Santos Outcome

Press reports (11 - 18 Apr 2001)

These translated press reports describe the ending of the Santos dispute. I haven’t seen any report directly from the union to clarify whether anything was conceded by Ogmo on 11 April, or whether talks with the Federal Government over the financing of a Voluntary Severance Scheme actually took place on Monday 16 April, as previously indicated (see Santos Voluntary Layoffs will be discussed next week), or their results. For the original press reports, click the Brazilian links. – Greg

Wednesday 11 April 2001 - 11:26 am
Growing impasse between stevedores and Ogmo

Wednesday 11 April 2001 - 19:22 pm
Stevedores reach agreement in Santos

Thursday 12 April 2001 - 14:56 pm
Ogmo selects stevedores in the Port of Santos

Thursday 12 April 2001 - 16:08 pm
Port of Santos returns to work after 16 days

Wednesday 18 April 2001
Ports hinder foreign trade, says Giannetti


Growing impasse between stevedores and Ogmo

José Rodrigues
Wednesday 11 April 2001 - 11:26 am
http://www.estadao.com.br/agestado/noticias/2001/abr/11/82.htm

The growing impasse continues over the selection of stevedores for port operations, with no solution in sight for the crisis in the Port of Santos which began on 27 March as a general port stoppage over the Court’s finding that the Labour Management Agency OGMO should take over the selection [of casual workers] in place of the Stevedores Union. On Wednesday [11 April], OGMO only managed to select 4 stevedores from the wall (selection point) in 7 hours.

An agreement between the two bodies is increasingly difficult. In a return to work yesterday morning, the union carried out a pre-selection, attacking the inexperience of the agency selectors. Ogmo reacted that afternoon by not accepting the pre-selection and at the wall at 7 p. m., tried to distribute numbers to the stevedores, who did not accept them. In this way, Ogmo failed to select stevedores, who turned up as normal to the recruitment points.

Of the 26 ships moored this morning,11 were halted. Apart from the bulk liquids terminals (mechanised operation) and those which obtained a preliminary ruling to work without stevedores, some operators are reaching direct agreements with the Stevedores Union and this practice must begin to be curtailed by Ogmo.

Stevedores reach agreement in Santos

Wednesday 11 April 2001 - 19:22 pm
http://www.estadao.com.br/agestado/noticias/2001/abr/11/264.htm

Santos, São Paulo - After two days of tension, stevedores and the Labour Management Agency (Ogmo) offered an agreement to end the impasse over selection of workers for port operations, which should be normalised on Thursday. The understanding was proposed this morning by the President of the Stevedores Union, Vanderlei José da Silva, after the repetition of the same problems experienced on the previous day during the recruitment of workers carried out by Ogmo.

With the perspective of ending the discord between the parties, the Public Ministry of Labour agreed to mediate talks which carried on throughout the day. The Stevedores Union agreed to definitively transfer the selection [of casuals] to Ogmo, in conformity with Law 8.630 on Port Modernisation, ratified by the Labour Court.

“Fortunately,” Ogmo Operations Director Nélson Domingues stated, “good sense prevailed and the Port of Santos will resume operations without the conflicts of recent days”.

Ogmo selects stevedores in the Port of Santos

Renata Stuani
Thursday 12 April 2001 - 14:56 pm
http://www.estadao.com.br/agestado/noticias/2001/abr/12/102.htm

São Paulo - The Labour Management Agency (Ogmo) succeeded today in carrying out the selection of stevedores, in place of the union which had maintained control of this task for 65 years. With this, the Port Law finally began to be fulfilled in the country’s principal port. Ogmo Operations Director Nelson De Giulio stated that the selection is being made on a rota basis, which includes all stevedores, and not only those chosen by the union.

The mood in the port this morning was calm, but Military Police remained on guard, mainly at the stevedores’ assembly points. Thirty seven ships were docked and all are being handled normally. According to De Giulio the day’s first selection at 7 a. m. passed off peacefully. “There was some delay due to operational difficulties, already foreseen” he declared.

The Stevedore’s Union leader Rodney da Silva confirmed that the crisis was over, for the moment. “It is Ogmo who selects the workforce today, in accordance with the agreement achieved yesterday,” he stated. The Ogmo President André Canoilas and the Stevedores’ Union President Vanderlei José da Silva managed to reach an understanding, after a meeting which lasted until 2 a. m. yesterday.

The trade unionist accepted that Ogmo would take over the selection, in accordance with the law. Now the stevedores are expecting R$ 75 million from the Federal Government for a Voluntary Severance Scheme (PDV). The resources will be controlled by Ogmo and the Union of Port Workers (Sopesp).

De Giulio also stated that Ogmo would no longer be required to pay the fine of around R$ 4 million as set by the Public Ministry of Labour, for non-compliance with the Port Law. “As the law is now being obeyed, the Court has lifted the obligation to pay this amount.”

Port of Santos returns to work after 16 days

Thursday 12 April 2001 - 16:08 pm
http://www.dgabc.com.br/Economia/Economia.idc?conta1=201053

Santos, Latin America’s biggest port, resumed full operations on Thursday for the first time in 16 days, according to the São Paulo State Dock Company (Codesp). Despite the ending of the stevedores strike on Tuesday, activity in the port, ever since, was partial due to conflict between the Labour Management Agency (Ogmo) and the Stevedores’ Union.

On Wednesday the Stevedores’ Union President Vanderlei José da Silva confirmed that the dockers would attend the Ogmo selection according to a rota based on numerical order, the criterion which caused the impasse with the stevedores. The agreement was reached on Wednesday night.

The stevedores began the strike on 27 March as they did not accept the transfer of control over selection to Ogmo, a role previously carried out by the union. Ogmo’s responsibility was foreseen in the law and upheld by the Court.

Ports hinder foreign trade, says Giannetti

Renata Stuani
Wednesday 18 April 2001
http://www.estadao.com.br/agestado/noticias/2001/abr/18/199.htm

São Paulo - The Executive Secretary of the Chamber of External Commerce (Camex), Roberto Giannetti da Fonseca, declared today that port impediments represented a “very serious” problem for the foreign trade sector. In his view, if the country does not courageously tackle the port question, it will never have the logistics to improve the competitiveness of export products.

He said that ports could be a weighty obstacle to export growth if they were not modernised, since they will not have the framework to handle products. “If we have a 20% annual expansion in exports, as intended, we will have a port ‘blow-out’ within two or three years,” declared the Secretary, participating today in the opening of the Intermodal South America logistics fair, in São Paulo.

For Giannetti, the ports need to be better equipped and computerised. He believes that computerisation could reduce the high costs of cargo movement, which lessen product competitiveness. Currently, the average cost of container handling in Santos is US$ 250. “It is necessary to lower this figure to the international average, of US$ 90,” he stated.

He said the participation of private enterprise after privatisation was already responsible for improvements, like the mechanised operation of cargo terminals. “Around 75% of cargo handling in the Port of Santos was normal on some days during the stevedores strike, this is very important”.

He defended the division of the São Paulo State Dock Company (Codesp), which administers the port, into two companies, in that one of the divisions would shoulder debts calculated at R$ 300 million inherited from the previous management. The other part of Codesp would be modernised and could even be privatised, he said. The division of the dock company into two is a proposal arising from Codesp itself, and is being evaluated by the Federal Government.