Up to 900 EPMU-affiliated lines engineers with Telecom contractors Downer EDi, Transfield and Visionstream are set for their third nationwide strike today as they down tools for a “national day of action”. Linesman have also voted to continue a blanket ban on new broadband connections, servicing faults on existing connections, or working on the telco’s roadside fibre cabinet roll-out programme.

Asked about the lines engineers' industrial action as they consider owner/operator contracts being offered by new Telecom Chorus contractor Visionstream, Dr Reynolds said at his company’s results briefing on Friday: "So far our customer service levels have held up remarkably well and our FTTN is proceeding ahead of plan.

"We'll continue to give Visionstream whatever support they need to explain the very real benefits of the new contracts."

Dr Reynolds has proved tough on cost controls during his first year on the job, with Telecom sticking with outsourcing to Manila (now home to 700 offshored call centre and back-office positions) where Telstra has folded.

And - in a not unrelated phenomena - Telecom's fourth quarter expenses were down 3% to $972 million, lead by a 4% fall in labour costs.

And new ten-year network service contracts signed last month with Downer EDi, Transfield and Visionstream are for a fixed total amount - $3 billion.

The EPMU claims that Visionstream one a big chunk of the incumbent contractors' business by promising to do the same work for 70% of the price - and that its members are bearing the brunt of redundances, and what it says are lower rates through owner/operator contracts, as the Australian company positions itself to achieve savings. Telecom says no element of the new contracts is about cutting costs.

Speaking afterward to NBR, Dr Reynolds said that 18-month old Chorus' customer satisfaction rates were very high, and higher than they were a year ago.

Orcon - our fourth largest ISP and a Chorus customer - has begged to differ, issuing a service warning today that blames the industrial action for broadband installation and service delays. (Vodafone and TelstraClear did not take up an opportunity to comment.)

Another development has seen Labour communication spokeswoman Clare Curran insinuate that the prime minister’s office is leaning on Telecom to sort out its industrial trouble.

Ms Curran also claims that National MP John Carter has told Northland lines engineers not to sign the Visionstream contract.

Controversial one-year owner/operator contracts are being offered to around 900 lines engineers under Downer EDi and Transfield in Auckland. The linesman now come under Telecom Chorus’ new contractor, Visionstream.

The EPMU has already called one two-day strike over the contracts, and lines engineers affiliated with the union are due to down tools for a third strike today.

Broadband ban
Between industrial action, engineers have instituted a “broadband ban” refusing to connect new broadband customers in Auckland, service existing connections or work on Chorus’ roadside cabinet project.

Telecom has said it is operating a contingency plan that sees service covered by non-union line engineers, but has acknowledged there could be delays provisioning new service.