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Home / Business / Companies / Freight and logistics

Latest port strike has importers paying extra for rail

NZ Herald
22 Feb, 2012 04:30 PM4 mins to read

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Striking Ports of Auckland workers. Photo / Dean Purcell

Striking Ports of Auckland workers. Photo / Dean Purcell

Importers are resorting to desperate means to get goods to shelves against a crippling two-week port strike starting tomorrow.

One leading clothing retailer was yesterday said to be preparing to pay an extra $10,000 to bring 12 containers by rail from Wellington. Its imported shipment of winter clothes is being diverted there to avoid serious business losses.

Another importer has warned the Maritime Union, which is organising the strike by more than 300 workers at Auckland's two container terminals, that it is considering following others in moving its shipping business to Tauranga.

Importers' Institute secretary Daniel Silver said the clothing retailer had chosen to rail its goods from Wellington to avoid a fortnight-long delay in getting winter fashions into shops.

The shipping company bringing them had decided to divert the container carrier Cap Mondego to Wellington and then send its cargo to Tauranga on a smaller vessel, to be transferred by rail to Auckland.

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But with 600 containers on board, that is expected to take until March 12, so the importer had decided to wear the extra expense of rail from Wellington.

The alternative would be to risk the weather turning colder without winter jackets on shop shelves.

Musical instrument and leisure goods importer Shayne McNamara has told the union in a letter that although he is sympathetic to some elements of its case in its dispute with the port company, another strike cannot be in its members' interests.

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"Certainly it is not in the best interests of our company and our own employees," he wrote.

He said that in fairness to his own company and employees, he was considering moving all his shipping to Tauranga, given that his distribution base was in Hamilton.

The strike will be far longer than six others by the dockers since early December, and may intensify the row over failed negotiations for a new collective agreement, which the union says have been undermined by threats to contract out members' work.

Although six ships are expected to be diverted to other ports in the first week of the strike, the port company has indicated that six others will call at Auckland regardless, and that some may be worked by non-union labour.

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The Auckland Council-owned company's website says three will be worked at the conventional Freyberg Wharf, which the union has indicated it will not object to, but the others are headed for the centre of the dispute at the Fergusson container terminal.

A company official said one of the terminal's five shore-to-ship cranes was likely to be worked, a development that union president Garry Parsloe said could risk international repercussions.

"If they [shipping companies] come and use Fergusson they won't be welcome anywhere else in the world - they will come here at their own peril," he said.

Mr Parsloe would not be explicit about what might happen, except to refer to a case about 12 years ago when a ship loaded by non-union labour was turned back to Melbourne by unionists in Los Angeles.

He said he was due to speak at two union conferences in Australia in coming days, one of which would be attended by leaders of the International Transport Federation.

They were likely to put any containers loaded by non-union labour "under the microscope".

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Australian unions were promising "all the support in the world" including financial assistance to his members, as were those affiliated to this country's Council of Trade Unions.

Port company chief executive Tony Gibson said he believed all New Zealanders would be concerned to hear of any attempts "to incite international third parties to act against the interests of Auckland and the New Zealand supply chain".

Mr Parsloe said the disruption could be avoided if Mr Gibson started "behaving himself and stops his contracting-out proposals and lets everyone get on with the job".

DISRUPTION

* Two-week strike by 300-plus dock workers to start at 7am tomorrow.
* 25 ships expected to be disrupted, at least six of which will divert to other ports.
* Port company indicates it will try to operate a crane at the Fergusson container terminal to service three other ships.
* The strike will be far longer than six others by the dockers since early December, and may intensify the row over failed negotiations.

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