Shipper had ‘no choice’ with sackings

Press, 26 January 1989, Page 6

Shipper had ‘no choice’ with sackings

PA Wellington The Shipping Corporation had no choice under law but to dismiss the crews of two of its container ships which had been sold to Hong Kong subsidiaries this month, the Labour Court in Wellington was told yesterday. The hearing of an application by the Seamen’s Union, the Cooks’ and Stewards’ Union and the Merchant Service Guild seeking an interim injunction and immediate reinstatement of the crews under award conditions entered its second day yesterday.

The unions claim unspecified damages for intimidation and interference and want the court to order the corporation to comply with the law and relevant awards. They claim the corporation’s actions amounted to a lockout without the 14 days notice required for an essential service. The crews of the New Zealand Pacific and Forum New Zealand II were told on January 10 their ships had been reflagged and they would have to reapply for their jobs under substantially reduced crew numbers and leave provisions. In his opening statement of defence, the corporation’s counsel, Ross Crotty, said the Shipping and Seamen’s Act required the dismissal of a ship’s crew if sold overseas, and therefore the action did not amount to a lockout.

He called on Judge Horn to refuse an interim injunction, which would have immeasurable repercussions in money terms. In answer to specific allegations by the unions, he said the crews were under no compulsion to sign on under the new

conditions.

Mr Crotty said no evidence had been presented to prove the corporation and its two Hong Kong subsidiaries had colluded to inflict damage on the unions, to break the law, or that any damage had resulted; Earlier, union witnesses said the crew of the New Zealand Pacific, renamed Tui, had insufficient time to make a considered decision whether , to sign on under the reduced conditions demanded by the new managers as a condition of re-employment.

The Tui was diverted to Tahiti, ostensibly so a prospective buyer for the corporation could inspect her.

In reply to questioning from Mr Crotty, the Tui’s former master, Captain Roger Tindall, said he had never known such poor treatment by an employer during 40 years at sea.

He felt psychologically intimidated on being told to leave the ship with only a few hours notice and asked to choose virtually on the spot whether to accept the new conditions. “It was the way things were done. I know the New Zealand merchant service has problems but not on that ship. “They were dedicated people. It was disbelief. We could see something a lot of us believed in going down the drain.”

The Seamen’s Union president, Dave Morgan, said negotiations towards reduced manning levels had progressed well, though his union would have agreed to the corporation’s target only if the line was sold to an Australasian buyer.

The hearing continues today.