Lyttelton chief criticises mayor's intervention in dispute

The chairman of port operator Lyttelton Port Company yesterday criticised the Mayor of Christchurch for intervening in a labour dispute and undermining the company's negotiations.

Chairman Brent Layton said the actions of Christchurch Mayor Garry Moore had obstructed the port's ability to negotiate flexible working terms with the unions.

The port company and the unions have been unable to agree on a new contract since starting negotiations in mid-2000. Moore is also a director of Christchurch City Council's business arm, which owns 65.5 per cent of the port company.

Layton is under fire from the council, which has demanded his resignation because of the port's inability to strike an agreement with unions, and the loss of container business.

But Layton said that Christchurch City Council, as majority owner, had failed to back the company in its negotiations with the unions, with Moore conducting his own discussions without the board's authorisation.

He said Moore had publicly criticised the company for its "intransigence" in negotiations, and had insisted the port company representatives meet with the combined unions.

"This was despite the fact that the mayor knew this was contrary to a decision by the port company to cease negotiations with the combined unions at the port, and open negotiations with the individual unions on a business-unit basis," Layton said.

He said the mayor and the council had failed to appreciate that Moore was also a director of the port company's major shareholder, and therefore couldn't be an independent third party in negotiations.



A meeting of Lyttelton Port directors this morning will discuss the issue of Layton's chairmanship.

Christchurch City Holdings chairwoman Paddy Austin said she understood that the meeting will be "voting for a new chairman".

Port company director Barney Sundstrum has been widely tipped to take over the top job.

Austin said Sundstrum's appointment would meet with CCHL's approval.

"It's up to the LPC board. But we would certainly let them know that we are happy with their choice if it were him," she said.

Sundstrum, 56, is a chartered accountant.