Piraeus Container Terminal (Part of COSCO) Response Re Alleged Violations of Labour Rights

Piraeus Container Terminal (part of COSCO) response re alleged violations of labour rights of Greek workers

Business & Human Rights Resource Centre invited COSCO to respond to the following item:

“In Greek Port, Storm Brews Over Chinese-Run Labor”, Louisa Lim, NPR, 8 Jun 2011

In response, Piraeus Container Terminal (part of COSCO) sent the following statement:

20 June 2011

“ In responding to the article published by NPR on 8 June 2011 – “In Greek Port, Storm Brews Over Chinese-Run Labor”, Piraeus Container Terminal (hereinafter “Piraeus Terminal” or the “Terminal”) would like to express our disappointment and strong concern on the ungrounded allegations and unfair points of view in this article.

Towards building a company to provide world class container terminal services, the cornerstone of Piraeus Container Terminal’s success is to invest in our people.

Our ultimate parent company, China Ocean Shipping Group Company (“hereinafter “COSCO Group”) is widely acknowledged as a good corporate citizen. COSCO Group is a member of the U nited N ations Global Compact. COSCO Group has been issuing Sustainable Development Report on a yearly basis since 2005, and is committed to strictly observing “the Ten Principles” set by the UN Global Compact, which include protection of human rights. In April 2011, Captain Wei Jiafu, President and CEO of COSCO Group has received from Massport the award of "Guardian of American Workers", which was endorsed by The International Longshoremen Association ("ILA"), a union of port workers who work for various ports on the East Coast of the United States. The proven records have illustrated COSCO’s global values of corporate social responsibilities including cherishing relations with its workers worldwide.

Since the commencement of operation from 1 October 2009, the operation and management of Piraeus Container Terminal, including labor relations and safety, have been following the rules and regulations of the Greek government and have been conforming to the Greek laws. The Greek Government Labor Inspection Department regularly inspects Piraeus Terminal and the Terminal has not been informed of any violation.

The company’s management practices and Human Resources Strategies are aligned to build a healthy work environment in order to attract, retain, and motivate the employees.

Five key-axes of management practice constitute the framework of the Terminal abiding by the Greek Labour Legislation and the Constitution of Greece:

 Ensure healthy interpersonal relationships by building tools and accountabilities at all levels for staff to strive towards respect, care, and trust;  Actively listen to employees’ concerns. Be a voice to the employees while heed employee voices.  Provide learning and development opportunities to all employees  Fair compensation given that employees are viewed as investments and not as costs.  Ensure a safe work environment through continuous evaluation of health and safety risks based on which job-related training of staff is provided. Under this scope, a management system (BS OHSAS 18001:2007) for Occupational Health and Safety of containers’ handling operations has been applied and certified by TUV Nord. Trade union rights of workers are protected by the Constitution and laws of Greece. (Law 1264/82 "the democratization of the trade union movement and the protection of workers ' trade union freedoms" as amended and supplemented by laws 1915/90 and 2224/94). Establishing a trade union of workers in one company is decided only by the employees in that company. Neither notification nor permission-approval is needed by the Company.

Piraeus Terminal respects the rights and interests of staff and workers who have been enjoying the appropriate and reasonable benefits in relation to their salary, allowance, working condition, general security and safety as well as work training. All employees working in PCT’s area have signed contracts of employment provided by the Greek Labour Legislation as per the type of employment, and all contracts with employees have been filed to the Labour Inspection Department. The salaries of all employees are higher than those stipulated in the collective agreements according to Greek Labour legislation and this includes allowances, additional fees for working on holidays, and night shifts.

With the teamwork of the company and its workers and all stakeholders, the quality services of Piraeus Terminal have already substantially strengthened the confidence of global shipping lines in choosing Port of Piraeus as their transshipment hub in Mediterranean and gateway of South Europe, which will no doubt contribute to the recovery of the local economy and to the well-being of the local community including the workforce at the Terminal.

Piraeus Terminal will continue to work hand-in-hand with our workforce, the local port, shipping communities, and all stakeholders to strengthen the competitiveness of Port of Piraeus so as to enhance its leading port position in Mediterranean and bring back favorable returns for our workers and all stakeholders.”