Category: Maritime Union of New Zealand

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Government ferry decision a case of political steering failure

Source: Maritime Union of New Zealand

The Maritime Union says the Government’s U-turn on purchasing new Interislander ferries is the predictable but costly outcome of flawed decision making.

The Government has said it is now looking at building new ferries again following the advice of the Ministerial Advisory Group.

Maritime Union of New Zealand National Secretary Carl Findlay says the grounding of the Aratere last week has now brought home the seriousness of the situation of our inter-island ferries.

“The iRex project for new ferries and terminals should have been reconfigured rather than cancelled outright.”??

He says the claimed savings by the Government do not stack up.  

“There needs to be an accounting of costs incurred up to now, including any break fees, a far higher price point for new builds ordered now, and a probable five year wait for new vessels to come into service.”

Mr Findlay says industry sources have suggested that the all up cost of the new builds could be up to $1.2 billion – more than double the $551 million cost of the vessels for the cancelled iRex project.

The current ferries will all be well over thirty years old by 2029. Maintenance costs have doubled on the ageing ferries to an estimated $65 million a year.

Mr Findlay says it is unacceptable that crew and passengers will be exposed to risk caused by failure to invest in ferries and infrastructure.

He expressed grave concern the proposed new ferries would not be rail capable.??

“This means double handling of containers, adding substantial costs for freight customers, delays and undermining the supply chain.”

Mr Findlay says none of this takes into account that the Picton and Wellington ferry terminals both still require modernization.

The Maritime Union says new ferries have to be rail capable and there needs to be a plan for terminal upgrades in both Wellington and Picton.

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Maritime Union National Secretary Craig Harrison resigns

Source: Maritime Union of New Zealand

Maritime Union of New Zealand National Secretary Craig Harrison has resigned from his position as National Secretary of the Maritime Union of New Zealand for personal reasons, effective immediately.

Maritime Union of New Zealand National President Carl Findlay thanks Craig on behalf of the Maritime Union for his dedication and commitment to his role since 2020 and the Union wish him all the best in the future.

The National Council of the Union will be meeting next month in Wellington.

In the interim, all Union related business can be directed to National President Carl Findlay and all media inquiries can be directed to Communications Officer Victor Billot (details below).

Maritime Union of New Zealand National President Carl Findlay on 021 760 887

Maritime Union of New Zealand Communications Officer Victor Billot on 022 4791786

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Ferry debacle means New Zealand is ‘steering blind’

Source: Maritime Union of New Zealand

Confusion around the future of KiwiRail’s Cook Strait ferries has left New Zealand ‘steering blind’ with its main inter island transport link, says the Maritime Union.

The latest development in the ferry saga is a suggestion in ministerial documents that KiwiRail might exit the Cook Strait ferries altogether if it is commercially unviable without subsidy.

Briefing documents from the Ministerial Advisory Group and Ministry of Transport have been released to the media under the Official Information Act.

Maritime Union of New Zealand National Secretary Craig Harrison says this scenario is deeply concerning and shows the Government has dropped the ball on transport.

Mr Harrison says he is surprised no one in the Government could foresee the consequences of cancelling iRex project funding last year.

“Within a few months we have gone from looking forward to modern ferries and fit for purpose terminals that would support our economy and producers for decades, to the future of interisland transport and everyone who relies on it being in free fall.”

He says while Strait Shipping currently offer ferry services that complement KiwiRail ferries, the scenario of putting the entire connection in the hands of a single overseas-owned monopoly would be a grave error, and would probably not be viable.

“The idea there is some magic market solution is not credible, because any operator will still have to source and pay for suitable vessels.”

He says the primary focus of interisland ferries should be their importance in the supply chain and the national economy, which included rail capability.

“The Cook Strait is part of the ‘blue highway’ – an extension of our national road and rail links.”

Mr Harrison says the current ferries are nearing end of life and are experiencing ongoing maintenance issues, with potentially catastrophic outcomes.

Interisland ferry Kaitaki lost power on its approach into Wellington Harbour on 28 January 2023, and was left drifting towards the coast in heavy weather with more than 800 passengers and 80 crew on-board. It issued a mayday before managing to restart engines and returning to port.

KiwiRail is now facing a health and safety charge relating to this incident brought by regulator Maritime New Zealand.

“Continuing to lease second hand vessels would still be costly, and mean there will still be ageing ferries on Cook Strait, increasing the risk of mechanical failure, delays, maintenance costs, and safety risks.”

Mr Harrison says the costs of cancelling the project at Korean shipbuilders Hyundai has not yet been confirmed but could run into hundreds of millions of dollars.

A suggestion by KiwiRail that the ferries be built, then on sold in order to try and recoup some of the cost of the cancelled project, was quashed by the Minister of Finance.

However, it has been reported the new Ministerial Advisory Group on the ferries has suggested this could be a potential option to avoid a massive financial loss.

Mr Harrison says further drawbacks include the failure to move to new low-emission technology and the implications for our climate change response.

Globally-recognised Climate Bonds Initiative certification issued to KiwiRail for a $350 million green loan has been revoked due to the cancellation of the ferry purchase.

The Maritime Union view is the Government should review the entire decision to cancel the new ferries and new terminals, says Mr Harrison.

“There is an opportunity to revisit the project, seek cost savings if required, then get on with the only responsible course of action which is a fit for purpose Cook Strait ferry link with modern vessels and terminals.”

He says it is now clear that planned tax cuts are not feasible as essential infrastructure investment has to take priority.

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Government transport plan fails to provide economic security

Source: Maritime Union of New Zealand

The Maritime Union says the new Draft Government Policy Statement (GPS) on Land Transport 2024–2034 fails to plan for a resilient and secure transport system, putting the New Zealand economy at risk.

The previous Government introduced coastal shipping as a new activity class in its GPS on land transport in 2021.

It invested $30 million in the coastal shipping sector which resulted in new vessels coming onto the New Zealand coast, reducing road congestion, improving resilience, and reducing carbon emissions.

This progress has now ground to a halt, with coastal shipping ignored in the new Draft GPS on Land Transport 2024.

Maritime Union of New Zealand National Secretary Craig Harrison says for the Government to simply leave out coastal shipping is a failure of insight into the long term needs of the transport sector.

Mr Harrison says the lessons of the last few years are obvious.

“We have seen major disruption to New Zealand transport links through the pandemic and natural disasters including cyclones and earthquakes, with regions left isolated and at risk.”

Mr Harrison says New Zealand needs a balanced, multi-modal system that prioritises redundancy and resilience in transport.

“This new draft document notes New Zealand has faced significant challenges from these events, but then ignores the important role of domestic coastal shipping that is now recognised in the industry.”

Mr Harrison says the Government seems to be basing its transport strategy on delivering for its donors, rather than any rational and balanced approach.

“As the rest of the world moves towards low emission, resilient transport modes, and prepares for climate change driven extreme weather events, New Zealand is left exposed and vulnerable.”

He says with the Cook Strait ferry connection in limbo, coastal shipping ignored, and a crisis in seafarer training, New Zealand is moving towards developing world status.

“The Government now has an opportunity to correct course and focus on the future resilience of New Zealand’s economy – or go in reverse gear by promoting a congested, polluted and vulnerable transport system.”

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New cross-Tasman maritime worker federation to bolster MUA and MUNZ power in Kiwi and Australian ports

Source: Maritime Union of New Zealand

At the Maritime Union of Australia’s National Conference in Adelaide the MUA and the Maritime Union of New Zealand (MUNZ) announced a new federation bringing together the two unions in a formal arrangement to build workers’ power at ports throughout Australia and New Zealand.

Speaking at the announcement, National Secretary of the MUA Paddy Crumlin explained that a formal arrangement was the next logical step for the two unions after many decades of closely working together on workplace, safety, geopolitical and industrial challenges facing maritime workers in both countries.

“The fraternal bonds that link our two unions are some of the closest, oldest and most durable in the trade union movement, and given we are working in an increasingly globalised workplace and standing up against some of the same bosses, it makes perfect sense to expand and bolster the strength of our Unions through a formalised federation,” Crumlin said.

MUA National Secretary, Paddy Crumlin, moves the resolution to enter a new federation with MUNZ at the MUA’s National Conference in Adelaide, 2024

The Maritime Union of Australia, formed in 1993, is an amalgamation of the old Waterside Workers Federation and the Seamen’s Union of Australia. The MUA, through its predecessor Unions has been an immovable force on the Australian waterfront and around our coastline for 151 years. Likewise, in 2002, MUNZ was formed through the amalgamation of two unions, covering wharfies and seafarers, that trace their histories in New Zealand to the 19th century.

“The history of maritime industries was one of casual labour, injury and death on the job, and ruthless employers who wouldn’t cede an inch to their workers,” said Craig Harrison, the MUNZ National Secretary.

“Our members had to fight for and defend their right to secure, permanent jobs, a decent wage and safe conditions of work. We have stood together to improve the lot of working people and their communities since those early days and we now look towards an even stronger presence on the waterfront and on our ships across the Asia Pacific through this federation with the MUA,” Harrison said.

Craig Harrison, National Secretary of MUNZ, addressing the MUA National Conference in Adelaide, 2024

The expansion of global network terminal operators and the voracious appetite of big employers like Qube for swallowing up smaller stevedoring operators across New Zealand has made the federation an obvious strategic step for the two unions to take together. The Australian Federal Government’s strategic shipping fleet commitment will also deliver significant trans-Tasman capacity and new training and employment opportunities in both Australian and New Zealand for maritime workers.

“We saw during COVID, where shipping and terminal operators manipulated vital supply chains to extract maximum profit from vulnerable countries like Australia and New Zealand that are entirely dependent on global shipping,” said Mr Crumlin. “Now the same cartel forces are organising against Australian and Kiwi communities to use the sheer brute force of capital to take control of our docks. They will jack up landside prices, control schedules and freight lanes, and drive down the working conditions and wages of our members, so the strategic importance of the relationship between the two Unions cannot be overstated,” Crumlin added.

The two Unions, together, represent tens of thousands of maritime workers. The MUA, a division of the CFMEU, has branches in every state and the Northern Territory while MUNZ has ten branches across both the North and South Islands. The two unions already attend each other’s National Council meetings and work in the strongest unified way across their shared international trade union affiliations and by sharing trade union training and standing side by side in struggle and campaigning.

Together, the MUA and MUNZ, have collaborated on a number of industrial and political campaigns and established strong fraternal bonds of solidarity between the two Unions. The ‘War on the Wharves’ charity boxing tournament, held each year to raise money for charity, is a long-standing expression of this close and important relationship.

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Cook Strait connection in limbo

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says pressure is mounting on the Government to provide leadership on the Cook Strait ferries.

One year ago, then National Party opposition Transport Spokesperson Simeon Brown described the Cook Strait ferries as the “the biggest pothole on State Highway 1” after multiple technical problems with ageing ships.

In August 2023, he then described the current ferries as causing “significant safety concerns.”

Maritime Union of New Zealand National Secretary Craig Harrison says the future of Cook Strait has now become a “black hole not a pot hole” in our transport network, due to the Government’s demolition of the iRex project.

“Despite his strong criticisms prior to being elected, we have not heard a peep out of Transport Minister Simeon Brown recently about the future of the Cook Strait as a key transport link.”

He says the new Government’s iRex decision in late 2023 has left the future of the interisland ferries in limbo.

Mr Harrison says many industry figures and commentators from across the political spectrum have expressed concerns about the future of the Cook Strait connection and the logic of the Government decision.

He says there is a danger that New Zealand will end up with a cheap, sub-optimal ferry option that will see ongoing disruption and safety issues.

“The long term cost may end up a lot higher.”

Mr Harrison says the Government may still have to walk back its hasty call to can the new ferries and terminals.

KiwiRail will appear before the Transport and Infrastructure Select Committee at Parliament on Thursday 15 February.

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Successful resolution for Australian port workers at DP World 

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand has offered its congratulations to the Maritime Union of Australia for the successful resolution of the industrial dispute at DP World terminals.

The Maritime Union of Australia and Dubai Ports reached an in-principle agreement last week, subject to endorsement by the MUA membership employed at Dubai Ports in Australia.

The agreement, which replaces an earlier agreement that expired in September 2023, is for a four-year term and delivers fair pay, safety and fatigue management measures, and provides job security and a fair work-life balance for Australian wharfies.

Maritime Union of New Zealand National Secretary Craig Harrison says Australian port workers at DP World had the full support of New Zealand maritime workers and had persevered to achieve a good outcome.

Mr Harrison says it is concerning that a proposed port privatization at Port of Auckland features DP World as a potential terminal operator. 

He says DP World has come under increasing scrutiny in Australia and elsewhere for its business practices.

According to recent polling carried out on behalf of the Union, the great majority of Aucklanders support keeping the Port of Auckland in public ownership.

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New Zealand maritime workers support Australian workers at DP World

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says it is backing the Maritime Union of Australia in their dispute with DP World 100%.

Maritime Union of New Zealand National Secretary Craig Harrison says Australian port workers at DP World have the full support of New Zealand maritime workers.

Industrial action has occurred at DP World terminals in Sydney, Melbourne, Brisbane and Fremantle as port workers press for wage increases to counter cost of living hikes. 

Mr Harrison says it is hypocrisy for employers to be attacking workers seeking reasonable wage increases, while companies like DP World ratchet up giant profits for their owners – in this case the Royal Family of Dubai.

He says there are strong ties between maritime unions in Australia and New Zealand.

Mr Harrison says DP World has come under increasing scrutiny in Australia and elsewhere for its business practices.

Although one of Australia’s two largest port operators, a recent report found DP World has paid no tax in Australia despite generating revenue of more than AU$4.5 billion over eight years.

Mr Harrison says it is very concerning that the proposed port privatization at Port of Auckland features DP World as a potential operator. 

He says the behaviour of DP World in Australia by pushing up massive container surcharges, tax practices, and poor workplace relations, were all red flags. 

“Is this the kind of corporate operator we want to give monopoly control of Port of Auckland to?”

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Port strike in Bluff called off

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says a strike in the port of Bluff has been called off.

Workers at port company Southport were planning to walk off the job this morning for 48 hours, but last minute negotiations yesterday resulted in a positive outcome.

Maritime Union of New Zealand National Secretary Craig Harrison says a compromise was reached with the employer around wage increases and other outstanding issues, and will be taken back to the union membership for ratification.

Mr Harrison says the result is a good one.

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Maritime Union opposes Red Sea military involvement 

Source: Maritime Union of New Zealand

The Maritime Union is opposing the decision by the coalition Government to send a detachment of New Zealand military to the Red Sea, after a request from the United States of America.

Shipping in the Red Sea has recently been disrupted by Yemen based Houthi forces carrying out attacks in support of Palestine.

Maritime Union of New Zealand National Secretary Craig Harrison says if the New Zealand Government is concerned about shipping security, there are better places to start.

“The Government just cancelled replacement ferries for the Cook Strait, which is a major threat to New Zealand transport links, so they should try dealing with problems a bit closer to home.”

He says if the Government is serious about protecting New Zealand trade it must rebuild New Zealand shipping to provide resilience and redundancy in the supply chain.

Mr Harrison says the Red Sea maritime conflict had one solution, which was an immediate ceasefire in Gaza and negotiation of a political solution for Palestine.

He says the military involvement by the United States and a small group of Western countries in the Red Sea area could result in more violence and instability.

“Rather than trying to ramp up a war, New Zealand should spend its energies working for peace by defusing the conflict and ending the mass death of civilians especially with the terrible situation in Gaza.”

“As a union representing seafarers we are extremely concerned about the danger all seafarers are facing in the Red Sea, and in the meantime the only option is for shipping to avoid the area.”

The Maritime Union said the response of the Labour Party and Green Party opposing involvement was the correct one.