KiwiRail sends big bosses packing

KIWIRAIL has quietly laid off many of its most senior managers just before Christmas, as it tries to recover from a horror year.

Acting chief executive David Walsh confirmed that up to 65 people were affected by a restructure that had been unwinding since October, including senior engineers, administrative staff and middle and senior management.

The exact number of redundancies had not yet been determined, as some could be offered new jobs.

The cuts have not spared upper management, with passenger train boss Deborah Hume, engineering and infrastructure boss Rick van Barneveld and Interislander boss Thomas Davis all leaving in the past two months after their jobs were disestablished.

Walsh said the redundancies were about simplifying the various branches of KiwiRail and bringing them together into one unified organisation.

‘‘KiwiRail is working to improve the organisation’s competitiveness and grow its business and provide more frontline services.’’

Staff had been told about the restructure in October and some had already left. No public announcement about the job losses was made at the time, with KiwiRail only confirming the redundancies to The Dominion Post this week.

Rail and Maritime Union organiser Todd Valster said the state rail company was going through a significant ‘‘trim’’ under the direction of chief executive Peter Reidy, who was appointed in March.

‘‘The new CEO wants one KiwiRail. He doesn’t want any silos.

‘‘But it’s a really bad time of the year for people to lose their jobs.’’

Only a handful of the staff affected were union members, but they were all senior engineers with specialised skills who would be difficult to replace.

The move would include some Wellington jobs moving to Auckland, but also shifts in the other direction, he said.

KiwiRail has had a tough year, on the rails and the water.

In August, the company reported a loss of $248 million for the year to June, with ongoing maintenance problems with its Cook Strait ferries costing the company tens of millions.

In the latest in a string of disasters for the Interislander division, the Aratere again missed a departure this month because of an electrical fault, leaving hundreds stranded for hours.

On land, KiwiRail also ran into difficulty, with the discovery of asbestos in 40 of its new freight locomotives in March, forcing it to shed 20 per cent of its fleet while the locomotives were inspected and repaired.