Maritime Union of New Zealand

The New Zealand affiliates of the International Transport Workers’ Federation (ITF) met today to discuss their concerns with the arrival of KiwiRail’s new locomotives in the country.

The Chinese made locomotives will arrive on two different ships into the Ports of Auckland over the next 24 hours and be unloaded this week.

New Zealand ITF Convenor and President of the Maritime Union Garry Parsloe says New Zealand workers are concerned and angry that local jobs and industry have been undermined by sending the work overseas.

“We keep on hearing how the country is broke, and we all know how high unemployment is, but KiwiRail and the National Government are allowing work that should be done here in New Zealand to go overseas, destroying jobs and taking money out of our communities.”

Mr Parsloe says the unions condemned the outsourcing of work overseas when KiwiRail had the ability to manufacture in its own workshops.

New Zealand rail workers are represented by the ITF affiliated Rail and Maritime Transport Union (RMTU).

RMTU General Secretary Wayne Butson says that 35 of the new flat top multi functional wagons for KiwiRail have already been made at the Hillside workshops in Dunedin, but most had been contracted to China.

“We have demonstrated our ability and competency to build rolling stock here. The only factor at play here is that cheap exploited labour is used in China. Yet the money that could be spent in New Zealand communities, boosting jobs, skills and the future of industry, is being funneled out of the country.”

“In the context of the recent budget, it is clear that this Government is taking a tunnel vision approach to lowering New Zealand’s national debt burden. They are happy to see our current account deficit balloon out by the cost of these rail projects, at the same time as giving our skilled railway tradespersons a belief that there is no future for them in New Zealand and they need to join the exodus to Australia where they will be quickly snatched up.”

The ITF unions will be meeting again this week to discuss the way forward. ITF affiliates in New Zealand include the Rail and Maritime Transport Union, Maritime Union of New Zealand, Engineering, Printing and Manufacturing Union, National Distribution Union, Merchant Service Guild, and Aviation and Marine Engineers Association, representing tens of thousands of New Zealand transport workers.

The ITF is made up of 681 unions representing 4,500,000 transport workers in 148 countries. It is one of several Global Union Federations allied with the International Trade Union Confederation (ITUC).

The Maritime Union of New Zealand says the decision by KiwiRail to offshore production of rail wagons is an indictment on the National Government and KiwiRail management.

KiwiRail has announced a $29 million tender for 300 rail wagons has gone to China CNR Corporation.

Maritime Union General Secretary Joe Fleetwood says maritime workers had supported the campaign by the Rail and Maritime Transport Union (RMTU) to build New Zealand rolling stock in New Zealand workshops.

He says the idea that the move to offshore production would “save money” was idiotic.

“Any money saved by the public enterprise KiwiRail going for the cheap labour option in China will be required to pay for unemployment benefits, for our increased overseas debt, and for the loss of taxes and loss of spin off benefits for the local economy in New Zealand.”

“This decision will lead to loss of job opportunities, and is another blow to New Zealand’s ability to undertake high skill industrial production.”

Mr Fleetwood says that the Government bears responsibility and should front up to affected workers and communities.

“They change laws to suit Hollywood movie moguls and sink vast amounts of money into trendy sectors, but will not back New Zealand workers and the future of New Zealand industry.”

Mr Fleetwood says the message is clear for workers.

“The John Key Government is prepared to wind down New Zealand’s infrastructure and industrial capability in vital areas. There is no leadership in shipping or ports, and now no leadership in rail.”

“They call themselves a National Government, but they are governing in the interests of overseas business, not New Zealand’s national interest.”

Mr Fleetwood says that New Zealand’s entrapment in free trade agreements would further limit our ability for local industry and reduce New Zealand to an economic colony.

The rundown of New Zealand coastal shipping is threatening New Zealand’s capability to deal with the social and economic fallout from natural disasters.

A massive slip near Kaikoura has blocked the main road and rail link from north to south for the last couple of days and it is not known for certain how long it will take to clear and repair.

The cause of the slip is possibly related to the recent Christchurch earthquake, or heavy rain, but regardless of the cause, it is creating extra problems for transport and logistics in the badly disrupted South Island at a crucial time. Heavy trucks are diverted through the Lewis Pass, hundreds of kilometers off their normal route.

KiwiRail is now considering shipping freight to South Island ports other than Picton, to reach Christchurch faster.

Maritime Union General Secretary Joe Fleetwood says the neglect of coastal shipping has led to a “blind spot” in New Zealand’s transport mix.

“We’re an island nation dependent on shipping that has allowed its own shipping capability to vanish due to bad policies, and we are seeing now why this is a bad idea.”

He says the Maritime Union has argued for many years that over reliance on land transport and especially trucking was short-sighted.

“Unfortunately we have had little progress and the current Government is only interested in heavy trucking. We no longer have the coastal shipping capability to deal with the problem.”

Due to New Zealand’s geography, reliance on land based transport modes running down narrow and easily disrupted transport corridors was a dangerous weakness.

The Christchurch – Picton road and rail link was the only convenient land route from North Island to the majority of the South Island’s cities and economic hubs.

Mr Fleetwood says if there was a fleet of New Zealand vessels available, they would be able to quickly respond to such a situation if required, either for emergency relief or simply to ensure the supply chain was not broken. There are only a very small number of New Zealand freight vessels working on the coastal trade.

Most coastal cargo is now dominated by overseas vessels which work to tight fixed international schedules based on the interests of their owners, rather than any local concerns.

Mr Fleetwood says that the concerns about a Wellington earthquake were still extremely valid.

“If we look at New Zealand’s capital, it is totally dependent on a couple of access routes, and if these were blocked, shipping might provide the only lifeline.”

The Maritime Union was calling on the Government to remove policies which disadvantaged New Zealand shipping and included the “blue highway” as a key element of the transport mix.

A public meeting in South Dunedin on Monday 12 July to support the campaign to build new trains for Auckland in New Zealand workshops attracted around 50 people.

The message they heard was that Dunedin people will have to stand up and fight to make this goal a reality, with this years local body elections and next years national elections providing an opportunity to apply political pressure.

Rail and Maritime Transport Union (RMTU) Hillside Branch Secretary Les Ingram, who works at Hillside, said an estimated 500 to 1200 extra jobs and nearly $500 million dollars in income were at stake.

“Dunedin cannot afford to let opportunities like this pass it by if we want to provide jobs for local people in the future.”

The RMTU were continuing their campaign and wanted to get across to the public how building rail units locally would provide a massive boost in jobs and income.

The Maritime Union of New Zealand (MUNZ) is supporting the RMTU campaign and MUNZ General Secretary Joe Fleetwood, visiting from Wellington, addressed the meeting on free trade issues.

He told the audience that they needed to get behind the Hillside workers campaign and demand that politicians listen.

He said the push for free trade policies was largely responsible for the situation where jobs were threatened due to unbalanced economic policies.

Both speakers agreed that the notion that New Zealand did not have the expertise to do the rail work was discredited nonsense.

Mr Ingram detailed previous work done at Hillside and his view was backed up by a retired engineer in the audience who recounted the many large scale projects other Dunedin firms have undertaken in the past.

The meeting was chaired by Victor Billot of the Alliance Party who said that highly skilled, high value jobs that would be created through building trains locally were exactly what was needed in New Zealand at the current time.

The approach of the National Government was reprehensible, he said.

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.”

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

Read the full story here.