RAM - Residents Action Movement
Election InfoLine 1.10.07

ARC councillor: 'Join me on the picket line'

Port workers in Auckland begin a two-day strike tomorrow in protest at stalled pay talks. The port company is a 100% subsidiary of Auckland Regional Holdings which is, in turn, a subsidiary of Auckland Regional Council.

The value of Ports of Auckland Ltd doubled in the six years to 2006 according to Judith Bassett, chair of Auckland Regional Holdings. (ARH media release by Judith Bassett, 24 May 2006. See POAL website.)

"Assuming Ms Bassett's figures are true, that makes the port company's pay offer to its workers look miserly," said regional councillor Robyn Hughes, who is standing for the ARC in Manukau Constituency on the RAM ticket.

"This doubling in value in just six years has been built on the backs of port workers whose labour has funded the company's incredible productivity increases."

"I call on the port company's management and board to take a better offer back to the Maritime Union. And it should be done without any strings attached, like forcing pay to lag behind productivity, since the workers' track record shows that their wages have been sadly lagging behind productivity gains over recent years," said Robyn Hughes.

"I will be on the workers picket line tomorrow morning, along with other RAM supporters," said the ARC councillor. "I call on other councillors to join me."

A few days ago, the port company announced that "2006-07 has seen unprecedented growth with the world's largest shipping line [Maersk] choosing Auckland to hub more services over". (POAL media release 26 September 2007. See POAL website.)

Despite dramatic rises in labour productivity, container turnover and asset values at the port company, however, this year's profits have fallen. But why?

After 28 years in the top management of Maersk, Jens Madsen became the port company's chief operating officer in February 2006 and chief executive-designate in April 2007, taking over full control last month.

In November 2006, nine months after Mr Madsen arrived from Maersk, the port company announced that Auckland will handle more of Maersk's North Island services.

According to unnamed critics quoted by the Business Herald recently, the ports company "dropped its charges too far to gain new business", a charge that management denies. (Business Herald, 28 September 2007.)

"If these critics are right, what role has Jens Madsen played in the profit drop?" asked Grant Morgan, RAM organiser and ARC candidate in Manukau Constituency.

"Did Maersk's ex-boss offer his old firm, the world's biggest shipper, a sweetheart deal which undermined port company profits? And are port workers now expected to pay for his sweetheart deal as Mr Madsen takes a hard line against their union's moderate claims?"

"It's not right that port workers are being denied a decent pay rise when their productivity has gone through the roof."

"Nor is it right that this is happening at what is supposedly a public enterprise. I call on ARC chair Mike Lee to get on down to the picket line with RAM and show some solidarity with the workers," said Grant Morgan.

The RAM Team is standing for 27 positions on the Auckland Regional Council, Auckland City Council and Community Boards, and the region's three District Health Boards.

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