Rewriting history

October 27th, 2012 at 9:00 am by David Farrar

Clare Curran said yesterday that:

Another 50 Kiwis will join the ever-lengthening dole queue after today’s announcement by state owned enterprise Kordia that it will outsource its Auckland call centre, says Labour’s Communications and IT spokesperson Clare Curran.

Orcon’s 50 Auckland call centre positions will be outsourced to Manila, as the company integrates its two New Zealand telecommunications businesses, Kordia Networks and Orcon.

“This is part of a worrying trend for businesses to make cost cutting decisions at the expense of Kiwi jobs,” says Clare Curran.

“The fact that it’s a state owned enterprise making the decision reinforces the lack of commitment by the National Government to investing in Kiwi jobs.

“National has removed the social responsibility clause which ensures have to take into account community interests and this is the result.

That last line is now missing from the web version – gone as if it never was included.

The reasons is it is factually incorrect. National has done no such thing. In fact Curran scores an own goal by highlighting that the social responsibility clause in no way hinders SOEs acting to become more efficient.

Personally I think the issue with Kordia, is why do we own it? It nationalised Orcon when it purchased it. Do we want government owned ISPs competing with others?

Stuff reports:

 The Labour Party has acknowledged Kordia is still bound by the “social responsibility clause” of the State Owned Enterprises Act

Hard not to acknowledge reality. And also worth noting:

Orcon chief executive Scott Bartlett, who will take up an expanded role at Kordia as head of its new merged telecommunication division, said yesterday that many affected call centre staff would probably find jobs at Australia’s second-largest broadband provider, iiNet, which operates a 300-person call centre in Auckland servicing its customers in Australia.

Now you can take a view that no NZ company should outsource its call centre overseas, but this also means that you are arguing against NZ companies picking up business from overseas companies.

 

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17 Responses to “Rewriting history”

  1. nasska (9,489 comments) says:

    It’s Orcon’s customers I feel sorry for. If the service level is half as bad as that from Telecom’s overseas call centre it will be worthless. Perhaps they will get used to being on hold for twenty minutes at a time before being fobbed off by uneducated, unhelpful idiots who struggle with ‘pidgeon’ English.

    You get what you pay for & when you pay for overseas manned help desks your customers get very little in return.

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  2. Pete George (21,798 comments) says:

    An own goal isn’t unusual, but I think Curran has a valid point in this criticism of NZ on Air funding overseas franchises that severely restrict local talent: Curran critical of NZ on Air

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  3. Keeping Stock (9,788 comments) says:

    Labour Party MP tells an untruth; who’d have ever thunk it :P

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  4. bhudson (4,720 comments) says:

    Her further comments rushed headlong into the ridiculous:

    http://www.stuff.co.nz/business/industries/7867686/Labour-questions-Kordia-job-cuts

    Curran said yesterday that the call centre job cuts had resulted from National removing the social responsibility clause “which ensures SOEs have to take into account community interests”.

    She today acknowledged Kordia was still bound by the clause, but said it had been undermined by National’s plan to remove the obligation from companies such as Mighty River Power that it intended to sell down into a “mixed ownership model”.

    “What I am saying is what that means is other SOEs are taking their lead from that.”

    What planet is that woman on???

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  5. Kevin (1,122 comments) says:

    Yes a state owned enterprise or any for,that matter could compete on the basis of providing a quality service rather than send jobs offshore.

    Pg local talent!? – weve had enough interpretive dance troups demonstrating the evils of colonial capitalism thanks.

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  6. Mark (1,301 comments) says:

    Curran’s incompetence aside if our service providing industries we keep exporting jobs to cheaper labour markets there will be less people in NZ who can afford to buy their services. DPF criticism of Curran is a good foil to debating the real issue, how many jobs will we export before we do more damage to our economy than we get in benefits from cheap labour rates in south east Asia or the sub continent.

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  7. Anthony (736 comments) says:

    There’s some missing logic there Mark, the displaced workers are likely to get jobs elsewhere and Orcon gets to keep its prices at a reasonable level – the broadband market is a real battleground at the moment!

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  8. greenjacket (346 comments) says:

    Mark – do you understand how an economy works? Because Kordia has outsourced 50 low-skilled jobs to the Phillipines, the company can now deploy resources more efficiently and be a more productive company – the end result will result in more employment of high skilled people.

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  9. YesWeDid (1,002 comments) says:

    Thanks for explaining that greenjacket, I wasn’t aware that sacking low paid workers magically created more high paid jobs elsewhere, but now you’ve cleared that up for me.

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  10. Reid (15,513 comments) says:

    Hard not to acknowledge reality.

    What do you mean DPF? The lefties do it all the time. It’s their modus operandi.

    …how many jobs will we export before we do more damage to our economy than we get in benefits from cheap labour rates in south east Asia or the sub continent.

    What do you suggest we do about it Mark? Halt globalisation the second it hits the border? Erect some giant geodesic dome perhaps. Maybe we could ask for the magnetic shield weapons the US is bound to have stashed away somewhere precisely for this sort of eventuality.

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  11. Reid (15,513 comments) says:

    Seriously though, on this general issue, I can’t understand what National has been doing strategically, in its public messaging on this issue. I mean hasn’t the Nats observed the drop dead obvious fact that all Hulun ever did on this issue was talk about, often. I mean during her reign, we’d be hearing every six weeks or so the same message, just talk, nothing substantive, now and then an initiative but more often just spin.

    Regardless of the fact we’re in a serious economic predicament, the Nats could have doing exactly the same every six weeks or so since they were elected. But they haven’t, and haven’t the Nats noticed that about a year ago Liarbore and the unions were ramping up their messaging that the Nats don’t care about jobs and they continue to do so? And if the Nats hadn’t noticed they should fire their chief political strategists because they’re asleep at the switch. For what that ramping up means, der, is that Liarbore’s internal polling on the public thinking on this issue has told them is ripe for exploitation so they have been and continue to do so. And still the Nats remain quiet as a mouse, almost as if they don’t even realise this is happening. The longer they leave responding to it the harder it is to start breaking it down.

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  12. tristanb (1,133 comments) says:

    LOL that Clare Curran is an IT spokesperson for Labour. Do they purposely get people who know nothing about a subject to be the spokesperson?

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  13. bhudson (4,720 comments) says:

    It’s all about ‘managing the message’ tristanb. Don’t question Clare on this, lest you be banned for being a troll. [i'm sure she believes she should be permitted to moderate KB as she does Red Alert.]

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  14. Oskar (33 comments) says:

    So looking at the flip side of Clare’s comment is it therefore Labour policy that all SOE’s have to have their call centres NZ based and those that have moved their call centres overseas have to relocate them back to NZ?

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  15. Viking2 (10,703 comments) says:

    Anthony (565) Says:
    October 27th, 2012 at 10:31 am

    There’s some missing logic there Mark, the displaced workers are likely to get jobs elsewhere and Orcon gets to keep its prices at a reasonable level – the broadband market is a real battleground at the moment!

    Orcon chief executive Scott Bartlett, who will take up an expanded role at Kordia as head of its new merged telecommunication division, said yesterday that many affected call centre staff would probably find jobs at Australia’s second-largest broadband provider, iiNet, which operates a 300-person call centre in Auckland servicing its customers in Australia.

    UMMM??? So aussies find it better to come here and Liwi’s like Philipino Girls?

    Something doesn’t gel.

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  16. Mark (496 comments) says:

    So Labour’s Communications and IT spokesperson Clare Curran just made shit up to blame National with either no idea or just plain out lied to the public of NZ.

    She should resign in my opinion. How could anybody trust her with anything she says from now own.

    She is either incompetent or a liar.

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  17. orewa1 (425 comments) says:

    The sad reality is that as a long standing customer of Orcon I have found their call centre the worst on the planet by every measure – time to answer, abandoned calls and all the usual.

    I cannot comment on theor “first call resolution” as i have never actually connected with a live human – except one who answered my desparate email almost a month after I sent it, and then ignored my response.

    Overseas call centres can be great. You only have to check out 018 directory to prove that.

    I hope Scott Bartlett does a much better job with the customer service of the re-branded Orcon than he did with the old one. If he wants to retain the title of “Telecommunications Boy Wonder” he has to move fast.

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