04 January 2011
Media Statement

Time for action now, Port says

Ports of Auckland confirmed today that the country’s largest exporter, Fonterra, had decided to move its export shipments from Auckland to other ports, from the end of January until further notice.

Ports of Auckland Chief Executive Tony Gibson said the move was directly related to the threat of ongoing strike action at the port by the Maritime Union of New Zealand – Local 13 (MUNZ).

"With MUNZ threatening further strike action, it is inevitable that customers will look for alternatives and contingencies. Shippers need certainty and reliable service."

The move will see weekly trade worth around $27m re-routed through the ports of Tauranga and Napier instead of Auckland.

Noting that the port had not had any response from MUNZ to its last three offers, Mr Gibson said it was now time for action, not words.

"The port is willing to continue mediation with MUNZ, but only when we receive a formal response to our latest offer, the ninth since negotiations began in August," Mr Gibson said.

“Following Fonterra’s decision, I have today advised the union that this is our best and final offer. It includes a generous 10 per cent rise on hourly rates, performance bonuses of up to 20% on hourly rates, and the retention of existing benefits and entitlements in return for a new roster system that will provide increased operational flexibility while allowing workers to plan their rosters a month in advance.

“Coupled with the departure of Maersk's Southern Star service to Port of Tauranga, the loss of Fonterra’s business means that action is needed urgently,” Mr Gibson said.

“We must significantly improve our customer service to achieve increased reliability, productivity and efficiency, and quickly.”

"We have a business to run. In the best interest of customers, staff and the port's future, some constructive progress is needed from the union, and needed now," Mr Gibson said.

Meanwhile, the port is beefing up resources to keep terminal operations open through the continued industrial action. Further strike action is planned for a 48-hour period between Monday 9 January and Wednesday 11 January.

Over Christmas, the company was able to support more than 500 truck moves during strike action using non-union staff, managers and supervisors.

Last Saturday, the port also operated a team of lashers on board a ship, the first time it had done so during a strike.

Ports of Auckland's on-dock empty container depot, multi-cargo wharves, cruise business, vehicle import trade, marine services, Onehunga seaport, Wiri Inland Port and Seafuels barge Awanuia are not affected by the strike action, and will remain operational.

ENDS

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