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Panama’s Manzanillo terminal partially paralyzed by strike

Panama’s Manzanillo terminal partially paralyzed by strike
Panama’s Manzanillo International Terminal (MIT), a joint venture between Seattle-based SSA International and local investors, has been partially paralised by an illegal strike since last Wednesday night, and currently working at only 50% of its capacity, MIT’s GM Stacy Hatfield told Seatrade Global.

“We are working with management, contractors and some of MIT’s union members who have refused to support this illegal strike, but 15 vessels have omitted calls due to the backlog. The last quarter of the year is traditionally the period when there is more cargo movement due to the holidays,” Hatfield said.

MIT, located on the Atlantic entrance of the Panama Canal, like most of Panamanian ports during the first half of 2013, has seen a reduction of cargo volume by 1.3% to 998,341 teu compared to 1,01m teu during the first half of 2012.

Although cargo grew by 3.4% in 2012 to 2.05m teu, with Venezuelan cargo accounting for 18% of this volume. A 14% decline in Venezuelan cargo during 2013 is the primary factor for the overall fall in cargo volumes, says Hatfield. MIT is not alone in this situation which is similar in many ports of the region.

‘It is unlikely that there will be significant growth during 2013, but MIT should close the year with 2m teu again’, he said.

The apparent reason for the illegal strike dates back to last July when a group of workers, members of the MIT’s union (SITRAMIT) claimed that over-time pay was not being calculated accurately, although the same payroll process has been in place since 1995. The Ministry of Labour has conducted two audits and issued a ruling in MIT’s favour on 30 October, considering the workers’ claims to be unjustified.

According to a statement from MIT, six workers were released on Wednesday night due to their refusal to follow instructions and, in one case, jeopardising the safety of other personnel in the port. This appeared to be the catalyst for the illegal strike. Many of the union employees have refused to take part in this action, and claims of threats and intimidation against them by other union members have been widespread.

As of Saturday, more of MIT’s union employees have been returning to work. MIT’s total labour force is around 1,200 workers.

MIT management and SITRAMIT will meet again this week with the Labour Ministry to mediate and resolve the dispute.

Last year, the Pacific terminal of Balboa, a subsidiary of Hutchison Ports Holdings saw its activities stopped by a two-week strike that affected cargo movements.