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More than 1,000 Air New Zealand employees have petitioned the airline’s management to save New Zealand jobs and stop outsourcing jobs, including cabin crew positions to Shanghai-based Chinese nationals.
But in response to the “Kia Kaha Aotearoa” petition, signed by the 1287 staff, Air New Zealand CEO Greg Foran said the airline would continue to outsource the work to meet the financial targets set out in its new strategy called Kia Mau.
“I empathize with your view on outsourcing, that everything should be based in New Zealand, but unfortunately that’s not always the best or most feasible business outcome,” Foran said in an internal memo on Thursday.
The staff call comes after confirmation last week that some 385 international cabin crew would be laid off, as well as 550 licensed international cabin crew, who have not worked since July.
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More than 4,000 employees – roughly a third of the airline’s workforce – have lost their jobs since the start of the coronavirus pandemic. More than 1,000 people have taken periods of voluntary leave without pay or with reduced hours.
A petition from Ellie Leonard also appeared on the New Zealand Parliament website requesting that the House of Representatives urge the Government, as the majority shareholder (52 percent), to hold Air New Zealand responsible for the loss of jobs.
Mark Baker / AP
Air New Zealand is a third smaller than it was before the Covid-19 pandemic.
It has 1,452 signatures and closes on November 30. It is unclear if this is the same request Foran responded to.
“Air New Zealand received a government loan of $ 900 million. Why not retain employees in New Zealand and shut down your Chinese base? ” He said.
The airline should be saving jobs in New Zealand rather than outsourcing the work, he said.
“Air New Zealand is using Covid as an excuse to clean the house and weaken labor agreements.”
Ricky Wilson / Stuff
Air New Zealand CEO Greg Foran says the airline will continue to outsource work where it makes sense.
In Foran’s memo, he said the company would continue to use a variety of business partners to provide specific services.
Some to deliver specialized work, others in larger and more involved associations, some of which were in New Zealand, some overseas, he said.
“However, we do not make these partnership decisions lightly.”
He said there were considerations that management needed to be convinced of before making an outsourcing decision, including:
- It made operational sense not to hire staff directly
- If the airline had trouble finding the specialized skills it needed
- “Competitive costs” in areas such as engineering and maintenance and cabin crew
- Fluctuating levels of service needed to support the airline’s business operations
Foran said Air New Zealand’s Kia Mau strategy had five goals, the first being that “people will be our competitive advantage.”
“We believe this will be achieved through a customer-centric Kiwi culture,” Foran said.
A second, but “equally important,” goal was to deliver a profitable and resilient airline business that included, among other things, excelling where it flew in Asia, propositions that met the needs of premium and commercial customers, a highly competitive cost base and a strong and resilient balance sheet, he said.
“Both of the Kia Mau goals must work hand in hand,” Foran said.
“With a sustainable, appropriately sized, profitable and resilient airline, we believe we can continue to provide jobs for Air New Zealand residents and those who provide valuable services in support of the airline’s operations.”
It will continue to evaluate its trade associations to ensure targets are being met and will engage with staff and unions on any trade association proposals that may affect Air New Zealand’s existing jobs, he said.
