Air New Zealand is increasing wages to address a shortage of 400 workers across its bases in Auckland, Wellington, and Christchurch. The airline has raised its entry-level wage from $23.52 to $30 per hour, a 27 per cent increase, to draw in new ground staff and retain lower-paid employees.
This pay rise is part of the company’s effort to rebuild its airport team, which is under pressure due to higher demand and competition for labour.
According to Nikki Dines, chief people officer, Air New Zealand, the pay increase plays a crucial role in achieving this goal.
She stated that this is a remarkable chance for those interested in joining to become a part of something extraordinary.
The workforce shortage at Air New Zealand is particularly prevalent in airport operations such as ticketing, bag handling, and cleaning. However, according to Dines, Air New Zealand offers an excellent starting point for a career with ample opportunities to enhance one’s skills and take advantage of outstanding travel benefits.
To address the issue of employee retention, Dines has promised a pay increase above inflation to existing staff at Air New Zealand. This raise will be between 9.5 per cent and 26 per cent and will be implemented within the next twelve months, benefiting all employees of the airline.
With increasing demand and competition for labour in the post-pandemic world, Air New Zealand has made a bold move by raising wages to attract new employees and retain current ones. The airline’s commitment to enhancing the opportunities of its employees, coupled with an attractive compensation package, demonstrates its dedication to building a strong workforce capable of meeting the needs of its customers.
Dines expressed the significance of retaining employees throughout the business, particularly with post-pandemic demand placing pressure on the company. Inflation and a scarce labour market have resulted in the airline competing with all industries for workers.
