AURIZON STOPS CONTRACT TERMINATIONS IN ITS TRACKS

Written on the 5 May 2015

AURIZON STOPS CONTRACT TERMINATIONS IN ITS TRACKS

AURIZON Holdings Limited (ASX:AZJ) has postponed plans to terminate 12 existing enterprise agreements until an appeal by the unions is finalised.

The Fair Work Commission awarded the rail operator the right to terminate the expired agreements last month.

Aurizon will first await the outcome of an application by the unions to Federal Court to review the decision at a hearing in Melbourne.

Managing director and CEO Lance Hockridge says while Aurizon is prepared to suspend acting on the Fair Work decision, it does not accept there is any error.

"We want to minimise the disruption to our employees and customers," Hockridge says.

"After negotiations extending over two years we can wait a few more days to let the legal process play out."

Aurizon will maintain base wages for six months after the agreements are terminated, however other contract conditions will be reviewed.

"At the end of the day we want a fair deal for our employees that is competitive and allows our company to grow," Hockridge says.

"That is why the legal process is underway we will still continue to negotiate in good faith with the unions on the substantive and unresolved issues associated with the new agreements.

"Therefore we urge the unions to engage in meaningful and productive dialogue on the proposed new agreements."

The Federal Court hearing is on May 21.

 

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