Telecom, Visionstream: owner/operators could work for anyone

Telecom and Visionstream have hit back at the union allegation that the owner/operator contracts being offered to 900 staff are not a genuine business opportunity.

And with no breathrough in Visionstream-EPMU talks on Friday, Telecom pledges to minimise service disruption during stopwork meetings in Northland, Auckland and Wellington.

The battle for the hearts and minds (and signed contracts) of the cable guys continues.

On June 25, Telecom’s Chorus division signed a series of new, 10-year servicing contracts, worth a cumulative $3 billion, with incumbent contractors Downer EDI and Transfield and newcomer to New Zealand Visionstream. All three are Australian companies.

As part of the new arrangement, Visionstream got allocated all of Chorus’ contract work in Auckland and Northland, displacing Downer in the city. In turn, Downer bumped Transfield out of Wellington.

900 staff who used to work for Downer in Auckland are being offered owner/operator contracts by Visionstream, and around 180 who used to work for Transfield in the capital are in turn being offered a similar deal by Downer.

On Wednesday, the first six employees signed the Visionstream deal.

The Engineering, Printing and Manufacturing Union (EPMU) said it was having the deal accessed by a lawyer with a view to taking possible action under the Fair Trading Act. Although the deal offers $3000 plus a 36-month, interest-free loan for start-up costs, and training on how to run a company, it should not be described as a genuine business opportunity.

“Telecom will never offer an arrangement that allows technicians to develop a genuine business opportunity. This is about control. Telecom runs the billing process and decides what [Visionstream] owner/operators can charge. They’re not able to create goodwill or build up a business that can be sold on or sold back”, EPMU national secretary Andrew Little told NBR last week (read Telecom, Visionstream draw first blood against union).

No breakthrough, stopworks pending
On Friday, Mr Little held his first meeting with Visionstream’s New Zealand manager, Andrew Stevens.

Afterward, Mr Stevens, flanked by Chorus external communication manager Robin Kelly, told NBR. “We needed to meet each other so we ticked that box. It was a benign meeting. There wasn’t any negotiation or any breakthrough”.

As things stand, the EPMU - still plans a series of stopwork meetings in Northland, Auckland and Wellington in the week from August 3. The union now represents around 500 of the affected staff and counting, Mr Little says. About a third are EPMU members; others have signed the union as their negotiating agent.

Mr Kelly said Chorus would minimise any disruption during the stopwork meetings, and would make sure field staff were onhand.

One customer approached NBR this morning to say a technician had told her he was an hour late because of a contract meeting; she did get credited with a month's free service.

Non-exclusive contracts
Mr Stevens said he his company continue to pitch the owner/operator contract to small groups of staff, and to hold one-one-one meetings with those leaning toward signing.

He said the contract did represent a genuine business opportunity. Although Visionstream was offering “an abundance of work; more than anyone can do right now”, a key facet of the contract was that owner/operators could also work for any other company: “there is no exclusivity”.

Mr Stevens also pointed to the fact that, in Australia, Visionstream has had thousands of staff on owner/operator contracts for 10 years. “It’s a proven, sustainable, fair model. People make a very good living out of it. It provides a good opportunity to make increased earnings. Our experience is that no one in Australia wants us to return to being an employee.”

45-week year
The Visionstream manager would not comment on individual rates, but said each contract was structured to that a person could make a good living from a 45-week year, with the balance for sick days, leave and training.

Mr Stevens disputed Mr Little’s claim that the owner/operator model did not allow for training, and that broadband in New Zealand would suffer accordingly.

“We’ve had the owner-operator format for 10 years in Australia and we’ve been able to keep everybody up to date with a number of changes during that time,” said Mr Stevens. It is in Visionstreams self-interest to keep its staff up to date with the latest technology.

Chorus kicks in trainee money
Mr Kelly added that Chorus kicked in $1 million for new trainees last year, and is raising that to $1.5 million this year. Additional funds are available for training, and all three contactors (Visionstream, Downer and Transfield) are obliged to keep their staff up with the latest skills. Mr Stevens said existing staff would have to make time for training, but it would all be paid for by Visionstream.

“From Chorus’s point of view this is not a cost cutting exercise,” said Mr Kelly. “We’ve signed $3 billion, 10-year contracts so service contractors and people on the ground can see there is a long term future and long term security. We’re putting our money where our mouth is.”

Mr Kelly also denied the EPMU’s claim that “Telecom has instructed Downer to offer owner-operator contracts too”. Telecom looks to its contractors for innovation, Mr Kelly said, not the other way around.
 

Comments

Mr Stevens said existing staff would have to make time for

training, but it would all be paid for by Visionstream - Can we have that in writing please!!! After all last week you were lending money to buy a van!! See you Thursday Boys!!

[Mr Stevens said that the owner/operator deal would allow a contractor to make a good annual living from working 45 weeks a year. This would leave time for sick days, leave and training - CK]

How can a VisionStream

a company with no resources on the ground or previous experience in NZ get awarded a major contract like this? On a Transit NZ type contract where points are weighted for attributes other than cost these guys wouldnt get a look in.

Fascinating

I find it most fascinating that these guys got a contract this big without prior experience in NZ.
After all we keep hearing that Australia and New Zealand cannot be compared and its business models are not transferable, which is constantly being said by Vodafone NZ for instance on why their iPhone pricing/internet fees are so high.

So with this non-transferable model we award $3b to a company whose only assurance is 'it has worked in Australia for the past 10 years'.

Visionstream thinks we dumb

Visionstream wants no responsibility
They say it works in aus. yes it does for them cause they make the money and fooled those guys now they trying it here in NZ. Common boys don't get suckered into their model they here to make money and they don't care how .Look at how un professional they have handled the matter so far and they clearly now starting to panic cause we not falling for their sneaky Lil plan.HANG IN GUYS DON'T SIGN!!!!!1

RELATED ARTICLE

Visionstream awarded Chorus Auckland patch - another blow against the industry at the hands of Telecom
By Rob Anderson, in Telco's, posted: 19-JUL-2009 10:16

NBR article, I heard about this last week through a colleague in the industry.

Telecom again chips away at the Telecommunications industry in NZ:

* Awarding patch contracts to the lowest bidder erodes contractor margins and ultimately errodes customer service levels

* Visionstream are implementing an "owner operator" system. The technicians take all the risk by shelling out up to $90k to set themsleves up, but are then dependent on Visionstream for their work - sounds like an ideal way to manipulate your workforce into lower rates.

* Pissed off technicians are going to start looking elsewhere or even leave the industry - a skills sortage does nobody any good, especially customers

RELATED ARTICLE

Visionstream awarded Chorus Auckland patch - another blow against the industry at the hands of Telecom
By Rob Anderson, in Telco's, posted: 19-JUL-2009 10:16

NBR article, I heard about this last week through a colleague in the industry.

Telecom again chips away at the Telecommunications industry in NZ:

* Awarding patch contracts to the lowest bidder erodes contractor margins and ultimately errodes customer service levels

* Visionstream are implementing an "owner operator" system. The technicians take all the risk by shelling out up to $90k to set themsleves up, but are then dependent on Visionstream for their work - sounds like an ideal way to manipulate your workforce into lower rates.

* Pd off technicians are going to start looking elsewhere or even leave the industry - a skills sortage does nobody any good, especially customers

Training cost

The contract clearly states " Unless agreed otherwise any training etc will be at the Contractor’s cost."

Double standard

Visionstream wants to sub-contract its contract with chorus yet demands that a contractor may not sub-contract, and that a contractor’s employees are paid in accordance with relevant payment conditions and otherwise receive all relevant employee entitlements. Bit of a double standard isn't it?

Everyone,every country,and

Everyone,every country,and every goverment is fighting recession. Most people I've talked to wanted out of any TELECOM works,whatsoever. Majority of the skilled are on the way out. It seems no one cares. Pride and grees took over. What happened to a goverment "BY THE PEOPLE AND FOR THE PEOPLE". Rather "BUY THE PEOPLE AND POOR ITS PEOPLE". Are we jealous or want to get a first hand experience to be 3rd world country. Let's hold together for our children and our countries future. Close fist hands high. "We won't do what you told us". We need the goverment and NZ people to intervene. Your community is in danger.

confused visionstream

It is remarkacable that every article around VISIONSTREAM -TELECOM[ALIAS CHORUS]always buds in with a comment,CHORUS is like a MAFIA sindicate dictating to everyone how to run there business and what model to use.Reading all the press releases you notice that VISIONSTREAM AND TELECOM contradicts themself over and over,THE CONTRACT that VISIONSTREAM gave the groups at the focus meetings clearly states what policy they will be implementing,re code prices,meetings,training ,etc,yet TELECOM has the cheeck to tell national press,that no dont read to much into the contracts,as we all now telecom will screw you over some more,STICK TOGETHER and banish them.If these contracts were fair and transparrent,and CHORUS likes to chip into every converation,THEN I ASK YOU,why doesnt CHORUS have a group meeting with all the effected workers to discuss the issues,why do they lock themself inside there offices when we want to talk to them,lets you wonder hey.

Boycott

Most of us cable faultman/jointers boycotted the 6on1 focus meetings and those that did attend came away even more pissed of and more determined to stand united. Union membership is rapidly increasing day by day, signed up 5 today, as we all know that come 1st October we could be on the dole if we don't make a stand. The infrastructure will slowly self destruct within a month without us racing around 7 days a week patching up a network that has basically being neglected for the last couple of decades by Telecom through their contracting out the work.
We're sending a loud & clear message to Telecom (Chorus),Visionstream Downers & Transfield that the table will turn and we, the people who actually work on the network, have a say in the industry labour market rates, not the other way round.
Say NO to dependant contracting!!!!! We demand a decent hourly rate.

I am CHANGING MY TELRPHONE

ACCOUNT TO ANOTHER TELEPHONE COMPANY IN SURPORT OF THESE TELECOM WORKERS TO-DAY, NO MORE GIVING MY HARD EARNED CASH TO A COMPANY THAT SCREWS IT'S WORKERS?? HANG ON MY FRIEND JUST TOLD ME THAT THEY STILL GET MY MONEY?.
THEY IN TELECOM DO ALL THE TELSTRA CLEAR, IHUG, AND OTHER TELECOMMUNICATION CONECTIONS UNDER SUB-CONTRACT.
DAM IT THEY GOT THEIR FINGERS INTO EVERY THING, COME ON GOVERNMENT STEP UP TO THE PLATE AND SORT THIS MONSTER OUT ONCE AND FOR ALL.

I am having my first kid. I

I am having my first kid. I came here to this country with no one,no money,just skills. Working as a telecom professional is the only thing I know. I really love my job. I served peoples' needs. Telecommunication give people a chance to keep in touch with love ones. And I feel good everytime I think I made someone today connected to the world he/she loves. Now I am thinking how can I give my kid a decent life. The only thing I know to give him food on the table is under threat. I still believe there is still good in people. I just hope it will not be too late. Love your people. A country without its people is just another desert.

Visiostream or not

How many technicians will actually stay on and do this will be the question ( http://cables.net.nz/ ) . Already some other company's like Trico communications have made it known that they will be looking for techs on a wages contract so at the end of the day there is just going to be another middle man in this equation. So less money for the techs that will be doing the work. So it will probably be better in the long run to get out of this industry and look for something that will be a bit more stable than this

Viscious Scream

So true. We face this bloated beast now, or it keeps gorging it's way through what's left of the industry. Like all cancers we need to CUT IT OUT NOW or it will quietly KILL us over the next couple of years.
Hey! It's only the network we're talkin' about.
Techs all loath this vile regime.

How long can YOU go without a connection???
Not long to wait now to find out!
And tell Telecon A MONTHS FREE RENTAL AIN'T GONNA CUT IT!

abundance of work

When visionstream says “an abundance of work; more than anyone can do right now” , what they mean is "we will require you to work 12 hrs a day ,7 days a week as laid down in the contract".
When visionstream say their contractors in Australia make a very good living out of it, that is because they pay much higher rates in Australia than they are offering us here in NZ , and their network is not in such a bad state of repair.

verbal warning

the whangarei union delegate was given a verbal warning today and told not use his cell phone for union business and not to do union business in work hours.from the regional manager via his lackey.epmu sent a email to hr.meantime union membership climbs.6 have signed but only the manager types.word around a few contractors are starting to get interested as its affecting their businesses.word is downers pull the plug on sept 14.visionscream takeover oct1.stick together and maybe the foreign bloodsuckers will go away and we can reclaim what rightfully belongs to kiwis.one month is all it will take and you get a months leave a year .

own hrs??

Re: Own hours!

by whataloadofcrap » Wed Jul 22, 2009 9:35 pm
the contract clearly states that you will be required by visionstream to be available from 7am to 7pm that is 12hrs per day! , 7 days a week. So where does the statement "own hrs come in" and the comment on the rosters schedule?. A true independant contractor does not answer to a roster of somebody else and sets his own real times of work AND whom he shall be working for at any given time.. He is also not totally dependant on one supplier for work. If you are able to work for other customers as visionstream claims , where is that possible on their roster schedule and the 7am to 7pm you will be contracted into? Their contract make you soley and totally obligated to vsionstream first and if you have the energy, time and health to work after your 12hr day you may go and do somebody elses work request which you would have to do cause of the low rates visionstream will be paying for your 12hrs of work!

What a load of rubbish. How can that be fair contractor labour practise .

All we encounter are acts of evasion when legitimate questions are asked and some statements on these forums have no response from vstream at all. What was said in the meet and greet and also the focus groups is not the same when you read the details in the contracts

This whole owner/operator business with its hidden traps and evasive tactics makes one question the genuiness of the offer and more important. " Do I want to trust visionstream with my future and that of my family?" already the first impression of visionstream is NOT A GOOD ONE!.So the only obvious option is to get out of this industry before I am totally reliant upon visionstream whom I obviously cannot trust.

PLEASE CONSIDER THIS! and tell me if u agree/dis agree

by whataloadofcrap » Wed Jul 22, 2009 10:01 pm

AGREE or DIS AGREE..
.In essence then the visionstream OWNER/OPERATOR contract binds you exclusively to visionstream just as if you WERE an employee of visionstream but YOU, the so called" OWNER /OPERATOR" carry total cost burden of running a contract of this magnitude( 800bn), the quality of the network and meet commits is also your responsibilty to their client(chorus) and any loss you suffer is your alone. visionstream are not responsible for your failure cause you signed a cleverly worded OWNER / OPERATOR contract in favour of visionstream, the middleman.
The only winner here is the middleman , visionstream who sits high and dry with zero cost and maximum profit from the rates you earned that they simply take a huge portion of that you have claimed when they submit your claim to chorus!
What could be more easier than that.Clearly somebody with VISION (a sly aussie?) saw an easy way to make money off somebody else's back.

Yeah... the sly one must have thought... " let the buggers think they have their own business while we just sit back and milk their hard labour from sunny Oz" '" we & our sheila's laugh all the way to the bank mate"

Now YOU techs need to aquire the same VISION / insight to not be SOMEBODY ELSES FOOL!

So what if it works in Oz, the techs there are poor fools to have been caught & trapped with this hair brained scheme and they still have'nt figured it out yet

AGREE/DIS AGREE? please consider this insight

.In essence then the visionstream OWNER/OPERATOR contract binds you exclusively to visionstream just as if you WERE an employee of visionstream but YOU, the so called" OWNER /OPERATOR" carry total cost burden of running a contract of this magnitude( 800bn), the quality of the network and meet commits is also your responsibilty to their client(chorus) and any loss you suffer is your alone. visionstream are not responsible for your failure cause you signed a cleverly worded OWNER / OPERATOR contract in favour of visionstream, the middleman.
The only winner here is the middleman , visionstream who sits high and dry with zero cost and maximum profit from the rates you earned that they simply take a huge portion of that you have claimed when they submit your claim to chorus!
What could be more easier than that.Clearly somebody with VISION (a sly aussie?) saw an easy way to make money off somebody else's back.

Yeah... the sly one must have thought... " let the NZ idiots think they have their own business while we just sit back and milk their hard labour from sunny Oz" '" we & our sheila's laugh all the way to the bank mate"

Now YOU techs need to aquire the same VISION / insight to not be SOMEBODY ELSES FOOL!

So what if it works in Oz, the techs there are poor fools to have been caught & trapped with this hair-brained scheme and they still have'nt figured it out yet

agree/dis agree with this insight

In essence then the visionstream OWNER/OPERATOR contract binds you exclusively to visionstream just as if you WERE an employee of visionstream but YOU, the so called" OWNER /OPERATOR" carry total cost burden of running a contract of this magnitude( 800bn), the quality of the network and meet commits is also your responsibilty to their client(chorus) and any loss you suffer is your alone. visionstream are not responsible for your failure cause you signed a cleverly worded OWNER / OPERATOR contract in favour of visionstream, the middleman.
The only winner here is the middleman , visionstream who sits high and dry with zero cost and maximum profit from the rates you earned that they simply take a huge portion of that you have claimed when they submit your claim to chorus!
What could be more easier than that.Clearly somebody with VISION (a sly ozzie?) saw an easy way to make money off somebody else's back.

Yeah... the sly one must have thought... " let the NZ idiots think they have their own business while we just sit back and milk their hard labour from sunny Oz" '" we & our sheila's laugh all the way to the bank mate"

Now YOU techs need to aquire the same VISION / insight to not be SOMEBODY ELSES FOOL!

So what if it works in Oz, the techs there are poor fools to have been caught & trapped with this hair-brained scheme and they still have'nt figured it out yet

Phone flu

Don't worry about swine flu.
Worry about phone flu.
It's on it's way .
Try calling for help when your phone is dead

Rip Off

Who in their right mind would borrow money to own thier own worthless business, and compete against all your workmates, TO MAKE SOMEONE ELSE RICH?

Contracts

There could be a gain to the contractors by becomming more efficient and therefore making a gain over what you would earn in wages. Also who doesnt want 7 weeks of holiday if the contract is worked out over 45 weeks?

Contracts There could be a gain to the contractors by becomming

to answer your statement on working 45 weeks...the truth is you will not make enough money on your average working day to make enough money thru the year to pay for those 7 weeks you want for a holiday.
Just take your normal working day at the moment and add the codes for those jobs for say 1 month. now add up your total after all deductions... An accountant proved this to me after I showed him my average working month.
All is not what it seems. You must speak to a lawyer and accounttant b4 signing.

Oz owner operators feedback on how this will work 4 us

MMOORREE OOFF WHHAATT WEE PPUUTT TTOO TTHHEE MMI IINNI IISSTTEERR
We placed before the Minister, evidence of the current poor conditions being experienced
by the subbies. This included:
 Deteriorating incomes.
 Pressures to reduce health and safety standards.
 Unfair Contracts.
 Unfair treatment in terms of day-to-day disputes/disagreements.
 A subservient relationship to the main contracting companies with few, if any, rights.
We used information given to us by Sub Contractors, to demonstrate the extent of their
income deterioration over many years, evidence developed by our lawyers about unfair
contracts, evidence from subbies about widespread unfair treatment by the big companies
and evidence of the dictatorial relationship by the big companies over the subbies.
We will keep you informed of developments.

A LETTER FROM A OWNER OPERATOR in AUSTRALIA ( SUBBY)
“I'm a Subby on the Telephony side. I'm 100% up for a national blockade or whatever it
takes to get us more pay and fairer independent contractor law/s.
I've been in the industry a long time and I have seen it go from a respectable job with a
respectable pay to nothing more than terrible pay and a job people refuse to do
because they will go broke.
You went to work and were happy knowing that you have repaired a customer’s
telephone line to the best of your ability providing the best possible service because
you were proud to have a good respectable job.
It has become so bad now that some subbies are refusing IP services and any job that
is more that 3 ks from the pillar, (unless the job is a rural), and should the job have
second or third faults on it - forget it. Telstra gets what it pays for: 1 fault 1 pay.
We cannot possibly provide the same quality workmanship, and provide that excellent
customer service anymore. I'm currently completing 10 faults a day, sometimes 12, just
to keep myself afloat. To complete that many jobs a day I have to have each and every
job completed in 1 hour or less, and if it is not I have to simply get the dial tone to
socket and not even worry about completing a fast test from the socket. 90% of the
time the line will fail due to Telstra's lack of maintenance on the copper network, such
as bagged joints and sometimes up to 25 cni re reports in 1 joint alone.
Many subbies have stopped re reporting cni as Telstra are clearly not interested
anymore and every few months Telstra withdraw cni' from the system so you then have
to sit on the phone and start a new cni with the same details that you originally lodged
only weeks ago.
In a nutshell, I'm tired of being screwed into the ground as an independent contractor
and the Govt really needs to do something before things get so bad the skills shortage
in this area will get worse forcing us to find other work in industries that do not interest
us nor would we have the expertise as I do in the Telecommunications industry.
Whatever it takes, my company is certainly interested in joining whatever rally you
organise, and will travel for the event.”

Good Job Guys

Keep up the good work. We are proud of you. Stay strong & don't sign with No-Vision Stream!

boycott australia

look around australia has economically taken this country over,and look at how they want to treat us.if we dont deal with australian companies like visionscream they will go broke.these aussies are fleecing us and no more will buy from woolys countdown.they are taking us for mugs.dont sign nothing with visionstream run the pricks broke,when they cant fulfill their contract telecom will have to get someone else.it wont take more than a month.the network will self destruct and the general population is right behind you guys.dont do anything with australian companies,the banks,the supermarkets are introducing automatic checkouts in oz and there goes more jobs.theyre just screwing us into the dirt,but no more.

boycott australia

I agree. since this sour business with visionstream started everything australian leaves a bad tase in the mouth. Those oz 'ees see the island of nz as a place inhabited by idiots where they can just dip their little wicks into to make a quick buck at our expense.

SAY NO TO EXPLOITATION BY ARROGANT OZZIE "SO CALLED BUSINESSSMEN" WITH NO MORAL VALUES FOR NZ HUMAN LIVELIHOOD AND ONLY THINK OF THEIR INCREASING BANK ACCOUNTS AT OUR EXPENSE.
THIS MUST END.
THE BUCK STOPS HERE OZ!
from now on I buy nothing that comes from oz.
Its no wonder God placed so many dangerous creatures in OZ, He must have known what the inhabitants give up! I hope the sun dries out the whole of OZ sooner rather than later.
let them grovel in their impending desert land

RE: A LETTER FROM A OWNER OPERATOR in AUSTRALIA

Thanks for the support of the aussie subbie who tells us the real truth about this situation. Visionstream tells us that all the subbies in aussie are making heaps of money and would never go back to wages! Just another example of how deceitful these visionstream bastards can be.

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