Industrial action begins at Napier Port over pay deal

Rail and Maritime Transport Union and Napier Port (pictured) have been negotiating a pay deal.

Rail and Maritime Transport Union (RMTU) members have started industrial action at Napier Port amid negotiations for better pay for about 185 workers.

The action began on Friday and has caused some disruptions to the port, including a fuel tanker not being able to berth over the weekend.

Port workers who are RMTU members on a general collective agreement are refusing to do overtime or swap shifts until a pay deal is reached.

The RMTU has been in negotiations with the port since last November about better pay for those members.

The union said the industrial action was “fairly low level” - however, it has not ruled out escalating action to a full stoppage.

Napier Port says its current pay offer is “fair, reasonable and sustainable” and would include an average of $4000 in back pay for workers.

The port also claims its pay increases have more than kept up with the cost of living over recent years.

As at Tuesday 12pm, a deal was yet to be reached.

Napier Port CEO Todd Dawson.

The RMTU is the largest union at the port and represents just over 250 workers. Most are on a general collective agreement.

The union has been pushing for a three-year deal for better pay for workers on the collective.

That includes a 3.75% pay increase in year one, a 3.5% increase in year two, and a 3% increase in year three.

The port has offered a 3.3% pay increase in year one and a 3% increase in years two and three.

RMTU general secretary Todd Valster said the amount not agreed to was “less than 1%” for the deal, and mediation had failed to date.

“They made a big profit last year - they did really well,” he said, of the port recording profit of more than $20 million.

“So it really seems ideological that they won’t get a deal over the line with the union.”

He claimed the workers were not being treated fairly.

“It is about the people getting a fair wage increase, and they don’t believe they are getting a fair wage increase,” he said.

“These people have made this place work and they continue to make this place work and they are proud of what they do, but they don’t think they are being treated fairly.”

Valster said the industrial action was “very similar action to what we did in Wellington and Auckland for the trains ... it is disruptive but it keeps things going”.

He said there was an option of escalating industrial action if a deal could not be reached which “would be a full stoppage”.

“We just want ... a result that is favourable for both sides, but it just doesn’t seem that the port will budge at this stage.”

Valster claimed the port was “selectively suspending people” as a result of the industrial action in recent days, with some teams being suspended for hours at a time.

However, Napier Port chief executive officer Todd Dawson said Valster’s claim was incorrect.

“The temporary suspensions are not for taking industrial action and this was explained carefully during mediation last week,” he said.

“During negotiations, we discussed with the RMTU General that if the strike action meant the company could not provide meaningful work for people, then we would have to consider temporary suspension.

“This is considered on a shift-by-shift basis.

“Temporary suspension only arises when the strike prevents Napier Port from operating and there is no work for people to do.”

He said the current offer was “fair, reasonable and sustainable”.

“It is above the current and forecast CPI and Labour Cost Index and includes back pay from 1 October 2024 - averaging around $4000,” he said.

“We understand our offer is consistent with other port settlements across NZ and other collective agreements at Napier Port.”

He said staff were also given a bonus each year proportionate to the port’s performance - which was $2291 per person last year (split between cash and port shares) and would be higher this year.

In terms of pay increases in recent years, Dawson said the port had more than kept up with the cost of living.

“Over the past three years, this union’s collective has seen a cumulative wage increase of 20.5%.

“Based on our current offer between 2022-2027 it would become a 32% cumulative wage increase.”

He said the port had not stopped engaging with the union.

“Bargaining continues during the partial strike actions, so engagement is ongoing. We’re fully committed to finding a resolution,” he said.

“Any settlement has to find a balance between affordable, fair and reasonable terms and conditions.”

There are several unions who represent workers at the port, and Dawson said the port had agreed settlements over the past 12 months with all unions except the RMTU’s general collective agreement.

He claimed the port had also been asking for more flexibility around shifts with the RMTU, but the union was “so far unwilling to engage”.

The union said it was concerned about fatigue risks for workers, with regard to that request.

Napier Port is 55% owned by Hawke’s Bay Regional Investment Company (essentially Hawke’s Bay Regional Council) and 45% is listed on the NZX stock exchange.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.