Coronavirus: TAB consults on plan to cut 30 per cent of jobs

[Chief Stipe]

Susan Edmunds
16:44, May 06 2020

Punters have been limited to Australian racing and 'sports like table tennis from Eastern Europe'.
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The TAB is planning to reduce its workforce by 30 per cent as it responds to the impact of Covid-19.

That is believed to represent about 160 jobs.

An email was sent to staff from Stephen Hendry, chief operating officer, which said the organisation had developed a proposal to “rescope” the TAB.

“We are battling an extraordinary world pandemic that has had far-reaching consequences," he wrote.

"Regrettably, for the TAB, that requires a high level of change to ensure we can come out of this and be sustainable for many years to come. It will mean we will need to be a leaner, more efficient and more commercially focused business, with about 30 per cent less roles.”

The Racing Industry Transition Agency, which operates the TAB, claimed $4.075 million in wage subsidies for 595 employees.

Hendry said the Covid-19 outbreak had happened at a time when the business and industry was vulnerable.

“As you know, we invested in critical improvements across our business in recent years with major technology and broadcast enhancements and a new betting platform. And the programme of Government-led transformation, which will deliver new revenue streams, was at a critical juncture, before being inevitably delayed.”

The Racing Industry Transition Agency, which operates the TAB, claimed $4.075 million in wage subsidies for 595 employees.
Since mid-March, punters had only been able to access Australian racing and “sports like table tennis from Eastern Europe”, he said.

“Our monthly revenue during Covid-19 is 47 per cent less than forecast and customer numbers are down more than 35 per cent; with betting on sport down about 75 per cent compared to pre-Covid-19. And there have been no returns from our gaming business.

“We also predict revenue next year will be down considerably with domestic racing getting back slowly and at fewer venues, uncertainty around the return of quality domestic and international sport and reduced spending by many New Zealanders.”

He said while the organisation was grateful for the sacrifices made by staff so far, it was not enough to offset the blow.

“The changes proposed will affect every part of our business. It will require changes in the work we do and how we resource our business. It will require change in how we present racing, how we sell bets, where we sell bets and how our corporate office functions support the rest of the business.”

Staff were told they would be invited to a meeting on Monday where the proposals would be outlined.

Hendry said it was planned that the new structure would be effective from June 22.

“We also want to share with you options to consider that will reduce costs and may work for your situation. These options, voluntary redundancy and voluntary unpaid leave, are entirely voluntary and will be available for you to express interest in, right up until the closing date for consultation. More information of these options is attached.”

The Racing Industry Transition Agency has been approached for comment.

[Chief Stipe]

Aside from the fact that the above is a Stuff article that has been re-edited since first being published e.g. unless my memory has further degraded in the last few days I'm sure the first release mentioned 70 contractors as part of the 30%.  

Points to note:

39 minutes ago, Chief Stipe said:

An email was sent to staff from Stephen Hendry, chief operating officer

Hendry was bought in from MFAT by the previous CEO - John Allen.  So he has been on board at NZRB/RITA for about 5 years.  It has taken a crisis for him to work out that they have too many staff!

39 minutes ago, Chief Stipe said:

"Regrettably, for the TAB, that requires a high level of change to ensure we can come out of this and be sustainable for many years to come. It will mean we will need to be a leaner, more efficient and more commercially focused business, with about 30 per cent less roles.”

 

Really?  You didn't work that out in the last 5 years?  You kept borrowing dosh though.

"Efficient and more commercially focused business" - where on your CV is that experience?  MFAT?

39 minutes ago, Chief Stipe said:

Hendry said the Covid-19 outbreak had happened at a time when the business and industry was vulnerable.

“As you know, we invested in critical improvements across our business in recent years with major technology and broadcast enhancements and a new betting platform. And the programme of Government-led transformation, which will deliver new revenue streams, was at a critical juncture, before being inevitably delayed.”

 

".....we invested in critical improvements across our business in recent years with major technology and broadcast enhancements and a new betting platform."

I'd argue that the critical improvements you invested in weren't critical nor improvements!

"...major technology and broadcast enhancements and a new betting platform."

What is becoming apparent now is that the technology and broadcast enhancements were expensive "Rolls Royce" versions.  To be expected given your arrived from a Government department (MFAT) known for its excesses.  Wasn't Winston the Minister at one stage?

Spark (Telecom) saw you coming.  I guess you are hooked into expensive telco contracts for 5 years?

As for the new betting platform.  No comment.

"...deliver new revenue streams, was at a critical juncture, before being inevitably delayed.”

Porkies! Porkies!  The Racefields Legislation that you obliquely refer to was delayed BEFORE Covid-19.  Anyhow the "new revenue streams" were grossly overstated!  Don't you read DIA reports?

39 minutes ago, Chief Stipe said:

“We also predict revenue next year will be down considerably with domestic racing getting back slowly and at fewer venues, uncertainty around the return of quality domestic and international sport and reduced spending by many New Zealanders.”

 

Yes and your unrestrained largesse over the previous 5 years will screw the very heart of New Zealand racing - the provinces.

 

39 minutes ago, Chief Stipe said:

“Our monthly revenue during Covid-19 is 47 per cent less than forecast and customer numbers are down more than 35 per cent; with betting on sport down about 75 per cent compared to pre-Covid-19. And there have been no returns from our gaming business.

 

Thank God for Aussie racing!

"...no returns from our gaming business."

The Pokies.  Most of that revenue went to the RIU either directly (NZRB/RITA) or via the other shareholders - NZTR, HRNZ and GRNZ.  As the RIU is a Limited Liability company are you going to put it on the market?  Slash staff?

39 minutes ago, Chief Stipe said:

“The changes proposed will affect every part of our business. It will require changes in the work we do and how we resource our business. It will require change in how we present racing, how we sell bets, where we sell bets and how our corporate office functions support the rest of the business.”

 

"It will require change in how we present racing, how we sell bets, where we sell bets..."

Goodbye the last of the agencies.

[aquaman]

Talk about double speak, TAB is fooked. Future model online only.

[Huey]

Be interesting to see who the Senior Management team is after all of this.

[Noodlum]

33 minutes ago, Huey said:

Be interesting to see who the Senior Management team is after all of this.

Don't be surprised if they roll out the line - " At this critical juncture it is important that we maintain Senior Management continuity."

[Mark D]

Totally disregarding Covid 19 it is true to say that the staff have been let down by a series of Boards, CEOs and the Johnny no stars/lackeys that they have brought with them into excessively compensated positions

[Tonkatime!]

On 7/05/2020 at 9:41 AM, Chief Stipe said:

 

"It will require change in how we present racing, how we sell bets, where we sell bets..."

Goodbye the last of the agencies.

Will they get rid of there silly credit card fee if that’s the case?

[Chief Stipe]

36 minutes ago, Tonkatime! said:

Will they get rid of there silly credit card fee if that’s the case?

Yeah I've wondered about that.  No credit card fee online if you buy Lotto.  From what the TAB charge they make money on the fee.  I'd rather have that little bit extra to bet with and not have their bonus bets.

[Tonkatime!]

15 minutes ago, Chief Stipe said:

Yeah I've wondered about that.  No credit card fee online if you buy Lotto.  From what the TAB charge they make money on the fee.  I'd rather have that little bit extra to bet with and not have their bonus bets.

I’m the same, I keep getting the deposit $20 and we will give you a $10 bonus bet when it’s actually pay $22 for $20 credit and a $10 bonus bet. 

[All The Aces]

 

They may be cutting the workforce by 30% but it won't be a 30% cut in wage costs. You can bet the small fish will be let go instead of a lot of those on the bigger salaries.

The word is Trackside Radio which has shut down won't be coming back on air. Yet another avenue of promotion taken away and more distancing from the public.  Hopefully the word is wrong as many of us who do a lot of driving do enjoy having the radio on Trackside.      

 

[Huey]

42 minutes ago, All The Aces said:

 

They may be cutting the workforce by 30% but it won't be a 30% cut in wage costs. You can bet the small fish will be let go instead of a lot of those on the bigger salaries.

The word is Trackside Radio which has shut down won't be coming back on air. Yet another avenue of promotion taken away and more distancing from the public.  Hopefully the word is wrong as many of us who do a lot of driving do enjoy having the radio on Trackside.      

 

Yes I have heard the same , most of the cuts are occurring at the bottom , probably going to make it worse.

[Dark Beau]

Dean McKenzie and the Board can’t be that stupid can they?

[Mark D]

14 hours ago, All The Aces said:

 

They may be cutting the workforce by 30% but it won't be a 30% cut in wage costs. You can bet the small fish will be let go instead of a lot of those on the bigger salaries.

The word is Trackside Radio which has shut down won't be coming back on air. Yet another avenue of promotion taken away and more distancing from the public.  Hopefully the word is wrong as many of us who do a lot of driving do enjoy having the radio on Trackside.      

 

Been listening "on-line" a few nights.  Completely miss quite a few races because there is no switch over between TV channels.  Lack of retail audio is obvious.  Closing down the remaining agencies would be the last nail in the coffin IMO

[Freda]

10 hours ago, Dark Beau said:

Dean McKenzie and the Board can’t be that stupid can they?

Probably.

[All The Aces]

13 hours ago, Dark Beau said:

Dean McKenzie and the Board can’t be that stupid can they?

You reckon.  Radio Trackside gone and a number of frontline staff advised of job losses today.   ?

 

 

[Chief Stipe]

7 minutes ago, All The Aces said:

Radio Trackside gone

I just don't get that.  

[Mark D]

Slash and burn.  No hope

[Rusty]

Absolute bloody bullsh!t, canning Radio Trackside.

Unbelievable. But believable at the same time, with these dumbarses running the joint. 

[nomates]

Bad business decision in my opinion and i'm no business guru . So if you have a bet you can only watch on TV or phone , i pad , online is that correct . If so another raft of punters lost i think .

[All The Aces]

 

https://www.lincolnfarms.co.nz/stories/blood-on-the-floor-at-trackside-coverage-to-be-decimated-and-long-time-callers-victims/

 

[holy ravioli]

On 5/10/2020 at 12:01 PM, Chief Stipe said:

Yeah I've wondered about that.  No credit card fee online if you buy Lotto.  From what the TAB charge they make money on the fee.  I'd rather have that little bit extra to bet with and not have their bonus bets.

I rang the TAB and spoke about the fee,years ago.Their line ,which I challenged was that the banks charged them the fee,lying pricks.

[JJ Flash]

7 hours ago, Freda said:

Probably.

I notice that on both channels you are quite vocal about the abilty or otherwise of Winston's appointments.

Surely you and other battling  trainers  should be worried more about your own business acumen going forward and seeking guidance if necessary??

Blaming others is a quick road to failure no matter what business you are in.

 

Greg

Edited May 11, 2020 by JJ Flash

[JJ Flash]

3 hours ago, All The Aces said:

 

https://www.lincolnfarms.co.nz/stories/blood-on-the-floor-at-trackside-coverage-to-be-decimated-and-long-time-callers-victims/

 

Brilliant work if carried out to the full. Everyone wanted costs cut at NZRB and now RITA are carrying out those wishes. As they say "you reap what you sow" .

Bring on the moaners now that costs have been cut. You cant have it both ways and those that think so are the biggest clowns on the planet.

I'm sure ,Chief,Curious and Rod will have lots to say , contrarians are like that

 

Greg

Edited May 11, 2020 by JJ Flash

[Freda]

20 minutes ago, JJ Flash said:

I notice that on both channels you are quite vocal about the abilty or otherwise of Winston's appointments.

Surely you and other battling  trainers  should be worried more about your own business acumen going forward and seeking guidance if necessary??

Blaming others is a quick road to failure no matter what business you are in.

 

Greg

You are pretty vocal yourself.

Is your opinion worth more than mine,  or those of others?

Dont forget, those of us who choose to exercise our right to have an opinion are not getting paid to get this business right, nor are we responsible for the livelihoods and/or wellbeing of thousands.

I respectfully suggest that if more opinions had been taken note of over a good few years we may not be in this situation. 

JMO. Of course.

[nomates]

33 minutes ago, JJ Flash said:

I notice that on both channels you are quite vocal about the abilty or otherwise of Winston's appointments.

Surely you and other battling  trainers  should be worried more about your own business acumen going forward and seeking guidance if necessary??

Blaming others is a quick road to failure no matter what business you are in.

 

Greg

If you know the history of past and present political appointments and their ensuing CEO appointments and the effect their decisions have had on the industry , you wouldn't belittle your self with such demeaning comments . Obviously you have been a huge success in your life , i guess .