Press Release – Kordia
Kordia Group today announced the integration of its two New Zealand telecommunications businesses, Kordia Networks and Orcon. The business will be called Kordia New Zealand.

Recommended changes after the merger include outsourcing Orcon’s remaining 50 Auckland call centre positions to New Zealand partner Datacom, to be resourced out of its Manila operation. There will be approximately nine redundancies across the rest of the business.

CEO Scott Bartlett says many affected call centre staff could find jobs at Australia’s second largest DSL broadband provider, iiNet, which operates a call centre in Auckland.

Group CEO Geoff Hunt says that on the back of 27% growth in Orcon and 16% growth in Kordia Networks in the year to June 2012, the Group has been evaluating the best format for its network business in anticipation of ongoing growth in a changed and more competitive telecommunications environment.

“Today’s announcement positions us to be solutions-led, combining the fast, innovative style of Orcon with the network quality of Kordia. It will create New Zealand’s most innovative and reliable provider of business-critical information services.

“The move will also enable us to eliminate the increasing duplication of network infrastructure and associated support staff. And as both businesses have developed services for business customers in parallel, the time is also right to rationalise the product set and present a simple, unified offering to this market,” he says.

Orcon will remain a key brand focussed on residential and small business customers.

”This is an exciting chapter for Kordia as we refine the network business for ongoing growth,” he says.

The CEO for the Kordia New Zealand business will be Scott Bartlett, who currently heads Orcon.

“Kordia New Zealand will have four areas of focus: media (broadcast and content management and delivery); advanced telecommunications services for business, specialised networks and internet services.”

Scott Bartlett says the Kordia New Zealand business will have a turnover of $161m and 320 staff.

“The Kordia standard of service will ultimately be applicable to all business customers and Orcon’s skills in speed to market capability for new products will provide leadership in moving forward,” he says.

The integration is proposed to follow a period of staff consultation which will see employees provide feedback on recommended changes before final decisions are made on the new structure.

About Kordia Group:
Kordia is a $400m turnover, high-growth company with 1400 staff across Australia and New Zealand.

Kordia owns an extensive telecommunications network in New Zealand and is the major provider of television and radio broadcast facilities. Kordia provides tailored network and technology solutions to enable customers to succeed.

In Australia, Kordia provides design, build and maintenance services to the broadcast and mobile telecommunications sectors as well as engineering services throughout the region.

The name Kordia comes from the Latin ‘accordia’ meaning harmony – bringing people and technology together as one.

Press Release – New Zealand Labour Party
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 SOEs have to take into account community interests and this is the result.

“It’s short term thinking as 50 more New Zealanders out of work means less taxes being paid, possibly 50 more people applying for a benefit and 50 more families that will suffer from the lack of a job.

“This is the same short term thinking that’s seen 220 jobs lost today from SOE Solid Energy. That’s 270 jobs culled from SOEs today. It’s not good enough.

“It’s good news that Orcon will remain part of Kordia and not sold to private investors but that is no comfort to those who have lost their job today.”