Radio New Zealand - Te Reo Irirangi o Aotearoa

Freight productivity report flawed - unions

Updated at 1:58 pm on 13 January 2012

The Council of Trade Unions says a report recommending further privatisation of port companies is biased and flawed.

The Productivity Commission on Thursday released a draft report into the costs of importing and exporting freight after a nine-month study.

It says port companies that are majority-owned by councils dominate the international transport sector and should be considered for further privatisation with partial stock exchange listings.

The draft report also and says labour disputes are making most ports less profitable than they should be. It recommends changes to the laws covering unions and shipping companies.

The Council of Trade Unions says the commission did not properly consult with unions and relies on a few anecdotes from port companies to propose sweeping change.

Council president Helen Kelly says the report is an attack on workers' rights.

Ms Kelly says the report assumes that workers' demands for some employment security damage productivity, whereas productivity at New Zealand ports is as good as that in Australia.

Ports of Auckland chief executive Tony Gibson says unions and management don't share a common view at present on what constitutes a successful port operation.

He says the demand for the industry's services is highly variable and as a result it needs more flexibility on how it manages its processes.

Mr Gibson says Ports of Auckland could bridge the productivity gap with Port of Tauranga by modernising its workforce and its shift and roster system.

The port is in dispute with workers who have taken strike action five times since November over their collective contract. It is continuing with plans to make workers redundant and replace them with contractors.

The Northern Employers and Manufacturers Association says while the report is pro-business, it is not biased, and every lever available should be pulled to reduce freight costs.

Productivity Commission chair Murray Sherwin says the report is just a draft and he welcomes union feedback.

Listen to Tony Gibson on Summer Report

Listen to CTU president Helen Kelly

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