PS PAGE

The current economic climate is one whereby more than one dockworker employer has reviewed labour arrangements and set in motion initiatives designed to downsize the workforce, usually by some form of voluntary cooperation on the part of workers. In general, on both sides of the fence, there is recognition that such measures represent a very practical course of action in these challenging times. It is interesting, however, that parallel with such initiatives the current economic climate also appears to be facilitating wider reforms to dock labour arrangements, particularly in Europe.

The economic climate may not be the direct cause of the reforms underway in places such as France and Greece, where large slices of dock labour will be transferred from the public sector to the private sector, but certainly it does appear to be helping oil the wheels of such a structural change.

If business was booming could we expect to see government and/or employers moving labour issues higher up the agenda? In Europe, therefore, what we appear to be seeing is a greater willingness on the part of governments to get to grips with labour issues that previously they have been content to brush under the carpet.

It will, for example, hardly come as a surprise to anyone that successive French and Greek governments have recognised that the way their respective port systems are structured is not the most efficient. It is a fairly proven case that where the public sector has withdrawn from front line cargo handling operations efficiency has risen and certainly in the mature economies of Europe that cargo handling costs have fallen. Why then persist with what can only be called outdated labour arrangements? Usually the answer is due to a combination of political factors and an unwillingness to deal with a full-on conflict with docker unions, the knock-on effect of which at its most extreme could be to paralyse a country. It is human nature, however, that the prospect of such an action recedes when retaining job security and a regular income becomes a higher priority.

In a wider context, the reality that a tougher operating environment conveys is also notable in other countries such as Spain which have traditionally possessed rigid labour arrangements. The 10-year deal recently signed by labour unions in Algeciras, for instance, under which 1,230 permanently employed dockers will receive an annual salary increase of 2% and via which Maersk Line has made a commitment to move through the port at least 3m teu annually, represents a significant concession by labour compared with its traditional approach to such matters.

So what is round the corner, will government be brave enough to bring much needed reforms to Spain’s dock labour sector to put it on a more competitive footing? There are those that believe the time for major reforms is long overdue and that the current climate offers the best possibility for achieving these without major disruption. Similarly, while it is not labour focused, it is interesting to note that Italy’s private terminal operators have appealed to the government for a major port law reform that would reverse what they see as a decade of stagnation and which would generally provide a much more positive operating environment. “Simplicity, clarity and selectiveness” are all demanded for a system which is now regarded as both over complicated and full of contradictions, and which generally is difficult to fathom any sense from.