Chorus brings on Visionstream, pushes Downer out of Auckland, Transfield out of capital
Telecom’s network infrastructure division, Chorus, is shaping up to sign 10-year agreements later this month with three contractors, worth a cumulative $3 billion. Downer EDi will lose Auckland, and Transfield will lose Wellington as Chorus trims the incumbents’ turf to make way for a third contractor, Visionstream.
All three contractors are Australian-based.
Chorus spokesman Robin Kelly told NBR that Visionstream would take on the Auckland and Northland business currently handled by Downer EDi (assuming contracts are finalised as they currently stand).
But although it will loses our largest city, Downer EDi will gain Chorus’s business in Wellington, displacing Transfield Services. Transfield also loses work in North and West Auckland.
Transfield will continue to service the central North Island and the top of the South Island (see map above).
Mr Kelly declined to say how the $3 billion would be parcelled out among the three contractors.
But in a statement this morning, Tranfield says its 10-year contract is worth $1 billion.
Diversity, flexible hours
Visionstream is one of Telstra’s three core infrastructure providers in Australia, Mr Kelly says and will “bring diversity, and add innovation and a new perspective”.
Chorus chief executive Mark Ratcliffe said his company would also use the opportunity to "reshape" its field force. Customers should notice more flexible working hours once the three-month transition is complete.
The new agreements will also add efficiencies to the allocation of resources at peak-loads and strengthen the focus on quality, says Mr Ratcliffe.
The Chorus boss said his first priority had been to brief his 2500-strong field force on the changes.
$3 million a day
Chief executive Paul Reynolds told NBR that Telecom is investing about 23% of it’s revenue on infrastructure development, against an international industry average is between 10-12%.
Mr Kelly says such huge growth in Telecom’s capex means there will be more business for all. The telco’s capital expenditure has doubled to $1.4 billion this year with the roll-out of its new 3G network, and the government-mandated costs of unbundling local phone exchanges, and extending fibre to the node with roadside cabinets.
“We’re New Zealand’s busiest company, spending $3 million a day [on infrastructure],” says Mr Kelly. “It’s a completely different landscape than it was two years ago. There’s a huge amount of work for everybody”.
That giant sucking sound
At the 10th Annual Telecommunications and ICT Summit (TelCon10) held in Auckland this week, Tuanz boss Ernie Newman warned there was a series risk of a skills shortage, especially among field staff, as Australia prepared to embark on its eight-year, $A42 billion National Broadband Network build.
However, Mr Kelly said the 10-year time frame of the new contracts was not so much to tie-down resources as to give each company a level of security, certainty and confidence.
Formed in March 2008 under the government's operational separation legislation, Chorus builds network infrastructure for Telecom, and manages access to that infrastructure for customers including Telecom Wholesale, Vodafone, TelstraClear and Orcon.
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Comments and questions130
as for your neighbour i say tough.He was warned numerous times what would happen via this and other sites and i couldn't care less that he is now in debt .plenty of people stood on picket lines to stop visionstream while the rest thought they knew better and basically sh't on the union.So TOUGH COOKIES.
Telecom must be very confidant in their new contractor ( both to Telecom and NZ) to allocate such a large piece of work for 10y
Visionstream is part of a very large Australian corporation that already has a large engineering and mining division here in NZ.
Vision stream are part of Leighton Contractors who recently built the new toll road to Puhoi - and i think that they also own a couple of mines here in NZ, so they are hardly a fly-by-night aussie outfit.
It is great hearing about Vision stream projects but one never heard about them in relation to any telecommunication projects. So not sure how Telecom has the confident to give them 10yrs worth of contracted work??
Chorus points to Visionstream being a Telstra core three contractor in Australia. Other Australian customers include Optus and Primus.
I work for downers, this is a big shock to us :(
I use to work for Downer edi I got the shock of my life that they lost Auckland good luck to the field staff and dispatchers.
when you finish up at downer make your van and gear part of the redundancy package otherwise lack of vision want you to supply everything .you will have to buy your job.great timing telecom.should be an interesting fight with the union.
I wonder if there was any skulduggery involved here?
What is not said, is that Telecom is effectively forcing some hundereds of employees of Downer and Transfield to become owner operator's so they can "control" the market rates paid for field services , by way of playing them off against each other.
Interesting move as the visionstream model is not particulrly favourable to the work force and risks forcing many offshore (to avoid incurring debt to buy a job etc.) Add to that the debate at present around broadband proposals from the government (where utility companies are arguing they will be a better longterm provider as they are prepared to train and develop staff) and the stage is set for a potentially fractious "transition" . Given the recent activation of the trade unions in this sector it will be an interesting fight and win or lose the Chorus/ Telecom brand will be under attack.
Some people may be unaware of the lack of respect telecom has for the workers that look after thier network, over the years they have drip fed the two main companys that at times have been running at a loss.the skilled workers have been on low wages as a result and now things will get even worse, i think the new company may have a problem recriuting as workers.I cant see many wanting to jon this company with there proposed wage structure.And the people of New zealand will return to the days of poor service.
This has been tried before by believe it or not, good old Telecom. After making their engineers redundant, they promised them future work, if they bought their own van, and worked as a self employed contractor, after many of the workers did this, Telecom pulled the plug on them and the all ended up working for a contract company. So as you can see this poor treatment is nothing new to the people who have worked in this industry
TELECOM has shown its true colours.Selling its NZ field staff[saleries were always indirectly controlled by TELECOM] and by the way customers to,as we all have cell phones and land lines wich we pay for ourself.I will be moving my services to VODAFONE OR orcon].WE were all payed between $18-$25 p/h,and even as low as this is for TECHNICIANS,its still to high for TELECOM NZ.ALLthey want is to make profits.The talk about flexible hours,we were already working from 6am to 7pm,and after that had a call out person on standby,but even this is not good enough.I dont see the top management in TELECOM WORKING THESE LATE HOURS.same on you TELECOM YOU GUTLESS IDIOTS
unbelievable whats happened.telecom sucks.whatever you do dont sign up to visionstream.if we all stick together they will have to go our way.hang in dont weaken.
Visionstream have told Downer staff they want 90% of technicians to be self employed contractors. With a commencement date of October 1st, how likely is this to fall into place? A very risky contract it seems to me and grossly unfair to Downer employees.
with much trepidation we wellington transfield telco employees attended a meeting today with our new masters to be presented with 'hobsons choice';sign up for piece-rates or see you later.telecom once again pulling the strings and showing scant regard for their aging workforce and equally geriatric local loop ,both of which need t.l.c to keep in running order.keep strong our auckland brothers and sisters
How did Telecom really feel about Downer taking on Telstra national contracts or the potential Downer monopoly should Transfield exit the business ? A Downer strategy to have all the pie gone wrong !
Chorus Workers are sickened by the ideas that Australia's Vision Stream are pushing to put into play.
Workers will have to buy their own vans, will have to pay for petrol and only get paid per job, this could result in the workers having a van but no work some days which means no money.
Another plan Vision Stream has is that the worker would have to pay for extra help if a job is too difficult for one person.
Vision Stream has blurry vision. Field staff and dispatchers alike will no back down easily, they will not act as if everything is okay to the costumers. I would not be surprised if Field staff pull out all together. I think Vision Stream will have no problem hiring cheap foreign workers who will not complete tasks and struggle with customer care.
Telecom has proven to NZ that they only care about themselves. The consumer and their field staff must bare the brunt of their profit racketeering. I've moved from abroad to work in the Telco industry. but the working conditions in my "3rd world country" is far superior to Telecoms and the consumer and my previous employer gets a fair deal. I think its time to change fields or move to greener pastures. Telecom has added to the recession by creating more job losses and the loss of workers right to feed their greed.
Who wants to be a millionare? Join Telecom management
What were you thinking Chorus?, as a field fault tech in Auckland it breaks my heart to see the lads totally devastated, the anxiety and disbelief on the faces is gut wrenching , A lot of these technicians have only 10yrs service left. The feedback I’m getting from a significant amount of workers is leaving the industry is the only real option they have, as been paid maybe $50- $100 for a job mayn’t pay for all the running costs, including materials used, given you often spend 3-5hrs on one fault. And being lumped with a $40-$70000 bill to start-up your business is outrageous.
I still have 40yrs of work left, but even I’m considering leaving the industry, I can no longer see this as a career for me that will pay for a mortgage and put food on the table for the family, unless I work longer hours than I’m already working currently 40-60hrs a week at $21hr . It’s a real shame because I enjoy the work and have always worked hard to deliver top service to the Customer, Chorus and my Company, but all I see now is a future of very low paid technicians, under extreme pressure resulting in taking shortcuts on the Network and giving poor customer service. Good luck Chorus……
May be Downer should buy so call telecom and ship them out of NZ.
With all the talk of redundancy, putting fear in the hearts of workers and trying to make them sign up to this corrupt concept of working has now backfired on you.
Visionstream, how can you run a company when nobody wants to work for you. You are becoming the leper of NZ and before you are told by Telecom to sling your hook before industry comes to a standstill, Best go on your own free will.
You tried and you failed dismally
I've heard that Visionstream will pay you about $60 for fixing a ressie fault, So if you get a job that takes 2 hours , takes 30 mins to drive there to and cost $20 for overhead cable and $5 in petrol, take off tax, acc, insurance and paying back your van.
Well let’s say flipping Burgers for a living looks more attractive.
You owe it to your family, and you owe it to yourself to not sign up!!!!!!!!1
This has been a great shock to everyone at Downer. The question is now what will Visionstream be willing to offer?
http://www.cables.net.nz/
The only thing I will own will be a big debt.
I foresee longer hours, less pay, more stress, less safety, poor customer service, poor workmanship, no job satisfaction, no support, they will turn workmates against each other. Going to work will be dreadful and a job I won't be able to get out of because of the debt.
This will only succeed in taking years off my life!!
I will live longer and life will be better on the dole.
Current Unemployment Benefit Rates (net)
Single 20 - 24 years $158.65
Single, 25+ years $190.39
Married, civil union or de facto couple (with or without children)
$317.30
Sole parent $272.70
follow this link for a look into your possible future
http://tsca.net.au/files/newsletters/sld08901_aug.pdf
Interesting that Downer and Leighton have previously joint ventured in NZ (on roading).... I wonder iof there is more at play behind the scenes than meets the eye?
Just another multinational trying to turn servants into serfs
Join a Union
electricalunion@xtra.co.nz
dont worry about the finer points just tell your Union to negotiate a 12 month redundancy compensation package
its in our claims
employment agreement has expired
you have the lawful right to strike
time for talking is over
electricalunion@xtra.co.nz
You bet there was
just another scam to deal to workers that are starting to get reactive to wages less than $4 below the average wage
private sector technicians in the CNI have a base rate of pay of $29.87 with qualifications payments on top
Telecom and Vision Stream have formed a joint venture and are offering $17.50 an hour for those that dont get rammed into some franchisee arrangement
it doesnt have to happen like this
electricalunion@xtra.co.nz
your on to it
its a scam to deal to employees AKA servants and turn them into serfs AKA slaves
franchisees have no employment protection from Wages Protection Act, Employment Relations Act, Holidays Act, and so it goes on
but the workers have control
the employment agreements have expired the average base rate for elctricians and technicians in the cNI is 29.87 an hour whilst Transfailed pays on average $21 an hour or $3 an hour less than the average wage
dont hold back
electricalunion@xtra.co.nz
there's five times more work coming up in Aus for telecom techs than in NZ
dont fall into the trap
franchisees are a vehicle for turning servants into slaves
electricalunion@xtra.co.nz
I heard a slogan on the radio the other day about keeping jobs in New Zealand for New Zealanders, If this is the case then should we allow this (Aussie) company to cream of the money allocated to keep the network going and pass on whats left to the engineers, and send them into debt for wanting to work.
I'm an engineer for transfield and to be honest I would rather flip burgers for a living than sign up for this.
Recently I spoke to a Visionstream at a meeting, I said "it was a bit much asking the lads to pay for their own van", to which my answer was "well their not paying for their own van, because we can buy it for them and they can pay us back" do Visionstream think we are completely stupid.
What the hell is the government going to do about this, are they happy by the way we are being treated, or do they look at this in a positive perspective thinking it might improve the van sales for Toyota.
youre on to it but what are you doing to fix it
we are about to commence bargaining with Transfailed
the workers claims include a 12 month redundncay compensation package in the event of restructuring
also rosters that respect worker dignity, overtime after 8 hours on any day and rates consistent with the market $29.87
Ot rates at T1.5 and T2 double time on public holidays
electricalunion@xtra.co.nz
your agreement has expired join a union and take control of your life
electricalunion@xtra.co.nz
we have representatives available to assist
its time to stop talking and take action
join a union
the boys in Hamilton are itching to give their support
you have to make Telecom sit up and take notice there is only one way to do that, do it
electricalunion@xtra.co.nz
Strike and the rest of the country is with us, Strike indefinately i hope, one day strikes dont do anything, everyone just works harder the next day to clear the back log.The number of unoin members has increased, if we strike long enough we can force Telecom panick. they will be hit hard by all the other internet and phone providers who use their network (huge fines for loss of service) and do you think the goverment will watch companies go down the pan because their phone lines and internet are down, i dont think so!!!
good on visionstream these techs beem abusing there employers four years snide remarks to existing contractors welcome to real world blood up bros
Even the negative reactions I have seen to this move by chorus justified or not are an omen of doom for the whole scheme ,for chouseliminating the word "employee"seems to be chorus's idea of a panacea but to the workers it looks
sounds like you use to be one of the slackers takes one to no one
I'm in this important technical trade (35yrs). I'm paid $20.50 per hour.
Telecom tell my employer what they want, and we make it happen.
Trouble is, my employer only wants to make a profit, and so is more concerned with what Telecom will PAY FOR rather than what's needed.
An employer that knows the price of everything and the value of nothing.
Consequently the network is a dogs breakfast kept together by a group of experienced techs.
Telecomms is a good job, but suffers from a lousy wasteful operating model.
Future prediction: See "Railways"
Why are Telco techs on $20 an hour when the average wage is closer to $25?
What other technical trade is in the position of being whole dollars below the average wage?
Our closest comparison industry would be plumbing, or electrical
where $30 is more the norm.
Shame on the governments for this decades-old situation.
Serveral years ago Telecom went down the same path with code base payment . These companies that obliged where Gooders, Mc Breem Jenkins, Cable Talk, Wilson Neilly to name a few , now where are the to day GONE due to the parent company {telecom} screwing them down on the codes. They made it VERY attractive for the first 2 years and then screwed them from then on to the stage the couldn't make a living. This NOW sounds so familiar to the model that Visionstream want and we believe Downer in Wellington. So here we go again at the expense of the worker , so be afraid be VERY afraid because once this cancer growth starts there is no HOPE!!!! So join a UNION because we are going to need all the strength to nip this in the bud, here and now.
I think the people behind VisionStream and Chorus pushing this kind of move are only looking on the figures that will go to their pocket they
dont give a damn on their technical aspect of their business and the welfare of the people behind working so hard making them rich at this time and eventually the end user or the customer will suffer of the result of such insane move...anyway do they really care about their service to the customer?
about time
good on visionstream these techs beem abusing there employers four years snide remarks to existing contractors welcome to real world blood up bros
Reply:
Dont be a tosser all your life
well, some of the lads went to the 6 on 1 meetings with Visionstream ,and most of them are even more determined not to sign for them now.I wouldn't waste my time in the first place.Why go, your not going to get what you want. they will employ the weak and the gullable.And just remember if you get your own van and they fold due to the lack of staff, you will be left carrying the debt for nothing.
So that will teach you to go against your fellow workers
dont sign anything ,wait till oct 8 one week after the contract with visionscream is due to start and watch the overseas bloodsuckers squirm.hard to fulfill a contract with no workers.if you panic and sign now you will be lost and your blood will be transfused overseas.
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