Union proclaims KiwiRail pay deal a ‘landmark’

Rail and Maritime Transport Union and KiwiRail General Secretary Wayne Butson says higher paid KiwiRail workers agreed to a deal that gave most benefit to lower paid workers.

Butson said a flat rate of higher pay applied across all 2319 of its members, rather than the usual percentage increase for workers.

“Personally, I’m over the moon that members have seen the value of a pay deal which evens the playing field…maybe this small chink in the capitalist armour will see a new age of fairer pay deals, less greed and a more equal society,” Butson said.

The equivalent percentage increase for the higher paid workers would be approximately 2.6 per cent over the two year contract while the lower paid workers would receive the equivalent of close to 9 per cent, he said.

“The really important thing was the way the higher paid workers brought into it because of their awareness of inequality. I don’t know if we could do it year after year but we need to look at how can lift the people at the bottom as well as the top,” Butson said.

Wages varied currently from $17.60 an hour for the lowest paid, to about $50 an hour for highest skilled with the most responsible jobs such train drivers and signal technicians.

KiwiRail chief executive Peter Reidy.

KiwiRail chief executive Peter Reidy said the deal was negotiated within a day and with “immense goodwill on both sides of the table”.

“This deal reflects our desire to play our part and improve the standard of living of all while lifting productivity.

The company and the union workers had worked together over the past three years on a programme to lift performance.

“It has seen productivity gains and health and safety improvements at the organisation, but more importantly it has signalled a new era of workplace relations.

“We have moved into a partnership model and we tackle issues together as they arise,” Reidy said.

The Coastal Pacific KiwiRail passenger service between Christchurch and Picton near Hapuku.

Butson said the new programme had energised workers because their suggestions were taken seriously, and their confidence and job satisfaction increased.

“It is with huge relief that we reported to our members that the system they are now using regularly in their work place was the basis for a fair pay deal.”

 – Stuff