News

Aurizon today commenced consultation with employees on proposed changes to rollingstock maintenance operations in Queensland, as part of the company’s transformation program announced in mid-2013 to reduce costs, improve operational efficiency across numerous facilities and to focus on its core business of rail freight.

The review has resulted in Aurizon proposing to cease passenger-related maintenance contracts it performs on a commercial basis for Queensland Rail at its Townsville and Redbank (south east Queensland) workshops, as those contracts expire at the end of June 2014 and June 2015, respectively.

There is also a proposal to reduce existing capacity across the two workshops in Townsville and Redbank because it exceeds current and forecast maintenance demand for freight operations by Aurizon.

Aurizon proposes to centralise heavy maintenance and component overhaul work in Queensland to Rockhampton, which is closer to the majority of its services in central Queensland and increase the scale of maintenance activities at that site. Other rollingstock facilities for running maintenance in Queensland will be continued at Stuart (Townsville), Willowburn (Toowoomba), Jilalan (near Mackay), Callemondah (Gladstone), Acacia Ridge (Brisbane) and Pring (Bowen).

In July 2013, Aurizon announced as part of the “Drive to 75”, Operations would deliver a $130m+ productivity improvement by FY2015.

Fundamental to this program is improved rollingstock maintenance productivity, with better work practices and modern equipment, coupled with newer and fewer locomotives and wagons. A smaller and more productive fleet means less assets, resources and employees are required to maintain the fleet, while meeting growth and customer requirements.

Aurizon is currently investing in a $150 million Train Support Facility at Hexham in Newcastle to support its growing Hunter Valley coal business, and has recently invested in maintenance facilities in Geraldton and Esperance to support its growing West Australian iron ore and freight operations.

The proposed changes in Queensland, on which consultation commenced today, represent a major operational reform for the Company and will impact a significant number of employees. No changes will be made until consultation has been completed with employees, and all feedback and suggestions from employees considered by the Company.

The proposals include:​

• Redbank: a small reduction in roles by June 2014; a further reduction by June 2015 with the expiry of the passenger contract performed for Queensland Rail; and then a progressive wind down of activities through to June 2017, when it is proposed the workshop will close.
• Townsville: a reduction of roles at June 2014 with the expiry of the passenger contract performed for Queensland Rail; with the remaining roles to conclude in June 2016, when it is proposed the current site in South Townsville will close. Aurizon will continue to maintain a significant presence in Townsville with more than 400 Aurizon employees in the City, across the Intermodal freight depot in South Townsville; the bulk freight operations at Townsville Jetty; and the depots for traincrew, wagons and locomotives at Stuart.

The current number of Aurizon employees at the Redbank facility is approximately 450 and 115 at South Townsville. If proposals are implemented, in total it is expected approximately 480 of these employees will potentially be impacted by 2017. Of this figure it is anticipated a number will be offered redeployment and retraining opportunities.

Aurizon wants to provide as much time as possible for people to seek opportunities for relocation, retraining or to apply for other roles in the company in the event that its proposals are implemented. All apprentices, trainees and graduates employed at affected locations will have training periods honoured.

Under the current Enterprise Agreements there are no forced redundancies for permanent employees.

Aurizon understands the significant impact of the proposed changes on affected employees, and also local communities in which our people live and work. Aurizon is committed to working sensitively with employees during this consultation process.