Union activity is undermining competition and productivity at New Zealand's ports and the Government should review legislation to tackle the problem, the Productivity Commission said in a report released today.
As the Ports of Auckland industrial dispute drags on, the Productivity Commission, a body set up as part of National's confidence and supply agreement with ACT last term, released its draft report into New Zealand's International Freight Services sector.
The report, which covered air and sea transport systems, focused on their accessibility and efficiency and the degree of competition within them.
See commission chairman Murray Sherwin discuss the report here.
In its section on employment relations at ports, the commission said it had heard that "the risk of labour-related disputes can, in itself introduce significant costs by blocking, discouraging or delaying productivity enhancing investments or other operational changes".