Maritime Union of New Zealand

The Maritime Union has attacked what it describes as the “narrowness of vision” in yet another report into the state of New Zealand’s ports.
Maritime Union General Secretary Joe Fleetwood says the Ministry of Transport commissioned Freight Futures report travelled down well worn paths and added little to the debate.
He says the latest report promotes a free market agenda that was now globally discredited and driven only by corporate self-interest.
Possibly the intent of the report was to provide justification for the continuing “avoidance” approach of the National Government to ports policy – which could be summed up by the words of the song “What ever will be, will be.”
Mr Fleetwood says the new NZIER report repeats material from the recent Port Performance and Ownership report to the Local Government Forum, which represents big business and private sector interests.The report was biased against workers in the industry who it portrays as a problem, was hostile to public ownership and had a “thinly veiled contempt” for democratic institutions like local Government.
Claims that New Zealand port performance had been harmed by the Employment Relations Act were not accurate or backed with any substantive evidence.Mr Fleetwood says he is concerned that the reality of reduced pay and conditions, continuing health and safety issues, and the destruction of career paths and secure jobs for young workers in the ports industry, were not covered by the report.
He says the regular deaths and injuries of workers in the maritime industry, including overseas crews, showed a human cost to the so-called efficiencies of the free market.
“They didn’t put anything about that in the report though, as the lives and wellbeing of the workers in the industry do not seem to come into the equation.”"All it shows to me is that this is the usual bloodless and dry approach by people who have nothing to do with the industry and for whom short term profit is the only measure of success.”
“The authors of this report obviously have no understanding of how the increased usage of poorly trained and unskilled casual workers, and difficult and unsafe working conditions on some older and smaller ships calling at our ports, can impact on these statistics.”
The smaller size of New Zealand ports was just one reason why so-called efficiency comparisons with huge global terminals overseas was misleading.
These “underproductivity” arguments are rejected by many in the industry, and Fonterra’s General Manager of Logistics Nigel Jones had publicly responded to similar claims in a previous NZIER report by stating it was dangerous to look at issues such as crane productivity in isolation, because ports were part of the supply chain.
Mr Fleetwood says as taxpayers and wealth producers, maritime workers object to subsidizing reports by people who are remote from the everyday reality of our industry.
The Maritime Union has proposed an active maritime and ports policy rather than the fatalistic approach of the current Government.”We propose ‘KiwiPort’ a national ports plan, cabotage for coastal shipping and the investigation of New Zealand investment in shipping for our global trade routes.”The growth of specialist areas such as the offshore industry also had the potential for developing a high skill industry, and needed to be factored into any maritime policy.

The Maritime Union has dismissed comments by global shipping line Maersk about the merger of Port of Lyttelton and Port of Otago.

The two ports announced a planned merger of operations yesterday, subject to approval by the Chamber of Commerce.

Maersk New Zealand managing director Julian Bevis was reported today as saying he had concerns about the “dominance” of the new port structure and how this would affect prices, services and market competition.

Mr Fleetwood says it is hard to take such concerns with a straight face.

“Maersk is a massive operation, the world’s largest shipping and container terminal conglomerate, and they must really be short of things to worry about if this is all they can come up with.”

He says that Maersk’s ongoing global growth through mergers and acquisitions indicated that they had no concerns with any effect on competition by their own operations.

Mr Fleetwood says the goal of any capitalist corporate like Maersk was to dominate the market and reduce their risk and exposure to competition.

“Let’s face it, the reality is that they are the ones dominating the market and threatening competition, not two ports in the South Island of New Zealand.”

Mr Fleetwood says the problem with New Zealand ports was the exact opposite of Mr Bevis’ claims.

“New Zealand ports have long been played off against each other by powerful shipping companies, and even large local corporates such as Fonterra.”

This has resulted in serious disruption to regional ports, which had many negative implications for New Zealand’s economy and social stability.

Mr Fleetwood says the Maritime Union was cautiously optimistic about the merger between Port of Lyttelton and Port of Otago.

“Obviously it is early days, but ports working together like this could have benefits, as long as it does not lead to any regional ports being undermined.”

He says the Union would like to see ports remain under public ownership, but also come under some form of national co-ordination, a concept which the Union calls “Kiwiport.”

“Ports are not just another business, they are key infrastructure, and the gateway for New Zealand exports and imports. They need to be operated in the national interest.”

The Maritime Union had been active in the Keep Our Port Public campaign in 2006 during an unsuccessful attempt to part-privatize Port of Lyttelton through a deal with global terminal operator Hutchison.

The Maritime Union of New Zealand says that New Zealand’s overseas trade could be in jeopardy unless the Government has a plan for ports and the maritime sector.

Maritime Union General Secretary Joe Fleetwood, responding to comments from the Minister of Transport Hon. Stephen Joyce, says it is not good enough for the Government to leave it to chance when 99% of New Zealand’s imports and exports are shipped.

He says that there is widespread concern in the industry that in future cargo could be hubbed through a large Australian port, with complex and negative effects for New Zealand.

“This decision would be made by global shipping lines, whose interest is their own profit, not New Zealand’s long term economic security.”

Mr Fleetwood says that an October 2009 report from Auckland Regional Holdings, the business arm of Auckland Regional Council (ARC), had noted the risk that, over time, New Zealand containers would be hubbed through Australia.

Further comments last week from retiring Pacifica Shipping CEO Rod Grout backed up the view the current hands-off approach could end with New Zealand cargo being hubbed through Sydney or Melbourne.

Mr Fleetwood says the views of the maritime industry appear to be falling on deaf ears.

He says an example of potential problems could be seen with what had happened when Fonterra had changed its transport mode in South Canterbury with no warning from the Port of Timaru to long distance rail.

This had led to severe pressure on the port, and was just one of a number of examples where ports had risked major investments in infrastructure to build capacity, only to be left in the lurch by global shipping companies.

“This situation if repeated on a larger scale through hubbing to Australia due to decisions of shipping companies could result in huge disruption to regional economies, millions of dollars of infrastructure being mothballed, and our transport chain in chaos.”

Mr Fleetwood says Mr Joyce’s claim that changes in the port sector would occur naturally over time showed the Government did not grasp the implications of recent developments.

He says the Maritime Union wants a long term national strategy to ensure any rationalization of ports is achieved through a planned and non-destructive process.

Ports should be integrated through a “KiwiPort” system and coastal shipping had to receive the same support that road and rail did to create a effective, New Zealand-controlled transport system.

Maritime Union of New Zealand General Secretary Joe Fleetwood says recent statements from Minister of Transport Stephen Joyce and retiring Pacifica Shipping Chief Executive Rod Grout on New Zealand ports and shipping show the need for immediate action in the maritime industry.

Mr Fleetwood says it is incorrect for the National Government to say they want market forces decide the future of the maritime industry, when massive taxpayer investment was directed at roads and rail.

He says that a “hands off” approach to the maritime industry means major market players would dominate the market and make decisions that could harm New Zealand’s transport infrastructure.

“The warning from Rod Grout that New Zealand cargo could end up being hubbed through Australian ports is a very real possibility, which would result in further loss of control of New Zealand exports and downgrading of our transport infrastructure.”

Mr Fleetwood says the Union is advocating a KiwiPort concept which would see co-ordination of ports at a national level, a level of investment by Government, and a planned approach to New Zealand’s transport needs.

He says an example of the much promoted “market forces” causing havoc are the moves by Fonterra to shift its products onto long distance rail rather than through local ports which had damaged the Port of Timaru in 2009.

“The path proposed by the current Government is to do nothing and let destructive parochial competition play out between our ports and a few self-interested big players.”

He says New Zealand has continued to be disadvantaged by its dependence on global shippers who controlled port trade.

“As a trading nation and a maritime island nation, it is irresponsible and short sighted to have no long term direction for our maritime transport industry set by the Government.”

Over 100 local people attended a Timaru public meeting on the future of the port of Timaru on Thursday 17 September.

The meeting was called by the Maritime Union of New Zealand following a decision last month by Fonterra to stop exports from the port of Timaru, which has resulted in a massive loss of work for the port.

Maritime Union General Secretary Trevor Hanson says the meeting was a success.

He says there is a recognition that the port is a vital part of the local economy and cannot be allowed to fade away.

Speakers included representatives of the Maritime Union and the Rail and Maritime Transport Union, both of which represent port workers.

Other speakers included Labour Party transport spokesperson Darren Hughes MP.

Timaru District Mayor Janie Annear attended the meeting along with several local councillors. The Mayor contributed to the meeting as did Timaru Port Company CEO Jeremy Boys.

Audience members included workers, farmers and local businesspeople.

He says there was a unanimous support from the meeting for a motion from the local branch of the Maritime Union that pressed for the need to preserve local jobs and regional economic development and requested a meeting be set up between local representatives with the Minister of Transport and Fonterra.

A steering committee has been established with representatives from unions, business and local government to carry out these tasks.

Mr Hanson says one of the themes that came out of the meeting was concern about Fonterra’s actions and a sense that the Timaru district deserved a better deal for its considerable contribution to New Zealand’s exports.

He says that there is considerable goodwill in the community who understand the importance of the future of the port to Timaru.

Today’s Timaru Herald features the Timaru public meeting this Thursday 17 September as their lead story.

Read the full story here.