Firms budget for disruption

Press, 8 September 1984, Page 29

Firms budget for disruption

PA Wellington Some contractors in the north of New Zealand automatically include additional labour costs when they tender because of disruptive activities by some unions, says the general manager of Marsden Refinery Constructors, Mr David Beldotti.

Mr Beldotti, who doubles as project director for the main contractor, BadgerChiyoda, on the Marsden Point refinery expansion, said the Federation of Labour had “exercised a negative impact” on industrial relations .there.

However, he hoped the management hard line position, taken with the backing of the New Zealand Refining Company, could go a long way toward stabilising industrial relations. On his increased labour

contract assertion Mr Beldotti, in an interview said: “We can see it in the pricing of the contractors we have on-site, by just looking at standard unit rates that might be applied, here versus another part of New Zealand.

“Even though they’re bidding competitively you can see the cost. per activity is higher,” Mr Beldotti said.

He declined to name the unions he considered responsible for disruption. The president of the Auckland Trades Council, Mr Bill Andersen, a member of the F.O.L. executive, declined to comment last evening on Mr Beldotti’s assessment. “Doesn’t he know there’s a commission of inquiry coming up? He’d be better off saving these sorts of statements for that,” Mr

Andersen said. The secretary of the 30,000-member Auckland Engineers’ Union, Mr. Jim Butterworth, said that Mr Beldotti should specify which unions he considered were responsible for increasing contract bids.

“As far as I know it is not applicable to engineering contracts,” Mr Butterworth said.

Mr Beldotti said that Badger, the Massachusettsbased company that employed him, had also taken expected industrial disruption into consideration when bidding for the refinery construction job. He said that Shell, acting .on behalf of the refinery company, had sent inquiries to international contractors for bids on the expansion project. “The requirements of the inquiry were that the job

should be bid for as a total lump sum including engineering, procurement and construction,” he said. Mr Beldotti said that Badger had surveyed the northern industrial district, and decided it could not take the risk of bidding for the construction part of the project in lump sum because of industrial insta-

bility. He said that the original $lOOO miilioi) N.Z. BadgerChiyoda contract was settled in two parts — a lump sum for engineering and procurement but “cost” for construction field labour.

The refinery company had not been surprised. Mr Beldotti said the renegotiated Badger-Chiyoda contract was now about $1250 million. The increase had resulted from on-site construction

costs, largely because of industrial disruption. Mr Beldotti said that the F.O.L. which took part in thp original site agreement negotiations, had not been helpful. “Many of the problems we have had here have not been generated out there on the site. “As far as our work-force is concerned they have not generated too many problems on to themselves ... many of the problems have come from outside including the F.0.L.,” Mr Beldotti said. Asked whether Badger would consider bidding for another job in the north he said: “The contract would have to be under the same provisions as this one ... the field labour would have to be on a reimbursible basis ...”