Maritime Union of New Zealand

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 an agreement it has reached with Port Otago Limited is a “win win” situation that will prevent job losses.

Maritime Union National President Phil Adams says a meeting of 150 cargo handlers held yesterday at Port Chalmers voted in favour of a proposal hammered out by the Unions and the Company.

Members of the Maritime Union of New Zealand and the Rail and Maritime Transport Union attended the meeting.

Mr Adams says the proposal will see no compulsory redundancies amongst the workforce.

“We believe the workforce will respond to the Company’s efforts by continuing to ensure a high level of productivity.”

He says some outstanding issues around the work force structure were also addressed by the Unions.

“This is a mutually acceptable solution for Port Otago and its workforce and we are very happy that after some time a negotiated solution has been put in place.”

A number of voluntary redundancies are occurring at Port Otago.

Mr Adams says he believes that the agreement was a positive step forward for Port Otago, and would lead to a stronger future for this major New Zealand port.

“It is a difficult economic period, but the Port has weathered difficult times before and we are confident we will this time as well.”

Port Otago Limited is owned by the people of Otago through the Otago Regional Council.

ENDS

For more information, contact Maritime Union National President Phil Adams on 0274 377601

A combined union meeting at Port Otago today voted to reject new restructuring proposals from Port Otago management.

Around 200 union members attended a stopwork meeting at 1pm which halted work around the port and packed the Union hall in one of the largest meetings of recent years.

The workers are members of the Maritime Union of New Zealand and the Rail and Maritime Transport Union, who have a collective employment agreement with the port company. The port is one of the most highly unionized workforces in the south.

Maritime Union National President Phil Adams says workers at the port rejected a proposal to set up new divisions in the workforce.

“The proposals we have seen will either reduce our conditions of employment and health and safety, or lead to redundancies, and our members will not accept these outcomes.”

He says the workers are asking the company to adhere to the agreement which does not expire to July 2010.

Mr Adams says Port Otago is a major local public enterprise that is owned by the people of Otago through the Otago Regional Council.

“This is a company that has made consistently good returns to the shareholder, but there appears to be a new aggressive attitude amongst management which has nearly destroyed a previously good working relationship.”

Mr Adams says the port has had virtually no industrial action over the last decade with management accepting the Union’s role in the port, but this was now changing and could lead into a era of conflict.

He says that he believes there are other agendas behind the restructuring as the workforce at Port Chalmers had exceeded productivity targets and was very efficient.

Port Chalmers is a major port for exports of dairy and other primary products.

The Otago Daily Times reports on possible industrial action by the Maritime Union at Port of Otago here.

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.”