Is MWUN selfish for calling for increment of port charges?

The Maritime Workers Union of Nigeria (MWUN) has threatened to shutdown the ports if the Federal Government does not increase Terminal Handling Charges at the ports. In this report, TOLA ADENUBI highlights the implication of such move.

THE Maritime Workers Union of Nigeria (MWUN) recently vowed to shut-down port operations if the Nigerian Shippers’ Council (NSC) fails to approve the request for an upward review of terminal charges by seaport terminal operators.

Recall that several attempts by the terminal operators to review their charges have been opposed by the NSC who insisted that such charges must be negotiated and approved by the Council as port economic regulator.

Speaking with journalists recently at the union’s secretariat in Lagos, President-General of MWUN, Comrade Adewale Adeyanju said the union is making a case for an increase in terminal charges to enable terminal operators fulfil their financial obligations to dockworkers and other shipping workers who are members of the union.

Adeyanju said as a result of the prevailing economic conditions in the country, the terminal operators have expressed concern that they may not be able to honour the provisions of the minimum standards of dock-labour, which they recently signed with the union except they are allowed to increase their charges.

According to the MWUN President-General, “The Shippers’ Council should wade into this matter because this is a serious matter and if nothing is done, we will shut down the port.

“We are only appealing now that they should sit down and review the terminal operators’ tariff. If the terminal operators are asking for a review in their tariff and it has not been reviewed for close to 10 years and they have obligations to the workers, how will they fulfill it?

“Now we are going for Collective Bargaining Agreement (CBA) for dockworkers and some of them (terminal operators) have been complaining. Is the Naira and Dollar the same equivalent now?

“The terminal operators have been engaging the service of dockworkers over the years so people should not be saying the union is selfish for stating the obvious reality. Over the years, the tariff of the operators has always increased, so why are they stopping them from increasing their tariff or is it until we shut down the port because they are not ready to negotiate dockworkers CBA?

“Dockworkers CBA is next month and we have been getting reactions from the terminal operators. If they don’t review the take home of the dockworkers, we know what is going to happen because the operators are trying to tie it to the review of their charges.

“If we don’t get any reaction from Shippers’ Council or NPA, we might be forced to shut down port operations. We are not giving ultimatum on this matter but anything can happen.”

 

IMPLICATIONS AND CONSEQUENCES

For port users, Nigerian masses will be on the receiving end of any increment of Terminal Handling Charges, if such is approved. Speaking with the Nigerian Tribune on the development, a former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), Chief Eugene Nweke explained that any increment of port charges at this moment will affect cost of doping business at Nigerian ports and the difference in cost will be transferred on the market price of products at the markets.

In the words of Chief Eugene Nweke, “Honestly, I expected more objective inputs with regards to Unionism playing to the gallery, even warning an economic regulator to this effect.

“The issue that borders on the port industry handling charges is akin to the overall workings and national performance of our Consumers Prize Index – CPI unit, especially taking into cognisance the effect of any increment on a salary earner.

“Unionism within the maritime context is not peculiar nor limited to Nigeria alone. I guess from strong records of previous leadership performances, the Maritime Workers Union of Nigeria understands where and how to achieve its workers benefits. However, its present approach and applications and resolve falls short of industry expectations.

“Setting standard for placing workers increment has no correlation with industry services and handling charges, which is purely an industry concerns, and of national interests.

“It is absurd where the terminal operators now resort to use a subtle coercion tool to intimidate the Port Economic Regulator in whatever forms and manner, especially as exhibited through MWUN.

“There are many contending factors at the disposal of the Terminal Operators to bring to the negotiations table with the Nigeria Shippers Council, to stress home their plight.

“Again, I urge the Maritime Workers Union of Nigeria not to consider their interests above industry and National interests. Please, Let’s note here that the port concession agreement set forth procedures for charges increment on handling or service charges. We must not jettison that to a short way aimed at coercion.”

 

NO BASIS FOR INCREMENT

In a separate chat with a Customs Broker, Phillip Anyanwu, the Customs Broker said that the terminal operators have no basis to increase port charges based on the revelation by the Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko that the Authority has not increased its tariff in the last 30 years.

“The Maritime Workers are being pushed by the terminal operators. What is happening can be likened to the Biblical context of Hands of Esau, voice of Jacob. The terminal operators want to increase their charges, and are using the maritime workers to force the NSC to approve such.

“But the NPA MD, Mohammed Bello-Koko while on a television programme said that the Authority has not increased its tariff since 1993. The man said that the rates that NPA has been using since 1993 is still the same rate that is being used as of today.

“So, what is the basis for the terminal operators to want to increase port charges? They claimed that inflation rate has gone up, but as tenants, what they have been paying to Government as lease fee has not changed since 1993, according to the NPA.

“Pushing for increment of Terminal Handling Charges at this period will be cruel to the Nigerian masses because any increment will affect the rates at which cargoes are cleared from the port terminals.

“If rates of cargo clearance changes, then cost of cargoes at the markets will go up. Importers are in business to make profits. If importers are subjected to increased cost of Terminal Handling charges, then they (importers) will push the increment of whatever they import to the man on the street. It is the common man on the streets that will pay for the increment at the markets.

“I will beg the MWUN not to be selfish in their thoughts. The level of poverty in the land is high at the moment and Nigerians cannot afford any extra cost to product rates in the markets. The maritime workers should not allow the terminal operators use them to achieve their selfish motive.

“If the terminal operators want an increment in the cost of what they charge at the ports, there are procedures laid out by the Port Economic regulator to do that. Asking the maritime workers to threaten the Port Economic regulator with a port shutdown is definitely not one of such procedure,” Mr. Phillip Anyanwu told the Nigerian Tribune newspapers exclusively.