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Vigilance Bulletin No. 40, March 31, 2009

Download Vigilance 40 [PDF format]

1) Why should WE pay for THEIR economic woes?
2) Vigilance Bulletin maritime action program

Why should WE pay for THEIR economic woes?

DP World Sydney plans to cash in on the current economic downturn with redundancies, roster tampering and four hour shifts for casuals. But why do we have to suffer in order to bolster their profits?

Crisis - or downturn?
The world is in the midst of a recession. In fact the International Monetary Fund (IMF) believes that the advanced economies (US, Europe, Japan etc.) are suffering their deepest recession since World War II.

But that is only half of the story. The latest IMF figures* have world economic output increasing by 0.5% in 2009 and rising by a further 3% in 2010. The advanced economies are expected to contract by an average 2% in 2009 and then grow by 1.1% in 2010. China - Australia's major trading partner - will grow by 6.7% in 2009 and 8% in 2010.

It is the US credit crunch and the collapse of Western financial markets that has dragged the rest of the world down. So yes - we are in a recession - but talk of an economic meltdown is greatly exaggerated.

DP World profits are still healthy
DP World's full year results for 2008** shows that the company is in good shape. Worldwide volumes rose by 8%; revenue increased by 20%; adjusted earnings rose by 22% to US $1,340 million and company profits increased by 48% to US $621 million.

Ports within DPW's Australia and Americas group saw similar results - throughput up 8%, revenue up 14% (which was "driven by solid volume growth in Australian terminals") and earnings rose by 15%.

DPW's own outlook for 2009 suggests an average decline of 8% in volume across the group i.e. a return to 2007 volume levels. While this will vary between countries, it is hardly a crash in trade volumes.

Economic blackmail
The fall in shipping and the mostly empty yard are a real turnaround from the situation six months ago. But the figures above demonstrate that the economic downturn will most likely end by next year - and volumes will pick up sooner rather than later. Any fall in DP World profits will not last forever.

There is no doubt that DP World is using the current downturn to further undermine our conditions. The company is seeking to exploit our genuine concerns about job security in today's economic climate to ram through further cost savings.

The company made plenty of profit when there were crane chasers, when there were two breaks per shift and when MUA members were in the first aid post. DPW will make plenty of profit today. But for DP World - like any other company - too much is never enough.

Time to put our interests first!
It's about time we stopped trying to solve the company's profitability problems at our expense. We have to stop worrying about the problems of the management and start defending our own interests instead. Forget the company's cash flow problems - maritime workers have a cash flow problem as well!

It is unacceptable that maritime workers are made to pay for the economic downturn. All workers have the right to a full-time job, the right to a living wage and the right to a decent home. The only way to exercise our rights is to directly challenge the company's "right" to make a profit.

Open the company books to union inspection
DP World says that it cannot afford to keep operating without putting in place redundancies and other changes. Their "business secrecy" means that they are the only people that know the whole story.

The company can say anything it likes to justify its actions. But, as these changes affect us, then surely we also have the right to know the whole story.

The MUA should oppose these redundancies, rosters changes, four hour shifts and refusal to upgrade supplementaries to GWE's.

The union should instead demand the opening of the company's books - all the books, all the files and all the information about the operation of the company as well as its suppliers, contractors and bankers.

How much profit does DP World Sydney really make? What sort of salary and benefits does senior management "earn"? How much are the shipping & trucking companies charged per container? Opening the company's books to union inspection is the only way to answer these questions.

Armed with this knowledge, we can then push for solutions that benefit the whole workforce. A shorter work week with no loss in pay (eg. a 32 hour week) would create more permanent jobs and share the available work around.

For too long the bosses have been getting away with murder. Why? Because the strength of the Maritime Union has not been used to stop them. But as long as the company gets away with it, the blackmail will continue.

Oppose all DP World's attacks - no redundancies, no "temporary" roster changes, 4 hour shifts etc.

Demand that the company open its books to inspection by elected union committees.

* http://www.imf.org/external/pubs/ft/weo/2009/update/01/index.htm
** available at http://www.dpworld.com

Vigilance Bulletin maritime action program

 

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