Operations at Lyttelton Port have been disrupted in recent days, after about 200 employees in the RMTU went on strike from midnight Monday, when the port company and union were unable to agree over pay talks, but both parties agreed to mediation yesterday.
Pressure has been mounting on the council-owned port as local manufacturers become frustrated with the on-again, off-again strike causing delays in getting crucial materials and also pushing freight costs up.
It has been reported ships have been diverted to Timaru and as far afield as Tauranga and Auckland, but not yet to Dunedin.
RMTU South Island organiser John Kerr said the union put eight settlement scenarios to Lyttelton Port which could have ended the prospect of further strike action, some of which had "negligible cost to the employer".
"Accordingly, we have no option but to advise that Lyttelton Port will shut due to industrial action for at least five days from next Tuesday," Mr Kerr said in a statement.
The RMTU wants a similar 4% settlement offered the Maritime Union of New Zealand members, who work alongside the RMTU, but whose contract is negotiated separately.
Christchurch-based Manufacturers' Network chief executive Dieter Adam said the strike was affecting manufacturers trying to get products out of the port to meet delivery deadlines, and those waiting for input goods to arrive.
"Some have reported the lack of input goods is expected to severely impact their manufacturing businesses, potentially delaying their own production," Mr Adam told BusinessDesk, before yesterday's mediation.
He said it was annoying the two sides appeared to be close to an agreement, but had not agreed.
"South Island freight services are being held to ransom over what currently appears to be a relatively small amount of money which is still in dispute."
