Telecom, Visionstream draw first blood against union
[UPDATE: The EPMU is calling for stopwork meetings in Northland, Auckland and Wellington from August 3, and considering legal action under the Fair Trading Act.]
New Telecom Chorus contractor Visionstream is trying to get around 900 field staff to sign owner/operator contracts. The EPMU opposes the contracts. Last night, Visionstream scored its first win in what could be a grinding fight, and one that could impact New Zealand’s largest infrastructure project.
Visionstream New Zealand manager Andrew Stevens says his company has had its first meeting with six workers, and all agreed to sign owner-operator contracts.
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The company plans a whole series of such mini-meetings with batches of the 900 staff cast adrift when Downer EDI and Transfield lost their Auckland Telecom Chorus network servicing contracts to Visionstream. On June 25, Telecom literally redraw its contractor map as it signed new, 10-year networking services contracts worth a cumulative $3 billion with three companies: existing contractors Downer EDI and Transfield, and newcomer Visionstream. Staff from each of the three will complement the efforts of those who work for Chorus, Telecom's network building and maintenance division.
Cash and loan
NBR understands Visionstream is offering each staffer a $3000 if they sign an owner/operator contract, plus a 36-month interest-free loan to help them buy their own van and other gear.
Visionstream is also offering web-based solutions to help with invoicing, and training on how to run your own small business. The company pledges to pay earnings weekly for the first three months of a contact, then fortnightly.
The EMPU counters that Telecom effectively sold its largest market, Auckland, ‘to the lowest bidder”, and claim that owner/operators under contract to Visionstream will earn as little as $17.50 an hour (compared to a current $18 to $25), as well as being saddled with start-up costs that could range from $40,000 to $70,000. The unions say workers are, in effect, being asked to buy their jobs back.
A rep for Chorus countered that staff would have more flexibility over the amount of work they took on as owner/operators, plus tax advantages.
Around a third of the staff involved are unionised. Both the EMPU is trying to use the stoush to increase their membership. And certainly, for them, the new contracts have no percentage. As owner/operators, signees would move out of union orbit altogether.
Chance to build own business
For Visionstream’s country manager, it’s all about opportunity: “Our new mode of working gives these experienced workers the opportunity to take their skills and use them to develop a successful business in what is a growth industry. The owner operator model has been a tremendous success in Australia, Europe and the United States,” said Mr Stevens.
“We need skilled technicians if we are to develop a successful business. Ultimately, our success as a company is dependent on the success of these individuals, so we are committed to providing them both the opportunity to succeed in their own right and the support they need to take full advantage of that opportunity.”
Grass not greener
In comments on NBR, TradeMe’s message forums and elsewhere, a number of the 900 or so staff mulling the Visionstream contract have muttered darkly about moving to Australia, where the federal government’s $A42 billion fibre-to-the-home project should provide a motherlode of work.
That may be true, but in a way the transtasman landscape is not that difference. Chorus’ three contractors in New Zealand - Downer EDI, Transfield and now Visionstream - are all Australian companies.
Chorus of approval
Chorus - created under operational separation in March 2008 - is currently rolling out around 3600 cabinets nationwide as part of its commitment to the government to provide 80% of the population with 10-20Mbit/s broadband by 2011. The upgrade, nudged along by the previous government, has seen Telecom's capex balloon to $3 million a day.
To date, 825 cabinets have been put in place, at a cost of $148,000 each. The roll-out also involves an additional 2500km of fibre being laid in the ground, taking Telecom's total fibre network to around 20,000km.
With $800 million in capex allocated so far, the project is the largest single telecommunications infrastrucuture upgrade currently underway in Australasia, and a key reason behind the fact Telecom is currently spending $3 million a day.
So far, Chorus has drawn widespread praise for the drill-like efficiency of its cabinet roll-out (Taupo recently became the first North Island town to get full fibre-to-the-node). The networking division's high level of customer service has also been widely acknowledged by Telecom Wholesale customers, such as Vodafone and Orcon.
With its new contractor Visionstream moving to its owner/operator model, Chorus hopes it can now boost its image further by offering faster network servicing at more flexible hours. That's only, of course, if the 900 ex Downer EDI and Tranfield staff sign up without strike action or other disturbance. So far, it's off to a good start.
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Comments
$40,000 - $70,000 start-up
$40,000 - $70,000 start-up costs? Even Andrew Little (on TVNZ this morning) said it was only $10,000 (minus $3,000 cash grant from Visionstream).
start-up costs
I don't think you buy much of a van, plus tools etc, for $10K
visionstream
it is going to be hard for them to get the numbers. with the work force getting on in age there isnt going to be that many people wanting to pay all that money to start up a business and then have to retire in a few years. not like they can sell the business on to many people if any
start up
there is no way you can start up for $10k. you would be looking at $40k-$70K with the age of the industry who would want to pay that. they would be able to afford to retire as they would be in a bucket load of debit
I think
I think this is a great opportunity. Who can I contact to get more info about being an owner operator?
Codes/Van
If you read the contract the codes are reviewed every 12 months. What guarantee is there that the codes won't go down?? The loan is only if you buy a brand new van - you can't get one of them for ten grand.....but of course you can always lease one for $250pw...
visionstream contract
I asked in my one on one meeting,YES,codes can come down every year[confirmed by IAN SMEATON in the meeting]ANY additional work at prem is on you[eg extra jackpoints as the $60 for a line installation covers any amount of jackpoints,so you end up paying because its your stock,thirdly according to visionstream FULL MINEX is tobe carried out[a resi fault pays $60,but the new v3 enclosure[the silver foil type] cost $70,jokes on you you justlost $10 on the fault so you are in the red.WAKEUP GUYS read the contract carefully,it says also any verbal agreement is non envoyed,so the full letter of the contract applies,fourthly when the workload dies down you starve,you still have to pay your overheads.SAY NO TO VISIONSTREAM,they are acting as brokers only.Once again the AUSSIES are screwing over the KIWIS
I THINK
YOU obviously havent read the contract properly,go read it and then revise your comment.codes can be lowered as confirmed by IAN SMEATON in a one on one session.
owner/operator
AS confirmed by visionstream ,monthly meetingsis on you as [its worked into the code allready[joke]Cpr courses,any new technology training you pay for it,jobs that are screwed up[wrong addresses,no contact info,cancellations,etc you wear it]PROVISIONING STAFF any adapters,patch cords,isdn unit.rj45 plates you pay for it,compare this to the value of the code and you will notice you are running at at lost,FLEXIBLE WORKING HOURS,confirmed by IAN SMEATON,you will be on a 7 day roster,yes working on a SUNDAY,and they can flick you between provisioning and faults as per CHORUS[TELECOM]WISH.TAX on there one one one wasnt openly explained,what ever figure they showed you was befoer tax,minus 30% work out now what your hourly wage is and you just went backward 7 years,and the AUSSIES are running back home with the profit
honesty
COME VISIONSTREAM be honest,this is NEW ZEALAND not AUSTRALIA,WE ARE A HONEST NATION,dont come with your underhanded moves here
not first blood
i think it it just a beat up to say that visionstream
has drawen first blood six people out of six hundred is not even a bruise
dividing and conquering
Telecom has a history of continually changing to achieve the lowest cost. it doesnt matter what it is.. every 3 years they change and pull cost out. they do it with distribution, they do it with installations etc. eventually they will end up with everything outsourced then they with find a competitive bid and gouge the price down again..
welcome to technology companies with strong cashflows - buy their shares its the only way to participate
Piece rate pie communication blues
When I first started for a year or two I made good coin ($380 ave/day)then after being told I was "too pricey and others will do it a lot cheaper" I had no choice if I wanted a contract renewal so lowered my rates to ($300 ave/day). Another year passed and yet again I was to greedy so $250 it became. After all costs were taken out I was earning minimum wage so I left and the government paid me to train as a teacher gave me some cash and now I work 30hrs a week for three times the minimum. Don't make yourself a victim.
dont be a sucker
Why is the Teleco industry suffering a shortage of skilled techs.
Because the wiser ones are leaving the industry, sick and tired of getting screwed by the same Telecos.
Re-train as an Electrician or Plumber.
Much better remuneration
the real truth
great to see the real truth is getting out their go back to australia visonstream these workers have been ripped off for the last twenty enough is enough
no more.
not of to a good start
i have to say that this is the worst story i have seen written in new zealand. how can you say that
ripping off new zealand workers is off to a good start. this attack will be bad for them
and the sector.
prospective Teleco sub-contractors
People, before signing any contracts, make sure you take it to your legal adviser and accountant for their scrutiny.
Also look at the overheads before setting the contract rate for work.
Remember things like GST, ACC, Compliance costs, book keeping, public liability insurance, general insurance, health insurance, ever changing vehicle costs etc. It goes on and on.
Also ask, are your really classified as a "Contractor" if you accept a contract to work exclusively for one Company that’s sets the contract rate and hours of work, then you might not be classified as one, check with the IRD.
Talk to someone independent who is involved in advising in setting up small businesses.
Dont do it boys,we all
Dont do it boys,we all hold out and see what happens,this model you will lose money on.
Say NO To Dependant Contracting
We are at war with Chorus (Telecoms NZ Ltd ), to defend our present terms&conditions of employment against their 'Dependant Contracting" model. Our strategy plan is in place from now untill Oct 1st( 'D' Day) which will involve various types/forms of industrial action. Not only do we have the support of union members we also have support from non-union members, National & International industry unions, Downer/Transfield subbies and political party members. This industry is different to other owner/operator trades such as plumbing, electrical, building as we have 1 Corporation that has control over our country's 2nd most vital infrastructure and who need qualified/skilled people to work on our degenerating telecommunications network. We say 'No to Dependant Contracting'!!
Correction
Please note, I have already asked vision stream and they have confirmed, they will NOT give you a loan for a vehicle, doesnt matter if its new or used. All they will do is try to bring down the price by a k or 2.
Interest free loans are ONLY for tools and testing gear.
If you have come here from overseas with your own tools, they will not accept it. They want you to source your tools from them.
Correction
Please note, I have already asked vision stream and they have confirmed, they will NOT give you a loan for a vehicle, doesnt matter if its new or used. All they will do is try to bring down the price by a k or 2.
Interest free loans are ONLY for tools and testing gear.
If you have come here from overseas with your own tools, they will not accept it. They want you to source your tools from them.
Contract to slavery
The proposed contract for owner operators does not;
(i) require the Company to issue any Purchase Orders(i.e issue work) to the Contractor;
(ii) guarantee the Contractor any minimum amount of Services;
Therefore you could spend a minimum $10,500 on set up costs (Visionstream's example) and have no guarantee that you will ever earn a single cent .
You are locked into the contract for 15 months so they have the ability to prevent you from getting work elsewhere.
Initially many jobs will be at a loss as you pay off specialist tools that are not included in the start up costs.
We Say NO
We Filipino migrant workers firmly say NO to this contracting model!
Visionstream are full of crap
Don’t believe what you read, its pure propaganda to make you feel as if you need to sign up, Why do you think your manager at Transfield/Downers are trying to encourage you to sign, (does the words backhander and Telecom pressure ring a bell) I’ve heard that about 12 people have signed up and they are contractors already, who have a van and equipment (and half a brain) because the codes are less for them than at present. Your manager has probably got a nice cushy job lined up at visionstream and needs you.
Hold tight and don’t sign anything, only believe what you here from the union, they are the ones on your side.
Visionstream are nothing without you, they are hoping that with the pressure and the threat of redundancy, you will cave in.
Dont be bullied.
And we can send Visionstream back to Aussie empty-handed and a failed company in NZ.
look at the facts
The most annoying thing about this is Visionstream have been given enough money to pay the workers a decent wage, but they are wanting to load up the pockets first and reservedly give the remainder out in low priced jobs to a debt ridden workforce.
Q. What can visionstream offer you ?
A. Absolutely nothing, apart from low wages,debt,they cant even guarantee you work in the summer.
next question
Q. what can Mcdonalds offer you for flipping burgers
A. A fixed wage (so you know you can pay your morgage / rent)
free burgers or at a reduced rate
no $60,000 to pay out, to work for them
no digging , climbing poles or crawling under houses
nice insde job in bad weather
a company that cares about its workforce
chance of promotion
work guaranteed
need i say more
look at the facts
The most annoying thing about this is Visionstream have been given enough money to pay the workers a decent wage, but they are wanting to load up the pockets first and reservedly give the remainder out in low priced jobs to a debt ridden workforce.
Q. What can visionstream offer you ?
A. Absolutely nothing, apart from low wages,debt,they cant even guarantee you work in the summer.
next question
Q. what can Mcdonalds offer you for flipping burgers
A. A fixed wage (so you know you can pay your morgage / rent)
free burgers or at a reduced rate
no $60,000 to pay out, to work for them
no digging , climbing poles or crawling under houses
nice insde job in bad weather
a company that cares about its workforce
chance of promotion
work guaranteed
need i say more
Stay strong brothers
We must stop this cancerous growth here and now other wise this contracting model will spread.We have heard that managers down here would go on codes if they were 10 years younger, so if they are thinking that way it will only be a matter of time until they try to impliment it down here. So we have to stick together and if we do we will get there.It is time we have to send Telecom a message loud and clear WE have had enough of being excreted on from a great height by them. If we stand together who will do the work because we have to be skilled to work on their network. They were the ones that implimented level 3 minimum to work on the network so if they don't get the workers will visionstream get other contractors, unqualified to work on the telecom network or will Telecom make allowances ? SO STAY STRONG WE WILL WIN !!!!
A history lesson
( Stick with me on this one and you will see )
England 1066 - 1492 ( the middle ages ) THE FEUDAL SYSTEM
The Normans brought the ' feudal system' with them. The king was at the top of the heap and the peasants at the bottom.they paid for everything - they worked in his fields,worked in his castle,repaired his roads.....all for free.The peasant then worked on a small patch of his own land in his spare tiime - not alot odf that. If the peasant made any moneythen he paid taxes to his lord.He paid the lord for grinding his corn,pressing his apples or baking his bread in the lords oven
Working for free
I had a look at these code. I will be working for free on some jobs. Other's I will be paying from my pocket to maintain tne Telecom network . After 29 yrs service it's time to move on.
Reject visionstream
Hey guys, obviously most of us have had a look at the visionstream proposal and know that it sucks! Bottom line is that if visionstream can't attract workers then Telecom will have to ask Downer/Transfield to carry on the contract.
We need to send visionstream the clear message that they have insulted our intelligence and we reject them totally.
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