AIR NZ AND UNIONS FAIL TO AGREE ON DRUG TESTS

Mediation has failed to settle a challenge by six unions to plans by
Air New Zealand to extend random drug and alcohol testing to more than
9000 employees.

The parties met in closed session in Auckland yesterday before Labour
Department mediator Judith Scott. But they left without a settlement,
so will argue the case in the Employment Court in October.

Three judges are preparing to hear it. Business New Zealand has asked
to take part because of implications for other potentially dangerous
industries such as forestry and construction where drug tests have yet
to be challenged in law.

Air New Zealand, which has for several years used pre-employment drug
testing before hiring recruits to "safety sensitive" areas, has agreed
not to extend the regime until all staff finish education courses.

But it ultimately wants the right to test any of its staff at random,
up to and including chief executive Ralph Norris. The proposal is
opposed by the unions as an invasion of privacy contrary to employment
agreements and the Bill of Rights Act.

Meanwhile, an industrial court hearing in Melbourne of a legal
challenge by 10 Australian unions to plans by Qantas to introduce a
similar regime has been adjourned to allow more negotiations.

Qantas began a trial of the scheme in Sydney last week, but is
confining it to executive staff in the meantime.

A union source said it had taken urine or breath samples from at least
120 of the 700 or so executives in the trial's potential catchment by
late last week, but the airline has yet to disclose any results.

It wants to screen staff for alcohol, cannabis, stimulants,
depressants and hallucinogens, but unionists fear workers will also
have to explain their use of prescription or over-the-counter medicines.