Union claims former Ports of Auckland CEO got big payout

Monday, 6 September 2021

The handbrake's gone on Ports of Auckland's controversial automated system for unloading freight containers because of safety concerns.

The Maritime Union has criticised what it calls an “unreal” payout to former Ports of Auckland boss Tony Gibson.

Gibson resigned from the chief executive position in May over what he described as “persistent, personal attacks” and media criticism.

His resignation came after there were three fatalities in three years at the port, and delays in cargo traffic which resulted in one major shipping company temporarily skipping it.

A damning health and safety report into the port was released not long before Gibson’s resignation, and in August Stuff revealed that Gibson was facing two charges in relation to the death of a worker crushed under a container.

* Former Auckland port boss charged over death of worker crushed by container

Former Ports of Auckland chief executive Tony Gibson resigned in May and is now facing two charges in relation to the death of a worker.

* Ports of Auckland CEO 'bullied' out of job, says Auckland Chamber of Commerce boss

But in the Ports of Auckland’s latest annual report, which was released last Friday, a table of staff salary bands showed one unnamed employee, who had resigned, was paid between $1.78 million and $1.79m in the year to June 30.

According to the Maritime Union, the “unnamed top earning executive” was Gibson, who was paid $820,000 in the previous financial year.

Maritime Union national secretary Craig Harrison said the massive payout was “unreal” and an insult to port workers, Auckland ratepayers, and the families of those who had died at Ports of Auckland.

The “million dollar question” was how the payment was an appropriate decision, he said.

The Ports of Auckland’s latest annual report shows it has been a tough year for the company.

“This is ratepayers’ money that has been handed to someone who is about to appear in court on health and safety charges around the death of a worker.”

Gibson is facing two charges in relation to the death of a worker crushed under a container. The charges, under Sections 48 and 49 of the Health and Safety at Work Act, were brought by Maritime NZ nearly a year after the death of Pala’amo (Amo) Kalati on August 30, 2020.

The father of seven was crushed to death by a container while working aboard a ship.

Ports of Auckland Ltd also faces three charges under the Health and Safety Act.

“Workers who make one off errors at work often face the loss of their job and severe hardship, not million dollar golden parachutes. Many New Zealanders are growing angry at double standards,” said Harrison.

But he said the union was committed to a constructive relationship with new port management if they respected their workforce.

A Ports of Auckland spokesman said the board had to take into account existing contractual arrangements between the company and Gibson, which included confidentiality.

The annual report also showed revenue fell to $226.3m from $231.4m in the previous corresponding period, while underlying profit for the year fell to $20.7m from $30.0m.

It said this was largely driven by the Covid-19 response, the absence of cruise ships and the capacity throughput challenges in the container terminal.

The port's interim chief executive, Wayne Thompson, said the year had been tough, with the combined impact of the pandemic and a fatal accident having a heavy impact on employees and the business.

“For the coming year we are focused on getting the essentials right and putting the company back on track.”

That included work to improve safety and develop a strong safety culture across the business, to complete automation, and to safely get productivity back to higher levels, he said.