Government interference hampering maritime growth – MDU

The Maritime and Dockworkers’ Union (MDU) has identified undue political and government interference in the maritime industry as key impediments to the growth of the sector.

The group observes that these two factors were largely responsible for the sector’s inability to create an enabling environment for investors and the incessant job losses.

The MDU registered its discontentment at the 62nd Session of the National Executive Council (NEC) of the Maritime and Dockworkers’ Union (MDC) held on 22nd December, 2017.

“The Council expresses deep concern about the political interference by governments in the operations of the maritime industry, which has the tendency to affect the efficient operations of the maritime industry.

“The Council notes with concern that the Maritime Dockworkers’ Union (MDU) has been side lined by policy makers concerning policy decisions that relates to the maritime industry.

“The Council expresses its unhappiness that government did not involve the Maritime and Dockworkers’ Union in the discussions relating to the increase in the number of registered stevedore companies especially when the decision would lead to job losses in the maritime industry and the transformation of permanent jobs to casual jobs,” the resolution noted.

While affirming its readiness to liaise with government to remove the bottlenecks bedevilling the sector, the resolution highlighted the imposition of taxes on overtime work as one of the challenges affecting the sector.

The resolution decried the fact that government blatantly ignored the group’s input during the registration of new stevedore companies operating at the ports.

The number of stevedore companies operating at the port has increased by 300 per cent in 2017, according to the resolution.

“The Council noted that there had been a worrying development of a drastic increase in the number of the stevedore companies to operate in our ports. There were Seven (7) operational stevedore companies before additional thirteen (13) new companies were registered in recent times by the Ghana Ports and Harbours Authority (GPHA) to swell the number to twenty (20) stevedore companies, which translates into about 300 percent increase in the number of stevedore companies to undertake stevedore operations in our ports.

“The possibility exists that the number of registered stevedore companies may continue to increase. Currently, four shore handling companies have been registered to undertake the operations previously handled by one company.

“The Council is concerned that while the number of stevedore companies had increased by about 300 per cent, 2017 experienced about 10 per cent increase in cargo throughput over 2016 figures, indicating a yawning gap between the high rate of increase in the number of registered stevedore companies and the minimal increase in the cargo throughput,” it added.

Below is the full resolution of the 62nd Session of the National Executive Council (NEC) of the Maritime and Dockworkers’ Union (MDU)

RESOLUTION OF THE 62ND SESSION OF THE NATIONAL EXECUTIVE COUNCIL (NEC) OF THE MARITIME AND DOCKWORKERS’ UNION (MDU) HELD ON 22ND DECEMBER 2017 AT THE HOSPITALITY CENTRE, TEMA.

The 62ND Session of the National Executive Council (NEC) of the Maritime and Dockworkers’ Union (MDU) held on 22nd December 2017 discussed the activities of the union within the context of the national and global economic situation and the effects of the policies of government on the maritime industry.

The Council discussed the prospects and operational challenges of the stevedore business because it constitutes an important local content of the maritime industry, which creates jobs and guarantees retention of revenues from the maritime industry in the national economy among other benefits.

The Council noted that there had been a worrying development of a drastic increase in the number of the stevedore companies to operate in our ports. There were Seven (7) operational stevedore companies before additional thirteen (13) new companies were registered in recent times by the Ghana Ports and Harbours Authority (GPHA) to swell the number to twenty (20) stevedore companies, which translates into about 300 percent increase in the number of stevedore companies to undertake stevedore operations in our ports. The possibility exist that the number of registered stevedore companies may continue to increase. Currently, four shore handling companies have been registered to undertake the operations previously handled by one company.

The Council is concerned that while the number of stevedore companies had increased by about 300 percent, 2017 experienced about 10 percent increase in cargo throughput over 2016 figures, indicating a yawning gap between the high rate of increase in the number of registered stevedore companies and the minimal increase in the cargo throughput.

The Council expresses the opinion that it is not a prudent business decision to have an increase in the number of registered stevedore companies without a corresponding increase in the cargo throughput, which raises questions as to the objective of the decision.

The Council regards stevedore operations as an important local content aspect of the maritime industry, which provides employment to over 2,000 workers and the decision relating to the stevedore companies would affect stevedore operations negatively resulting in significant job losses. Already, some of the stevedore companies have initiated measures to downsize labour through redundancies while others are transforming permanent workers to casual workers.

The Council holds the view that the increased number of stevedore companies can be described as chaotic and would lead to unhealthy competition among the stevedore companies, which would affect the efficiency of our ports. When our ports are not efficient, it will affect their capacity to compete globally.

The Council expresses deep concern about the political interference by governments in the operations of the maritime industry, which has the tendency to affect the efficient operations of the maritime industry.

The Council notes with concern that the Maritime Dockworkers’ Union (MDU) has been side lined by policy makers concerning policy decisions that relates to the maritime industry.

The Council expresses its unhappiness that government did not involve the Maritime and Dockworkers’ Union in the discussions relating to the increase in the number of registered stevedore companies especially when the decision would lead to job losses in the maritime industry and the transformation of permanent jobs to casual jobs.

The Council notes that though overtime work is voluntary as per the Labour Act , maritime business which runs on a 24-hour work schedule, survives on overtime work and that makes overtime compulsory for maritime employees.

In view of the aforementioned concerns, the 62ND Session of NEC of the Maritime and Dockworkers’ Union resolves as follows:

1: That government must as a matter of urgency, save the dying stevedore companies from total collapse by reviewing the policy of increasing the number of stevedore companies without due regard to the capacity of the ports and the level of increase in the cargo throughput of the ports.

2: That government should as a matter of urgency hold stakeholder consultation on its policy direction for the maritime industry with the active participation of the Maritime and Dockworkers’ Union in such policy discussion.

3: That government should reinstate the previous policy of removal of tax on overtime work for maritime employees because the structure of maritime business is such that it survives on overtime work which requires maritime employees to undertake compulsory overtime work.

In conclusion, the Maritime and Dockworkers’ Union wishes to express its readiness to work with government and its agencies in the maritime industry especially the Ghana Ports and Harbours Authority(GPHA) to ensure that our ports become the maritime hub and gateway to the ECOWAS sub-region.