Worth it at any price?, page-68

The unions that priced themselves out of a job
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Teekay unions demanded a 38 per cent pay rise for Port Hedland tugboat workers already earning up to $390,000 a year.
by The Australian Financial Review
Here's a classic case of a trade union pricing its members out of work. Iron ore shipments out of the Pilbara are booming as the resources boom moves into its export phase. But, as it comes under pressure to cut costs in line with falling iron ore prices, BHP Billiton this week axed its Port Hedland harbour tug contract with international shipping giant Teekay. Instead, the mining giant has retained the services of the traditionally non-unionised Rivtow, a subsidiary of Brisbane's Riverside Marine.
In August last year we revealed that the Teekay unions had demanded a 38 per cent pay rise for Port Hedland tugboat workers already earning up to $390,000 a year. At those prices the company said it would struggle to remain competitive. At the time, the Australian Institute of Marine and Power Engineers – one of three unions involved on each tug – complained about our headline – 390k tugboat workers to strike for 40 per cent rise.
Back in the real world, shooting the messenger for bringing these unsustainable terms to light didn't work. Teekay expects the lost contract to cost 225 jobs and the unions must now explain to its members what has happened to their jobs.


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