DP World confirms Southampton Container Terminal job losses

http://www.lloydslist.com/ll/news/dp-world-confirms-southampton-container-terminal-job-losses/20017633798.htm

OVER 60 jobs are to be axed at DP World-owned Southampton Container Terminal, equivalent to around 10% of the directly employed workforce, with the company citing the global economic downturn as the reason for the redundancies.

The large majority of those affected are manual workers, with the move making SCT the first major British port to enact compulsory blue collar job losses as a result of the crisis. The trade union Unite is threatening a ballot on industrial action unless management responds rapidly to a request for negotiations.

Under the initial proposals, 41 of the job losses involve so-called ‘single skill’ grades, such as straddle carrier drivers, and eight involve support controllers, with responsabilities including the placement of boxes. A dozen or so are in office-based roles.

The single skill workers were sent home on Friday at the start of a two-week individual consulation period during which they will not have to report to work, and put on four weeks’ notice of redundancy from 11 April, which again does not have to be worked out.

A Unite spokesperson said: “We don’t accept any compulsory redundancies at the terminal. A ballot will be the next course of action if the meeting we have requested doesn’t happen.”

Meanwhile, a senior ports industry source - who did not wish to be identified - said that to his certain knowledge, other ports around the country are also looking to cut payroll costs and more job losses in the sector are seen as inevitable.

Felixstowe, for instance, recently culled around 20 management and administration staff, and is reducing shifts and offering voluntary severance to manual grades.

SCT managing director Campbell Mason commented: “Job losses are extremely regrettable and we fully appreciate the impact that redundancies have on the livelihoods of individuals and their families.

“This is the first time in over 15 years that the terminal has implemented widespread reductions in manning but, like so many businesses in the current climate, we must take tough but necessary steps to ensure the terminal responds to the severe decline in UK containerised trade volumes.”

“The company’s proposals involve a reduction by approximately 60 jobs from across various areas of our employed workforce and there will be an even greater reduction of the contractor workforce retained by the terminal.”

Container volumes at Southampton are down by at least 10%, according to local newspaper reports, although SCT declined to discuss the issue of current throughput.

DP World confirms Southampton Container Terminal job losses

http://www.lloydslist.com/ll/news/viewArticle.htm?articleId=20017633798&src=rss

UP TO 63 docker jobs could be at risk at DP World-owned Southampton Container Terminal, the company has confirmed, citing the global economic downturn as the reason for the redundancies.
The move makes SCT the first major British port to go public on job losses as a result of the crisis. However, a senior industry source - who did not wish to be identified - said that to his certain knowledge, other ports will shortly be following suit.
Container volumes at Southampton are down by at least 10%, according to local newspaper reports.
A representative of the Unite trade union in Southampton accused DP World of favouring the use of contract labour over its own workforce, and added that industrial action over the issue may be considered.

Unite for Jobs: Union and business join forces to push for road map out of recession

http://www.unitetheunion.com/news__events/latest_news/unite_for_jobs_union_and_busi.aspx?lang=en-gb

This Tuesday (March 31st) will see the launch of Unite for Jobs, a major drive to secure urgent and strategic assistance for UK manufacturing and a clear plan for defending and creating jobs. The move comes amid mounting concern that government action so far is insufficient to avert chronic and lasting damage to UK manufacturing.
The campaign, led by Unite, will mark the beginning of a sustained initiative, bringing together leading figures in business, politics and academia with the country's biggest union to press the case for a jobs strategy with manufacturing placed firmly at the heart of a national programme to propel the UK out of recession.
Unite for Jobs will be launched at a press conference,10am, Tuesday, March 31st at Unite's King Street offices by an expert panel consisting of
Tony Woodley, joint general secretary, Unite
Derek Simpson, joint general secretary, Unite
Lord Jones of Birmingham, (Digby Jones), former trade minister and ex-CBI chief
Paul Everitt, CEO of the Society of Motor Manufacturers (invited)
Professor David Bailey, Director of Birmingham Business School, University of Birmingham
Jon Cruddas, MP for Dagenham

At the press conference, the speakers will set out their ideas for action to preserve jobs, and in particular to restore the UK's manufacturing sector to the heart of the economy.
The press conference will also see the announcement of a major initiative to mobilise the public for action on jobs.
According to Tony Woodley, joint general secretary of Unite: "The Government acted boldly when it came to rescuing those banks brought to their knees by greed and misdeeds of a few. Working people desperately need to see more of the same spirit when it comes to helping them keep their jobs.
"Every effort must be made to keep the lights on in factories and homes across the country. Government must now grasp the hand of expert help being offered so we work together to take the right road out of recession."
Derek Simpson, Unite joint general secretary added: "Daily, workers are paying the price for this recession with their jobs. Whether it is manufacturing, construction, finance or retail, the job losses are mounting up.
"This is the time to invest in support for existing jobs and to be clear on the strategy for creating new ones. We cannot allow this recession to destroy our skills base and our communities, and we must set out the vision for future success so that employers and workers can have confidence that the dark days of the recession will soon come to an end."

DP World puts new capacity plans on hold

http://www.lloydslist.com/ll/news/dp-world-puts-new-capacity-plans-on-hold/20017632301.htm

DP World is to “defer” much of its planned new ports capacity until higher utilisation rates return, but adds that the rapid fall in worldwide container volumes “shows little sign of easing in the foreseeable future”.
The Dubai-based global ports group, which saw consolidated box volumes rise 15% in 2008 to 27.7m teu, has report strong revenue growth of 20% to nearly $3.3bn and ebitda up 22% to $1.3bn, with margins at 40.8% for the year.
DP World chairman Sultan Ahmed Bin Sulayem said: “The volume deceleration we saw in the last quarter of 2008 has continued into early 2009 and shows little sign of easing in the foreseeable future.
“Falling utilisation rates across container terminals globally mean the demand for new capacity in the short-term is much diminished.
“Taking into account our existing pipeline of committed capacity the company has decided to defer much of our planned new capacity until such time as higher utilisation rates return.”
The group’s under construction London Gateway project was not mentioned in a results statement issued this morning, but it remains the subject of industry speculation over a lengthening of the timetable for the phasing in of capacity.
When completed, London Gateway, on the north bank of the Thames and 25 miles from the capital city, is set to handle 3.5m teu.
Commenting on the group’s share price, Sultan Ahmed Bin Sulayem added: “Over the next few months, the board will evaluate all available options to address its continued disappointment with the market’s valuation of the company.
“We continue to remain confident of the long-term prospects for the container port industry and DP World’s leading global position within it. “Once the current challenging market eases, we believe DP World will emerge financially strong and well positioned to continue to deliver profitable growth.”
Global container volumes continue to show a sharp decline — DP World saw consolidated group volumes fall 8% in January and February this year.

Talks to push London Gateway project forward

http://www.lloydslist.com/ll/news/talks-to-push-london-gateway-project-forward/20017631910.htm

THE Port of London Authority and DP World are in detailed discussions about ways to push the London Gateway container terminal development forward, despite the economic downturn.
Options include reducing the depth of the planned dredge and changing the phases of development, said PLA chief executive Richard Everitt.
Work on the giant container port and logistics park development at the Shell Haven site on the Thames had been due to get under way early this year but the project stalled as DP World began re-examining its major investment projects.
“The positive is that despite all of the difficulties, there is a real desire to get going on this,” Mr Everitt said. “But of course, it has to make sense economically and a lot of work is going on to try to achieve that objective. I think we all realise that this is only going to happen if we can find ways of doing things at minimal cost to get started. I think ways will be found and I think the UK needs to find the ways.”
DP is working to ensure the cost of the project “is tailored to the world we are in now rather than six months ago”, he added.
“This market is certainly advantageous in terms of construction costs. You just look at each and every element and we are working with them on the strategy.”
The dredging of the channel and berth pockets is directly linked to the land reclamation required for the new port. “You can’t do the dredge until you need the material and you can’t to the building until you are doing the dredge,” Mr Everitt said.
The PLA has done some “very interesting, innovative work” with DP on the dredging plans, he said. This included the possibility of reducing the depth.
“We are looking at dynamic under keel clearance, for example. Each cubic metre of material you take out costs money. It depends what tidal window you are prepared to work to – of course it has to be competitive.”
A spokesman for DP World said: “We announced to the market in January that all new DP World development and expansions were under review and once this review is complete, there will be fresh information made available.”
DP World is due to make a new trading announcement to the market tomorrow.
The London Gateway project, to be built in phases, provides for a total 2,700 m of container quay with depth alongside of 17 m and total annual capacity of 3.5m teu when complete.
Mr Everitt said the development was a unique opportunity. “This is about a major logistics park as well as a port. If it was just replicating what you have somewhere else, it would not be so attractive. But this is a very different scenario; an integrated major logistics park with boxes not more than a few hundred yards away.
“When you consider the environment, and cutting down road miles and trade miles, that is a hugely attractive proposition, even in today’s world.”

How workers protest in France

http://www.xperthr.co.uk/blogs/employment-intelligence/2009/03/how-workers-protest-in-france.html


The French have a certain je ne sais quoi when it comes to industrial action. When workers at a Sony factory in south-west France were unhappy about their redundancy terms they locked the head of Sony France - along with the HR director - in the factory, overnight. Apparently, it was all fairly good humoured and led to the re-opening of talks.
So far, British industrial action involves a more hands-off approach, but I wonder whether senior leaders involved in mass redundancies should be advised to store a sleeping bag and a toothbrush in the office, just in case...

Wage freezes will only make downturn worse, says TUC

http://www.tuc.org.uk/newsroom/tuc-16162-f0.cfm

Commenting on inflation figures released today (Tuesday) TUC General Secretary Brendan Barber said: 'This is not good news. If we get stuck in a deflationary spiral then the recession will be longer and deeper.
'While many workers in companies hit hard by the recession have agreed modest or even zero increases in pay to save jobs, a generalised wage freeze across the economy will make the downturn worse not better.
'The cost of living is only one factor in wage negotiations, and only those with tracker mortgages have really seen a big impact on their household finances - as the difference between RPI and CPI shows.
'The last thing our precarious economy needs would be a further collapse in consumer confidence caused by a standstill in household budgets.
'Calls for a freeze in public sector pay are particularly unjustified. Public sector pay has fallen behind in recent years, and the modest increases in the pipeline will not make up this difference. Tearing up agreements reached after hard negotiation would be bad faith and hit morale.'