Aurizon: Privatisation disastrous for workers

Vanguard June 2014 p. 11
Duncan B.

The privatisation of Government-owned enterprises has resulted in higher prices, poorer service to customers, massive profits to the new owners and obscene salaries paid to their executives.

Workers have suffered job cuts and worsened conditions after privatisation of their enterprise.

An example of this is the rail transport operator Aurizon. This company was formed from the privatisation of Queensland Rail in 2010. Since then, Aurizon has got rid of more than 2000 jobs.

Now the company is seeking to get rid of a further 480 maintenance staff from its workshops at Redbank near Brisbane, and at Townsville.

Aurizon workers are considering industrial action after the company approached Fair Work Australia to terminate 14 enterprise bargaining agreements dating from when it was still a government-owned company.

(Above: 130 Redbank workers responded angrily last October to demands by Aurizon that they move to Rockhampton or lose their jobs.) 

The agreements prevent Aurizon from making forced redundancies and relocations and from taking away employees’ free rail travel.

The company claimed that “these agreements are placing significant and unreasonable restrictions on the company that impact on efficiency, productivity and customer service, as well as imposing additional costs on the business.”

Aurizon is in a strong financial position and is making record profits. Aurizon’s chief executive Lance Hockridge earned $4.5 million, including benefits, during the 2012-2013 financial year.

Meanwhile, Aurizon’s main rival Pacific National (itself formed from the privatisation of the Federal Government-owned National Rail and the Victorian and NSW Government freight rail companies) is also seeking to reduce staff numbers through redundancies in New South Wales due to a down turn in grain haulage. They are looking to get rid of about 70 train drivers in NSW. Forced redundancies have already occurred.

This is on top of redundancies taking place in operating staff and management due to restructuring of Pacific National’s rail divisions.

Concerns about privatisation of Port of Melbourne

The Victorian government has decided to sell the Port of Melbourne, by offering a medium-term lease to prospective purchasers. Already, foreign-owned companies including Hong Kong-based Hutchinson Port Holdings have expressed interest in buying the port.

The sale of the Port of Melbourne to a foreign buyer does not require approval from the Foreign Investment Review Board as the port is owned by the state government!

Farm and industry groups are worried that as the port reaches capacity within the next ten years, a foreign buyer could restrict access and force prices up.