AUTOGATE

VICT – WAGE CUTS AND AUTOMATED JOBS A THREAT TO EVERY AUSTRALIAN WATERSIDE WORKER

How a single agreement allowing workers in the Philippines to do waterside jobs in Melbourne remotely threatens the destruction of the future of the Australian industry. Deputy national secretary Will Tracey reports

The Webb Dock (Victorian International Container Terminal) agreement, is a threat to the future wages and conditions of every Australian waterside worker. It undermines the proud history of struggle by generations of Australian waterside workers, their families and the communities in which they live to provide some of the best wages and conditions for workers in this country.

Under the agreement for VICT’s Melbourne Webb Dock terminal we have seen approximately five jobs (gatehouse and shoreside equipment control - EC - roles) every 12 hour shift transferred to the Philippines. These were jobs being performed at this terminal when it commenced operations.

Wages in the Philippines are less than 25 per cent of the Australian stevedoring industry rate. Workers at the site tell us the company is saying that automated crane roles will be the next to go. For now we understand they won’t shift crane operator jobs to the Philippines until the critical issue of delays has been resolved. The implications of automated jobs shifting offshore for the stevedoring industry worldwide are dramatic. Companies are now able to relocate automated jobs to lower wage, non-union regions.

If Rio Tinto can run their automated Pilbara operations –driverless trucks and trains and automated load-out facilities – more than a thousand kilometres away at Perth airport, companies can also operate ports from overseas.

Casual Rate VICT

$37.60 per hour flat for all hours worked – no penalties at all $42.55 per hour plus penalties at 1.5, 2.0 and 2.5 for shifts other than day work Monday to Friday $38.57 per hour plus penalties at 1.5, 2.0 and 2.5 for shifts other than day work Mon-Fri $41.59 per hour plus penalties as per Patrick and DPW

Consolidated allowance included by virtue of using the DPW permanent salary hourly rates as the base figure at Hutchison. $44.54 per hour plus penalties as per Patrick/DPW Includes cons allow

Minimum Grade 6 Equivalent Annual Salary for 35-hour per week shift worker

$76,710 12-hour shifts worked

Crane driver minimum annual salary for 35-hour per shift work

$76,710 although most paid $94,770 12-hour shifts worked $122,371 8-hour shifts worked $117,488 8-hour shifts worked Penalty factors apply on shifts and weekends. Base rate is applied to time worked. The basis of the salary is the same rates as DPW Sydney and the equivalent earnings are comparable factoring in a shorter 30 hour working week. $113,241 8-hour shifts worked on reduced roster

Superannuation

Long Service Leave

Overtime paid after 8 hours worked - shift workers

Penalty rates on evening, night and weekend shifts at time and a half (1.5), double time (2.0) and double time and a half (2.5)

Income Protection

Minimum engagement for hours worked

10.5%

0.867 weeks per year

No

No

No

4 hours

Labour Reviews

No

Patrick Container Terminal - Melbourne

$128,802 8-hour shifts worked

12%

1.3 weeks per year of service

Yes

DP World Container Terminal - Melbourne

$129,758 8-hour shifts worked

12%

1.3 weeks per year of service

Yes

Hutchison Container Terminal - Sydney

Penalty factors apply on shifts and weekends. Base rate is applied to time worked. The basis of the salary is the same rates as DPW Sydney and the equivalent earnings are comparable factoring in a shorter 30 hour working week.

12%

1.3 weeks per year of service

Yes

Yes Yes Yes

Yes – 2% of salary Yes – 2% of salary Yes

8 hours 8 hours - 4 hours for certain nonoperational tasks 8 hours

Yes – detailed clause Yes – detailed clause Yes - detailed clause

Flinders Adelaide Container Terminal

$122,489 8-hour shifts worked on reduced roster

12%

1.3 weeks per year of service

Yes

Yes

Yes – 2% of salary

8 hours

Yes

Note: VICT only run 2 x 12-hour shifts across its stevedoring operations. This is contrary to stevedoring industry standards in Australian Terminals of 3 x 8-hour shifts across every 24-hour day. The “Grade 6 equivalent” and “crane driver” salaries in the table above for Patrick, DP World, Hutchison and Flinders. It would be significantly higher again under a 12-hour shift system.

VICT already has undercut the container terminal industry rates and conditions by 40 per cent with an agreement that delivers wage cuts and the introduction of 12-hour shifts for stevedores.

The concern is that other employers will use the VICT agreement to argue for lower wages and conditions in current EBA negotiations. They may also use the overseas worker model for their automated operations. The MUA finalised the Patricks agreement last year and the Flinders agreement in Adelaide just over three months ago. Now we have the other two key container terminal enterprise agreements under negotiation at Hutchison and DP World. As we fight for the new agreements at these container terminals, we must ensure that the VICT agreement is not used by employers as an argument to cut wages and conditions. This is the fight of our generation and needs your support.

Above is a comparison table comparing the rates and conditions in the current VICT Collective Agreement against the key industry agreements across Australia’s container terminals including the two key container terminal agreements in the Port of Melbourne. n

ICTSI is a Philippines-based container terminal operator, which operates 30 container terminals globally.

“No matter where you look across International Transport Workers’ Federation global network the company insists on running an anti-worker, union busting agenda,” International Transport Workers’ Federation President Paddy Crumlin said.

An ITF report has identified severe labour violations throughout ICTSI’s global network - many in breach of domestic laws and contravene international labour conventions. The ITF has pulled together a website that documents ICTSI’s atrocious global behaviour, check it out here: https://ictsi.exposed/

To download the ITF report, ‘ICTSI: global turmoil spreads to flagship VICT terminal’, visit: https://goo.gl/ TA9kW8spreads to flagship VICT terminal’, visit https://goo.gl/TA9kW8

MELBOURNE PORT OPERATOR ICTSI MUST BE INVESTIGATED

The Construction Forestry Mining Maritime Energy Union is calling for the contract won by ICTSI in 2014 to operate the third container terminal at the Port of Melbourne to be investigated by both the Commonwealth and Victorian Governments.

International President and MUA National Secretary Paddy Crumlin said there were serious questions that needed to be answered about the probity and governance of the awarding of the contract to ICTSI.

Crumlin was speaking at the launch of the report ICTSI Exposed, produced by the International Transport Workers’ Federation (ITF) at Parliament House, Canberra.

“At the time the contract was awarded ICTSI was in business with the Government of Sudan - while both the United Nations and United States had placed sanctions on doing business with the regime.

“The President of Sudan was then - and still is today - wanted by the International Criminal Court for crimes against humanity, war crimes and genocide. “Just as troubling is the financial relationship between ICTSI and the Government of Sudan who are listed by the United States as a state sponsor of terrorism.

“Why would you hand over a sensitive and critical piece of infrastructure as a port terminal to a company with financial ties to a Government listed as a state sponsor of terrorism?”

National Secretary Michael O’Connor said it was time for both levels of Government to commence an immediate inquiry into the ICTSI contract at the Port of Melbourne.

“If you operate a sensitive and critical piece of economic infrastructure such as a port you must be held to the highest standards yet ICTSI has a long history of dealing with some of the worst and most dangerous governments in the world,” O’Connor said.

“The minimum a responsible government should do is investigate these matters to reassure the public the operation of the terminal at the Port of Melbourne does not compromise our international obligations and meets the strictest of security standards.” You can find out more at ICTSI Exposed and sign our petition calling on Federal and State Government to investigate ICTSI.

INDONESIAN WHARFIES JOIN HUTCHISON EBA TALKS

Indonesian union leader Suryansyah Bahar from JICT Hutchison Tanjung Priok joined MUA/CFMMEU wharfies in an historic EBA meeting at St Georges Basin in June. The talks, linking the struggles of wharfies in Indonesia and Australia come after a series of work deaths in Jakarta and one near death at Port Botany (see p12).

“We’ve set in motion a joint bi-lateral campaign with a focus on starting a regional safety committee,” Assistant National Secretary Warren Smith reports. The bargaining committee elected to finalise the log of claims stated:

“Hutchison is a huge multi-national global terminal operator,. It is highly profitable and has a poor track record on union and human rights in their terminals. Hutchison organises on an international scale across its international terminals. Hutchison workers will now be escalating our own internationalism and solidarity with other Hutchison workers internationally to stand up to the bullying and power of this giant stevedore.”

MEANWHILE the union succesfully appealed a record $3.7 million penalty by The Fair Work Ombudsman for contravention of the Fair Work Act The Ombudsman had also ordered a $620,000 in compensation for alleged loss by Hutchison during the safety dispute arising from a near death collision at the terminal. The fine has now been reduced to $38,000.00 in penalties with no compensation payable.

Senator Glenn Sterle, WA with Paddy Crumlin, ITF President, speaking at the launch of ICTSI Exposed, Parliament House Canberra, 16 August

Right: Warren Smith, Assistant National Secretary, addressing the CFMMEU picket Port Kembla on May Day. Sixty CFMEU workers were locked out at the Port Kembla Coal Terminal for four days over a pay dispute in January.

NEPTUNE RETREAT

After concerted union action Neptune Diving has dropped its move to cancel its offshore diving agreement and cut offshore diving rates back to the Award minimum.

Deputy National Secretary Will Tracey reports once the union commenced legal action and a campaign against the company it withdrew its application.

“We also made it very clear that the entire MUA membership including divers and marine crews would campaign on any vessel and across any project that engaged Neptune Diving,” said Tracey. “We were organising a visit with the bus and membership to Neptune’s offices after the next stop work meeting to protest. We told Neptune to be prepared for a dispute.”

Tracey said the move by Neptune would have had a disastrous effect, decimating offshore diving rates and conditions across the entire offshore diving industry. It would have put pressure on all offshore diving companies to reduce their rates and conditions to win contracts.

“Neptune have responded and informed the MUA and Fair Work that they will withdraw their application to cancel their agreement and discontinue the legal proceedings

“Significant disputes with Qube have arisen in Whyalla, SA, Port Kembla, Tasmania and WA. The pattern of disputes with Qube centre around order of pick for allocation; application of annual accrued hours; as well as the company’s consistent reluctance to provide data as required and work within agreed parameters around labour reviews,” Assistant National Secretary Warren Smith reports.

FIRE ON BOARD

response from the Svitzer crews was fast and professional – a critical component to controlling the fire. Upwards of 100 firefighters worked to control the blaze. Some of the crew had nothing but their coveralls they fought the fire with when they evacuated the ship. The fire continued to burn for the next four days.

The Iron Chieftain will be retired due to significant damage sustained during the fire and the union is in talks with owner CSL for it to be replaced with another Australian crewed vessel. n

to reduce wages and conditions for offshore divers,” said Tracey.

PATRICK/QUBE DISPUTE

The union successfully finalised 17 national Qube agreements during the 20th anniversary of the Patrick Lockout. Rallies were centred at Webb Dock, Melbourne during the dispute. Melbourne wharfies walked off the job when the company sought to terminate the agreement in April on the eve of the 20th anniversary of the Patrick Lockout in March.

Qube was seeking a 40% pay cut and provoked workers in Melbourne by removing long-established rosters and pushing for excessive working hours. A seafarer raised the alarm on board the Iron Chieftain bulk carrier alongside Port Kembla before dawn on 18 June, after noticing smoke coming from the entry door to the cargo tunnel during his rounds.

SNSW Branch Secretary Garry Keane and National Training Safety Officer Michael Cross report the crew mustered and fought the blaze until local fire authorities arrived on scene and took over.

All crew were accounted for and ordered to leave the vessel by the local fire commander.

The Port Authority engaged Svitzer tugs to boundary cool the hull outboard side, adjacent to the fuel tank, portside. The

Iron Chieftain