Telecom's job cuts the latest of many
Fri, 22 Feb 2013 6:01p.m.
By Tony Field
Telecom's the latest company to announce job cuts and unions say it's clear the government's jobs strategy is in tatters.
Telecom's confirmed it will cut hundreds of jobs as it tries to reduce costs, meaning these are anxious times for the more than 7000 people who work for the company.
Telecom says its looking at job cuts in every part of its business.
“I'm not sugar coating that. We do have a lot more people in our business relative to competitors, we are certainly talking about a significant number, and I think that will be well into the hundreds,” says chief executive Simon Moutter.
Many within the industry believe the announcement was inevitable.
“Following the demerger with Chorus, we have taken a lot of the business away from Telecom and yet their costs and their staffing structure stayed the same,” says TUANZ’s Paul Brislen.
Telecom plans to make a final decision on jobs by May.
“We'll work through this as quickly as we can because the noise here is ‘do not prolong this, it's just too hard’,” says Mr Moutter.
Telecom may not be the only telco to cut jobs - Vodafone's buying TelstraClear and will be looking at what operations can be merged.
The Telecom cuts come on the heels of redundancies at Mainzeal, Contact Energy, New Zealand Post, Summit Wool Spinners and what could be big job losses at Solid Energy.
“There is desperation out there. I mean 1500 people applied for jobs at The Warehouse last week in Mount Roskill, I mean there is not many jobs out there and it's getting worse by the day,” says the EPMU’s Joe Gallagher.
But the Prime Minister says jobs are being created too.
“Every week I am at the opening of some new production plant, or some new operation that is looking to hire people. Yesterday I was in Rotorua at Red Stag, last week I was at
IBM where they are looking to create 400 jobs, so we live in a very flexible labour market,” says John Key.
Many of the jobs losses at telecom will occur at the company's Auckland head quarters.
Telecom's looking at whether there is too much duplication of work among its staff. Departments that will be looked at include human resources, the legal and accounting teams and even the top executives.
The last annual report showed over 2500 staff here and abroad earned more than $100,000.
Ten of them - including the chief executive - earned more than $1 million.
Telecom believes the job prospects are good for the staff it will have to let go.
“They are highly skilled staff, they are very technologically able. It's a world where technically capable people are in strong demand, so we are quite confident,” says Mr Moutter.
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23/02/2013 1:13:22 a.m.
It is nothing to do with the Govt that Telecom cuts jobs. It goes right back to the days of P&T (Post & Telegraph) and the the start of Telecom. Every year we see this "great" company producing fantastic results. Profits go up and job cuts follow. It has been the norm for too long and disrupted the lives of so many people. Locals and migrant workers recruited and then cast adrift. It was easier while Telecom had the monopoly and the "golden stock" on the NZX but competition and "unbundling" have burst that bubble. Now they have decided that there is too much fat in the higher salary bracket and the axe will swing that way for a change. It is sad that through no fault of their own some people will suffer for nothing worse than doing the best they could in the job they were doing.
22/02/2013 11:08:06 p.m.
Neil you have absolutely no idea what you are on about all you are doing is quoting John Key the brain fade King.. those are his words... are just because they are doesnt make them true.
Heres an economic indicator for you... thousands made redundant in the first two months of the year.
Great economic indicator.
And I know you dont like women so I expect an unintelligent insult back.
22/02/2013 7:25:21 p.m.
That's right National is to blame for cancer, global warming, the twin towers falling and they faked the mooon landings. Let's forget the fact that the world is in major recession with major layoffs. Actually, the economic indicators in NZ are looking good but of course the left are blind to that fact.
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