The Ports of Auckland is going to contract out its container terminal workforce, citing recent industrial action by its workers as the cause.
Ports of Auckland CEO Tony Gibson advised their union, the Maritime Union of New Zealand, of this change on Monday.
He began openly talking about contracting out on December 16 when the union responded to the port's 10 per cent pay rise offer with a strike notice.
Maersk announced on December 6 that it was moving its Southern Star service to Tauranga because of the ongoing dispute.
Maersk is one of the world's biggest shipping lines.
Fonterra announced on January 4 that from the end of the month it will be exporting from the Ports of Tauranga and Napier.
This work is worth about $27 million per week.
As a result of these contract losses, Tony says Ports of Auckland is progressing plans for redundancies and is starting consultation over a proposal to contract out its labour force.
'I welcome the opportunity to discuss these matters further with MUNZ when mediation resumes on Thursday, however, we've run out of time,” says Tony.
'Without rapid changes towards substantially more efficient labour practices, more customers and more jobs will be lost in the coming weeks.
'We've worked now for 11 months to achieve the changes needed, but the union does not appear to be taking the issues seriously.”
The port company's original offer to roll over the existing collective contract was withdrawn after strike action resulted in the loss of the Maersk Southern Star service to Tauranga.
If the proposed contract labour model proceeds, Tony Gibson expects the majority of affected employees will continue to work for the port as employees of the selected contractors.
Meanwhile, union workers at Ports of Auckland began another 48-hour strike at 11pm last night, the fifth major disruption to port operations since November.
Three ships are affected.
One has bypassed, one is being serviced at the ports' multi-cargo wharf (not the container terminal) and one will be delayed by about eight hours.



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