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Asciano expects massive earnings but plays hardball on wages

Jul 6, 2012News

Asciano, the company that owns Pacific National, has announced that company earnings for the second half of the 2012 financial year will soar, with figures expected to exceed the first half and the same period for last year.

Despite the prediction of large earnings, Pacific National has offered workers a wage increase only in line with CPI in the current Enterprise negotiations – an offer negotiators have refused.

Loco Division Secretary, Bob Hayden said that based on the company’s announcement, it’s fair to assume that, at its most conservative, the full year results will show huge growth figures for the parent company.

The company posted EBIT of $295 million in the six months to December 31 and will release its full year results on August 22.

Bob Hayden said it’s disappointing that given much of the increase can be put down to employee productivity growth, that PN is still holding firm on its wage offer.

“Even at a conservative estimate, these are extraordinary growth figures that can be largely attributed to a growth in employee productivity,” he said.

“It’s a shame that while the company is raking in the dollars on the back of employees’ hard work, they don’t feel any desire to share the profits with the people who keep the company moving.”

The company has also announced changes to their accounting practices, with the creation of four accounting units rather than the previous three, and a change to the way corporate overheads are allocated.

Read the Business Spectator article here (paywall protected)