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New Zealand unions oppose privatisation of Lyttleton port

The Maritime Union of New Zealand (MUNZ) and the Rail and Maritime Transport Union (RMTU) are campaigning against the planned privatisation of New Zealand’s South Island port, Lyttleton.  The Christchurch City Council announced in February 2006 that it was bidding to buy all of the 31% of shares it did not already own in the Lyttelton Port Company.  It then planned to sell 49.9% to Hutchison Port Company (HPH) of Hong Kong, the biggest private owner of ports in the world.  In addition, operation of the port would be through a new company, Lyttelton Port of Christchurch, with HPH holding a controlling 50.1% share and appointing a majority of the directors.  The unions have joined with political parties and lobby groups in the Keep Our Ports Public (KOPP) coalition to oppose the move.  The coalition was set up to oppose the privatisation and has been actively working to return the port to full public ownership and control.

Christchurch City Holdings Limited stated on 11 April that "the present proposal in relation to Lyttelton Port Company (LPC) is unlikely to be implemented in the future" and that "we recognise the concerns that people have raised about HPH's majority ownership in the port operation company.  However, the threat of privatization has not gone away.  The KOPP coalition has launched a petition which demands that all shares in the Lyttleton Port Company be under public ownership.  The ITF, which is backing the campaign, has urged all its affiliates to lend their support to the campaign.  Please sign the petition online at www.keepourportpublic.org/petition.php

2.  HEALTH AND SAFETY

Workers’ Memorial Day

28 April is designated as the International Commemoration Day for Dead and Injured Workers, a day that sees the commemoration of the workers killed or injured at work over the last twelve months due to unsatisfactory production methods or working conditions.  According to figures announced by the International Labour Organisation (ILO), every year, over two million men and women lose their lives to their jobs and almost 160 million new cases of work-related illnesses are registered.  The International Confederation of Free Trade Unions, which is the global confederation of national trade union centres, with which the ITF works closely, has used the day to examine the impact of factors such as violence at work, chemical substances, asbestos or HIV/AIDS on workers.  One of the most important themes of this year’s commemoration was the international trade union movement’s call for a total ban on the sale and use of asbestos.

Container blast injures two at Kwai Chung

Two terminal staff suffered serious burns in an accident in April as a fireball erupted when one of them opened the door of a 40 ft container at a Hong Kong container depot.  The Secretary for Security has said that an investigation by fire officers and the Labour Department found that there was volatile residual hexane in the container, which carried a consignment of plastic waste.  The hexane had given off an inflammable vapour which ignited by a spark when the door was opened.  There had been four fire-related accidents between 2003 and 2005 involving containers carrying plastic materials.

Company fined over death of lorry driver in the United Kingdom

In February, TT Talk (a newsletter produced for the TT Club which specialises in the insurance of liabilities and equipment for multi-modal operators) drew attention to a report by Port & Skills Safety Ltd. on the outcome of a prosecution in the UK.  A cargo-handling company was found guilty of not having a safe system of work, resulting in the death of a lorry driver.  Without providing details of the company or the port, the report said that the company was fined UK£60,000  ($107,000).  The Court was told that shrink-wrapped packs of glue-laminated beams were being transferred from one vehicle to another by fork lift truck.  The FLT driver picked up 12 packs in a single lift and could not see the verhicle driver standing by his lorry.  The packs were not strapped together and three bundles fell off the forklift, crushing the lorry driver against his vehicle.  The prosecution alleged that the company had failed to carry out a risk assessment and simply told its operational staff to devise their own methods of work.  The Court stated that the company should have had a second employee acting as a banksman (lookout) and should have instructed the workers to split the loads into more manageable units.

3.  INDUSTRY TRENDS

• Consolidation in the ports industry is expected to continue.  Dubai Ports World (DP World) has now completed its acquisition of P&O although it will be transferring the United States operation of P&O Ports North America, Inc. to a U.S. entity.  In April, PSA bought a 20% stake in Hutchison Port Holdings for about $4.4bn, by far its single biggest investment to date.  Like DP World, PSA has expanded its global network significantly through its latest deal.  PSA has tried to assure the industry that it and Hutchison,the two largest terminal operators, will continue to compete.  However, there are concerns that the two companies are effectively in an alliance on a global scale which is leaving shipowners worried about lack of choice.
  
  
• Shipping lines’ interest in terminal operations have become increasingly significant with MSC, CMA CGM NYK, Cosco and Evergreen among those companies who own or have shareholdings in terminals.  However, at the recent Containerisation International’s Global Shipping Conference, it was suggested that a drop in shipping profitability over the next few years may put pressure on some companies to sell terminal assets.

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To contribute to the PIU, please contact Sharon James, Dockers’ Section (james_sharon@itf.org.uk; fax: +44 2079409275).