In response to the DP World advice about the non-acceptance of work bans (docking workers' pay for taking Protected Industrial Action (PIA) effective today, Friday 12 January 2024), DP World has confirmed that the Maritime Union of Australia (MUA) has registered an expanded PIA program with the Fair Work Commission (FWC) to include delays to servicing arriving vessels for 16 hours and not to work on some ships indefinitely.
HEADING TO A LOCKOUT?
When Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) interviewed Nicolaj Noes (Executive Vice President Oceania - APAC of DP World) on 5 December 2023, the option of a lockout of employees was not ruled out - interview recording available HERE
It is important to note that this was a strategy deployed by Svitzer tug operator last year when Nicolaj was CEO. In terms of the Svitzer experience, it had the desired result of forcing the FWC intervention to intervene and provide independent arbitration - refer HERE
This would be an extremely high-risk strategy should it be deployed.
While Nicolaj may well get the same positive outcome as the Svitzer experience, what would happen next should a lockout of employees be deployed by DP World without FWC or federal government intervention?
FTA / APSA are continuing to apply pressure for independent arbitration to avoid an escalation of action by both parties and a repeat of the crippling disruption experienced in infamous 1998 Patrick waterfront dispute.
CONCESSION ON TERMINAL ACCESS CHARGES?
DP World commissioned an economic report suggesting the cost to industry of ongoing PIA is $84 million. Rubbing salt into the wounds of a badly suffering industry, they are forging with an exorbitant increase in incontestable Terminal Access Charges (TACs) that come into effect 1 February 2024 - refer HERE.
Members will recall in the above referenced interview with Nicolaj on 5 December 2023, the question was asked whether TACs could be waived for the period of PIA as some form of compensation to exporters and importers as a result of their failed negotiation with the MUA.
This was declined at the time.
With further deterioration of services in the last five weeks, FTA / APSA have again made a request for consideration to be given to this, and at minimum, to defer any increase until the PIA has concluded.
FTA / APSA has a received a preliminary response from DP World wanting to further discuss this proposal.
FTA / APSA MEDIA COVERAGE REFERENCING PROTECTED INDUSTRIAL ACTION
ABC Country Hour - Angus Verley interviewed Nicolaj Noes (DP World) and Paul Zalai (FTA/APSA) followed by a formal statement from the lead union negotiator - well worth spending 10 minutes to listen to the detail - recording HERE
10 JAN 2024 : Stock and Land - Port of Melbourne dispute adding hundreds of dollars to export costs
10 JAN 2024 : Channel 7 Sunrise - Mark Beretta OAM interviews Paul Zalai (FTA / APSA)
10 JAN 2024 : Journal of Commerce - Australian shippers face worsening delays from DP World-dockworkers dispute
9 JAN 2024 : Daily Cargo News - MORE MUA PIA, DPW CALLS FOR GOVT INTERVENTION
9 JAN 2024 : Farm Weekly - Ongoing wharf dispute is resulting in multi-million dollar costs
8 JAN 2024 : Australian Financial Review - DP World to dock pay in escalation of waterfront battle
8 JAN 2024 : Triple M Network, SBS and Channel 10 - Industrial dispute impacts on small business
5 JAN 2024 : Australian Financial Review - Australian grape growers fear export hit from port dispute
5 JAN 2024 : Sydney Morning Herald - Shoppers warned to expect empty shelves, delays if ports strike continues
4 JAN 2024 : Australian Financial Review : Australian grape growers fear export hit from port dispute
4 JAN 2024 : ABC Radio National - Breakfast - Australia"s response to Houthi attacks on shipping in the Red Sea
4 JAN 2024 : SBS - Disruption to trade is threatening innocent lives
3 JAN 2024 : 2GB Sydney - Red Sea conflict having impact on Australian trade
2 JAN 2024 : The Australian Financial Review : Industrial action at ports 'bigger problem' than Red Sea attacks
2 JAN 2024 : The Australian : Australian trade flowing from Asia is safe but eventually Red Sea disruptions will hit home
28 DEC 2023 : The Australian Business Journal - Global Trade Faces Uncertainty as Red Sea Tensions and Port Strikes Threaten Supply Chains
27 DEC 2023 : SMH: Send navy to the Red Sea for sake of local economy: Dutton
27 DEC 2023 : News.com.au - Price hike fears over Red Sea shipping chaos, crippling port strikes
27 DEC 2023 : The Australian - Price hike fears over Red Sea shipping chaos, crippling port strikes
21 DEC 2023 : The Australian - Red Sea call 'leaving our allies in the lurch'
19 DEC 2023 : Stock and Land - Red Sea freight blockage has potential to disrupt all supply chains
19 DEC 2023 : Australian Financial Review - Freight, oil climb as Red Sea attacks shut down shipping
17 DEC 2023 : ABC News - UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations
MEMBER FEEDBACK
We again wish to remind members that while we have an excellent relationship with a wide cross-section of trade, agriculture and mainstream media, we need of "real life" experiences highlighting the impacts to business and the wider economy - this is essential to maintain the momentum and interest for what appears will be a long, drawn out campaign.
Should any member or industry participant be prepared to go on the public record, please contact me at pzalai@FTAlliance.com.au on 0408 280123.
Paul Zalai - Director FTA | Secretariat APSA | Director GSF