Category: Ports of Auckland

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Maritime Union welcomes conviction of ex Port of Auckland CEO Tony Gibson

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand has welcomed the conviction of former Ports of Auckland CEO Tony Gibson on a health and safety charge.

Mr Gibson was found guilty by Judge Bonnar in the Auckland District Court this morning.

Charges were laid against Mr Gibson by industry regulator Maritime New Zealand under the Health and Safety at Work Act (2015) following the death of POAL employee Mr Pala’amo (Amo) Kalati on 30 August 2020.

The Court found Mr Gibson failed to ensure adequate systems were in place to manage critical risks, particularly around crane operations and exclusion zones.

Maritime Union of New Zealand National Secretary Carl Findlay says the conviction brings to an end “an era of failure at the highest levels of Port of Auckland which had tragic outcomes for workers, their families and their colleagues.”

Mr Findlay says the Maritime Union made repeated attempts to draw attention to health and safety concerns at POAL during Mr Gibson’s tenure, which were minimized and downplayed.

“This conviction vindicates the stance of our Union but it sadly comes too late for those who died due to the failure to ensure a safe workplace.”

He says thoughts today should go out to the families and those left behind after deaths on the waterfront.

“Today’s outcome sends a message that workers lives mean something, and that highly paid decision makers are accountable for their decisions.” 

“We hope other senior managers and Board members reflect and gain insight into the effect on innocent working people when health and safety is not prioritized.”

He says new management at the Ports of Auckland have taken a positive approach to engaging with workers and the Union, and this has resulted in health and safety and the wellbeing of workers at the Port becoming a priority.

“Following the ignominious resignation and departure of Mr Gibson in 2021, the Maritime Union has worked together successfully with new management at POAL and stevedoring companies in Auckland to develop a code of practice to ensure best safety practices in stevedoring.”

The Maritime Union would continue to campaign for corporate manslaughter laws that reflected its view – “Kill a worker, go to jail.”

This is the first time a chief executive from a company of POAL’s size had been charged under the Health and Safety at Work Act 2015.

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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.

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Aucklanders show strong opposition to port sale in new poll

Source: Maritime Union of New Zealand

The Maritime Union has released a new poll that shows an overwhelming majority of Aucklanders support keeping the Port of Auckland in public ownership.

Polling was carried out by Talbot Mills from 4–9 October 2023 on a sample of 517 Aucklanders.

In answer to the question “Do you think Aucklanders should continue to own and profit from the Auckland Port?”, 63% of respondents answered yes, 7% answered no and 30% were unsure.

In answer to the question “Mayor Wayne Brown has suggested selling the Auckland Port to overseas investors. Do you support or oppose the sale of the Port?”, 64% were opposed to the sale, 15% were in support and 21% were unsure.

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says the poll confirms Aucklanders are opposed to privatisation of the Ports of Auckland by an overwhelming majority.

The polling follows the September 2023 release of a report commissioned by the Maritime Union that detailed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

Mr Mayn says there has been no convincing argument for port privatisation and there is no mandate for a sell off.

“This is an asset that is immensely important to Auckland’s economy and to New Zealand’s supply chain. The Mayor of Auckland needs to share the details of his privatisation plan and party leaders need to tell voters where they stand on this risky and reckless privatisation proposal.”

He says the Mayor of Auckland has a difficult job in dealing with the financial pressures on Auckland City, but the clear message is Port privatisation is not the answer.

“As the Mayor has acknowledged, the Port of Auckland is currently making good returns for Aucklanders.”

Mr Mayn says the Maritime Union is calling on Auckland Councillors who have not yet stated their position on port privatisation to confirm their views in the interests of transparency.

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‘Show us the numbers’ on port privatisation

Source: Maritime Union of New Zealand

The Maritime Union says the Mayor of Auckland should “show us the numbers” about Auckland’s finances before pushing port privatisation as the easy answer to its problems.

The Maritime Union was responding to claims by the Mayor reported in the media last week about the need for service cuts and asset sales as a solution to rising rates. 

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says Auckland ratepayers are aware of pressures on City finances, but want to see some hard evidence as to how privatisation is a solution.

“At the moment it seems largely to be doom and gloom tactics to try and generate a panic and justify an existing agenda.”

He says that selling profitable strategic assets comes with substantial costs of its own.

Mr Mayn says a report commissioned by the Union showed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

These charges would be passed onto businesses and consumers, he says.

Mr Mayn says the Port of Auckland is making good returns and has a very positive future with its current ownership model.

“Privatisation of assets would lead to Aucklanders losing the family silver, and then facing increased costs through profit gouging at a private port.”

Mr Mayn says it makes no sense to be talking about major waterfront beautification projects on port land while at the same time claiming that the City was broke.

“The Maritime Union understands the pressures on Auckland’s finances, but selling off the prime assets of the City for a one-off sugar hit does not address the long term issues and would lead to all sorts of consequences.”

He says one immediate cost saving would be cancelling overseas consultants being paid hefty fees to build the privatisation case.

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New report shows major downsides to Ports of Auckland privatisation scheme

Source: Maritime Union of New Zealand

A new report commissioned by the Maritime Union of New Zealand shows major downsides to any privatisation of operations at the Ports of Auckland.

The report entitled “The costs and risks of privatising Ports of Auckland operations” draws on international research including the experience of Australian ports in recent years.

Auckland Council is reviewing options to sell an operating lease for the Ports to a global network terminal operator, and has commissioned consultants to seek expressions of interest.

Maritime Union of New Zealand National Secretary Craig Harrison says a key concern coming out of the report is the potential for price hikes hitting port users – then being passed on to local industry and consumers.

Mr Harrison says privatisation of operations at Ports of Auckland is estimated to hit local port users with NZ$70 million in extra costs annually.

“Any private operator in Auckland would be in a monopoly position and would seek returns on its investment, on top of the lease cost – the profit has to come from somewhere.”

He says privatised port operations in Australia have seen surcharges of over AU$100 per container imposed on port users, who have no other options.

“The failed automation experiment at Ports of Auckland shows there is no fat to be cut at the Port, and private profit through privatization would be extracted from port users and the local economy.”

Mr Harrison says the primary value of the Ports of Auckland is how it facilitates trade.

He says there is growing concern there is no clear strategy for the Ports and decision making is being driven on a short term, ad hoc basis.

“The Ports of Auckland is going through the a period of growth and stability under new leadership with improving returns, and should be left to get on with the job and not meddled with.”

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Confusion and uncertainty casting a cloud on future of Ports of Auckland

Source: Maritime Union of New Zealand

The Maritime Union has warned how uncertainty around new proposals for Ports of Auckland is a threat to the stability of the Auckland and the wider economy.

Maritime Union of New Zealand National Secretary Craig Harrison says there is growing concern about the direction of the port debate.

The Auckland Council is considering options behind closed doors to relocate the Ports to make way for ‘water features.’

It is also reviewing options to sell an operating lease for the Ports to a global network terminal operator, and has commissioned consultants to seek expressions of interest.

Mr Harrison says there seemed to be no clear idea as to what the end goal was, the costs involved, and how the plan would work in practice.

He says it is unclear how simultaneously privatizing and relocating the Port is going to work let alone the proposed waterfront redevelopment.

“This latest proposal for pools and barbies on the waterfront is simply not serious.”

He says it makes no sense for the Council to commit to massive expenditure on waterfront redevelopment when claiming Auckland was in financial crisis and cutting the budget for parks and libraries for the rest of Auckland.

“It is unclear what is the primary motive – is it to come up with short term band aid for Auckland’s financial issues, is it to hand over commercial real estate to developers, or is it to provide salt water pools for well off central city dwellers?”

Mr Harrison says the primary purpose of the Ports of Auckland was to facilitate trade and the Port was doing a good job at this.

He says on the hoof decision making with no clear strategy for future operations was a dangerous way to approach the future of New Zealand’s major import port.

“Remember that any of these schemes will add to congestion and rising costs for business and consumers if they disrupt port operations.”

The Ports is going through the a period of growth and stability under new leadership and it was a priority not to undermine this positive progress, says Mr Harrison.

“The cost of the failed automation project of the previous management was estimated at a $1.2 billion hit to the economy, and another failed experiment could cause even greater harm.”

Mr Harrison says any attempt to move or relocate port operations would be an extremely complex, expensive and long term project that needed to be part of a wider ports strategy.

He says the Northport option is currently a fantasy given the lack of infrastructure, no existing rail link, no coastal shipping plan, and already congested road links that were vulnerable to extreme weather events.

“Yet we are talking about effectively adding thousands more truck moves on some of the busiest roads in the country if we go down this track.”

Mr Harrison says New Zealand needs a national ports strategy that integrates coastal shipping and rail, with a focus on supply chain resilience in a volatile global environment.

He says the Ports of Auckland should remain in public ownership as a strategic asset that was central to Auckland and New Zealand’s economy.