Threat to wool sales, exports

Press, 7 October 1980, Page 17

Threat to wool sales, exports

The woolbroking industry is gravely concerned that the breakdown last week in conciliation proceedings for a new award covering wool store workers may imperil woo! sales and exports now beginning to build up to their seasonal peak. Conciliation proceedings for a new wool, grain, hide, and manure stores’ employees’ award broke down in Christchurch last week when the three unions involved withdrew their claims. “This occurred in spite of the employers putting forward an attractive pay package,” said Mr M. J. Harkness, president of the Woolbrokers’ Association. Mr Harkness raid woolbrokers considered that a year-long dispute with the Northern Industrial District Storemen and Packers’ Union over payment of a container allowance was at the root of the breakdown. Had its claim been met it would have resulted in an additional $lOO a week for each man employed in the Auckland central wool facility. Over recent months industrial action, including a strike of all wool store employees, has occurred at the big wool complex at Wiri, Auckland. “Any widespread industrial action which caused a stoppage of wool sales and interrupted the export flow of wool would be very serious at present,” Mr Harkness said. The deputy chairman of the Christchurch Woolbrokers’ Association, Mr K. M. Collins, said that the effect of the two-day strike last week on both wool and grain stores had been minimal. However, a threatened load-out ban would seriously affect the shipping of wool from the recent Christchurch sale on September 24 and 26 and would also jeopardise the holding of the next Christchurch wool sale on October 31, depending on how long the ban lasted.

In the meantime, - he said, all stores would continue to receive wool for the October sale. The threat of a load-out ban on wool is naturally also of concern to woolbuyers, particularly if it is protracted. The immediate threat is to the loading of ships due to take wool to overseas markets.

A Christchurch wool-, buyer summed up the likely outcome in the words: “Everyone will miss out.” Although not all centres are yet affected by the industrial troubles, should a widespread delay in wool shipments occur, an organisation such as the National Committee of Wool Interests might declare force majeure. This would be regarded as officially excusing buyers from fulfilling contracts because of powers beyond their control.

Any delays in delivery’ of wool are bound to embarrass buyers in New Zealand and their overseas customers. Traditional overseas users of New Zealand wool may be synipa-

thetic but they need fibre to keep their machines going. Delays might not be appreciated in countries unaccustomed to their workers using these sorts of tactics to achieve their ends. Among such countries are China and nations in Eastern Europe. China is fast emerging as a main buyer of New Zealand wool and Eastern Europe is a big element in the market — last season the Soviet Union was the biggest single buyer of New Zealand wool.' If buyers are unable to get their wool, brokers will not be paid for it in the meantime and farmers will not get paid, either. Buyers can end up having to Hold wool for longer than expected and at a greater cost to them in these days of high interest rates. Serious problems are likely in wool stores if wool cannot be loaded out but still continues to flow in from farms. A halt would soon have to be called to the acceptance of wool from farms.