to timetabled services,” the letter read. At a minimum, drivers want good quality portaloos with combination locks and sensor lights at each location.
The letter was initiated by individual drivers, but has been endorsed by Tramways Union.
Beware of fatigue when working long hours
Dramatic photos of a crash scene in Auckland's Glendowie show a bus hanging precariously off a road after smashing through a pōhutukawa tree.
The bus crashed on Riddell Rd and came within metres of hitting a house, said the home occupant, who did not want to be named.
He first thought a vehicle had driven into parked cars but when he opened his front door he found the bus sitting about six metres from his house.
"I knocked on the window and made sure the driver was okay. He was in a lot of shock, quite upset," he said.
"The other passenger was an elderly gentleman who had a gash on his chin. Probably worth about four or five stitches."
The bus crashed on Riddell Rd and came within metres of hitting a house, said the home occupant, who did not want to be named.
He first thought a vehicle had driven into parked cars but when he opened his front door he found the bus sitting about six metres from his house.
"I knocked on the window and made sure the driver was okay. He was in a lot of shock, quite upset," he said.
"The other passenger was an elderly gentleman who had a gash on his chin. Probably worth about four or five stitches."
20/10/20 - Breaking news - Tranzurban have made back-payments for the lockdown. We haven't been provided with any details yet but will be checking calculations soon.
Tranzurban Bus drivers ask for council help after six months without lockdown backpay DomPost - Joel MacManus 20:05, 16/10/20
Six months after the Covid-19 Level 4 lockdown began, hundreds of Wellington bus drivers are still fighting for money they say they are owed by their employer Tranzurban.
After unsuccessfully seeking an Auditor-General investigation, the Tramways Uniom has now asked the regional council to step in and force a resolution.
Stuff understands the issue was raised at a high-level meeting between the Tramways Union, regional councillors, bus companies, Waka Kotahi NZTA, and the Council of Trade Unions.
During the first lockdown, Waka Kotahi NZTA paid a $110m subsidy to regional councils to provide free public transport. It was followed up by another $100 million rescue package in July.
READ MORE:
* Wellington bus drivers claim they were underpaid during lockdown, could strike
* Bus drivers lay complaint with Auditor-General over 'significant underpay' during lockdown
* Bus drivers underpaid during lockdown, union says
That money was given to bus companies to continue to pay wages. In a memo, NZTA told operators they had an obligation to ensure employees were “not financially disadvantaged by Covid-19”.
Tranzurban and the union have been locked in a bitter dispute over how that subsidy money should have been distributed to employees.
The company decided to pay drivers based on their rostered hours, but the union believes drivers should have been paid based on their average weekly income, as many drivers normally work far more hours than they are rostered for, through overtime and extra shifts.
“It’s just disgusting really,” Tramways union secretary Kevin O’Sullivan said. “When they were given the money there was a clear instruction. They just need to get on and pay it.”
A Tranzurban spokesperson said the company was waiting on the results of an audit before it would decide on whether to back pay employees.
“Tranzurban is nearing completion of our payroll audit and we will be updating our team once complete. We have also met with Greater Wellington Regional Council and they are comfortable with how we are tracking,” they said.
A similar dispute with another Wellington bus company, NZ Bus, was resolved in June, with drivers being back paid to reflect average earning.
One driver, who did not wish to be named, told Stuff they worked between 60 and 70 hours a week on average but were only rostered for 40 hours.
“I’m out of pocket about $1600 at least, if not two grand. There’s probably at least 200 other drivers at Tranzurban who are in the same boat,” they said.
An internal memo sent to Tranzurban, which has been seen by Stuff, appeared to suggest drivers had flip-flopped on their pay demands.
”During the Level 4 lockdown, Tranzurban continued to pay all employees 100 per cent of the hours they are contracted to work. This was well-received during a time of uncertainty for many,” the memo read.
Roger Blakeley, who holds Greater Wellington Regional Council transport portfolio, was optimistic a deal could be reached.
“We would like to see the drivers fairly treated, so we are hopeful for a good outcome,” he said.
Six months after the Covid-19 Level 4 lockdown began, hundreds of Wellington bus drivers are still fighting for money they say they are owed by their employer Tranzurban.
After unsuccessfully seeking an Auditor-General investigation, the Tramways Uniom has now asked the regional council to step in and force a resolution.
Stuff understands the issue was raised at a high-level meeting between the Tramways Union, regional councillors, bus companies, Waka Kotahi NZTA, and the Council of Trade Unions.
During the first lockdown, Waka Kotahi NZTA paid a $110m subsidy to regional councils to provide free public transport. It was followed up by another $100 million rescue package in July.
READ MORE:
* Wellington bus drivers claim they were underpaid during lockdown, could strike
* Bus drivers lay complaint with Auditor-General over 'significant underpay' during lockdown
* Bus drivers underpaid during lockdown, union says
That money was given to bus companies to continue to pay wages. In a memo, NZTA told operators they had an obligation to ensure employees were “not financially disadvantaged by Covid-19”.
Tranzurban and the union have been locked in a bitter dispute over how that subsidy money should have been distributed to employees.
The company decided to pay drivers based on their rostered hours, but the union believes drivers should have been paid based on their average weekly income, as many drivers normally work far more hours than they are rostered for, through overtime and extra shifts.
“It’s just disgusting really,” Tramways union secretary Kevin O’Sullivan said. “When they were given the money there was a clear instruction. They just need to get on and pay it.”
A Tranzurban spokesperson said the company was waiting on the results of an audit before it would decide on whether to back pay employees.
“Tranzurban is nearing completion of our payroll audit and we will be updating our team once complete. We have also met with Greater Wellington Regional Council and they are comfortable with how we are tracking,” they said.
A similar dispute with another Wellington bus company, NZ Bus, was resolved in June, with drivers being back paid to reflect average earning.
One driver, who did not wish to be named, told Stuff they worked between 60 and 70 hours a week on average but were only rostered for 40 hours.
“I’m out of pocket about $1600 at least, if not two grand. There’s probably at least 200 other drivers at Tranzurban who are in the same boat,” they said.
An internal memo sent to Tranzurban, which has been seen by Stuff, appeared to suggest drivers had flip-flopped on their pay demands.
”During the Level 4 lockdown, Tranzurban continued to pay all employees 100 per cent of the hours they are contracted to work. This was well-received during a time of uncertainty for many,” the memo read.
Roger Blakeley, who holds Greater Wellington Regional Council transport portfolio, was optimistic a deal could be reached.
“We would like to see the drivers fairly treated, so we are hopeful for a good outcome,” he said.