Mediation unsatisfactory; strikes to proceed

20 December 2011

Media Release
Mediation unsatisfactory; strikes to proceed

Today’s mediation between Ports of Auckland and the Maritime Union of New Zealand – Local 13 (MUNZ) made little progress with the two parties still far apart, Ports of Auckland Chief Executive Tony Gibson said this afternoon.

“We now anticipate that MUNZ will continue with the 96 hours of strikes they have threatened between now and 1 January”

Mr Gibson said the port would work closely with its customers to mitigate the impact of the strikes as best it could.

“However, the union’s timing of these highly disruptive strikes to coincide with KiwiRail’s planned network shutdown for electrification works means significant delays for importers and exporters must be anticipated.”

Mr Gibson said the strikes would achieve nothing and that the port was resolute in its determination to achieve significant workplace reforms.

Mr Gibson said it was disappointing the company’s new flexible offer including an up front 10% increase on hourly rates had not been taken up by the union.

“I believe most Aucklanders would see this offer as a very fair deal, especially as it preserved existing terms and conditions including 15 days sick leave and 5 weeks annual leave a year.”

Mr Gibson confirmed that up to 40 jobs could be lost as a result of the loss of Maersk’s Southern Star service, mostly in the container terminal area.

“Further industrial action will only serve to put even more jobs at risk and undermine customers’ confidence in Ports of Auckland’s ability to deliver reliable service,” Mr Gibson said.

Mr Gibson said one major shipping line had reported incurring costs of US$500,000 as a result of the first industrial stoppage alone, through the flow-on effects of delays in Auckland.

"This situation is unsustainable for our customers and I urge the union to consider the potential impact of further strike action on jobs and the New Zealand economy."

Mr Gibson confirmed that the port had decided against issuing any further lock out notices at this point.
No further dates for mediation have been agreed
The next strikes are for:
• 10.30 pm on Thursday 22 December until 10.30 pm Friday 23 December (24 hours)
• 10.30 pm Saturday 24 December until 10.30 pm Sunday 25 December (24 hours)
• 7 am Friday 30 December till Sunday 1st January, 7am (48 hours)

Actual and Estimated Impact of Industrial Action
Two 24 hr strikes and a two day lockout over 2-5 December
24 hour strike over 9-10 December Proposed two 24 hour strikes over 22-25 December Proposed 48 hour strike over 30 December – 1st January 2012 Total actual and estimated impact
Ships impacted
- Diverted
- Bypassed
- Delayed 6

3
1
2 7

2
1
4 5

1
1
3 (TBC) 5

5 (TBC) 23

6
3
14 (TBC)
Containers diverted or delayed 6,100 containers
7,200 containers 5,700 containers 4500
containers 23,500
containers
Revenue loss to POAL $1.2m $950,000 $500,000 $170,000 $2.82m
Total value of trade disrupted $300m $320m $260m $236m $1,116m

ENDS

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