Union leaders warn of delays as port restructure bites

Photo: File image
Photo: File image
Lyttelton Port Company has admitted its controversial job restructuring is causing delays for container ships.

Union leaders say the delays stem from LPC struggling to find experienced replacements – either from current staff or new hires – for nearly a third of all foremen who have left since the staffing restructure was confirmed.

The restructure will result in a net loss of 14 container terminal jobs. New leadership roles, some on individual contracts, will replace the unionised foreman positions.

The number of foremen has dropped from 26 to 18, with five of the eight departing receiving redundancy payments.

The full implementation of the restructure plan also appears to have been pushed into next year.

According to union leaders, LPC has asked four other foremen seeking redundancy to remain in their roles until April.

LPC received the green light from the Employment Court in August to carry out the restructure after an unsuccessful appeal from the port’s two unions – the Maritime Union of New Zealand and the Rail and Maritime Transport Union of New Zealand.

Gerard Loader.
Gerard Loader.
MUNZ Lyttelton branch president Gerard Loader and RMTU Lyttelton branch secretary Mark Wilson said delays have become common, with only two of the four container terminal cranes operating during most shifts due to foreman shortages.

At times, only one crane has been operating.

Large container ships from Maersk and other major shipping companies have faced delays, with some vessels forced to wait for extended periods out at sea before entering the port.

As a result, Maersk will add a US$200 (NZD$375) congestion fee to its containers going through the port from December 1. Maersk stated the surcharge would apply to all of its containers with Lyttelton as the origin or destination.

“They’ve shot themselves in the foot. LPC are not owning up to their mistakes and were clearly overconfident in being able to fill these roles,” Loader said.

“Bear in mind that the unions asked to keep the foremen on until the restructure was in place.”

Wilson said the delays are not the workers’ fault.

“We show up to work when we’re rostered on. This is about LPC not having a plan B when their plan has gone wrong.”

Mark Wilson.
Mark Wilson.
In an emailed statement to The Star, LPC chief customer and supply chain officer Simon Munt acknowledged the restructure was impacting container vessel loading and unloading times.

“This is short-term as we transition to a new leadership structure in the container terminal, supporting positive change and growth, and recruiting and training new team members to meet strong cargo demand.”

LPC did not answer other questions from The Star about whether foremen intending to take redundancy have been asked to stay, or how significant the delays have been.

Said Munt: “Recruitment and training are a priority, and we are making good progress.”

Loader and Wilson do not see a solution coming anytime soon with few current staff wanting to take on the new leadership roles which would allow more cranes to operate.

They said current staff have been slow to apply for the new roles for reasons including pay disparity between the foreman position and new roles, uncertainty about the restructure, and a general aversion to signing an individual contract.

The union leaders also said LPC is having difficulty hiring new staff with enough experience to replace the foremen.