APM Terminals Reacts to ITF’s Claims on Aqaba Port Strike

Business & Finance

APM Terminals Reacts to ITF's Claims on Aqaba Port Strike

APM Terminals has issued a statement that disputes The International Transport Workers’ Federation (ITF) press release on Aqaba which describes how Jordanian employees within the General Union of Port Workers (GUPW) went on strike last week over contract changes and the company’s failure to negotiate a Collective Bargaining Agreement at Aqaba Container Terminal, Aqaba, Jordan.

“We find the ITF’s statements misleading, incorrect and not supported by facts. Clearly, the ITF has not received accurate information from its affiliate organization in Jordan. This is counterproductive and results in delays to the regional transportation hub of Jordan and global supply chains. The strike was premature and illegal especially when held during a formal mediation process – which cannot be interpreted as a union victory,” said APM Terminals Regional CEO, Peder Sondergaard.

APM terminals says that Aqaba Container Terminal is negotiating a new collective labour agreement with the GUPW. The current labour agreement has been in negotiation since March 2014 and due to expire in June 2014 since no agreement could be reached. Prior to the expiration of the collective labour agreement, the case was referred to the Ministry of Labour for the formal mediation and arbitration process. The matter is now with the Labour Court and the ruling is expected soon.

The statement goes on to say that Jordan has a formal labour arbitration system established through the Ministry of Labour. If the unions and employers cannot agree, the process enters a ‘time out’ with formal mediation and arbitration to seek a solution. During this period, neither the unions nor the employer has the right to take industrial action such as strikes and lock-outs.

APM Terminals says that despite the ‘time out’ period, the union held an illegal strike in July and again last week.

The authorities subsequently intervened and requested the union strikers to leave the terminal to avoid tension with union members who desired to work at the port, the statement says.  APM Terminals claims that the intervention was not requested by ACT. No force was used, according to the statement,  although it was reported that four union people were briefly detained on security grounds. ITF’s statement that 150 people were arrested is false, APM Terminals states in a release.

ITF also describes that ACT had issued penalties during (or as a consequence of) the strike and that 23 people had been dismissed. According to APM Terminals this is not factually correct; saying that internal regulations were followed and no dismissals took place.

Aqaba Container Terminal has signed a MOU with the local GUPW whereby they have agreed to return to work and respect the formal process already in progress.

Press Release