AusRAIL, Market Sectors

More jobs to go at Aurizon

<span class="" id="parent-fieldname-description"> Rail operator Aurizon will embark on more job cuts, including another round of voluntary redundancies, as part of plans to shave more than $230m in costs from its business over the next two years. </span> <p>Aurizon has identified $230 million of efficiency improvements and cost savings reductions that will also include and extensive renegotiation of most of its existing Enterprise Agreement with its workforce.</p><p>Previous redundancy programs have seen approximately 1600 jobs shed from the company since privatization in 2010.</p><p>A spokesperson for Aurizon said, “We’re targeting approximately $100 million in support and corporate areas of the company. This will include labour costs, real estate, information technology and corporate services.”</p><p>“We are working through the details of labour related changes and the split between redundancies and natural attrition, simplifying management layers, outsourcing and contractor spend,” they said.</p><p>More than $130 million of the savings are expected to come from productivity and efficiency improvements in the operations area including train consist design, energy consumption, improved operating discipline and new technology.</p><p>Aurizon CEO Lance Hockridge highlighted the planned job cuts and efficiencies in a briefing to analysts in Sydney last week.</p><p>“During the past year we’ve lifted the intensity of work on productivity, efficiency and cost reduction and the company has a clear roadmap of reform to deliver on our target of an operating ratio of 75% by the end of FY 2015.</p><p>“Between now and 2015, we’re set to deliver transformation benefits in the order of $230 million as we carve out costs and deliver operational efficiencies,” Hockridge said.</p><p>The presentation to analysts indicated that between now and the end of 2014, Aurizon will be negotiating 18 of its 19 functioning enterprise agreements (EAs) that cover approximately 88% of its workforce.</p><p>The company says that the 14 Queensland agreements, last negotiated in 2010, have over 900 classification points and hundreds of allowances &amp disability payments.</p><p>This will be the first bargaining round in Queensland following privatisation, restructure and downsizing and the company will be seeking reduced complexity through fewer EAs, fewer pay classifications and fewer incidental allowances.</p><p>The company will report its annual results on August 19.</p>