Ausgrid to slash 230 jobs as Covid smashes revenue

Privatised NSW electricity firm Ausgrid will cut 230 back office and management jobs.

Privatised NSW electricity firm Ausgrid will cut 230 back office and management jobs, but it says frontline positions will not be targeted for redundancies.

Workers will be paid out three weeks pay for each year of service plus another four weeks pay under cuts that come into effect in January 2021.

They will receive a further eight weeks pay if they are nominated for voluntary redundancy and leave earlier than January. The number of senior management roles will be cut by 20 per cent.

Ausgrid, majority controlled by AustralianSuper and IFM Investors, was hit by COVID-19 as energy use slumped among industry and businesses as employees worked from home.

Ausgrid chief Richard Gross said the cuts were designed to “drive affordability” and “keep downward pressure on energy prices”. “This is a really tough decision and one that we don’t make lightly,” Mr Gross said.

“We have challenges to face financially, and we have been open and upfront about that for nearly two years. COVID-19 has made things even tougher than predicted. However, we are continuing to work hard to minimise further job cuts.”

Mr Gross said the proposed restructure would mostly affect management and back office staff. “No frontline jobs will be cut. This means staff working on the poles and wires and in the customer call centre will not be reduced as part of this restructure,” he said.

“We’ve been talking to our staff and the unions about the need to be more financially efficient for over 18 months, and while we have implemented a number of initiatives to achieve cost reductions, we have been open and honest that reducing our labour costs was also going to be necessary.”

Electrical Trades Union NSW secretary Justin Page said Ausgrid “must not only guarantee that the consultation process will outline which jobs they plan to cut but (also show) there will be no flow-on impact to frontline services”.

EWIN HANNAN