Ports of Auckland management yesterday exerted more pressure on workers at the port affected by industrial action by proceeding with the proposal to contract out the port's labour force.
Port chief executive Tony Gibson said the company did not find the counteroffer by the Maritime Union of New Zealand (Munz) made on January 6 attractive.
"While the company will continue with collective bargaining, it is proceeding with a proposal to contract out its labour force," Mr Gibson said.
The counteroffer failed to deliver the rapid improvements needed in work practices and productivity, he said.
The loss of the Maersk and Fonterra business meant the situation had changed dramatically in the past few weeks.
Mr Gibson said he would welcome the opportunity to discuss those matters further with Munz when mediation resumed on Thursday.
"However, we've run out of time. 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's last offer remained its best and final offer. It included a 10% rise on hourly rates, performance bonuses of up to 20% on hourly rates and the retention of existing benefits and entitlements in return for a new roster system that would provide increased operational flexibility while allowing workers to plan their rosters a month in advance.
As signalled before Christmas, in parallel with the collective bargaining process, the port was progressing plans for redundancies as a result of the loss of the Maersk and Fonterra business.
Consultation would start this week over a proposal to contract out the labour force, Mr Gibson said.
Munz and the Council of Trade Unions have become proactive in the dispute, issuing a "dispute fact sheet" setting out the case for union members.
The fact sheet said the major outstanding issue between the parties was the union's concern that management, during the term of the last collective agreement, succeeded in contracting out the jobs for driving four shuttles used for moving containers in the port.
"Management did so with a predetermined agenda and a farcical consultation period with the union."
The work of the shuttles had been contracted to a company 90% owned by Ports of Auckland. Port company employees sat on the board of that company.
The union wanted the company to agree that stevedores employed by it and covered by the collective agreement would operate the shuttles and not be disadvantaged by the contracting model.
That issue led to the union's first strike notice.
Subsequently, the company's position had changed dramatically, Munz president GaryParsloe said yesterday.
While still refusing to end the contracting of shuttles, the company demanded a new agreement and was saying the new agreement was its final offer.
The new agreement changed the way workers in the port were rostered.
"The company is saying it will give it flexibility. The workers are saying it effectively reduces security of employment altogether."
A small group of non-union workers on the port had signed new individual agreements which changed conditions. In exchange, their wages had been increased by 10% but under the new rostering arrangement, they could end up earning less than the current arrangements, he said.
The union position was clear.
It did not want the 10%. It wanted secure, ordered and transparent rosters for its members, Mr Parsloe said.
