-
Ports of Auckland has suffered another blow with Fonterra pulling its trading - Source: ONE News -
Related
The escalation of the dispute between Ports of Auckland and the Maritime Union is being labelled as "very serious".
The union has been negotiating for better pay and conditions since August but a resolution remains out of sight, and Ports of Auckland warns more business will be lost as the industrial action continues.
Another 48-hour strike by workers began at 11pm on Monday and will affect three ships.
The stand off centres on Ports of Auckland's plans to potentially make all 320 union members redundant, and replace them with contractors on more flexible contracts.
Port staff held a meeting yesterday to start looking at how many wharfies will be made redundant.
Business analyst Brian Gaynor says the company expects potential redundancies could cost up to $8 million.
He says in terms of profit, Ports of Auckland has lost a lot of ground to the more efficient Port of Tauranga.
Gaynor also said it is risky for the company to replace wharfies with contractors, as there is no guarantee the workers will be available when they are needed.
"Filthy offer"
The Maritime Union is urging its striking port staff to resist what it says is a "filthy" new contract offer from Ports of Auckland.
The company has set aside between eight and ten million dollars for the potential job losses but new positions could be offered to the redundant workers.
However, the union is encouraging them not to accept.
"What you've got to do is when you're all locked out is nobody go and sign that filthy document," Maritime Union President Garry Parsloe told striking workers yesterday.
"Because if any of you sign it, what are we doing here?"
Roster concerns
MUNZ is concerned the new roster system will result in less hours and subsequently less pay.
Ports of Auckland chief executive Tony Gibson said that by sharing the stevedoring work among several firms, the port would encourage competition, driving down costs and lifting productivity.
The company's management now plans to approach at least three outside stevedore contractors this week in a bid to break the impasse with its workers.
"Change has got to happen," Gibson told BusinessDesk.
"We have a business to run and clients to keep happy."
Yesterday around 150 wharfies, none of whom were affiliated with the Maritime Union, met with the company's managers.
Gibson said the meeting was about explaining Ports of Auckland's position in the ongoing pay dispute.
Mediation
A mediation hearing is expected to be held on Thursday, in another bid to resolve the stand off.
The company had put an offer to the union of a 10% pay rise and performance bonuses of up to 20% on hourly rates in exchange for the "new flexible roster system" that would have staff on call.
MUNZ has rejected the offer.
"The union position is clear. It does not want the 10% - it wants secure ordered and transparent rosters," it said on its website.
Dairy giant Fonterra said last week it would move its export shipments - worth $27 million a week - from Auckland to Port of Tauranga and Port of Napier from the end of this month until further notice.
Gibson said it was inevitable customers would look for alternatives given the uncertainty caused by the strikes.
Fonterra's move followed global shipping giant Maersk's announcement last month it would be moving its $20 million shipping contact to Tauranga.
- With Newstalk ZB
Latest NZ News Video
-
Kiwi speaks to TVNZ7 from Everest base camp (1:59)
-
Immigration advisor Bill Milnes discusses claims (4:34)
-
Dance to save Shakti service (0:41)
