New Zealand / Business

KiwiRail to cut jobs in Palmerston North and Napier

20:37 pm on 24 September 2024

Freight volumes to Napier Port have fallen (file image). Photo: Supplied / Napier Port

KiwiRail is planning to cut all train driver roles at its Napier depot following the closure of a large forestry company, the Rail and Maritime Union says.

KiwiRail has confirmed it plans to cut roles in Palmerston North and Napier as part of a restructure.

RNZ understands seven train driver roles and four yard staff jobs have proposed to be axed in Napier and another 16 jobs would be gone in Palmerston North.

Rail and Maritime Union general secretary Todd Valster told RNZ product from Winstone Pulp International Plant was taken by train from the central North Island, to Palmerston North and then east to Napier Port.

Valster said the fact the plant was closing was partly the reason the job cuts were being proposed.

"There always a lot more jobs that disappear, that support the mills or are part of the transport infrastructure that will get affected."

He said infrastructure damaged by Cyclone Gabrielle and lower domestic freight generally had not helped the situation.

He told RNZ the situation was moving quickly.

"This is quite a significant jump to look at potentially closing a depot that's been around for maybe 70 years."

Valster told RNZ it had met with KiwiRail twice over the past couple of weeks, and that a consultation document would be released in early October.

He said staff were "gutted".

"Railway workers like working in rail, but to go home to the family and say well actually the world's changing ... it's heartbreaking."

KiwiRail chief operations officer Paul Ashton told RNZ the state owned enterprise had begun a multi-year transformation plan to reshape its business.

"To be competitive, we need to lower our own costs and ensure our services are configured to meet the changing demands of the freight markets we serve, including in Hawke's Bay where freight volumes to Napier Port have fallen."

Ashton said the company remained commited to running rail freight between Palmerston North and Napier but changes it was making would affect roles.

"Discussions are currently underway with our union partners and affected staff in Napier and Palmerston North."

He said it would comment on the number of roles cut only after it had completed the consultation processes.