NZSA Disclaimer
Why Tony Gibson should not have been re-elected as a Director of Marsden Maritime Holdings.
It is inconceivable and unconscionable that former Ports of Auckland Chief Executive Officer, Tony Gibson, should be considered worthy of a directorship just months out of a landmark guilty verdict in relation to health and safety.
Once found guilty of failing in his due diligence obligations under the Health and Safety at Work Act, a decision designed to sheet home the significance of leadership in tackling health and safety risks, the honourable thing to do would be to sit back and reflect.
This has not happened.
Investors can ill afford to be complacent when it appears, allegedly, that friends in high places decide to outmanoeuvre ethical challenges and secure their mate a position regardless of established shortcomings.
Unrelenting loyalty and bias has no place at a Board of Directors table. Marsden Maritime Holdings must take notice. Their location just a few hours drive north of where Mr Gibson’s crime and ethical leadership failings were evidenced adds insult.
Directors must meet the ethical test of being a fit and proper person, capable of engendering respect, trust and confidence. This is in addition to holding knowledge, competence and skill for the governance of a listed company. Mr Gibson, unfortunately fails across the board. Under his watch too many issues were raised, too many fatalities and other wrongdoing occurred including a serious fraud within the Ports of Auckland accounts department that went unnoticed for years.
Need investors also be reminded of the shipwreck which was the container terminal automation project. This lumbered along and pitted the Maritime Union against the Port of Auckland as problems arose throughout its implementation. Eventually terminated, the project’s disastrous outcome was six-years in the making and had an associated write-off of $65 million.
On that occasion an independent review identified multiple failures in company governance, management and accountability.
Coupled with all of this is Mr Gibsons error of judgement and attitude in laying blame for an earlier fatality at the feet of his Māori and Pasifika workforce. This was in 2018 when Laboom Midnight Dyer lost his life and the Ports of Auckland were fined $540,000. Mr Gibsons inflammatory claims reflected poorly on his leadership style. Cultural competence and cultural confidence was lacking.
In the same year Judge Thomas, following a WorkSafe investigation, noted that the Ports of Auckland had failed to train its staff, and in monitoring and enforcing safety plans. Judge Thomas stated:
“There was a systemic failure to install and maintain a culture of safety and compliance”.
At that time, Tony Gibson was not held personally liable.
The Ports of Auckland reward system gave bonuses to drivers who had the best productivity rates. Adherence to health and safety requirements were not factored in enabling the ’dangerous drivers’ to gain the top bonus because they were enabled to turn a blind eye.
Experienced and competent leaders and regulators know that incentives that can dramatically shift and shape behaviour. The FMA recently admonished our largest banks on exactly this point. As Charlie Munger, Warren Buffet’s right hand man put it “Never, ever, think about something else when you should be thinking about the power of incentives”.
The organisational unrest that followed was completely avoidable.
None of this can be conveniently erased.
According to Minter Ellison, officers are expected to ensure there are effective reporting lines and systems for the flow of necessary health and safety information to them, from competent people.
Further:
- Mr Gibson had failed to adequately address recommendations to make changes to the structure of assigned responsibilities and accountability for the POAL executive team with regards to health and safety, despite being aware of the specific recommendations to do so.
- Mr Gibson failed to ensure that POAL’s Health and Safety Steering Committee (the functional body for overseeing occupational health and safety management within POAL) was adequately performing its functions (Judge Bonnar found that it was not).
- Mr Gibson was aware that POAL’s assessments of critical risks were inadequate (or ought to have been aware of this, by reason of monthly safety and wellbeing reports).
The list goes on.
Mr Gibson’s career and engagement with Port companies should not.
Jane Arnott, MNZM, Director, The Ethics Conversation
ADJUNCT RESEARCH FELLOW
BRIAN PICOT CHAIR IN ETHICAL LEADERSHIP Aritahi
SCHOOL OF MANAGEMENT
VICTORIA UNIVERSITY OF WELLINGTON
Jane is the director of the Ethics Conversation. She delivers practical sector specific business and professional ethics workshops and presentations for professional bodies, public and private sector entities.