By Phoebe Sedgman Nov 18, 2014
Bloomberg
Tugboat engineers at Australia’s Port Hedland voted against a proposed agreement on wages and leave, extending the threat of disruptions to iron ore shipments at the world’s largest bulk export terminal.
The Australian Institute of Marine and Power Engineers did not approve an enterprise agreement put forward by Teekay Shipping (Australia) Pty, said Andrew Williamson, senior national organizer at the union. Teekay is contracted by BHP Billiton Ltd. (BHP) to run tugboats at the port, located 1,300 kilometers (808 miles) north of Perth. Eighty-five percent voted against the agreement, with 3 percent in favor and 14 percent not casting a vote, Williamson said in an e-mail today.
The rejection renews the risk of delaying exports by companies including BHP and Fortescue Metals Group Ltd. Iron ore is Australia’s biggest commodity export earner and disruptions could cost suppliers about A$100 million ($87 million) a day, BHP estimated in May. Shipments through Port Hedland represented about 55 percent of the country’s iron ore exports last year and more than 80 percent of cargoes go to China, port and government data show.
Negotiations between the engineers and Teekay resumed today, according to Williamson. Two unions representing tug masters and deckhands approved four-year enterprise agreements on Nov. 10, according to Teekay.
The engineers’ union is able to take industrial action up until midnight Nov. 29 without need for another ballot, according to the Fair Work Commission. The engineers approved unlimited work stoppages ranging from 4 hours to 48 hours in September.
The commission on Nov. 11 made an interim order to stop a four-hour strike planned for the following day. The union called off an intended strike in August after it didn’t serve the notice within the required period and balloted members again to get fresh approval.
Bloomberg
Tugboat engineers at Australia’s Port Hedland voted against a proposed agreement on wages and leave, extending the threat of disruptions to iron ore shipments at the world’s largest bulk export terminal.
The Australian Institute of Marine and Power Engineers did not approve an enterprise agreement put forward by Teekay Shipping (Australia) Pty, said Andrew Williamson, senior national organizer at the union. Teekay is contracted by BHP Billiton Ltd. (BHP) to run tugboats at the port, located 1,300 kilometers (808 miles) north of Perth. Eighty-five percent voted against the agreement, with 3 percent in favor and 14 percent not casting a vote, Williamson said in an e-mail today.
The rejection renews the risk of delaying exports by companies including BHP and Fortescue Metals Group Ltd. Iron ore is Australia’s biggest commodity export earner and disruptions could cost suppliers about A$100 million ($87 million) a day, BHP estimated in May. Shipments through Port Hedland represented about 55 percent of the country’s iron ore exports last year and more than 80 percent of cargoes go to China, port and government data show.
Negotiations between the engineers and Teekay resumed today, according to Williamson. Two unions representing tug masters and deckhands approved four-year enterprise agreements on Nov. 10, according to Teekay.
The engineers’ union is able to take industrial action up until midnight Nov. 29 without need for another ballot, according to the Fair Work Commission. The engineers approved unlimited work stoppages ranging from 4 hours to 48 hours in September.
The commission on Nov. 11 made an interim order to stop a four-hour strike planned for the following day. The union called off an intended strike in August after it didn’t serve the notice within the required period and balloted members again to get fresh approval.
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