The union yesterday announced its 32 members would strike on November 25 — the day a 1258-passenger ship is due in Port Chalmers — if a stalemate on pay negotiations with Dunedin Railways cannot be broken.
The union members’ collective agreement with Taieri Gorge Railway Ltd expired in August and negotiations stalled as the union pushed for a 4% pay increase in the first year of a two-year deal and a further 2% in the second year.
The company said it made a renewed offer on Wednesday which took the total wage offer above the union’s demand.
"This included adjustments for a significant number of union members’ hourly rates and also a movement on the overall annual increases," Taieri Gorge Railway Ltd spokesman Toby Mann said in a statement.
When contacted by the Otago Daily Times, he said he was unable to expand on the offer and referred comment to the union.
"It’s not correct and I’m really disappointed that they are trying to spin it like that," union South Island organiser John Kerr said.
"What the company has offered is a 3% increase across the board in the first year and 2% in the second year.
"What they have offered is an increase to nine members that goes above and beyond the 3%."
The major sticking point was that the company continued to pay a third of members below the living wage of $19.80 per hour, he said.
"They can spin it how they like, but it’s not right.
‘‘Especially when they are working for a company that is owned by the [Dunedin City] Council."
The council’s holding company — Dunedin City Holdings Ltd — owns a 72% stake in the company.
Mr Kerr said the union had estimated a 4% increase for all its members would cost the company an extra $12,500 for the year.
"That’s a lot less than a single cruise ship’s revenue," he said.
Mr Mann said the strike would cost the company "in the thousands of dollars".
"The RMTU have chosen a cruise ship day for this strike so the impact will be wider than it would normally be and threatens what is an important part of Dunedin’s tourism industry," Mr Mann said.
"Taieri Gorge Railway Ltd welcomes further mediation and hopes this can be arranged in a timely manner."
