Industrial rounds

Catch up for divers

Deep-sea divers working in the offshore oil and gas industry celebrated the New Year with pay hikes negotiated by the MUA, but there's more work to be done.

An enterprise agreement covering around 200 specialist divers working in the offshore industry - mostly in Bass Strait and off the West Australian coast has delivered long awaited pay rises of between 26 per cent and 50 per cent.

Although the previous agreement ran until March, union negotiators led by Ian Bray, WA Branch, Kevin Bracken, Victorian Branch, and Mick Doleman, national office, were able to capitalise on the current resources boom to win the divers a raise from January this year.

"Divers are some of the most skilled in the offshore industry, taking more risk than most," said Ian Bray. "They're all casual, chasing work all over the world and only have a job half the time. They earned this rise."

Teams of offshore divers work for 12 hours each day up to 160 metres deep on pipeline and well heads installation. They spend up to a month at a time on dive support vessels in diving bells and compression chambers.

Rank and file negotiator, Colin Cameron described the wage increase as a well deserved 'catch up':

"We'd fallen behind over the past three years," he said. "It was 2000 since our last major wage negotiation, we were getting less than riggers when historically the rate was based on pipe welders' wage."

A year of negotiations passed, with Bass Strait divers saying they were not being available for work.

The boom in the offshore industry gave the divers and the union a strong bargaining position. Another advantage was UK divers going for a hefty wage rise last year.

The rush for hydrocarbons development has resulted in a worldwide demand for divers, said Victoria branch secretary Kevin Bracken.

As well as a pay rise, the new enterprise agreement provides for new classifications in the dive team - life support supervisor, assistant life support technician and assistant trainee supervisor.

As well the company now provides return airfares to and from the job.

Sam Hall and Iain McKinnan who were also on the negotiating team thanked Ian Bray and Kevin Bracken for the tremendous help they gave divers.

"They worked very hard over a long period and did an excellent job," said Sam. "They never slackened off."

Now, they all agree it is time for a new EBA for onshore diving. The last was in 1992.

"On shore is going to require a national campaign by all branches in the union," said Ian Bray. "The employers are state based and there are a lot of cowboys in the industry."

Industry shakeup ... but job security here to stay in Patrick Toll SeaRoad reshuffle

The MUA has welcomed pledges that jobs and working conditions will be preserved under the New Year merger between DP World and the private equity consortium Kaplan Equity Limited, headed by former Patrick CEO Chris Corrigan.

MUA National Secretary Paddy Crumlin is to meet with Chris Corrigan, who will chair the two new bulk and general cargo entities created by the merger - P&O Automotive and General Stevedoring (A&GS) and P&O Trans Australia (POTA) - and held extensive discussions with the new management team before the announcement of the merger.

"DP World has given undertakings to protect entitlements and industrial agreements and we are working on a formal document for agreement now," said Paddy Crumlin. "I have spoken to Don Smithwick who will be the manager of the merged company who has also confirmed its intent to work with the union on a smooth transfer of business.

"Our discussions to date indicate the company is keen to discuss the merger with employees affected and is working with the union to establish joint forums to discuss relevant matters."

However, many aspects of the merger are still unclear, such as the contractual arrangements around AAT. The MUA will watch closely how the new structure impacts on the relationship with Toll in this area. Deputy National Secretary Jim Tannock and Assistant National Secretary Rick Newlyn will be working with management on the detail of merger.

The new company is largely an investment structure put together by former Patrick principals including Corrigan and former Patrick Chief Financial Officer Sam Kaplan. Other familiar faces are Don Smithwick, former head of Patrick's automotive and general stevedoring business who will become managing director of A&GS, and Paul Digney, former boss of Patrick's logistics division who will become managing director of the POTA business.

Kaplan Equity Limited holds a 50 percent stake in POTA and a 75 percent stake in A&GS.

The MUA is working on a full analysis of the structure of the merged entity and Kaplan Equity.

Meanwhile, negoiations with Toll/Patrick ground to a halt after management announced it wanted a rollover of the terminals enterprise agreement, with separate talks for bulk and general operations.

Assistant National Secretary Mick Doleman reports the union has rejected this and is calling for a conference of management and worker representatives similar to the last Patrick's EA.

SeaRoad

The new owners of Toll Bass Strait shipping, Tasmanian transport company Chas Kelly have pledged that the jobs of all 350 employees (including around 40 MUA members) of the Toll/Patrick shipping and freight operations are not under threat.

Toll announced the consortium led by Chas Kelly as the successful bidder in February.

"We're more than comfortable with the consortium," said MUA Branch Secretary Mick Wickham after speaking to Chas Kelly. "We look forward to a long relationship and growing the business."

National officials Paddy Crumlin and Mick Doleman will also meet with the branch and the company in the coming weeks.

Paddy Crumlin said the union would closely monitor the terms of the sale and work with all parties and the Tasmanian government to ensure a smooth transmission based on the maintenance of the trade, and the protection of jobs and agreed working conditions.

Toll was required to sell off the shipping operations as part of its undertakings to the ACCC when the company got the go ahead for the takeover of Patrick last year.

Chas Kelly told ABC Radio the takeover would not result in job losses.

"We think the extra business that we can bring to it straightaway from our other companies will ensure the future of everybody that works there," he said. "We don't envisage any redundancies or people having to go elsewhere."

Chas Kelly told ABC Radio the takeover would not result in job losses.

"We think the extra business that we can bring to it straightaway from our other companies will ensure the future of everybody that works there," he said. "We don't envisage any redundancies or people having to go elsewhere."

The takeover has been described as good news for local business. Freight analyst Jim McCormac, told ABC Radio the deal would reinvigorate competition across Bass Strait.

"It's an independent consortium, away from traditional shipping lines and operations," he said. "We're seeing a new player come into the game. And that's very good for competition as well."

The Patrick's shipping division will be re-named Sea Road Shipping, and the freight operation will be Sea Road Logistics.