AURIZON Holdings (ASX: AZJ) will shed 480 staff across its Queensland facilities as part of its transformation program from June this year through to 2017.
Communities in Redbank and South Townsville will be affected by the overhaul, which host two facilities that currently comprise of 565 employees.
AZJ, Australia's largest freight business, plans to end passenger-related maintenance contracts for Queensland Rail at both of these facilities in an effort to reduce operational costs.
Centralisation is at the core of the strategy, with the company proposing plans to collocate heavy maintenance and component overhaul work at its Rockhampton facility.
This is a cost-driven move based on Rockhampton’s proximity to central Queensland coal mines, in accordance with AZJ’s intentions to improve productivity by more than $130 million by full-year 2015.
In light of this, the company says some of the staff shed from its Redbank and South Townsville facilities will be redeployed or offered retraining.
“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,” the company said in a statement issued today.
The Redbank and South Townsville workshops will downsize from next month, Redbank expected to close in June 2017 and South Townsville in June 2016.
However, AZJ will maintain a presence of 400 employees in the Townsville district, dispersed across a number of its other projects in the area.
The announcement appears to come as an extension of the company’s ongoing focus of pushing down operational costs.
AZJ managing director and CEO Lance Hockridge highlighted this is a key area to improve on in the company’s half-year report released in February.
“We will continue to maintain the intensity of work on transformation and reform initiatives to reduce costs, list productivity and deliver improved customer service levels,” Hockridge said in relation to the second half of the year.
PETS before profits is the Greencross Vets (ASX: GXL) mentality, which appears to be paying off in light of the company’s rapid growth and recent merger with Petbarn. GXL has experienced a 25 per cent compound annual growth rate of clinics and stores over the past five years. Since 1994, it has grown from a single Greencross clinic to 107, and has recently taken on 108 Petbarn and 25 Animates retail stores in Australia and New Zealand. As one of the fastest growing ASX-listed...Read More
Chief economist Ivan Colhoun says historically labour demand indicates that interest rates will follow suit. “While the pace of improvement in job ads suggests that labour market conditions...Read More
BLUE Sky Alternative Investments Limited (ASX:BLA) has launched an initial public offering (IPO) of shares in a subsidiary company. The Blue Sky Alternatives Access Fund (BASSF) will be Australia’s first diversified, alternatives-focused Listed Investment Company (LIC) on the ASX. BSAAF is seeking to raise a minimum of $50 million and up to $100 million under the IPO at an issue price of $1 per share, along with options on a one-for-one basis with an exercise price of $1 before...Read More
The ANZ-Roy Morgan weekly report shows a drop last week, coinciding with the Commission of Audit’s report and speculation around the deficit reduction levy. Chief economist Ivan Colhoun says the figures provide a clear reading of the budget’s impact on consumers. “The policies of most concern to the consumer...Read More
GREENCROSS Limited (ASX: GXL) has announced its acquisition of four veterinary clinics and the opening of three retail stores. The practices will fall under the Greencross partnership model,...Read More
SMALL businesses enjoying high trades on weekends and public holidays could be taking advantage of same day settlement. Often, businesses don’t see their weekend takings arrive in their bank account until mid-week, causing interruptions to cash flow and reliance on short term loans. With same day settlement businesses can get their card sales in their account on the same day, 365 days a year, including weekends and public holidays. This enables a much smoother cash flow for...Read More
Companies have predicted a boost in sales, employment and investment activity during the third quarter of this year in the latest Business Expectations Survey. The sales index has lifted to a new 10-year high...Read More
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support