Friday, March 23, 2012

The cost of bad management

So, how much has Ports of Auckland's psychopathic management's attempt at union-busting cost Auckland ratepayers? At least $37 million this year, according to the Herald:

The port company has put the one-off revenue loss from the strikes and the looming month-long mediation period at $12.7 million, plus about $25 million annually from the loss of the Maersk and Fonterra business which has been taken to other ports.
As a result, it is unlikely that their shareholder, the Auckland Council, will see much of their expected $18 million dividend this year. From their point of view, the entire exercise has been a disaster which has cost them money and undermined the long-term value of their asset. The loss from those contracts alone is more than the savings they hope to make by casualisation.

As for Ports of Auckland's management, I'm appalled that they still have their jobs. This pack of inept clowns have wiped millions of dollars from the value of a public asset, and robbed the Auckland Council of the revenue it needs to support its citizens. And they should be sacked for it.