The cheapest ports in the Eastern Baltic

2012-02-29, 15:11

The cheapest ports in the Eastern Baltic

 http://www.jura24.lt/en/news/port/the-cheapest-ports-in-the-eastern-baltic-411348

Vidmantas Matutis

v.matutis@kl.lt

There are new tendencies in the ports of Lithuania, Latvia, Estonia and Russia: although the number of cargo is increasing, the salaries for dockers are in decline.

The difference of three times

Alexander Meyer has started working as an ITF (Transport Workers Federation) coordinator for the Baltic countries two years ago. He lives in Tallinn. He claims to have well researched the situation of dockers’ salaries in Russian and Baltic ports. The lowest salaries are in Estonia (up to 950 euro); Russia, Lithuania and Latvia have more or less similar salaries of up to 1000 euro. These are standard salaries for certain norms. Salaries also depend on a company, amount of handled cargo and collective agreements. The lowest salaries are in coal handling terminals. Klaipeda does not handle coal and Estonia sees a decline in their coal handling. The main ports for coal handling are those of Riga and Ventspils. The low salaries of the Baltic ports have become a problem for Scandinavian ports. Their unions are afraid of influx of migrant workers. ITF implements steps in order to raise minimum wages for dockers in the Eastern Baltic countries. The idea of increasing salaries for dockers receives a lot of negative reaction from the governments. Alexander Meyer claimed that the governments are pushing employers not to increase salaries for dockers. The average salaries are low in all of these countries. The governments are afraid that when the salaries for dockers are increased, the same tendency can be applied by other employees.

Today, the minimum wage in Finland is 1000 euro, while in Estonia it is 290 euro. The minimum wages are even smaller in Lithuania and Latvia. Finland, which is famous for dockers’ strikes, has two standards for their wages: the lower (2700-3000 euro) and the higher (3000-3500 euro). Such salaries are received by dockers for standard work of five days per week and eight hours per day. There is also a possibility to receive extra payments for additional work and work on weekends.

The countries are promoting unity

It is believed that cargo tariffs both in Scandinavian and Baltic countries are similar, therefore, the salaries have to be also similar. Why they differ three times in reality? Alexander Meyer thinks that this is due to the fact that professional unions are much stronger in the Scandinavian ports. When a new employee is hired, he becomes a member of a union within three days. These countries also encourage the movements of professional unions. The employer requires from an employee to join union, otherwise the company has to pay itself for employee. An employee becomes a part of union and pays that fee himself. Thus, it is not surprising that in Finland 95 per cent of dockers, including administration, are members of the union. In these countries, professional unions are considered to be a part of democratic system. In Estonia, 7 per cent of dockers are members of professional unions; in Lithuania – 10 per cent and in Latvia – 20 per cent.

Dockers are afraid to join professional unions. The managers of stevedoring companies are pushing their workers not to join such unions. In some ports of the post-Soviet countries, the so-called “yellow” professional unions are created. The same thing happened in the port of Ust Luga. Chairman of a union was fired because he attended a conference in Klaipeda. He was told by his superiors that they are not going to tolerate his visits to competing ports. Dockers are a bit more organized in other Eastern Baltic ports. Their membership in various unions makes up from 40 to 60 per cent.

The similar tendency is also in the port of Klaipeda. Out of 600 dockers in the port of Klaipeda, 300 hundred are union members. Currently, there are two dockers’ associations, KLASCO dockers uniting “Dockers Professional Union” and another association uniting all the other dockers called “Uostininkas” (“Docker” eng.).  Dockers Professional Union has 200 members and Uostininkas has 106 members. During the last years, a lot of members left both organizations due to the pressure of their employees.

Unfavorable new trends

Mr. Meyer warns that Estonian ports see unfavorable trends for cargo handling companies. New cargo handlers are appearing, which manage to reduce port charges by half. The particular case has been recorded in the Estonian port of Muga. Dockers are accepted as temporary workers and they receive lower salaries. Klaipeda dockers also mentioned the same conditions: such tendencies are also appearing in Klaipeda and some of the dockers are offered to leave their jobs, on the grounds that some other workers will be found to take one’s place.

Another trend is that upon the arrival of more cargo in the ports, the wages for dockers are not increasing. The port companies have created work evaluation rates that are a complete mystery for employees. In some of the Klaipeda port companies, the atmosphere among fellow dockers is especially negative. The system is such that salaries of senior dockers are dependent on the amount of work done by dockers. Senior dockers are pushing dockers to do more work, explaining that they are in charge.

The companies also have shift bosses which are seen as idle supervisors. Why so many bosses? Why distrust dockers?

“In European ports, dockers are valued people. In Estonia it is considered to be a shame to work in docks. It means that you are a loser. We have to strife and achieve better status for dockers and their profession,” – considered Mr. Meyer.

Both in Estonia and Lithuania, dockers are compared to unskilled workers. In reality, dockers are highly skilled workers working with extremely difficult handling equipment. Dockers’ professional status is defined neither in Estonia nor in Lithuania. In many countries, dockers are released to pension five years earlier than others. Their work is considered to be dangerous. The same trend to release dockers earlier is maintained in Russia. According to the European Union’s conventions, there should not be any dangerous works. Therefore, dockers found it hard to prove their professional injuries.

In reality, the work of dockers is dangerous. The work continues during the extreme weather conditions whether it snows or rains. They are surrounded by an enormous amount of dust clouds. However, dockers are hearing somewhat sarcastic remarks of their employees that they are working near the sea, where the weather is saturated with iodine, as if it was a spa.

Commentaries

Antanas Barusevicius

Director, the Trade Union of Dockers, “Uostininkas”

The biggest problem is that our dockers have to do a wide range of activities. If today you are carrying bags and tomorrow you are going to work on a crane, this means a possible loss of qualifications. In the Western ports, dockers are much more specialized.

 The majority of our dockers come from Klaipeda Smelte. The salaries of KLASCO dockers are higher but they are not boasting about their work hours. The company measures their payments, according to the amount of handled cargo.

The salary of Klaipeda Smelte crane operator was 30 LTL per hour. Now, the salary has decreased. Second class dockers receive a payment of 16 LTL per hour, third class dockers – 14 LTL per hour. In addition to this, there are bonuses and extra payments. In a small Malku bay terminal, the salaries for dockers are 20.5 LTL per hour and 16 LTL for additional employees. It is hard to say when our salaries reach the levels of

Finnish dockers. This also depends from dockers, who are not participating in dockers’ unions. The Government is not interested in non-governmental sector. The unions are a headache for the Government. This is also proved by the Greek example.

Vladimiras Bendoraitis

Chairman, the Trade Union of Dockers, “Dockers Professional Union”

Our union unites only the workers of KLASCO. There are not too many joining members. Young people do not want to work as dockers. Somewhere, in a foreign factory, they tend to earn those 3.5 thousand LTL much more easily than here in the docks. The best paid KLASCO dockers work in the Sea Ferry. There is not enough work in cargo and fertilizer storages. When there is no work, the payments are decreasing. However, when the cargo handling is increasing, the dockers do not experience any growth in their income as well.

The biggest problem for trade unions is our Government’s indecision to ratify international agreements on dockers and their work and health conditions. Lithuania has not succeeded in managing legislative framework of dockers’ work conditions. It is good that there is now an ITF coordinator for Baltic countries. A campaign on cheap ports was launched. We hope that the conditions in our fast-changing region will change.

Compared to other European countries, our region seems to be very poor. The salaries of dockers differ in three to four times compared to Scandinavian. Even in Croatia, a country which is not a part of EU and devastated by war, the salaries of dockers are higher. The difference is about 2.5 thousand euro. The conditions of our dockers are even worse than in Russia. The country has some of its old laws providing protection for dockers. Our system is chaotic and a lot of powers are transferred to employers.

Dockers’ wages per month (in euro)

Country           Wage

Estonia             880-950EUR

Russia              900-1000EUR

Lithuania          900-1000EUR

Latvia               900-1000EUR

Finland             2700-3500EUR

Sweden                     About 3000EUR

The Netherlands        About 4000EUR

Germany                   About 3500EUR

Denmark                   About 3500EUR