Prosecution exposes lack of Government ferry plan  

Source: Maritime Union of New Zealand

The Maritime Union is calling on the Government to review its decision to dump planned new Cook Strait ferries after the prosecution of a ferry operator.

Industry regulator Maritime NZ has filed a charge under the Health and Safety at Work Act against KiwiRail this week in relation to the January 2023 loss of propulsion incident involving the Interislander ferry, Kaitaki.

The Kaitaki lost power on its approach into Wellington Harbour on 28 January last year, with more than 800 passengers and 80 crew on-board. It then issued a mayday. After regaining limited power, the ferry made its way to port where its passengers were able to safely leave it and come ashore.

Maritime Union of New Zealand National Secretary Craig Harrison says the most important sea link in the country is in jeopardy.

“We have a ridiculous situation where the Government regulator is having to prosecute a State owned enterprise for ferry problems, but the Government has just cancelled new ferries that would solve the problem.”

He says Maritime New Zealand is simply doing its job, but KiwiRail has been placed in an impossible position by the Government due to long term underfunding. 

“The real issue here is historic underinvestment in ferries and coastal shipping over several decades, which has led to a crisis point in the safety and reliability of our supply chain.”

Mr Harrison says two new modern ferries and new terminals had been planned as part of the iRex ferry upgrade project, but were effectively cancelled in December 2023 when the new Government withdrew support for the project.

“The decision by the Government to walk away has left a credible solution to the ferry issue in limbo.”

Mr Harrison says the current Interislander ferries are at their end of life, and replacing them with other ageing vessels was just kicking the can down the road.

He says it would be unacceptable if State Highway One was allowed to fall to pieces, yet the ‘blue highway’ of Cook Strait was an extension of our main road and rail links.

Mr Harrison says the possibility of another serious incident is very real despite the best efforts of KiwiRail. 

He says failure to modernize this essential infrastructure leaves New Zealand exposed to further delays, service outages, expense for industry, and safety issues, with our main inter-Island connection. 

A review of the ill-judged decision to cancel the iRex project needed to take place, he says.

South Port faces strike action

Source: Maritime Union of New Zealand

South Port in Bluff is facing strike action after port workers rejected a pay offer from management.

The Maritime Union of New Zealand has given notice of 48 hours of strike action to take place from 7am Wednesday 31 January ending 7am Friday 2 February 2024. There may be further action to follow.

Maritime Union Bluff branch secretary Ray Fife says the action comes after 60 members at South Port voted “overwhelmingly” in favour of strike action. 

The Collective Employment Agreement expired on 31 August 2023 and negotiations have failed to resolve the differences between management and workers, says Mr Fife.

“The employer will not shift from a wage increase based off the Consumer Price Index (CPI), which is not acceptable to the workers.”

Mr Fife says living costs in the local area have risen higher than the CPI, especially with the cost of housing and rent. 

He says the base rate for waterfront workers had historically been low and was currently at $25.30 per hour.

Even with skill-based pay tiers and overtime, wages were not meeting living costs for employees, many of whom have spent years with the company, he says.

Mr Fife says the port company has been performing well in the last two years, with higher returns than in the previous three years. 

South Port had made substantial capital expenditure, which shows its confidence in the future of the port, he says. 

“However, we feel that the contribution of the workforce towards the success of the port has been overlooked. The workers deserve a fair share of the profits and a recognition of their skills and experience,” he says.

Mr Fife says South Port has a majority holding by Environment Southland, and there is an expectation it would have a high level of social responsibility. 

He says the 2023 South Port annual report had noted the difficulty in retaining and recruiting staff.

In 2023, there had been a 19% staff turnover rate with South Port admitting some key staff had been “poached” by other local businesses or other ports.

The Annual Report noted the company had “struggled” to fill some vacancies which had resulted in temporary workload pressures that “required careful management” to maintain safe operations and staff morale.

Mr Fife says an obvious solution to making employment at the Port attractive was a boost to the base pay rates, which would be more cost effective in the long term than a “churn” of departing and arriving workers with its negative impact on port performance.

He says a historically good relationship between the employer and port worker is being put in jeopardy by management’s stance. 

Mr Fife says port workers were aware the compensation for directors, Chief Executive and senior management had risen from $2.33 million in 2022 to $2.71 million in 2023.

Thirteen managers at the port were making over $210,000 per annum in the 2022/2023 year.

The total remuneration of the Chief Executive for 2023 was $552,021 – an increase of 14.3% over the previous year.

Mr Fife said these increases were far more generous than what workers were seeking, and indicated a company that was doing well and could afford to invest in its workforce.

“We are willing to resume negotiations at any time, but we need a realistic offer from the company. We hope that they will come to the table with a better proposal that reflects the value of our work,” he says.

Red Sea situation highlights need for New Zealand shipping

Source: Maritime Union of New Zealand

The Maritime Union says the conflict in the Red Sea highlights the need to build up New Zealand crewed and flagged shipping to overcome supply chain disruptions.

Yemen-based Houthi rebels have been attacking merchant ships in the Red Sea as the Gaza conflict threatens to spill into a wider regional conflict in the Middle East.

Maritime Union of New Zealand National Secretary Craig Harrison says New Zealand needs to build its shipping capability to provide a buffer for our transport links.

He says the previous several years saw serious shipping disruption due to the pandemic, the Ukraine conflict, and natural disasters such as the flooding in New Zealand regions in 2023.

Mr Harrison says global shipping lines are now changing schedules to avoid the Suez Canal and Red Sea region, creating serious delays and cost hikes.

“New Zealand needs to protect our domestic supply chain through boosting coastal shipping capability with New Zealand flagged ships and New Zealand crews.”

Mr Harrison says New Zealand exporters could work together to charter vessels for international and regional trade with Government support. 

Under the previous Government, funding for coastal shipping had resulted in a modest rise in New Zealand flagged vessels, and it was important to keep up the momentum, he says. 

Mr Harrison says New Zealand should be strongly pressing for a ceasefire in the Gaza conflict, which was the underlying political issue behind the Red Sea situation.

The recent Red Sea attacks by the Houthis have been aimed at Israel-linked ships in an effort to stop the Israeli offensive in Gaza.

The Maritime Union is supporting a call from the International Transport Workers’ Federation to ensure the safety of seafarers, which requires the rerouting of vessels away from the danger zone.

Ferry unions demand Finance Minister resign over Cook Strait debacle

Source: Maritime Union of New Zealand

Four unions representing maritime and rail workers have condemned the Government’s decision to effectively cancel the Cook Strait iRex ferry upgrade project, and are demanding the resignation of the Minister of Finance for the decision.

The four unions are the Maritime Union of New Zealand representing seafarers, the Rail and Maritime Transport Union representing rail workers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers.

Maritime Union of New Zealand National Secretary Craig Harrison says it is not tenable that such a major decision with massive implications for the economy should be made in such a ‘fast and loose’ manner.

“This is far more than a fiscal decision – this decision shows poor judgement and a total lack of understanding of the importance of a functioning Cook Strait connection to New Zealand’s supply chain.”

He says the ongoing technical issues with Cook Strait ferries are a result of end of life vessels being used on a notoriously challenging crossing and had resulted in serious incidents in the last few years. 

“The can has been kicked down the road for years and the upgrade has to happen now.”

“This Government campaigned on getting our transport infrastructure sorted and their first move is to basically jeopardize the future of road and rail transport between the North and South Island.”

Rail and Maritime Transport Union General Secretary Todd Valster says the ferry upgrade project was an essential part of maintaining a ‘fit for purpose’ national transport system initiated by the previous Labour Government.

He says the new Government’s decision to dump the project was reckless and indicated an agenda to run down key parts of our transport infrastructure.

“The iRex project would deliver fit for purpose, modern vessels and terminals, that would provide reliability, resilience, low emissions and a safe service.”

Mr Valster says the iRex project would deliver a long term solution for the Cook Strait over decades, which justified the cost of the project.

He says the Minister of Finance and the Government had made an irresponsible decision that would cost millions to rectify by breaking contracts with overseas suppliers, and leave the Cook Strait connection with third rate, ageing infrastructure.

Selling Port of Auckland would be “letting the vultures in”

Source: Maritime Union of New Zealand

The Maritime Union says ongoing uncertainty about the future of Port of Auckland is a threat to the economic stability of Auckland City and New Zealand.

The Mayor of Auckland is proposing two options – the sale of an operating lease of the Ports of Auckland (with proceeds going into a fund), or continued Council ownership of the Port with a gradual reduction in size.

The stated preferred option for the Mayor is privatisation – sale of a long term operating lease.

Maritime Union of New Zealand National Secretary Craig Harrison says the Port of Auckland must remain in public ownership.

Mr Harrison says there is danger of massive price hikes on freight if Port of Auckland was privatised, as recently happened in Australian ports operated by global port conglomerate DP World.

“It will be worse than the chickens coming home to roost if we hand over the port to an outfit like this – it will be the vultures coming home to roost.”

Mr Harrison says there is currently no feasible alternative to the Port of Auckland, with other ports operating at capacity, and lack of infrastructure to move freight to Auckland from other ports.

He says it is not realistic to shrink the Port without having a plan in place as how the growing quantity of freight will be handled.

“Any major changes to port location or the supply chain would be a multi-billion dollar, decades long process, requiring central and local Government co-ordination, including coastal shipping and rail links.”

“Put simply, the current value of the Port of Auckland as a trade gateway for the country far outweighs its value to the Council as a one off cash injection.”

Mr Harrison says according to polling carried out for the Maritime Union, a strong majority of Aucklanders oppose any sale of the Port, and elected representatives would be held to account if they went against the will of the people.

“There is no doubt Auckland City faces difficult decisions, but the sale of the port is not a solution.”

“The best approach is to maintain a steady course for the Port of Auckland as a profitable strategic asset for the people of Auckland.”

Maritime Union statement on Gaza and Port protests

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says it supports the right of the community to take part in peaceful protests at ports and elsewhere.

Community protests are planned against Israeli-connected container ships at the Port of Auckland as international pressure mounts for a ceasefire in the Gaza conflict. 

The Contship Dax operated by ZIM Integrated Shipping has already been the focus of protest action in Australian ports last week and the ship will be calling in New Zealand ports in the next week, including Tauranga, Auckland and Lyttelton.

Maritime Union of New Zealand National Secretary Craig Harrison says the Union is backing international calls for a ceasefire in the Israel–Gaza conflict.

He says the Union endorses calls by Labour Party leader Chris Hipkins, the New Zealand Council of Trade Unions, and the International Transport Workers Federation supporting a ceasefire and a political solution to the conflict.  

“The Maritime Union condemns any attacks on civilians, and we recognize the long standing political issues including the oppression of the Palestinian people that have contributed to the current catastrophe.”

Mr Harrison says protests at ports are occurring throughout the world and are likely to become more common as concern mounts at the rising death toll of civilians in Gaza.

He says the Maritime Union strongly opposes any form of religious or ethnic discrimination including anti-semitism or anti–Muslim prejudice.

“As a Union we are united as workers and support all efforts towards international solidarity, justice and peace.” 

Massive price hikes in DP World Australian ports must scuttle Auckland port privatization plans

Source: Maritime Union of New Zealand

DP World, the global port operator linked to a privatisation agenda at the Port of Auckland, is embroiled in controversy in Australia after massive price hikes for port users.

Terminal fees are set to jump more than 50% at DP World’s Brisbane, Melbourne and Sydney operations, leading to one freight industry manager describing the situation as “daylight robbery”.

The price hit also led to Australia’s former competition watchdog chair, Graeme Samuel, saying the Government needed to take control of the model of privatisation that had led to “rampant high prices”.

Maritime Union of New Zealand National Secretary Craig Harrison says the news confirm findings in a report released in September 2023 by the Union that warned of major price hikes on freight if Port of Auckland was privatised.

Mr Harrison says the Union had accurately predicted the failure of the previous automation project at Port of Auckland, and it did not want to be proved right about port privatisation.

He says Auckland City needs to immediately dump any proposals to privatise the Port of Auckland, unless it wanted to wreck the local economy.

Mr Harrison says the DP World in Australia is currently at war with freight businesses, importers, exporters and their workforce.

“Do we really want to hand over a strategic asset and natural monopoly to this type of outfit?”

Protected industrial action is ongoing in Australian ports, with the Australian Council of Trade Unions last month calling on DP World to ‘return to good faith bargaining and abandon their attacks on hard working maritime workers in Brisbane, Sydney, Melbourne and Fremantle.’

More bad news about the practices of the multinational came out in a report released this week in Australia, showing DP World in Australia paid zero income tax in Australia over the last eight years, despite revenues of over $4.5 billion in that period.

A poll released by the Maritime Union on 11 October showed an overwhelming majority of Aucklanders wanted the Port of Auckland kept in public ownership.

Does DP World dodge taxes? Port giant under spotlight

Source: Maritime Union of New Zealand

The multinational involved in the proposed privatisation of Port of Auckland is the subject of a new Australian report “Does DP World dodge taxes in Australia?

The report is published by The Centre for International Corporate Tax Accountability and Research (CICTAR).

Key findings show DP World in Australia paid zero income tax in Australia over the last eight years, despite revenues of over $4.5 billion in that period.

DP World appears to have used complex methods to artificially reduce taxable income and shift income offshore, according to the report.

Maritime Union of New Zealand National Secretary Craig Harrison says Aucklanders should be watching closely what is happening with DP World across the Tasman.

Protected industrial action has recently taken place in Australian ports, with the Australian Council of Trade Unions last month calling on DP World to ‘return to good faith bargaining and abandon their attacks on hard working maritime workers in Brisbane, Sydney, Melbourne and Fremantle.’

“Selling a strategic asset and natural monopoly like Port of Auckland to a global operator like DP World would be leaving a vampire in charge of the blood bank.”

Mr Harrison says the disturbing record of DP World in Australia can be compared with the positive situation in Port of Auckland.

He says with new management working with the Union at the Port of Auckland, there have been rapidly improving returns for the people of Auckland.

“Why would we want to mess with this successful Port?”

The Australian tax report on DP World follows on from a report released in September 2023 by the Maritime Union of New Zealand that warned of major price hikes on freight going through a privatised Port of Auckland.

A poll released by the Maritime Union on 11 October showed an overwhelmingly majority of Aucklanders wanted the Port of Auckland kept in public ownership.

TAIC report into 2022 port deaths

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand has welcomed the release today of a combined report by the Transport Accident Investigation Commission (TAIC) on two separate fatal accidents in New Zealand ports in 2022.

Maritime Union of New Zealand National Secretary Craig Harrison says the Union endorses the findings of the report and its recommendations.

“This hard hitting report comes out of the tragic, unnecessary and untimely deaths of two loved and respected port workers simply going about their work.”

Mr Harrison says the Union agrees with the acknowledgement of the TAIC report that the stevedoring industry has a poor safety record, yet is not rigorously regulated compared to other high-risk industries.

The TAIC report found similarities in the lead up to the fatal accidents, where both employers had been improving their safety systems, but had common deficiencies.

The report noted with no best practice guidelines, no minimum training requirements and few safety-related information-sharing platforms, industry sector leadership was lacking.

The report also emphasized the importance of proactive regulatory oversight of high-risk industries, particularly those with a poor safety record.

Mr Harrison says many of the issues noted in the report were the outcomes of decades of industry deregulation, where the voice of workers had been silenced in favour of commercial priorities.

He says there is now a shift, as progress around health and safety had been made recently in the industry with the support of the outgoing Government.

The creation of a Port Health and Safety Leadership Group (PHSLG) under the leadership of Maritime New Zealand had brought in employers and union worker representatives, he says.

Primary responsibility for most areas of port health and safety is in the process of being designated as under the oversight of Maritime New Zealand, whereas it was previously divided between two regulators.

Mr Harrison says the current development of a national Approved Code of Practice for port operations with the input of the PHSLG was another major step.

A Stevedoring Code of Practice was already in place at Port of Auckland, that had been put together by POAL, two private stevedoring companies, and the Maritime Union.

Mr Harrison says this contrasts with previous management at the Port which had not engaged with the Union.  

This progress went some way to meet the TAIC report call for industry collaboration and benchmarking improve safety standards, he says.

Mr Harrison says the cost to get change has been far too high, and workers needed to organize and unionize to ensure their safety and wellbeing came first on the job.

“We are concerned the new Government does not attempt to return to the failed industry deregulation and weak oversight of the past.”

Background details to TAIC report

The first accident occurred on 19 April 2022 at the Port of Auckland. A stevedore, working onboard the container vessel Capitaine Tasman, moved underneath a suspended 40-foot container and suffered crush injuries as a result of the container being lowered onto them. The stevedore was employed by Wallace Investments Limited (WIL), an independent stevedoring company operating at the Port of Auckland.

The second accident occurred at Lyttelton Port on 25 April 2022. A stevedore, involved in the process of loading coal onto the bulk carrier ETG Aquarius, was discovered, deceased, on the deck of the vessel, buried under a quantity of coal. The stevedore was employed by the Lyttelton Port Company Limited (LPC).

In New Zealand, there have been 18 deaths amongst port workers since 2012, which is proportionally the second highest rate of fatalities of any industry sector within New Zealand.

ACT-dominated Luxon Government would be a disaster for working people

Source: Maritime Union of New Zealand

The Maritime Union says a late shift in the polls indicates that New Zealand workers are becoming aware of the dangers of a change of Government and extreme right-wing policies. 

Maritime Union of New Zealand National Secretary Craig Harrison says the majority of New Zealanders are working people who need pro-worker policies.

“We are sounding the alarm that a Christopher Luxon Government would be dominated by the ACT Party and would wage war on workers.”

He says the destruction of Fair Pay Agreements and re-introduction of 90 Day Trials would push down wages and conditions for New Zealand’s most undervalued essential workers.

Even more extreme ACT policies include a three-year freeze on rises in the minimum wage and attacks on sick leave entitlements would plunge thousands into financial hardship and poverty.

“Christopher Luxon is out of touch with the struggles of the working class of Aotearoa New Zealand. He does not understand the struggles of everyday people. He will give ACT whatever they want to get the numbers he needs.”

“Tax cuts for mega landlords, cuts to public services, and making life harder for workers – this is not a positive vision and will make our society less fair, less successful and less caring.”

Mr Harrison says the latest analysis of National Party tax policy shows any benefits would largely flow to the already wealthy, not the supposed squeezed middle.

“The message from the Maritime Union to our members and all workers and their whanau is to use your vote to build a better future for yourself.”

Mr Harrison says the National–ACT combo also have a backward and outmoded approach to transport policy.

“It is clear that there needs to be a mode shift to resilient and low emission modes like coastal shipping but National–ACT have no solutions for a rapidly changing world.”

In contrast, Mr Harrison says substantial progress in the ports and shipping sector in the last term needs to be continued under a Labour-led Government.

He says three key successes of the current Government have been in building coastal shipping capability, improving health and safety through the Ports Health and Safety Leadership Group, and laying the foundations for improved conditions in the industry through Fair Pay Agreements.