File photo. Transdev threatened to cancel more than 500 Wellington train services each fortnight in a feud with the regional council. Photo: RNZ / Krystal Gibbens
Wellington's train operator threatened to cancel more than 500 services a fortnight in a feud with the regional council it says is yet to be settled.
Transdev has held the contract to run the capital's train services since 2016 and employs all train staff.
Its relationship with Greater Wellngton Regional Council has been strained at times, which included in March when RNZ reported that council chair Daran Ponter had raised concerns about staff shortages on the Wairarapa line.
In July 2021 legislation came into force which doubled the minimum amount of paid sick leave employees were entitled to, from five to 10 days.
Legislation was also introduced the following year for the new public holiday Matariki.
Documents released under the Local Government Information Act show in the years that followed Transdev and the council have had a commercial battle over the changes, with Transdev wanting the council to compensate it for the extra leave entitlements.
Transdev believed that it needed the compensation to help pay for 27 extra staff needed to deliver its train timetable after the leave changes.
The council held the view that it did not.
The differing viewpoints came to a head in August last year when Transdev sent a letter to the council which proposed a reduction in train services to overcome increased costs.
"Transdev is unable to mitigate its losses as a result of these changes in law and accordingly GWRC is the only party able to prevent Transdev's on-going losses in relation to the matter."
In the same letter Transdev created a timetable for it services which showed over a fortnight 526 trains would be cancelled across its rail lines.
"For the avoidance of doubt, Transdev does not wish to reduce passenger services - given the significant impact to customers and GWRC and impact to future development of the Wellington Rail network."
In response to this letter, the council's Metlink group manager Samantha Gain wrote back in October and said there had been ongoing discussion on the matter over "many months".
Gain said legal advice confirmed that the regional council would be entitled to reject Transdev's proposal to slash services.
She also said that there was no "justifiable basis" to make a payment to Transdev to back pay historic sick leave and pay for its extra costs in the future.
"In the current funding climate, funds are not available."
After RNZ uncovered the documents Greater Wellington Regional Council said in a statement that the proposed service cuts were not made in accordance with its contract with Transdev and were not agreed to or approved.
"Transdev has not cut services on the Wellington metro rail network at any stage.
"The table in the 28 August 2024 letter denoted a likely reduction in number of passenger services, as estimated by Transdev.
"However, this was not a contractual proposal to Greater Wellington and was not agreed on."
When RNZ asked whether the dispute had been resolved, the council said that it still held the view that it would not be providing compensation for Transdev and rejected its proposal.
But, in its statement, Transdev did not agree that the matter was over for the company.
"Transdev is continuing to work with Greater Wellington Regional Council to resolve historical matters including the application of recent public holiday and sick leave entitlements.
The company said it could not comment further due to the commercially sensitive nature of ongoing conversations with the regional council.
"It'd be inappropriate to comment further."
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