Union in fear of job loss for maritime workers

PNG Maritime and Transport Workers Union (PNGMTWU) is concerned that competition from two foreign shipping companies in local trade would force local operators out of business, therefore a threat to the jobs of more than 4,000 members.
PNGMTWU president John Mahuk, at the press conference yesterday, said that the granting of coasting trade permits to Hub (Malaysia-based) and Carpenters (Fiji-based) shipping companies by the minister for transport was unjustified and in breach of  the provisions of the Merchant Shipping Act.
Mahuk said the act contained the provision of cabotage which involved the restriction of coastal trade to companies registered in PNG.
The act does allow the minister to give exemption to foreign ship owners from the cabotage provisions under certain conditions in which the two shipping companies are found ineligible.
He added that reports from abroad showed that where the cabotage had been removed or relaxed and where foreign shipping companies were allowed to operate, freight rates increased dramatically forcing local companies to shut down which results in loss of jobs.
The union commended the effort of the present coastal shipping operators who cross-subsidise shipping services to unprofitable ports as part of their social obligations.  
“The companies are also directly responsible for the training of seafarers to international standards and qualification through sponsorship to maritime training institutions.
“The union warned that Hub and Carpenters have selected to trade in coastal profitable ports only and this will result in the reduction of shipping services to smaller unprofitable ports if they are allowed to dominate and control our coastal shipping,” Mahuk said.
He said the  the current exemption provisions of the act relating to cabotage should not be abused or misused to promote financial interest of foreign shipping companies and individuals.
The government should be introducing policies which will promote local competition, encourage expansion of the industry and thereby increasing employment opportunities.
The union and its members called on the transport minister to either immediately revoke or refrain from renewing permits when they expire in four months time in order to avert the demise of our coastal shipping industry and massive job losses.