Ports of Auckland have lost a major shipping line service worth nearly $20 million in annual revenue after union strike action this week.
The Ports of Auckland and Maritime Union of New Zealand are in tense negotiations over a new collective employment agreement, which have seen 327 workers hold two 24-hour strikes in between being locked out for two days.
Today the shipping company confirmed that Maersk Line had permanently shifted its Southern Star container shipping service from Auckland to Tauranga.
The contract was worth nearly $20 million in annual revenue, 52 ship calls and 82,5000 containers, said Ports of Auckland chief executive Tony Gibson.
Mr Gibson said he was advised of the news by Maersk early this morning: "Naturally, we are hugely disappointed. The Southern Star, run by Maersk, was one of Auckland's largest shipping services.''
The loss of the shipping service adds to an existing loss of $1.2 million from the recent four-day action.
The service loss was effective from this week's vessel, the Euro Max voyage 126N, which would now call in to Tauranga on Saturday.
"Maersk have explained to us that the possibility of further industrial unrest has been central to their decision to shift the service to Tauranga.''
Mr Gibson said his worst fears had been realised.
"We had already warned the union that their strike action, during one of the busiest times in the shipping schedule, could cost Ports of Auckland a major customer and threaten jobs.''
The Ports of Auckland and the union were due to meet again at noon today, but the Ports have postponed mediation, said Mr Gibson.
"Given the magnitude of this service loss we have decided to postpone mediation till later in the week. We need time to work through the implications of the change in relation to the collective bargaining process.''
The union is due to carry out a 48-hour strike from Thursday night, to be followed by a company lockout of the workers of equal duration until late next Monday, causing further disruption to the Auckland container wharves.
Mr Gibson said further strikes would achieve nothing but putting jobs at Ports of Auckland at risk.
