The Maritime Union of Australia has backed down from a week of highly disruptive industrial action against the stevedoring giant DP World, as rhetoric around the dispute descended into allegations of “xenophobia”.
The union pulled plans for eight-hour delays and bans on certain shipping lines but is continuing with lower-level stoppages and disruptions, including two-hour pauses on work and staff refusing overtime.
DP World Oceania executive vice president Nicolaj Noes said the union’s persistent industrial action was still hurting supply chains. Oscar Colman
It is pursuing a 16 per cent pay rise for its members, who are on starting wages around $83,000 but earn average pay of $130,000 according to the company, over two years.
The union’s move is designed to stay below the company’s red lines for refusing to pay disruptive staff, which triggered a “pseudo-lockout” at its terminals in Sydney, Fremantle and Brisbane on Friday. And it retains the option in several weeks to impose 16-hour work bans that would dramatically slow the ports.
On Monday, Australian Council of Trade Unions secretary Sally McManus blasted calls Opposition Leader Peter Dutton’s calls at the weekend for government intervention in the dispute that has already led to 10-day shipping delays.
“We have Peter Dutton getting up like he’s a union delegate for the sheikhs and sultans of Dubai, backing them in all the way, rather than his own people, the Australian people and their families,” Ms McManus said.
DP World Australia, which moves about 40 per cent of the country’s container freight, has a complex ownership structure but is part of the wider Dubai-based DP World group owned by one of the emirate’s investment funds.
Mr Dutton’s office was contacted for comment. DP World regional executive vice president Nicolaj Noes said the rhetoric was counterproductive. “Personally I would stay away from that,” Mr Noes said.
But Innes Willox, who heads industry lobby Ai Group, accused Ms McManus of having “stooped to xenophobia in its defence of ongoing industrial disruption at Australia’s ports”. He said the ACTU’s language would hurt foreign investment and was redolent of a bygone, bigoted era.
Ms McManus did not back down. “If the AIG want to back in the ruling elite of an undemocratic government who follow a system of indentured labour akin to modern slavery that’s a matter for them.”
The embassy of the United Arab Emirates, which includes Dubai, was contacted for comment.
On Monday afternoon Mr Noes and the union’s lead negotiator, Adrian Evans, met with Fair Work Commission in an attempt to find a path out of the deadlock. Neither side commented on the outcome of the meeting held before commissioner and former unionist Bernie Riordan.
DP World’s Sydney terminal sat idle on Friday after the company refused to pay staff who engaged in high-level industrial action. James Brickwood
Earlier, Mr Noes warned that even the union’s lower level actions – which do not prevent their members being paid – were still damaging Australia’s supply chains. “We cannot [stop them],” Mr Noes said.
Mr Dutton said on Sunday that the government should intervene in the dispute, accusing Workplace Relations Minister Tony Burke of giving a “green light” to the militant MUA by refusing to get involved.
Mr Burke has the legal power to intervene in industrial disputes that threaten the Australian economy but has not done so in this case despite pleas from farmers, export groups and logistics firms.
As well as pay rises, the union’s most recent offer to the company includes other pay-related costs that would amount to an effective 27.5 per cent rise. In addition, the union wants changes to disciplinary policies, sick leave and work allocation rules in an industry that already has highly restrictive enterprise agreements.
“We are disappointed with the offer which does not get the parties any closer to a deal as no concessions have been made by the MUA,” a DP World spokesman said. He said the pay offer was “not sustainable” and would mean the company would face more industrial action in 2025.
“This approach to negotiation is not in good faith and leaves the national economy exposed,” the spokesman said.
Freight and trade groups launched a broadside against DP World over the weekend, saying its fees for moving containers were rising up to a “staggering” 50 per cent from February 1.
Mr Evans, an MUA assistant national secretary, said the union had withdrawn three items of protected industrial action to stop the company pitting “their workers and their customers against one another” through “their pseudo-lockout”.
“The union’s position in this negotiation is fair, reasonable and sustainable,” he said.
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