THL Makes Staff Payment After Improvement In Trading Results

As a result of improved trading conditions, THL is able to reward its staff with a one-off payment. The payment also coincides with a lifting of a wage and salary freeze across the group.

Auckland, New Zealand

THL has today announced that it will make a one-off staff payment equivalent to 1.5 percent of each employee's annual wages or salary.

The payment, to be made in early March, will coincide with the lifting of a wage and salary freeze across the group.

The Chief Executive Officer, Grant Webster, said the payment was to be made as a matter of fairness and to maintain good faith with staff and union negotiators, following a more rapid than expected improvement in the group's financial performance.

"When the wage freeze was announced last year and agreements were reached with union negotiators it was based on our expectation that the group would not be profitable in the current financial year, and no dividends would be paid to shareholders. Data to that effect were shared in confidence with union negotiators.

In the event, the group has performed better than expected, earning a small profit and declaring a modest dividend. We believe a one-off payment to the staff is appropriate to uphold the integrity of the agreements negotiated last year."

Mr Webster said the 1.5 percent payment was close to the official Labour Cost Index for the relevant period and a fair reflection of what staff had forgone due to the wage freeze. The payment will apply to virtually all the group's 700 staff, with the exceptions being those whose employment agreements (which were negotiated prior to the start of the wage freeze in July 2009) included a wage increase during the 09/10 year.

Mr Webster cautioned that the payment should not be regarded as establishing new benchmark levels for future wage movements, or as an indicator of substantial profit growth. "We remain a long way off the required level of financial performance, and tourism markets remain difficult and highly competitive," he said.

BIO:
Tourism Holdings Limited (THL)is New Zealand's premier tourism company with operations in Australia and Fiji. Operations include car and motorhome rentals in Australia and New Zealand, a specialist caravan and motorhome manufacturing company in Hamilton and Kiwi Experience backpacker transport and tourism activities in Waitomo.

THL owns many brand names that provide excellent products and services to customers. Maui, Britz, Backpacker, Skiwi, Ci Munro, Kiwi Experience, Explore More, Feejee Experience, Tourist Transport Fiji, Waitomo Glowworm Caves, Ruakuri Caves, The Legendary Black Water Rafting Co are just some of the THL-owned brand names that are world-renowned for the quality of the experience they deliver to international tourists.

THL is listed on the New Zealand Stock Exchange under the ticker code THL.

Add your Free Media Release to Thinking Business Today!