Unions for unions or workers?

Unions are supposed to be to advocate for and support workers.

As the series of strikes by the MUNZ in its dispute with Ports of Auckland continues at considerable cost to the company, its customers and the workers, it looks like this union is working in its own interests rather than those of its members.

Botany MP Jami-Lee Ross  reckons MUNZ is biting the hand that feeds it:

Aucklanders can rightly be concerned at the increasingly rogue nature of the Maritime Union. However there are 500 men and women that work at the Port with even more skin in the game and a lot more to lose. The trade union movement evolved through a desire for workers to band together to protect their common interests. This is not a dishonourable goal. But when a union loses sight of its members long term interests and cavalier negotiating tactics start to backfire, the union itself begins putting its own member’s livelihoods at risk.

Unions still occupy a privileged position in New Zealand’s employment law; a relic of the last Labour administration which has not seen significant overhaul for some years. Few non-government organisations can boast clauses in legislation specifically designed for their benefit. Despite only 18 percent of the nation’s workforce being unionised, trade unions can look to whole sections of the Employment Relations Act written exclusively to aid union survival through legislative advantage.

Up until recently, cool heads and rational people sitting around negotiating tables have meant that little focus has been placed on the role that unions play in society. However, with the bare-faced mockery that the Maritime Union is making of civilised negotiations New Zealanders will soon begin to question what position unions should hold in the modern Kiwi workplace.

Macdoctor reckons the dispute isn’t about money, it’s about control:

Is PoAL controlled by the shareholders and the board, or is it controlled by the union? That is what the fight is about. The lives of the stevedores involved are a secondary consideration, as are the customers and the business of the port. Even less of a consideration are the ratepayers who will wind up all paying higher rates should PoAL be permanently damaged by this squabble.

Whaleoil and Keeping Stock both have posts quote POAL communications manager Catherine Etheredge who says:

I can confirm that the average remuneration for a full time stevedore, in the year ended June 30, 2011, was $91,480. The average remuneration for a part time stevedore (guaranteed at least 24 hours work a week) was $65,518.

53% of full time stevedores (123 individuals) earned over $80,000. 28% (43 individuals) earned over $100,000 with the highest earner making $122,000.

The averages were calculated by POAL’s payroll team based on actual payments, including for leave days, medical insurance and superannuation contributions. (For employees covered by the collective agreement, POAL matches their superannuation contributions up to a maximum of 7%.) We excluded those who had worked for less than the full 12 months e.g. had left part way through the year.

Employees are also entitled to 15 days sick leave per annum, accruing up to 45 days. All shift workers are entitled to five weeks annual leave. Training for all stevedoring tasks (crane driving, straddle driving and lashing) is undertaken in house and is paid for by the company.

One question that has been asked is how many hours you have to work to earn that $91,000. Stevedores who earned the average $91,000 in the 2010/11 financial year were paid for an average of 43 hours per week, excluding leave days. If you factor leave days in, that increases to 49 hours per week.

This leads to the key issue for the company – the high amount of paid downtime – an average of 35% of total hours paid. An employee getting paid for a 43 hour week is only working around 28 hours; for a 40 hour week, 26 hours. In a busy week, employees get paid for 66.5 hours but can only work for a maximum of 44.5.

On Monday 9 January, to give a recent example, we paid 26 staff a total of $5,484,80 for downtime, because they were entitled to be paid until the end of their set eight hour shift even though the ship had finished & they had gone home. In another example employees worked two hours of an overtime shift but were paid for the full eight hours.

This is not a cost-efficient nor sustainable labour model, especially when the company is not covering its cost of capital, cannot therefore justify further investment in order to grow, and its closest competitor has a labour utilisation rate in excess of 80%. (At Port of Tauranga stevedores start and finish work when a ship arrives and departs).

The company has offered an upfront 10% increase to hourly rates along with the retention of existing terms and conditions in return for more flexible rosters which would significantly reduce the amount of paid downtime. Employees would have the opportunity to plan their roster a month in advance. This proposal would result in a people being remunerated for fewer overall hours at a higher rate than they would currently get for the same paid hours. To be fair, until such time as container volumes recover/improve, the 10% increase to hourly rates would not (as some commentators have suggested) push average remuneration over $100K.

Catherine Etheredge
Ports of Auckland

It’s very difficult to understand the union’s position in the face of these numbers.

9 Responses to Unions for unions or workers?

  1. Psycho Milt says:

    The PoA employees’ position has been explained clearly enough in various places. National partisans’ inability to understand it has more to do with political affiliation than anything inherently confusing about it.

    Also: is there anything more laughable and contemptible than a National MP pretending he knows better than a group of workers what their long-term interests are? He represents those opposing their long-term interests, so if he had a shred of honesty he’d drop the pretence.


  2. Adolf Fiinkensein says:

    Actually Milt, he represents the people of Botany electorate, if you must know.


  3. Denny says:

    Has the union responded to these figures? I agree that it’s difficult to understand the union’s position when you read numbers like these. I’d be very interested in knowing the union’s response …


  4. MUNZ’s silence is deafening Denny. For a week now they have pushed the line that full-time stevedores earn in the region of $60k per annum. PoAL’s figures show that MUNZ has understated earnings by around 50%, and in the case of the highest paid stevedore who earned $122k by 100%. The figures that have been released are from the wages office of PoAL, and it’s hard to imagine any more accurate source. The only conclusion one can take is that MUNZ had been providing misinformation.


  5. robertguyton says:

    Milt has it in a nutshell, though Ele signaled the problem with,
    “It’s very difficult to understand the union’s position in the face of these numbers.”
    Nothing can be done though, Milt. The anti-union die is cast here and with those others Ele cites.


  6. Psycho Milt says:

    MUNZ’s silence is deafening Denny.

    MUNZ’s silence is nonexistent, Inventory2. For weeks they’ve been pointing out that the dispute isn’t about money, it’s about working conditions, and for weeks right-wingers have been pretending they fdidn’t hear it.

    PoAL’s figures show that MUNZ has understated earnings by around 50%…

    Actually, they show that PoAL has made claims about how much the workers are paid, as has the union. The claims are contradictory. Anything more that you take from it is speculation. However, if PoAL genuinely has been paying them $91,000 and offered another 10% on top, it’s even stronger evidence of managerial incompetence.


  7. robertguyton says:

    Inventory2…speculation…right-wing deafness…

    Talk about yout holy trinity!


  8. jabba says:

    “Talk about yout holy trinity” .. gee bOoby, having a bad run aye?


  9. Prov says:

    You could always read about what some of these workers think here … but that might get in the way of some anti working class sneering …



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