Port deal settles labour dispute

Ports of Auckland has settled a labour dispute that closed the biggest container port in the country for four days in September.

The settlement gives 240 stevedoring and maintenance workers a 3 per cent wage increase next year and a 4 per cent increase in 2006.

But the big issue for the Maritime Union of New Zealand was that part-time and casual staff were given a chance to become permanent employees.

Denis Carlisle, president of the Auckland branch of the union, said 10 new permanent positions had been established and, every six months, a formula would be used to calculate whether more full-time jobs existed.

This was a win for the union, he said, and a rolling back of the Employment Contracts Act.

The deal is unlikely to be replicated around the country as each port has different labour arrangements. Auckland employs stevedores directly, while others do not.

However, the union regards casualisation of the labour market as a national issue.

The Auckland branch of the union and port management were praising the agreement for smoothing labour relations at the port at a time Fonterra and the biggest shipping lines in the world discuss the dairy giant's ocean freight and port needs.

"We are back on track and Auckland is the best port in New Zealand," said Carlisle.

Ports of Auckland chief executive Geoff Vazey said the agreement provided a sound basis for the development of productivity initiatives that would improve service levels.

Carlisle said the port had high productivity rates and that would not change.

He said no one knew what Fonterra's review of ocean freight meant for ports.

The exporter is setting up an inland warehouse hub connected to rail in Hamilton to handle most of the dry goods it produces in the Waikato. The site is halfway between Tauranga and Auckland.

Brokers have speculated that the Port of Tauranga would become the biggest port in the country if it was decided to move all dry goods through it.