The port company appears set to push through resurrection of its "vessel operations division", but remains adamant it is provided for under existing collective agreements with unions.
In a document leaked to the Otago Daily Times yesterday, Port Otago chief executive Geoff Plunket told staff of his "regret that the company is forced to announce a requirement for a further reduction in cargo worker numbers above that secured to date by the voluntary severance process".
That would result in the need to give notice to up to 12 more cargo handlers.
About 20 of the 320-strong workforce have taken voluntary redundancy, including 15 cargo handlers.
"The company will be releasing a consultation document to the Maritime Union of New Zealand (Munz) and the Rail and Maritime Transport Union today [Friday] regarding the selection process to be used in determining any forced redundancies," Mr Plunket said.
Port Otago's restructuring proposals were prompted by a predicted annual downturn of 40,000 containers, costing $4 million in revenue.
The unions and port company have jointly been unable to agree on any subsequent counter-proposals.
However, earlier this week at a heated union meeting, Munz members voted down a Port Otago and Munz-recommended proposal - by 237 votes to seven - largely because workers saw major alterations to their pay and conditions being traded off for a guarantee of no redundancies.
While the proposal meant no redundancies, it asked staff to do 14-hour and 10-hour shifts, excluded some overtime pay, and required compulsory availability for some overtime.
"We could have saved jobs this week, but there was never going to be any guarantee that more restructuring and job losses weren't around the corner," one union member said, on condition of anonymity.
The workers' decision appears to have forced the hand of Port Otago to go ahead with redundancies, but it also lets it push through its vessel operations division proposal.
The unions were holding out against reinstatement of the vessel operations division, claiming the the flat-rate, no-overtime pay rates disadvantaged staff.
This has been rejected by Port Otago.
Mr Plunket said yesterday the Wednesday proposal would have saved jobs, and while accepting the workers' rejection "as their democratic right", Port Otago had reverted to its original proposal, highlighting the port had lost 130 annual vessel calls and "had to adjust its workforce to meet the decline in trade".
He said the 14-hour and 10-hour days were an agreement with unions as part of making up a 40-hour week and he was confident the loss of up to 27 cargo handlers would not compromise future container handling.
Munz national president and Port Chalmers secretary Phil Adams said yesterday the Wednesday vote was "democracy at work", but maintained jobs would have been saved under the rejected proposal.
"Obviously [Munz union members] were concerned at giving up conditions held for years. Unfortunately, it [the proposal] was lost, through good debate, and we will now be reaping the consequences with some redundancies," Mr Adams said.
He did not rule out industrial action, and the union was seeking legal advice.
Both Mr Adams and Rail and Maritime Transport Union acting national general secretary Brian Cronin, rejected the suggestion a rift had developed between the unions over the rejected proposal.
Mr Cronin said while his union felt it should have been included in the mediation talks, "the majority took the vote on the day".
The unions would "continue to work together".
