THE PORT of Kingston - with a ranking of 65 among the world's top 100 ports - continues to expand and develop its world-class facility and is viewed as a centrepiece for transshipment in the region. In addition to boasting an ideal geographic location, the most modern facilities and sound expertise, the Port is also known for its stable industrial relations climate.
The foundation for this stability, which clearly gives Kingston an advantage, has its genesis in the turbulent 1930s, when labour unrests swept across Jamaica, including the finger piers at the Kingston Waterfront. During this time, the many thousand strong labourforce on the waterfront was spread among some 17 different companies, who employed various categories of portworkers to load and unload vessels, as well as work on the docks. At that time negotiations for increased wages were conducted with the wharf companies individually and therefore each company had different rates of pay, which contributed to the instability. As a result, the companies came together in 1939 and formed the Shipping Association of Jamaica (SAJ) as an Employers Trade Union to conduct one negotiation on their behalf. This created the stability that the port required.
FUNDING THE NEEDS OF THE WORKFORCE
After the Moodie Commission in 1966, which responded to the call for improved conditions for portworkers, changes were made on the waterfront, leading to better welfare benefits for the workers and a reduction in outdated labour practices, provision for mechanisation and rationalisation of the workforce which was then reduced to some 3,000 men.
In order to provide social benefits for the portworkers, a special charge a Cess would be collected from the Shipping Lines whose vessels were loaded or unloaded at the Port. The Cess was based on a percentage of the payroll.
In the charge to users of port labour, a specific percentage of the payroll would be deducted and paid over by the Stevedores to the Shipping Association of Jamaica - a registered trade union for employers on the waterfront - to be paid as tax and contribution to the Kingston Portworkers Superannuation Fund and towards vacation pay for the workers as well as guaranteed pay.
PORTWORKERS EMPLOYED DIRECTLY BY SAJ
The legislation governing the establishment of the Kingston Portworkers Superannuation Fund not only defined the boundaries of the Port of Kingston, but also provided for Portworkers to be registered with only registered Portworkers being permitted to work on the port and most importantly for the Shipping Association, to administer the Fund which would be financed from the Cess collected. With the huge costs of the Fund, guarantee pay and the other benefits to the Portworkers, a new formula had to be developed for the calculation of the Cess.
The Cess was therefore calculated on the tonnage of cargo loaded or unloaded, instead of on the payroll time sheet. The Cess on breakbulk cargo would be calculated on the tonnage while containers would be billed per box move.
This enabled the SAJ to finance benefits to workers such as pension, guarantee pay, and later, sick leave vacation leave, national insurance, a health scheme for workers as well as administrative expenses. In addition the Cess has enabled the SAJ to employ an Industrial Nurse, who among, other things, visits and assists Pensioners; especially those who are ill or shut in.
The Cess therefore was a necessary charge to fund the benefits of portworkers and ensure that calm returned to a turbulent labour environment. Training and worker development also became important in equipping the workforce to take on the challenges of the future; and that too is funded from the Cess.
The SAJ is always mindful of the competitiveness of the port and therefore periodically reviews the level of Cess in relation to total expenses and as a consequence, of increased efficiency, the industry has seen at least four reductions during the past six (6) years, the most recent of which was April 2003 when Cess was removed from transshipment cargo while domestic cargoes saw a six per cent reduction.
SECURITY CESS
As the shipping landscape changed over the years, containerisation ensued and the phenomenon of globalisation took hold, a Security Cess was introduced to go towards the training of security personnel, the acquisition of new security equipment and other necessities in providing security for vessels at a high standard. Security was also amalgamated - Security Administrators Limited (SAL) - after it was seen to be problematic in having the three terminal operators at the time with their own security operations on the port.
Today, the need for tighter security management is even more crucial as local systems will have to meet international criteria and be certified under regulations of the International Maritime Organisation (IMO) and those imposed by the United States. This security cess is also collected by the Shipping Association of Jamaica on behalf of Security Administrators Limited (SAL) and APM who is responsible for the security on the transshipment terminal.
