Lyttelton Port counts cost of strike
Lyttelton Port workers in the Rail and Maritime Transport Union picketed freight firms and made a stand at the port on the first day of their 12-day strike.
If the strike continues for a week the port company could lose more than $1 million in lost revenue based on estimated port charges to shipping companies.
Port operations manager Paul Monk said there would be serious supply shortages because Lyttelton managed more than half the South Island’s containers and 70 per cent of imports.
The sticking point is about $33,000 the union wants paid to 54 workers for two days last week – but the potential cost to the company may be much higher.
The port company can earn between $150,000 and more than $200,000 for unloading a ship depending on services and length of stay.
There had been 10 ships scheduled to arrive in Lyttelton over the next week.
‘‘The union wants us to pay members who were rostered to work on the days it withdrew its strike notices – even though there was no work for them,’’ Monk said.
Stu Marsh was on the Lyttelton picket and he outlined concerns about the safety of long hours, docked pay, lower pay than some other port workers, and the absence overseas of chief executive Peter Davie.
Monk said his staff worked hard with customers to have more than eight vessels come into the port between Sunday night and Monday.
The average cost to a shipping company if a ship is not worked according to schedule can range between $70,000 and $100,000, according to an affidavit presented in court last week on behalf of the port at an injunction hearing.
These losses could be passed onto Lyttelton Port, according to the affidavit from Douglas Parker, one of the port’s negotiating team.
If strike action continued, shipping lines might change ports permanently, he said.
‘‘In addition, the company may also suffer reputational loss with shipping companies,’’ Parker said.
Lyttelton Port is owned by Christchurch City Council which uses the dividends from profits to offset rates rises.
The council-owned parent company, Christchurch City Holdings, refused to become involved in helping settle the strike.
A CCHL board of directors meeting is scheduled for tomorrow and strike workers plan to picket the company offices in the central city.
Port worker Marsh said the damage being done to the port company was ludicrous.
‘‘The board of directors needs to ask ‘what are we getting for paying a chief executive about $18,000 a week when he’s overseas at a time like this’.’’