PORT SICKOUT

A disagreement between employees and the management at Kingston Freeport Terminal Limited (KFTL) has slowed operations at some sections of the island’s main port with several demands on the table before the full resumption of duties.

The contention stems from a proposed salary increase arising from a job evaluation which the employees are rejecting as “disappointing” and “disrespectful”.

In a letter to the human resource department at KFTL on Tuesday, the employees complained that some colleagues who worked during the period 2020 to 2024 have been excluded from the benefits following the outcome of the job evaluation.

They argued in the January 27, 2025 communication that the decision to exclude the employees fails to acknowledge their “invaluable contributions” made during the COVID-19 pandemic.

The employees further dismissed the 9.2 per cent proposed increase, calling it “deeply disappointing” after a five-year wait.

“After carefully assessing the offer against our value, industry standards, and the current market landscape, it is evident that the proposed percentage fails to reflect the true value we contribute to the core of the business,” the letter said, noting that the offer does not account for inflation.

The group said the offer is inadequate and cannot address the economic realities faced by the workforce amid a 32.9 per cent cumulative rise in inflation for the 2020-2024 period.

Further, the employees noted concern regarding what they said has been a lack of transparency surrounding the findings of the job evaluation.

They want access to the findings and criteria used to determine the proposed offer.

The employees said due to widespread dissatisfaction and frustration with the handling of the job evaluation and wage negotiation which began in 2020, action had to be taken.

“We have also lost confidence in our union representative to effectively address our concerns. This dissatisfaction has led to the current sick-out, and if our demands are not met, the workforce is prepared to take further actions,” the letter said.

“This initiative is not intended to cripple the operations of the company but rather to highlight the magnitude of dissatisfaction among the workforce and draw urgent attention to our concerns.”

Efforts by The Gleaner since last week to reach Barry Dawes, general secretary of Trade Union Congress, the employees’ bargaining unit, have been unsuccessful.

Dawes has not responded to a request for comment or returned phone calls.

WANT ALL TO BENEFIT

The employees want all colleagues who were employed between 2020 and 2024 to benefit from any outcome of negotiations.

They want KFTL to disclose the findings and methodology of the job evaluation exercise “to promote transparency and build trust”.

“We need the proposed percentage offered to accurately reflect employees’ efforts and align with equitable standards. In light of the inflation rate of 32.9 per cent cumulatively for the years 2020 to 2024, we propose 6 per cent, 6 per cent, 7 per cent, 6.5 per cent, 5.5 per cent, respectively for each year compounded on gross salary,” the letter said.

However KFTL CEO Captain Jedrzej Mierzewski, in a January 27, 2025 memo to staff, said the current offer has been “carefully determined” based on the company’s financial capabilities.

He disclosed that since 2016, KFTL “has only suffered financial losses”.

Mierzewski said 2024 is the first year that KFTL’s results are above break-even and that to date, the company has not paid any dividends to its shareholders.

He said all profits have been reinvested in the business to enhance operations, equipment, and employee development.

“Our next five-year plan does not contemplate the payment of dividends, reaffirming our commitment to reinvesting in the company and its people,” he said.

The CEO reminded employees that the total compounded effect of salary increases between 2020 and 2024 amounts to 33.14 per cent. He said, furthermore, since 2020, a four-week bonus has been paid every year.

He said to ensure a “fair and independent” assessment, the job evaluation was conducted by KPMG.

He said the decision was made in agreement with the union, and that the companies included in the survey were jointly selected. Mierzewski said these included 10 of the largest companies in Jamaica within a similar industry.

For regional comparison, he said Cartagena, Colombia, was selected by the union as a benchmark, alongside options such as Colon, Panama, and Caucedo, Dominican Republic.

“From the conclusion of the KPMG report, we decided to implement the job evaluation at a minimum of the 60th percentile. This means that all salaries below the 60th percentile will be adjusted to this level. KFTL will rank among the best-paying companies in Jamaica, ensuring that your compensation reflects industry standards and the value you bring to the organisation,” he said.

He said as a complement to the job evaluation implementation, KFTL is offering an additional increase of 9.23 per cent to all employees.

“We have made a fair proposal which will benefit all employees and allow the company to continue to develop the business and maintain job security,” the CEO said.

However, The Gleaner has learnt that employees are debating whether to seek legal advice.

A meeting is reportedly set for today between the company and union.

Yesterday, Opposition Spokesperson on Investment, Trade & Global Logistics, Anthony Hylton, called for the Government to be proactive in its response to reported rising tension at the Port of Kingston among the workers.

“The threat of instability at the port at this time is most concerning given the congestion already existing at the port due to uncertainties in the regional and global maritime sector, affecting local businesses during the Christmas holiday period and continuing.

“A full-blown strike or other sustained industrial action by workers at this time would exacerbate the already difficult situation. Such actions could jeopardise planned investments in the further expansion of the Port of Kingston, critical to making the port more competitive and resilient in achieving the goal of becoming a global logistics and trade hub,” said Hylton.

Yesterday, KFTL confirmed that there was disruption to operations on Monday but told The Gleaner that the terminal continues to function efficiently, and remains focused on meeting the needs of customers and stakeholders.

The company denied allegations that it has withheld benefits from contract workers or treated them unfairly.

“We are committed to upholding the rights of all employees, ensuring they receive fair compensation and benefits.

“…We assure all stakeholders that KFTL remains steadfast in its dedication to fairness, transparency, and the well-being of all employees. We appreciate the ongoing dialogue with our partners and workers and remain focused on creating a work environment that reflects respect, equity, and opportunity for all,” the company said.

kimone.francis@gleanerjm.com