Trevor Mallard

Wellington, Aug 20 NZPA - Telecom should rethink a line maintenance contract with Australian company Visionstream which could cause disruptions to phone and internet services, Labour says.

The 10-year contract with Visionstream will see Telecom's network division Chorus transition to an owner-operated model.

Labour MP Trevor Mallard said the move had left line engineers uncertain about their futures.

Last week, 900 engineers contracted by Telecom went on strike. The workers instituted an indefinite ban on broadband work.

"There is a risk that faults and maintenance work could suffer as a result of this situation dragging on," Mr Mallard said.

Few engineers had signed on as independent contractors and there were not enough workers. The Government's plans to roll out ultra-fast broadband could be hindered, he said.

Mr Mallard and Labour's communications and IT spokeswoman Clare Curran have written to Telecom urging it to reconsider the contract.

Speaking on behalf of Prime Minister John Key in Parliament today, National MP Tony Ryall said it was not appropriate for the Government to intervene.

"Changes in contract arrangements can be stressful and unsettling for the engineers involved, but this is a matter between a private company and its employees."

Chorus chief executive Mark Ratcliffe earlier said Visionstream's owner-operator policy was not the reason it won the Telecom contract.