Cleaners at Venues Ōtautahi are facing potential job losses, according to their union, after the organisation proposed outsourcing its cleaning operation, just days before the opening of Christchurch’s new stadium.

Up to 50 workers are affected by the proposal.

Twelve casual E tū members face having their roles disestablished, while five permanent staff would be transferred to a new employer under their current terms and conditions.

However, any new cleaning staff hired by an external contractor would have no guarantee of the Living Wage, the union said.

It comes just days after the Government pushed back on criticism of its decision to fund Robbie Williams’ Christchurch concert with public money, saying the move was designed to boost tourism, jobs and economic activity.

Last week, Tourism and Hospitality Minister Louise Upson told chrislynchmedia.com the funding formed part of a $40 million major events allocation designed to lift visitor numbers.

Christchurch City Council is a Living Wage accredited employer and directs Venues Ōtautahi through its letter of expectations to pay the Living Wage.

On Thursday, E tū said outsourcing the cleaning function would allow the organisation to sidestep that commitment for future workers.

The union said the proposal follows a failed attempt by Venues Ōtautahi management to remove the Living Wage from new starters.

The new stadium will require up to 250 cleaning staff.

Rather than directly employing workers to meet that demand, Venues Ōtautahi is proposing to contract the work out.

The proposal also signals potential outsourcing across its other venues, the union said.

One worker, who has not been named due to concerns about retaliation, said the proposal has left staff shaken.

“It makes me very uncertain. It is very important I am directly employed as I have a family to support.”

E tū Director Finn O’Dwyer-Cunliffe said the move is a backdoor attempt to undermine the Living Wage.

“When management tried to strip the Living Wage from new workers and failed, they found another way to do it. Outsourcing these roles means future cleaners won’t be guaranteed the Living Wage, and the workers who have given years of service to this organisation are being thrown out in the process,” Finn said.

“Venues Ōtautahi says it’s too operationally complex to hire 250 cleaning staff directly, but it has managed to hire 500 people in other roles. That doesn’t stack up.”

Finn said the timing makes the situation worse.

“Chief Executive Caroline Harvie-Teare is celebrating the strong financial position the stadium will deliver, while workers who have dedicated years to this organisation are being told they might not have a job. These are people with families and bills to pay. They deserve better than to be discarded the moment a new building opens.”

E tū is calling on Christchurch City Council to intervene and ensure its Living Wage policy cannot be bypassed through outsourcing. The union is also calling on One New Zealand, as the stadium’s naming rights partner, to ensure the milestone is not built on lower wages and fewer worker protections.

“The council set a Living Wage expectation for a reason. It cannot stand by while one of its own organisations finds a loophole,” Finn said.

Chris Lynch Media asked former Living Wage campaigner and now Heathcote Councillor Nathaniel Herz Jardine for comment.

He said “Council has made it 100% crystal clear that we expect all workers at Venues Otautahi to be paid a Living Wage, whether contracted or directly employed. I’ll be watching closely to ensure those expectations are met.”

Venues Ōtautahi Chief Executive Caroline Harvie-Teare told chrislynchmedia.com “One New Zealand Stadium opening marks a step change in scale and complexity of the cleaning requirements for Venues Ōtautahi.

“For this reason, it is critical we consider all aspects of our business to ensure we can maintain a high quality, safe, future focused and financially viable service to our city.

“This process, which considers retaining an inhouse model, a hybrid model, or a fully outsourced model, is still in review and no final decisions have been made” Harvie-Teare said.

“As an employer, our responsibility is to look after our people and regardless of the final decision all roles maintain continuity of employment and terms, including the living wage.

“We have a wonderful and committed team and it would be unfair on them to speculate on the result of the decision. It is unfortunate the union, much to the disappointment of their members, have opted to play this process out in the public space and with inaccurate and incomplete information.

“Venues Ōtautahi undertook the review with a genuine desire to seek feedback to inform our decision. We reiterate that we are yet to make a final decision” Harvie-Teare said.

“As a council-controlled organisation, our underlying driver is to act in the best interests of the city while also minimising impact to the ratepayer. For this reason, any model we adopt must be responsible, financially viable and sustainable, without requiring additional funding from Council. Financial viability however is not the sole, nor the primary driver with our process also considering: The systems, technology, and equipment required to service a venue of this scale and complexity. Access to specialist cleaning expertise and innovation in large-scale venue operations. The ability to effectively resource significant peaks and troughs in event demand. Maintaining consistent quality standards across all venues. Ensuring strong health, safety, and compliance practices.

Until we come to a final decision, we will not be making any further comment on this process.”