Maritime Union of New Zealand

The Maritime Union of New Zealand says that any proposal to privatize the Ports of Auckland would create a “perfect storm of opposition.”

Maritime Union Local 13 President Denis Carlisle says those pushing the plan were people out of time.

“There is obviously a faction out there who want to bring back port privatization plans from the dead.”

Mr Carlisle says that the privatization strategy with the Ports of Auckland failed in the 1990s due to mass public opposition and recent attempts to part-privatize the Ports of Lyttelton had also ended in failure.

“It seems bizarre at a time when the deregulation and privatization agenda has now been completely discredited globally, there are people who still want to continue on down the same old path.”

He says that the port has recently seen major productivity gains and to complain about reduced profits when the global economy was in crisis showed privatization proponents were out of touch with reality.

Mr Carlisle says it was obvious that there were problems with the port system in New Zealand.

These problems were due to lack of a national ports plan and regulation, leading to self-destructive competition and the casualization of the workforce, and privatization would only make matters worse.

“In the end analysis, the role of ports is to ensure the flow of goods to and from New Zealand, not as a cash cow for private investors looking for a quick buck.”

He says it made no sense for a small, maritime trade dependant nation like New Zealand to pass over control of its transport infrastructure to private interests whose only motive is short term profit.

He says that if board members were not comfortable with the status of the Ports of Auckland they should clear out.

For more information, contact Maritime Union Local 13 Auckland Waterfront Branch President Denis Carlisle on 021963528

The Maritime Union of New Zealand has offered qualified support to the merger of Lyttelton Port Company and the Port of Otago announced today.

Maritime Union General Secretary Trevor Hanson says the Union is a strong backer of ports remaining in local control to preserve employment and business opportunities.

“We are pleased to see local control as the Union has long been opposed to the loss of key infrastructure to overseas interests.”

Mr Hanson says the relationship between the new structure and the Ports of Timaru and Southport (Bluff) needs to be looked at.

“It is our view that any process should involve other ports in the region, New Zealand cannot afford to have port rationalization disrupt local economies and cause problems at a time of global recession. Ports are not ordinary businesses – they are the essential part of the supply chain between New Zealand and the global economy.”

Mr Hanson says the Union is watching developments closely as it is concerned to about members jobs.

“Obviously this announcement will mean the long talked about process of port rationalization is now well underway, but we have to ensure the process is carried out in a sensible way to minimize any insecurity or confusion.”

Mr Hanson says the opportunity is there for a national ports plan and some form of national ownership to avoid the tendency to parochial competition and duplication of resources under the current model.

“Could it be time to consider KiwiPort?”

He says the current world financial crisis makes the Port Chalmers-Lyttelton announcement all the more relevant.

Mr Hanson says the move is a natural fit for recent moves by the Government to encourage domestic coastal shipping.

“The only caution we have is that employees of these companies are given every consideration in retaining employment within any new structure that evolves.”

The Maritime Union of New Zealand has warned against the takeover of New Zealand ports after shipping giant COSCO announced its interest in buying into New Zealand ports this week.

The Chinese state owned multinational corporation COSCO is one of the world’s largest shipping lines.

Maritime Union spokesperson Victor Billot says the Union is opposed to handing control of ports over to global operators.

Mr Billot says that the takeover of New Zealand ports by global operators will lead to “ports of convenience”.

He says there is ongoing pressure for privatization, attacks on Unions and casualization, in “ports of convenience” around the world that are dominated by global operators.

Mr Billot says the Union is very concerned by trends overseas under free trade agreements for employers to bring in short-term, casual labour across borders.

“This process is one where multinational employers use workers against workers to attack wages and conditions.”

Mr Billot says problems were already present in “flag of convenience”, and some national flagged, shipping and fishing operations in New Zealand waters.

He says that Chinese state corporations have publicly stated in Australia they are interested in controlling the entire logistics chain from mines to rail to port to shipping, including the supply of labour for such operations.

Mr Billot says any rationalization of New Zealand ports must be planned and done in the interests of New Zealand.

“The takeover of an individual port by a shipping multinational could destabilize the entire industry and result in port rationalization being driven by mindless competition and market monopoly rather than a planned approach to benefit New Zealand.”

He says New Zealand as a trading nation should maintain control of its own maritime transport operations as far as practical.

New Zealand ports were largely owned by local government and returned profits to local communities rather than to overseas shareholders.

Problems with parochialism and duplication of infrastructure must be dealt with by a Government-led national ports plan, not sell offs which would create more chaos and instability in the industry.

The Maritime Union supported the Keep Our Port Public campaign in 2006 when global operator Hutchinson failed to gain a controlling stake in Ports of Lyttelton.

The Maritime Union says that co-operation between ports and regions is vital to the future of the maritime industry and New Zealand.

Maritime Union General Secretary Trevor Hanson says the proposed merger of Ports of Auckland and Port of Tauranga needs to be managed as part of a national ports strategy driven by regional co-operation.

He says that the recent coastal shipping report by the Shipping Federation and the announcement of a Government review into casualization of employment showed that good work was being done on the problems faced by the maritime industry.

Mr Hanson says there was an urgent need for a ports strategy that tied in with developments in the maritime industry in order to provide a way forward.

He says to leave the process of port mergers in the hands of purely commercial interests would be a mistake.

“We need to have a thirty year plan for the industry that encompasses ports, coastal shipping and the wider transport chain.”

Mr Hanson says consideration has to be given to regional issues, and the transportation of cargo by coastal shipping, to ensure no individual region is disadvantaged by changes.

The proposed super port may result in an increased move of businesses and workers into the Auckland and Tauranga areas, and this could place serious burdens on the infrastructure of both areas while having negative effects on provincial ports, he says.

“Decisions over the past generation in the ports industry have been parochial and short-sighted, and this has lead to shipping companies playing ports off against one another, resulting in a chaotic industry where workers jobs and conditions are constantly under attack.”

Mr Hanson says the answer is not to create profit driven monopolies but to ensure the long term interests of the public are served.

“Our discussions with leading industry operators lead us to believe that the industry recognizes the need for a more rational approach, but there needs to be clear direction from the Government to get the ball rolling.”

The two Unions representing port workers in New Zealand have come out against a proposed deal that would see the Port of Lyttelton pass into effective control of multinational corporate Hutchison.

The Rail and Maritime Transport Union (RMTU) and the Maritime Union of New Zealand (MUNZ) are working together to promote local control of the port.

Rail and Maritime Transport Union General Secretary Wayne Butson says the sell-off means a vital piece of New Zealand infrastructure will be effectively going into overseas control, with serious repercussions for the New Zealand economy.

“The potential is there for the port to be completely privatised some time down the track.”

He says the deal is short-sighted, and will further place New Zealand’s export trade outside New Zealand control.

“The consolidation of ports and shippers into a few overseas operators could see importers and exporters faced with price hikes.”

Maritime Union of New Zealand General Secretary Trevor Hanson says the takeover by multinational Hutchison has the potential to destabilize the maritime industry in New Zealand.

“Hutchison could use their international clout to provide business advantages for Lyttelton that other ports don’t have.”

He says this could mean the closure of other South Island ports, with a devastating effect on jobs and the revenues that currently benefit local communities through local ownership of ports.

Mr Hanson says there is the threat of casual, short-term overseas labour being introduced to the port once New Zealand signs up to the free trade deal with China.

“We are extremely concerned that a global operator like this, based in Hong Kong, will find a way to introduce overseas labour through the free trade agreements.”

The Unions say their concerns are widespread in the wider maritime industry.

The two Unions are proposing that the Christchurch City Council through its business arm CCHL purchase the Port of Lyttelton outright.

This would keep ownership, control and revenue with the local community and the people of New Zealand.