The news was released yesterday that Contact Energy is looking at outsourcing its retail processing positions based in Lower Hutt with the possible lose of 70 jobs.
Contact Energy is in talks with staff over the potential outsourcing of around 70 jobs to India.
Consultation began yesterday over plans to outsource the work to India-based technology company Wipro Technologies as Contact sought to upgrade its retail processing software, corporate communications manager Jonathan Hill said.
Mr Hill said the proposed outsourcing was part of “a significant transformation of its business processes”, including changes to Contact’s retail billing systems.
The jobs in question were retail processing positions at its Lower Hutt branch, where around 200 people were employed.
Consultation began yesterday and they had put a proposal to staff. No decisions had been made, he said.
It appears that the cost of business in becoming harder and harder for NZ busineses service industries to compete against significantly lower labour costs in other parts of the world. Being a listed company, shareholders expect maximum returns, and in the current environment that generally means a cost reduction model, versus a growth strategy.
The impact is where these jobs are based, and unfortunately that is the Hutt Valley. Recent examples in the Hutt have been more about manufactors with Unilever, Formway and Mountain Buggy making approximately 120 people between the three companies redundant earlier this year.
The ongoing significance of these job losses or changes in operations have significant impacts on local communities and the people involved. The Hutt Valley has experienced significant changes in the businesses that exist here over the years, but it seems that increasingly we, that is New Zealand, cannot compete in areas where labour costs offshore are what we expect to earn in a day what others earn in a month