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 is backing calls to tighten up industry regulations to protect truck drivers and the travelling public.

Maritime Union General Secretary Joe Fleetwood says a report in the Sunday Star Times yesterday graphically outlined the dangers of over-worked owner-drivers pushed to the limits in an aggressive and competitive market.

“This is the reality of a individualized industry where drivers do not have the protections of union membership and are being exploited in a hyper-competitive environment by the big companies they contract to.”

Mr Fleetwood says that in the process the lives and safety not just of truck drivers, but of New Zealanders and their families on the road, are put at risk of serious injury and death.

Long hours, fast speeds and deferral of expensive maintenance on vehicles were all factors causing problems.

He says the Government push for more heavy trucks on the road, when combined with a deregulated industry, was a recipe for carnage on New Zealand roads.

Mr Fleetwood says the whole owner-driver model needed to be examined, as most owner-drivers were simply workers who had been pushed into a dependent contractor model.

Pay rates, hours of work and industry regulation all needed to be on the table for discussion, he said.

He says the Maritime Union would continue to push for a balanced transport strategy that saw the bulk of heavy and long distance cargo transported on coastal shipping and rail, rather than creating congestion and hazards through heavy trucking.

“The current Government’s obsession with heavy trucking is backward, socially irresponsible and environmentally harmful, and we need a new direction for New Zealand transport.”

The Maritime Union would be working with Labour’s Transport Safety spokesperson Darien Fenton on the issue.

Two of New Zealand’s main transport unions have formed a strategic alliance focussed on the New Zealand waterfront.

National officials of the Rail and Maritime Transport Union (RMTU) and the Maritime Union of New Zealand (MUNZ) this week signed an Alliance Charter in Wellington.

The key goal of the charter is to grow unionism and collectivity amongst Port and Waterfront workers through joint action and initiatives.

The charter is based around communication, information sharing, joint campaigning, a political strategy and a national organizing strategy.

Both unions are affiliates of the New Zealand Council of Trade Unions, the International Transport Workers Federation, and the Trans Tasman Transport Union Alliance.

Maritime Union General Secretary Joe Fleetwood says the Alliance Charter is focussed on getting all port and waterfront workers in New Zealand into genuine unions and building terms and conditions on the waterfront.

Rail and Maritime Transport Union General Secretary Wayne Butson says that joint projects between the two unions have already been discussed which will enhance the power and influence of organized labour on the New Zealand waterfront.

He says the strategic alliance will have a major impact on the transport and logistics sector within New Zealand and internationally.

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.”

The Maritime Union is backing Green Party calls for the Government to reconsider its push to put oversized trucks on New Zealand roads.

Maritime Union General Secretary Trevor Hanson says the Government is obviously not concerned at the extra deaths and injuries that will occur as a result on New Zealand roads.

“Has the Government considered the personal losses and increased costs in medical care and ACC payments resulting from accidents? Has it weighed the environmental costs and calculated the extra emissions that juggernaut trucks will produce?”

Mr Hanson says local ratepayers will be paying the bill to realign bridges, repair roads, and be responsible for all the future damage caused by the introduction of bigger trucks.

“Large trucking companies seem to be pulling the Government’s strings and their profits are being subsidized by the taxpayer and the ratepayer.”

He says the Government has abdicated its responsibility by completely abandoning any attempt to develop an integrated, long term transport solution for New Zealand that recognizes the economic, social and environmental importance of coastal shipping and thriving regional ports.

“Coastal shipping requires no infrastructure upkeep – by sailing on the ‘blue highway’ it does away with the need for the vast expense of fixing roads for oversize trucks.”

The Government has directed enormous resources towards roading but has slashed the already tiny budget for support of environmentally friendly coastal shipping.

Under the current direction, it is estimated bigger trucks will make at least 620,000 trips on our roads each year.

Mr Hanson says coastal ships can carry 1000 containers, keep extra traffic off roads, reduce dependence on fossil fuels, lower carbon emissions, are noise free and require no infrastructure maintenance as they sail on the ‘blue highway’.

“The Government has reverted to a backward looking, short term approach which will have major negative consequences for New Zealand. New Zealanders must start to get active to defend their future before we are locked into the roadhog’s charter.”