The Air NZ issue is yet another inherited mess

tdgeek:

 

MikeB4: So the Air NZ strike is now three days. Gee we really have boarded a TARDIS and gone back to the 70s and 80s. Not a lot coming from the Beehive, Jacinda has probably been counselled by Helen not do anything because New Zealand RS should not be wasting their money on travel and fun.

 

What do we do? Tell the teachers and the nurses and these workers to put up with it as there is no money? Yes, that worked for 9 years, another 9? Its true that the Unions now seen empowered, but its also true that many seem to blame Labour for the strikes and completely ignore the reasons for the strike, reasons that heavily pre date this Govt. Short sighted. Lets ignore the past and the reasons that go with it, and just focus on today. The transport issue is exactly the same. No matter who is in Govt, or what reasons we allow that its fallen behind, we seem to prefer to ignore all that and want it done now, all of it.

 

The Government is telling them there is no money. You can't rattle the 'everything is underfunded' sword in opposition and then complain there aren't enough magic beans in the til when you do get in. 

GV27:

 

The Government is telling them there is no money. You can't rattle the 'everything is underfunded' sword in opposition and then complain there aren't enough magic beans in the til when you do get in. 

 

Poor Air New Zealand... It is not like the company is asking the government for money:

https://p-airnz.com/cms/assets/PDFs/2018-Annual-Results-Media-Release.pdf

 

Second highest profit in Air New Zealand’s history enables reinvestment in customer experience and staff bonuses

 

Highlights
• Achieved second highest profit of $540 million
• Investment of approximately $150 million expected over the next four years to enhance customer experience in key areas, including new cabin experience, digital products and lounges
• Commitment to third short term leased widebody aircraft to further assist with schedule reliability during ongoing maintenance requirements associated with the global Rolls-Royce Trent 1000 engine
issues
• Staff bonuses of up to $1,800 for all permanent employees who do not participate in a Short Term Incentive programme

 

Air New Zealand today announced earnings before taxation for the 2018 financial year of $540 million, an increase from the prior year result of $527 million, representing the second highest profit in the airline’s history. Net profit after taxation grew 2.1 percent to $390 million.

 

Based upon current market conditions and assuming an average jet fuel price of US$85 per barrel, 2019 underlying earnings before taxation is expected to be in the range of $425 million to $525 million.

 

This excludes an estimated $30 million to $40 million impact from schedule changes prompted by the global Rolls-Royce engine issues.

 

Financial Highlights
• Record operating revenue of $5.5 billion, up 7.4%
• Earnings before taxation of $540 million, up 2.5%
• Net profit after taxation of $390 million, up 2.1%
• Operating cash flow of $1 billion, up 14%
• Fully imputed final dividend of 11.0 cents per share, bringing the 2018 full year fully imputed ordinary dividends to 22.0 cents per share, an increase of 4.8% from the prior year

 

MikeB4: The management of the issue and dispute is a now issue.

It is, very much so, but the ongoing ranting is the same. Ignore who was in power, and focus on the now, to play the blame game. 

I saw this is Stuff comments, and yes, its Stuff comments, but it paints a chilling picture on Air NZ and its culture. . Basically treats staff as inanimate money making tools, instead of working as a well knit team

"I worked for AIR NZ as a Flight Attendant for three years - all FA and captains were treated badly. I was paid 29k a year and they were maxing my duty hours to 6 flights a day sometimes - I was constantly sick and exhausted. I ended up leaving when they changed the rostering to max their profits however, leaving stuff at bases for days at a time and away from their families. Its a greedy company and they have lost of heart and soul of caring for their staff and Their marketing and advertising budgets are so high yet they dont pay staff well."

As to dealing with this now, JA should tell Air NZ to fix it and fix it now otherwise the Govt will fix it instead. Ideally they would advise this publically, and if no success they would ask the members to hold off till New Year so the Govt can undertake negotiations in good faith. Interestingly, Luxon is in her Business Group, he needs to go, as well as go as CEO, and have management rebuilt with what was a proud company. 

freitasm:

 

GV27:

 

The Government is telling them there is no money. You can't rattle the 'everything is underfunded' sword in opposition and then complain there aren't enough magic beans in the til when you do get in. 

 

 

Poor Air New Zealand... It is not like the company is asking the government for money:

 

https://p-airnz.com/cms/assets/PDFs/2018-Annual-Results-Media-Release.pdf

 

 

Second highest profit in Air New Zealand’s history enables reinvestment in customer experience and staff bonuses

 

Highlights
• Achieved second highest profit of $540 million
• Investment of approximately $150 million expected over the next four years to enhance customer experience in key areas, including new cabin experience, digital products and lounges
• Commitment to third short term leased widebody aircraft to further assist with schedule reliability during ongoing maintenance requirements associated with the global Rolls-Royce Trent 1000 engine
issues
• Staff bonuses of up to $1,800 for all permanent employees who do not participate in a Short Term Incentive programme

 

Air New Zealand today announced earnings before taxation for the 2018 financial year of $540 million, an increase from the prior year result of $527 million, representing the second highest profit in the airline’s history. Net profit after taxation grew 2.1 percent to $390 million.

 

Based upon current market conditions and assuming an average jet fuel price of US$85 per barrel, 2019 underlying earnings before taxation is expected to be in the range of $425 million to $525 million.

 

This excludes an estimated $30 million to $40 million impact from schedule changes prompted by the global Rolls-Royce engine issues.

 

Financial Highlights
• Record operating revenue of $5.5 billion, up 7.4%
• Earnings before taxation of $540 million, up 2.5%
• Net profit after taxation of $390 million, up 2.1%
• Operating cash flow of $1 billion, up 14%
• Fully imputed final dividend of 11.0 cents per share, bringing the 2018 full year fully imputed ordinary dividends to 22.0 cents per share, an increase of 4.8% from the prior year

 

 

A huge chunk of that dividend goes back to the Government. Given that we canceled tax cuts because the Government needed the money to 'alleviate poverty' I'd rather have SOEs returning max dividends to the Government tbh.

GV27:

 

tdgeek:

 

MikeB4: So the Air NZ strike is now three days. Gee we really have boarded a TARDIS and gone back to the 70s and 80s. Not a lot coming from the Beehive, Jacinda has probably been counselled by Helen not do anything because New Zealand RS should not be wasting their money on travel and fun.

 

What do we do? Tell the teachers and the nurses and these workers to put up with it as there is no money? Yes, that worked for 9 years, another 9? Its true that the Unions now seen empowered, but its also true that many seem to blame Labour for the strikes and completely ignore the reasons for the strike, reasons that heavily pre date this Govt. Short sighted. Lets ignore the past and the reasons that go with it, and just focus on today. The transport issue is exactly the same. No matter who is in Govt, or what reasons we allow that its fallen behind, we seem to prefer to ignore all that and want it done now, all of it.

 

 

The Government is telling them there is no money. You can't rattle the 'everything is underfunded' sword in opposition and then complain there aren't enough magic beans in the til when you do get in. 

 

Thats entirely wrong. There is money. Teachers and nurses have been offered good offers, the transport policy adds new roads, reduces timelines on other roads, its budgeted for. It cannot be fixed at once. If these sectors are 6 years, 9 years, 15 years behind, irregardless of why, it will take time to bring it all back. If we fully excluded National re GFC and EQ, its still the same, it will take a long time to bring it back. But some seem to want an instant fix, then when it isn't, or the exact detail that suits them, they blame the new Govt. The rule of physics still applies, you can't create something from nothing, in this case a quick fix to many years of lack of investment. Forget who or why, we are well behind in many areas

GV27:

 

 

 

A huge chunk of that dividend goes back to the Government. Given that we canceled tax cuts because the Government needed the money to 'alleviate poverty' I'd rather have SOEs returning max dividends to the Government tbh.

 

Unsure what the Govt dividend has to do with it, the issue is Air NZ and their staff.

It seems the whole country considers this government a soft touch and is or are going to strike for massive pay deals.

Whilst most in the private sector have had to put up with conservative pay deals over the last decade just like the State Sector it now seems the door is open and deals of $10k plus per annum seem affordable to this Government. But wait there is more....some of these Unions are not accepting 10K and still striking for more. But hey, they all say its NOT about the money.

Its no wonder that the Government are proud of the 5% increase in wages over the last year as most of it has come from the taxpayer.

This has to have significant impact on inflation in the coming years. No doubt some sectors are deserving of a correction, but their bully tactics are deplorable. Sadly they are working.

Bluntj:

 

It seems the whole country considers this government a soft touch and is or are going to strike for massive pay deals.

 

Whilst most in the private sector have had to put up with conservative pay deals over the last decade just like the State Sector it now seems the door is open and deals of $10k plus per annum seem affordable to this Government. But wait there is more....some of these Unions are not accepting 10K and still striking for more. But hey, they all say its NOT about the money.

 

Its no wonder that the Government are proud of the 5% increase in wages over the last year as most of it has come from the taxpayer.

 

This has to have significant impact on inflation in the coming years. No doubt some sectors are deserving of a correction, but their bully tactics are deplorable. Sadly they are working.

 

I see no massive pay deals

tdgeek:

 

GV27:

 

A huge chunk of that dividend goes back to the Government. Given that we canceled tax cuts because the Government needed the money to 'alleviate poverty' I'd rather have SOEs returning max dividends to the Government tbh.

 

 

Unsure what the Govt dividend has to do with it, the issue is Air NZ and their staff.

 

Uh...pushing up wages increases operating costs which reduces profitability and dividends? The Govt is a major shareholder. 

tdgeek:

 

Thats entirely wrong. There is money. Teachers and nurses have been offered good offers, the transport policy adds new roads, reduces timelines on other roads, its budgeted for. It cannot be fixed at once. If these sectors are 6 years, 9 years, 15 years behind, irregardless of why, it will take time to bring it all back. If we fully excluded National re GFC and EQ, its still the same, it will take a long time to bring it back. But some seem to want an instant fix, then when it isn't, or the exact detail that suits them, they blame the new Govt. The rule of physics still applies, you can't create something from nothing, in this case a quick fix to many years of lack of investment. Forget who or why, we are well behind in many areas

 

The teachers don't think they have a good offer. The midwives don't either. They're still striking. 

As for "something from nothing": They found $1.5bn for a totally ineffective free tertiary education policy. You can understand why unions are a bit miffed.  

I have no issue with individuals and groups of individuals negotiating their employment conditions, it is their right under the Employment Relations Act. They do not in my opinion have the right to hold the people of New Zealand to ransom. The Union has clearly looked at the example set by the Interisland Ferry, the Water Siders, Boiler Makers and Meatworkers disputes of the 70s and 80s and timed their action for maximum impact and maximum disruption.

GV27:

 

tdgeek:

 

GV27:

 

A huge chunk of that dividend goes back to the Government. Given that we canceled tax cuts because the Government needed the money to 'alleviate poverty' I'd rather have SOEs returning max dividends to the Government tbh.

 

 

Unsure what the Govt dividend has to do with it, the issue is Air NZ and their staff.

 

 

Uh...pushing up wages increases operating costs which reduces profitability and dividends? The Govt is a major shareholder. 

 

 

 

tdgeek:

 

Thats entirely wrong. There is money. Teachers and nurses have been offered good offers, the transport policy adds new roads, reduces timelines on other roads, its budgeted for. It cannot be fixed at once. If these sectors are 6 years, 9 years, 15 years behind, irregardless of why, it will take time to bring it all back. If we fully excluded National re GFC and EQ, its still the same, it will take a long time to bring it back. But some seem to want an instant fix, then when it isn't, or the exact detail that suits them, they blame the new Govt. The rule of physics still applies, you can't create something from nothing, in this case a quick fix to many years of lack of investment. Forget who or why, we are well behind in many areas

 

 

The teachers don't think they have a good offer. The midwives don't either. They're still striking. 

 

As for "something from nothing": They found $1.5bn for a totally ineffective free tertiary education policy. You can understand why unions are a bit miffed.  

 

All companies have wage increases, along with other costs that increase over time, thats inflation. What do they do each year? Air NZ is just another company. What AIR NZ have done is limit wage costs, and increase workload, that's a great idea financially.  Not for employees

The teachers etc want an offer that fixes historical underpayments. Not enough for that, there is enough for a decent dent into it. But not what they want, clearly. Any party has many policies, I'm sure we can cherry pick anything we like and say this is useless, so lets use that.

MikeB4:

 

I have no issue with individuals and groups of individuals negotiating their employment conditions, it is their right under the Employment Relations Act. They do not in my opinion have the right to hold the people of New Zealand to ransom. The Union has clearly looked at the example set by the Interisland Ferry, the Water Siders, Boiler Makers and Meatworkers disputes of the 70s and 80s and timed their action for maximum impact and maximum disruption.

 

I agree. IMO, the Unions are not happy with Labour, they expect the soft touch, but the teachers and health issues show they are not a soft touch, here is your second offer, more , and no more money, so still striking. Labour is centre left not left, there is a lot to do, whoever is in power right now, the last century Union games are over for those in the 2018's, not for Unions.

tdgeek:

 

MikeB4:

 

I have no issue with individuals and groups of individuals negotiating their employment conditions, it is their right under the Employment Relations Act. They do not in my opinion have the right to hold the people of New Zealand to ransom. The Union has clearly looked at the example set by the Interisland Ferry, the Water Siders, Boiler Makers and Meatworkers disputes of the 70s and 80s and timed their action for maximum impact and maximum disruption.

 

 

I agree. IMO, the Unions are not happy with Labour, they expect the soft touch, but the teachers and health issues show they are not a soft touch, here is your second offer, more , and no more money, so still striking. Labour is centre left not left, there is a lot to do, whoever is in power right now, the last century Union games are over for those in the 2018's, not for Unions.

 

A diversion for a moment, On international comparisons Labour and National, are on the same point on the spectrum they are Centre Parties. NZ First is Centre with a minute leaning to right and NZ Green are Centre with a slight leaning to left. ACt are Right but also irrelevant.