KiwiRail announces redundancies as work goes to China

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KiwiRail has announced it is to make up to 70 staff redundant as it doesn’t have enough work to justify its current staff levels.

Jobs will go from sites in Dunedin and Wellington as well as from the design team.

The CEO of KiwiRail Jim Quinn has said future contracts for new trains has been given to firms abroad in a bid to cut costs.

Mr Quinn said New Zealand doesn’t have the capacity to build the required number of new trains quickly and cheaply enough.

“Our mechanical business and their work keeps our rolling stock in working order, but it is not able to build this new rolling stock fast enough and at a competitive enough price to meet our current demand,” Mr Quinn said.

The government last year invested $500m in the construction of 38 new carriages for Auckland’s rail network. KiwiRail tendered the contract to Chinese company China CNR Corporation ahead of a bid from its own Hillside workshops.

The Rail and Maritime Transport Union has blamed the job losses on the contract being awarded abroad rather than to its own company, resulting in a lack of work.

 

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