Port Otago to cut 10% of workforce after container volume slump

Front line stevedoring jobs at Port Otago are on the line, with the company revealing that up to 35 jobs could go following a downturn in ship numbers and container volumes.

The port revealed yesterday that following a “marked deterioration” in trading volumes, it was restructuring its workforce, with the loss of up to 35 positions of the approximately 320 staff at the port.

It said the majority of the positions would be front line stevedoring roles, as well as a number of supervisory and management positions.

The possibility of job losses was first raised earlier this month, when the port told staff that with expectations of more than 40,000 less containers passing through the ports and an estimated $4 million drop in revenue, a restructure was inevitable.

Port Otago was one of several South Island ports that have been left out in the cold by Fonterra’s decision to consolidate its operations through a single port in the South Island, with the dairy giant putting an end to the transhipping of up to 25,000 containers a year from New Plymouth and Timaru through Port Otago in August.

Port Otago chief executive Geoff Plunket said the significant reductions in the amount of transhipment containers handled by the port had come after a number of years of high growth.

“The combined impact of shipping line consolidation, supply chain changes by major exporters and a downturn in the global economy is being felt across the sector. We are not immune to those trends which have already affected our operations.”

He said despite consultations with unions, the port had been unable to make tangible steps towards a more flexible workforce structure.

“The rigid structure of our front line workforce is not sustainable in the current economic environment and efforts to convince union representatives of this fact have been unsuccessful.

“We operate in a dynamic and highly competitive industry. Increasing flexibility will continue to be a long term need of the business in order to accommodate the variable nature of shipping operations and the future needs of our customers.”

Last week Port Otago delivered a $6,9 million dividend to owner Otago Regional Council, with overall profit falling from $39.3 million to $27.8 million.

A report on the viability of a merger proposal between Port Otago and Lyttleton Port of Christchurch is expected in November.