Infracore workers are set to strike for eight days in a bid for better pay. Photo: NZME
* Correction: This article's second paragraph have been updated to clarify the statement made by the Amalgamated Workers Union that Infracore was the "lowest paying local council employer". The first paragraph has also been updated to clarify Infracore is a council controlled organisation (CCO).
Seventy-five workers from Rotorua council-controlled organisation InfraCore will stop work for eight days from Friday in a bid to end eight months of failed pay negotiations.
The union representing the majority of the workers - who include parks, cemeteries and water services staff - said the council was the "lowest paying local council employer" in the region for essential services.
Amalgamated Workers Union (AWU) represents 59 of the striking InfraCore workers, and First Union 16.
AWU Bay of Plenty organiser Toni Smith said their employer showed "no willingness" to move from a position that made InfraCore workers "significantly the worst paid in their field across all local bodies in the Bay of Plenty/Waikato".
Workers have voted to strike from 5am on Friday until 5am on Tuesday unless directed into mediation.
A further four strike days were planned, the last ending on 3 April at 5am.
Striking was indicative of workers' frustration, Smith said.
"It's completely outrageous that we have staff members with 10-plus years' experience earning $23.65 an hour.
"Trainees at other local councils are better paid, and every other local body in the region pays a living wage of a minimum of $26 an hour."
Discussions began in June last year and the union had engaged with InfraCore openly and honestly, Smith said.
"This isn't greed - this strike will cost our members money, but they feel totally disrespected and undervalued and have tried everything else."
Workers had contacted community groups to minimise disruption to the public, and would work with InfraCore management to ensure the strike would not affect burials and critical services such as water.
InfraCore interim chief executive Regan Fraser said discussions had been held in good faith but unions' expectations surpassed what it could afford.
Fraser acknowledged that team members had the right to take industrial action, and said he knew that "times are tough for many people now".
He said InfraCore was "navigating significant financial pressure" with its current losses.
"This backdrop makes our commitment to our workforce's wellbeing all the more important to us.
"We work hard on fostering a strong sense of unity and valuing each employee - efforts that have enabled us to stretch our resources to offer a 5 percent increase."
He said discussions with unions had been in good faith but had not led to an agreement.
"The unions' expectations surpass what is sustainable for our organisation at the moment."
Fraser said it was working with Rotorua Lakes Council to ensure the future sustainability of InfraCore.
For the year ending in June, the council would give $13,279,000 to Infracore budget. Its total revenue was projected at $15,466,00, but after expenses estimated a before-tax loss of $39,000.
Staff costs made up $9,266,000 of the total $15,198,000 expenses.
"We remain dedicated to our team, and we are hopeful for a resolution that upholds the long-term health of both our employees and the organisation."
Fraser said he would clarify with striking contractors how burials and critical services might be impacted as he understood all labour would be withdrawn.
Rotorua mayor Tania Tapsell said the service level agreement the council had with InfraCore was funded by rates and was a limited resource.
"Any funding increases have a significant burden on our community, which we must always consider."
She said it was expected that council-controlled organisations (CCOs) independently manage, bid for contracts and deliver services in a sustainable way.
"It's not always possible for [the council], as the parent body, to fill funding shortfalls.
"The council has its own limited budgets to operate within, where we've already allocated ratepayers money to deliver other services."
Tapsell said they were in discussions with InfraCore about a new agreement to ensure services were delivered to the "expected standard within the allocated funding envelope".
Rotorua Lakes Council infrastructure and environment general manager Stavros Michael said the council was hopeful the impact on key public services would be minimal.
He said the public would be advised of any significant impact.
"The council will prioritise high-importance areas and facilities for the likes of water supplies, stormwater management, cleaning and open spaces mowing and will continue to monitor and reassess the situation and make adjustments as required."
Corporate services general manager Thomas Colle said the SLA comprised of:
- A fixed amount to cover things like mowing, gardens, inspection of assets and drains, and to operate drinking water pumping and treatment plants;
- Payments made on an as-needed basis for responding to reactive work like fixing water leaks, fixing playgrounds and other assets, operating the crematorium and looking after cemeteries.
He said it was working with InfraCore to identify and reduce financial risks and the new agreement would take a longer-term view for the services it provided to the council.
- Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air.
