Port tensions in Spain, the US and Chile

For several weeks, the world port agenda has been marked by the labour conflict in Spain, with the country's stevedores up in arms against the government. Analysts are worried about this case and others, such as the tensions on the west coast of the United States, or the disputes between workers and companies in Chile due to causes that could affect the sector's sustainability.

The motivation for the conflict in the Iberian Peninsula was the adoption of a Royal Decree Law to reform the activity and adapt it to EU regulations in order to avoid hefty fines from the European Union.

Under the Port Law, the Port Stevedores Management Companies (SAGEP) represents some 6,156 workers in a total of 48 associations in the Spanish port system, one per port. These entities are monopolised by the same officials and when the terminals need stevedores to attend a ship, they must resort to the SAGEP of each port.

However, the European Court of Justice issued a ruling on 11 December 2014 stating that Spain was in breach of Article 49 of the Treaty on the Functioning of the European Union, "by forcing companies from other Member States wishing to develop the activity of handling goods in Spanish ports both the obligation to register with a SAGEP and, if applicable, to participate in the capital of the SAGEP, and also for workers of said SAGEP to have a preferential status, with a minimum of such workers contracted on a permanent basis."

After about two years, the Government of Spain, through the Council of Ministers, approved the decree that dissolves the SAGEP in a transitional process of 3 years. The reform foresees the conversion of the Associations in Port Employment Centres into new companies, allowing the terminals to hire the stevedores directly and freely for a service that today represents half the total cost of cargo handling in Iberian ports.

Despite the fact that the State has committed itself to handling the redundancies and to injecting 350 million Euros to facilitate the retirements, the stevedores have called for a series of port strikes, starting from 6 March and carried out over nine alternate days: Monday, Wednesday and Friday, for three consecutive weeks. The main demands are for a register of stevedores to be included in the decree and for all workers to be subrogated in the new work centres that will replace the SAGEP.

According to the figures provided by the main terminal concessionaires, the strikes would cause losses estimated at 50 million Euro per day.

A national shutdown would have a profound impact on the Spanish economy, since 86% of its imports and 60% of exports are handled in ports. Cargo operators would be forced to work in other terminals in the continent.

The Port Union of Chile has expressed its solidarity with the situation in Spain. Its spokesperson, Pedro Riquelme, described the reform as "a very severe blow to the activity of Spanish ports which will only entail labour precariousness, reducing wages and increasing the number of people unemployed."

The International Longshoremen's Association of the United States (ILA) has threatened the closure of ports on the East Coast of the country, in protest at job losses in the sector.

The ILA questioned the excessive regulations and government interference in the ports of South Carolina, which has allowed unsubscribed workers to operate cranes, receive and deliver cargo and carry out other terminal duties. "We are protesting against the damage caused to the nation's economy by the kind of interference that President Trump promised to stop," said Kenneth Riley, ILA's international vice president.

In a statement, the United States Maritime Alliance, Ltd. (USMX) described the threats of a strike along the coast as "unsettling. The contract between the ILA and USMX prohibits any unilateral strike by the ILA for any reason, and if the ILA engages in any unilateral strike, the USMX will do its best to enforce the contractual rights of its members," said the entity.

Puerto Montt and Valparaiso have been the focus of tensions in the Chilean port industry due to the measures adopted by the dockers' unions, especially the blockade of access to terminals, which has occasionally resulted in the diversion of ships to other ports, taking a toll on the unloading operations.

In the south, the workers began a strike to pressure the Puerto Montt Port Company (Empormontt) to take action against the drop in cargo transfer.

In Valparaíso, the conflict has become a constant source of tension between the Maritime Port Coordinator and the port authority. The underlying motive of the crisis of confidence is similar to that of Puerto Montt, with the leaders denouncing decisions that have led to a reduction in the income of workers.

While distant from each other, labour conflicts in different parts of the globe have as a common denominator a restless sector, annoyed with the changes caused by the trade crisis. The State, for its part, must adopt measures to protect the sector's competitiveness so that this recessive wave does not turn into a tsunami.