Port job cuts likely

Press, 18 December 1986, Page 1

Port job cuts likely

By YVONNE MULDER As many as 38 Lyttelton Harbour Board employees could be offered early retirement in an attempt by the board to reduce its wages bill by $2.5 million to $3 million.

The move results from the board’s $2.7 million loss for the year, announced yesterday. The board’s general manager, Mr lan Brokenshire, confirmed last evening that negotiations had been under way for three weeks with the Harbour Workers’ Union. The board had agreed in principle to offer the option of early retirement to a number of employees in the 60 to 65 age-group, said Mr Brokenshire.

The $2.7 million deficit was caused by the costs of the container crane accident and a 13 per cent downturn in trade, he said. The 550-tonne crane collapsed after it was hit by a berthing ship in February, 1985. It was out of use for a year but revenue-loss insurance covered only - six months.

The large deficit last year and little prospect of an increase in trade this year left the board with no option but to cut costs, said Mr Brokenshire. After interest and depreciation, the payroll accounted for 70 per cent of the board’s costs, he said.

“Obviously that is the area we must look in to effect major costsavings.” The wages cuts the board aimed at represented 15 per cent of the total wages bill. Mr Brokenshire said negotiations with .the union were still' in a preliminary stage and were mainly involved with identifying areas where manning was surplus to requirements. He emphasised that all employees, from salaried officers to hourly-paid people, were being considered in talks with the union.

The secretary of the Harbour Workers’ Union, Mr Paul Corliss, said the talks were still preliminary.

Mr Corliss said the board had been open about its problems and its attempts to cut the wages bill.