Strike-hit Port of Liverpool to cut container terminal jobs

The Port of Liverpool has announced redundancies following a “marked deterioration” in the volume of containers it handles.

Workers at the facility returned to work this week following a two week-long strike over a pay claim with the group.

Port bosses said the decision to axe jobs was “extremely regrettable but now unavoidable, given the economic backdrop.”

It said it will restructure its containers division, claiming the unitised cargo market is experiencing a significant decline in volume due to several factors which underpin the bleak outlook on the global economy, with rising interest rates, higher energy costs and weakening consumer demand for manufactured and imported goods.

Container volumes through UK ports fell by 17% during the past financial crisis and this took several years to recover, it said, adding that it is widely expected the current economic challenges may lead to a much higher fall in disposable income over the coming 12 to 24 months.

A spokesperson for Peel Ports Group, operator of the Port of Liverpool, said: “We have seen an increasing decline in the movement of containerised cargo for Liverpool over the last few months, in line with industry figures which show a 4.6% drop in volume across Europe.

“This, together with a recent sharp fall in container vessel charter rates of around 50%, indicate a rapid decline in throughput is expected over the next few months.”

They added: “Whilst this is an extremely regrettable situation, as a responsible employer, we need to restructure now in order to minimise the potential greater impact the downturn in container business will have on jobs, further down the line.

“We are exploring a number of different options to try and protect as many jobs as possible, including redeploying staff in other areas of the business which are less exposed to the economic crisis.

“We have invested heavily in building a business which has changed the outlook and prosperity for the Liverpool City Region, creating growth and jobs across the supply chain.

“Our aim is to grow the business further and create more jobs, not lose them. Every effort is being made to safeguard and protect as many jobs as possible and keep redundancies to a minimum.”

Dockers’ union, Unite, is organising the ongoing industrial action which continues with a seven-day stoppage from October 11.

Unite general secretary, Sharon Graham, said: “Workers have been aware of Peel Ports’ restructuring plans for months prior to going on strike.

“The confirmation today by this extremely wealthy company of those plans is a cynical attempt to intimidate our members into dropping their demands for a reasonable pay rise.

“This unnecessary restructure is just another part of Peel Ports’ long term plan to eke out every last profit at the expense of its workers.

“This dispute is now about jobs and pay, and let me make one thing clear: Any move by Peel Ports to sack striking workers will be met with the full force of Unite’s industrial and legal armoury.”

Unite national officer, Robert Morton, said: “Peel have been giving press briefings about redundancies for months now, so this announcement is nothing new.

“With the confirmation of these unscrupulous plans today, it is apparent that the company was never going to discuss pay in good faith and were always intent on attacking the workforce to bolster its already huge profits. I can guarantee that Unite will not stand idly by in a dispute that is no longer solely about pay, but about jobs as well.”