More trouble may close refinery job —company

Press, 3 February 1983, Page 1

More trouble may close refinery job —company

The Marsden Point extension project may be wound up if the New Zealand Refining Company cannot build up the required labour force because of union opposition.

“It is an option kept constantly under review. If we cannot build up the labour force, we must seriously question whether we can go ahead,” the company’s chairman, Mr Robert Broughton, warned yesterday. “I am not trying to scare anyone, I am just talking basic economics. The cost to the country for delays on the project is $2O million to $25 million a month,” he said. Without recruitment overseas of tradesmen as required to complete the extensions close to the present schedule, the project would “come to the point where it does not make economic sense.” Mr Broughton accused trade union leaders of using “guerrilla tactics” to cause disputes on the site, and he said he hoped they would grasp that the worst thing that could happen for employment would be the winding up of the project. He believed “common sense” would prevail. “We are not dealing with a Mangere bridge situation

The project is four months behind schedule. Catching up would depend almost totally on achieving productivity levels without continuing ’ disputes, Mr Broughton said. “We have four disputes on: the foreign labour issue, the dismissal of a scaffolder for absenteeism, certain trade union members do not like working with a particular crane driver, and drivers have gone on strike about not getting their tea,” he said. The president of the Federation of Labour, Mr W. J. Knox, will address a meeting at Marsden Point today on the overseas labour question. The first of the riggers hired in the United Kingdom are expected in New Zealand by the end of this month. Mr Knox yesterday accused Mr Broughton of using “scare tactics.” He said that Mr Broughton might regret the statement about winding up the project. Mr Knox accused him of

trying to split the workforce. The F.O.L. wanted to see the expansion job finished on schedule. “I believe we have a role to play to see if we can get the job completed on time." Mr Knox said. The Minister of Labour. Mr Bolger, said that he did not think the unions would be “so stupid” as to put the jobs of thousands of people in jeopardy by pursuing industrial action which forced abandoning the project. Mr Birch and Mr Bolger have been involved in talks with the New Zealand Refining Company over the labour dispute. Carpenters on the site were back at work yesterday, after walking off on Tuesday. The strike by 192 was thought to have been in protest against the hiring of an outside contractor. All 1300 workers on the site will attend today’s meeting to be addressed by Mr Knox.

here, where a bit of a delay, even, two or three years, could cost $lO million or more.

“On this project we cannot afford that. Delays could cost $3OO million a year. We are talking astronomic sums, and there comes a point where enough is enough.” Mr Broughton estimated $350 million had been spent on the project, with another $lOOO million to go if it was completed on schedule. The Government immediately supported the company’s warning. The Minister of Energy, Mr Birch, said yesterday that the cost of industrial disruption on the motorist had to be kept in mind.

“This industrial action throws the balance of benefits in a different direction. It becomes a cost to the motorist over all in the longer term because the price escalates through undue delay. “The cost of the project reaches a point where you would have seriously to consider some other option,” Mr Birch said.