Shipping Corp, to appeal ruling

Press, 1 March 1989, Page 3

Shipping Corp, to appeal ruling

PA . Wellington The Shipping Corporation said last evening it would appeal the Labour Court decision that foreign crew in its reflagged vessels Tui and Weka should be paid under New Zealand award conditions.

The corporation chairmen, Mr lan Farrant, said the appeal would be on a point of law relating to the “lifting of the corporate veil.” “On ‘lifting the corporate veil,’ Judge Horn said the Shipping Corporation, rather than Fuday, Ltd, and Eckington, Ltd, is owner of the Tui and Weka,” he said. “It is from that decision that all Judge Horn’s other decisions have flowed, so it is that point we shall appeal,” Mr Farrant said. Chief Judge Horn yesterday ruled the corporation was the legal owner of the vessels and was

employer of the crews. He said present crews in the ships were employed in breach of relevant awards, and the unions were therefore entitled to compliance orders. “We are very concerned Judge Horn has taken the step and said we are the employer — as far we are concerned we are not,” Mr Farrant said. Although yesterday’s decision did not please the corporation, Mr Farrant said he was considerably heartened by Judge Horn’s comments urging unions to re-examine the terms and conditions

under which they were employed as the terms demanded immediate attention. If they did not, then Judge Horn’s prediction that the ships would become uncompetitive and jobs would be lost, would prove true, Mr Farrant said. Commenting on the Labour Court decision, the Minister of Labour, Mr Rodger, also agreed. “This decision highlights the necessity of the corporation operating under international conditions and crewing arrangements if the corporation is to continue as a viable entity,” he said.

However, the Merchant Service Guild accused the corporation of causing pain and distress by reflagging two of its ships. “All they did was put everyone through a lot of trauma and distress unneccessarily. They distressed the crew they sacked, and their wives and families, and they have wound up paying foreign workers when we have people in New Zealand who could do the job,” said the general secretary, Mr John McLeod, yesterday. The corporation has one month from yesterday to obey Judge Horn’s orders.