Faced with growing pressure and pending government action,
the Maritime Union of Australia announced that it was withdrawing its
industrial action against Australia’s largest container terminal that had been
causing growing frustrations in the shipping industry. The union agreed not to
pursue its action at Sydney’s Port Botany before November 1.
The dispute has started earlier in September when the union
and terminal operators failed to reach an agreement for a new contract.
According to ports operator DP Australia this was just the latest in a series
of actions as the talks dragged on for over two years.
Stagging slowdowns, refusing overtime, sickouts, and other
actions the union has been conducting a rolling effort termed an industrial
action. The effort had progressed through terminals ranging from Brisbane to
Freemantle and Melbourne but the latest efforts in Sydney had been the most
disruptive. Vessels were reporting delays at the terminal or getting into the
terminal and shipping lines were responding with surcharges. Last week it was
reported that shipping giant Maersk would begin blanking sailings to avoid the
disruption.
The growing calls to stop the action included Australia’s
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional
Development, Michael McCormack who said the action and the disruption were not
the solution. He warned of the consequences from the frustrations of shippers
and transporters. Many had questioned the timing of the action as the country
works to recover from the economic impacts of the pandemic.
Faced with massive disruption to its operations, DP World
Australia had asked Australia’s Fair Work Commission to intervene. With the
regulators set to hold a hearing, the union sent a letter to the commission
according to the Shipping Australia association saying it would take no further
action at Port Botany before November 1.
DP World welcomed the news of the union’s decision
announcing to shippers that normal service would resume immediately at the
terminal. DP World also said the union’s decision to end the action work would
clear the way to resume talks towards a final agreement.
Shipping Australia, which represents all the major carriers
and operators, however, noted, “The withdrawal of what was imminent industrial
action at DP World Australia does not solve the matter. This is not the end. It
is temporary.”
They warned that it would require time to resolve the
backlog that had been created. Further, they noted that industrial action is
still possible at the terminals operated by Hutchison in Brisbane and Sydney,
and at Patrick Terminals in Brisbane, Sydney, and Melbourne. There is also the
possibility of industrial action at Svitzer, the tug operator. “Congestion and
delay will not ease across the waterfront until all the terminals are able to
work unhindered,” said Shipping Australia.
They called on both sides to enter into a binding workplace
agreement noting that otherwise, the union will have the power to re-start
industrial action in November.