Bailout Backs Redundancies

 
Old Oct 20, 01, 4:50 am
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Join Date: May 2000
Location: New Zealand
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Bailout Backs Redundancies

Part of the Government bailout of Air New Zealand would be spent on paying senior Ansett Australia staff two years' redundancy each, insiders said yesterday.

The Government has paid Ansett Australia's voluntary administrator A$150 million (NZ$180 million) to help cover outstanding employee entitlements.

Ansett staff were claiming about A$500 million in entitlements after Air New Zealand dumped the loss-making airline last month to save itself.

Ansett's heavily unionised workforce was renowned for extensive employee featherbedding, which included the world's only three-crew flight decks on Boeing 767s.

Meanwhile, Air New Zealand senior managers expect to find out on Tuesday which of them will be out of work as a result of a massive cut back in top level staff.

About 400 managers are expected to lose their jobs out of about 800 jobs in total that will disappear.

http://www.stuff.co.nz/inl/index/0,1...910a11,FF.html

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