The recent decision taken by the Antigua and Barbuda Port Authority (APA) to increase labour rates has raised much concern among several shipping agents in Antigua.
Shipping agents fear that if this increase is passed on to the local consumers, it would take the cost of living even higher in Antigua.
The port authority reportedly wrote to shipping agents in Antigua on 14 Sept., informing them about the increase.
It is understood that the increase in some cases would be as much as 30 per cent on the labour rates.
The news was reportedly met with surprise by the shipping agents since many of them argued that the nature of their business is based on contracts with local importers and the cargo that is already en route to the island has already been valued at a fixed freight cost.
Additionally, many of the local importers would have already valued their goods and to be given the additional cost put on by the port authority, they would now be forced to revalue their goods.
Its letter to the shipping companies, the port authority explained that an agreement for labour services provided by the port has been reached effective 1 Aug., 2008. This was the product of a meeting between the Antigua and Barbuda Port Authority and the Antigua and Barbuda Workers Union who represented the port workers.
"Our last negotiated and signed contractual agreements were in 2001, since then, the rates have never been increased. This long overdue delay caused us to pay retroactive payments to the workers which will not be passed on to you," the letter stated.
It also stated that certain charges will apply with immediate effect.
"Labour costs should not be passed onto consumers in this manner. It would mean that if every union negotiation by any company should be passed onto the consumers, then people won't be able to live," one agent told the Antigua Sun.
"Internal labour negotiations are the responsibility of the company and should not be reflected in increase costs to the consumer."
Another agent said the charges are too high.
"One shed clerk billing has been increased from EC$43.80 to EC$58.52 which means that if a shed clerk is guaranteed 40 hours a week, his salary billing would be in the vicinity of $10,000 a month," the man stated.
"No shed clerk billing anywhere in the Caribbean is close to $10,000. Something is definitely wrong."
It is foreseen that the cargo lines would accept the increased rates from the port authority and would pass these costs onto the importers and the importers in turn would pass these costs onto the local consumers.
Antigua and Barbuda's port charges are said to be among the highest in the Caribbean region.
The shipping agents are waiting to have a meeting with the port authority to discuss what they described as a very urgent matter.
