Waterfront
Industry shakeup changes the face of the Australian waterfront as Toll takes over Patrick and DP World buys out P&O worldwide
As waterside workers gathered at pubs and clubs nationwide to mark the day dogs and goons took over the wharves in 1998 - April 7 - yet another hostile takeover was well under way. Within the week, on Good Friday, eight years after the mass sacking of 2,000 Patrick stevedoring workers, Toll's Paul Little ended an eight-month hostile takeover of Patrick Stevedores from CEOs Chris Corrigan and Peter Scanlon.
The $6 billion Toll deal completed the biggest corporate upheaval on the Australian wharves in living memory. Only weeks earlier the Dubai-based DP World sealed its $9 billion buyout of P&O terminals worldwide.
Some 3,000 Australian waterside workers have a new employer. But thanks to an oversight by Federal Government solicitors almost all are immune from the new IR laws, which leave the collective agreements in place for both workplaces during company takeovers.
The union enterprise agreement with P&O is inherited by DP World, as is the Patrick EBA by Toll -- both for their full terms. Any MUA member working at Patrick will remain under the Patrick EBA until its term ends in 2007. Any MUA member working at P&O will remain under the P&O EBA until that agreement expires in 2008.
But MUA members employed by Patrick Shipping in Bass Strait face a less certain future. The Toll takeover was contingent on the company divesting its shipping within the next six months to meet ACCC requirements.
There is also press speculation that some of Toll's other interests will be 'spat out' to help pay the enormous price for the acquisition, with one business commentator suggesting Toll may sell and leaseback some port operations (ABN AMRO, The Australian, 18/4/06).
Both Linfox and ANL have shown interest in Bass Strait shipping.
The Transport Workers' Union, the Rail, Tram and Bus Union and the MUA all share concerns over the divestment. The three unions are questioning under what conditions these assets are being disposed and to whom.
While welcoming an end to the uncertainty that has surrounded the 8-month boardroom stoush, unions have said that Toll should not use its size to launch an attack on working conditions. The unions have sought guarantees from Toll CEO Paul Little.
In a joint media release they put Toll on notice from day one that workers are committed to maintaining and improving existing conditions.
"We have collective agreements with Toll and Patrick we expect to be honoured," said MUA National Secretary Paddy Crumlin. "Toll should not expect workers to help pay the high price for the takeover with their jobs."
The three unions have sought a commitment from Toll to consult with them prior to implementing any of the required ACCC changes that impact on employee entitlements, job security and company assets and liabilities.
"Hopefully this can give working families in the transport sector some certainty," said Bob Hayden from the RTBU. "I think we should remember that it is the hard work of the employees of these companies that will make or break them as a business."
The RTBU will be seeking to finalise a long-term union agreement to bring certainty to its members employed at Patrick-Toll rail freight joint venture, Pacific National and Patrick Rail.
John Allan, TWU Federal Secretary, has sought assurances from Toll that TWU members' jobs will be secure, no compulsory redundancies will occur and that no TWU member employed by Patrick Corporation or Virgin Blue will be in any way disadvantaged.
Paddy Crumlin said the waterfront workforce already delivered high productivity, and "I don't expect Toll will be looking for change there". He said he was confident Toll would sit down soon "at a very senior level" to discuss MUA concerns.
The MUA and Patrick struck three-year agreements for the company's 13 ports in 2004 (separate deals were struck for container terminals and bulk and general operations).
Assistant National Secretaries Mick Doleman and Rick Newlyn have called on branches to identify areas where Patrick and Toll overlap and any areas of concern. Meetings were scheduled for May.
Both Toll and DP World are multinationals, with the Dubai-based company now operating terminals worldwide. The one controversial exception for DP World is the US, where the company's Arab ownership sparked paranoia about port security.
While DP World is a dedicated stevedoring company, Toll prides itself on offering warehouse to wharf services and a full vertically integrated transport system.
With the recent alliance of the world's top two stevedoring companies Hutchison (HK) and the Port of Singapore Authority (PSA), DP World now sits at number two, with 51 terminals in 30 countries and a total capacity of 50 million containers a year. Chief Executive Mohammed Sharaf was in Australia in April and announced that terminals will remain its core business with the company planning to invest $100 million in upgrades.
National Secretary Paddy Crumlin acting on behalf of waterside workers has written seeking a meeting with company executives.
The national secretary, who is also acting chair of the ITF dockworkers section, is organising a high level meeting between DPW the ITF and key DPW terminal unions around the world. The meeting is expected to be confirmed soon. He is also facilitating amalgamation talks between the MUNZ and RMT in New Zealand. Toll is a key player in every aspect of the NZ maritime and transport industry. The union is also talking to Southeast Asian unions with the ITF in regards to Toll's activities more broadly in the region.
Toll, now Australia's top logistics company boasts an empire spanning China, India, Korea, Japan, Singapore, Australia and New Zealand. Patrick is its 46th acquisition in 17 years since Little took over the loss-making concern from Peko Wallsend for $1.5 million in 1985.
Patrick goes to Toll at a time of a record 8.6 per cent rise in port volumes to nearly 300,000 containers with expansion plans in Fremantle, Fisherman's Island Brisbane, East Swanson Dock Melbourne and Port Botany Sydney.
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