The RMTU and KiwiRail have agreed to a flat rate of higher pay applied across all members
A landmark pay deal has been signed between the Rail and Maritime Transport Union (RMTU) and KiwiRail which will see a flat rate of higher pay applied across all 2,319 of its members.
The previous arrangement involved the usual percentage increase for workers.
Consequently, the lowest paid RMTU workers at KiwiRail will receive the highest percentage increase in their pay-packets - a move supported by their higher-paid colleagues who will receive less.
KiwiRail chief executive Peter Reidy said the deal was negotiated within a day and with “immense goodwill on both sides of the table”.
“I commend the RMTU for initiating this innovative solution which is not only fair but will help those who need it most,” said Reidy.
“KiwiRail’s purpose is providing stronger connections for a better New Zealand. This deal reflects our desire to play our part and improve the standard of living of all while lifting productivity.
Reidy added that KiwiRail and the RMTU have worked closely together over the past three years on a “High Performance, High Engagement programme (HPHE)” which brings management and workers together to develop “frontline solutions”.
“It has seen productivity gains and health and safety improvements at the organisation, but more importantly it has signalled a new era of workplace relations,” said Reidy.
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“We have moved into a partnership model with the RMTU and tackle many of our issues together as they arise.
“That this landmark pay deal was negotiated in such a short period of time and with support from both sides shows how far we have come together.”
RMTU General Secretary Wayne Butson added that this is a significant pay deal “for those who need it most”.
It has been supported by KiwiRail who will pay the two year increase up front, adding 6.9% earnings on to the rates of those at the bottom of the pay scale.
Moreover, RMTU general secretary Wayne Butson said the HPHE has energised its membership.
“We have worked consistently with HPHE and our members have found the process encouraging and energising,” said Butson.
“When workers see what needs doing and their suggestions are taken seriously, their confidence is boosted and their job satisfaction increases.
“Taking this process through to pay talks seemed the next best logical move and we’re delighted that KiwiRail management thought so too.”
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