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Lamb chops, clothes and cars held up in damaging ports dispute

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

Businesses are calling on governments to step in to mediate a damaging ports dispute, warning that months of delays to shipped goods, from clothes to cars and lamb chops, are causing severe harm to reputation and finances.

Melbourne manufacturer Craig Lang, who employs 12 workers to produce hardware for sliding doors at his business Tomma, said the three months of industrial action at DP World ports around the country had left him waiting eight weeks for more than $500,000 worth of critical parts from overseas.

Craig Lang, managing director of manufacturer Tomma, says the disruption caused by the ports dispute is affecting Australia’s reputation. Eamon Gallagher

The business needs the parts to fulfil orders for new US customers and has been told a shipment scheduled for late November was now not going to arrive until January as a result of the disruption.

“It’ll cost us tens of thousands of dollars in air freight to cover these delays – it just rips money out of the bottom line,” Mr Lang said. “When you’re a small business you can’t risk the opportunity of losing your large clients.”

The Maritime Union of Australia has been taking industrial action at DP World terminals since the start of October, including 24-hour strikes and work bans, as 1800 wharfies fight for pay rises of up to 8 per cent a year and protest roster changes the stevedore says are necessary for a 24/7 economy.

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On Thursday, DP World agreed to resume talks before Christmas after the Fair Work Commission refused the stevedore’s bid to suspend action for 90 days.

However, industry observers are sceptical a deal can be made and fear the dispute could blow up again in February when the company imposes its new rosters.

A senior MUA official was recorded last month boasting that Workplace Relations Minister Tony Burke had told the union he would not intervene to stop the strikes. Mr Burke has denied the conversation occurred and the union said the comments were inaccurate.

‘Destroying products’

Early this week, Victorian Ports Minister Melissa Horne refused to intervene as the dispute was “a private commercial matter” and “has not resulted in significant disruptions to the supply chain in Victoria”.

Mr Lang, who said he was not blaming the union for the dispute, insisted the action was “having an effect and for them to say that is ridiculous”.

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“This is Australia’s reputation as a manufacturing country – it is just a joke. You can’t just sit back and say we’re not going to do anything.”

One of the country’s largest meat exporters, Roger Fletcher, said the strikes had meant farmers had missed the boat for perishable goods. “The public don’t see the frustration and the money wasted,” he said. “You’re destroying products. The on-costs to rehandle this is just insane.”

He warned governments that “the only way you’re going to control inflation is through productivity – well this is one way to screw productivity”.

Shipping Australia, representing major shipping lines, said its members had told it a major fashion company waiting for containers to move off the wharf was concerned about lost sales in an already challenging retail environment.

A major automotive company had also advised that the industrial action would severely affect its ability to deliver back-ordered vehicles to customers before Christmas and New Year and threatened stock availability for 2024.

Opposition workplace relations spokeswoman Michaelia Cash said: “The time for Minister Tony Burke to act has arrived”.

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“Mr Burke has given no indication that he is willing to intervene in this dispute,” Ms Cash said. “In the middle of a cost-of-living crisis this country can’t afford to be held to ransom and have further costs passed on to consumers because of the action of the unions.”

Mr Burke said, “As always, I urge all parties to engage with the FWC and find a solution in the best interests of everybody involved.”

He said he was surprised at Senator Cash’s statement as he did not recall her commenting when another employer locked out its workforce last year, aiming at shutting down every port in the country.

“It seems the Liberal Party test is not the impact on the economy but whether or not they feel like bashing a union,” he said.

MUA national assistant secretary Adrian Evans said FWC’s decision not to suspend the union’s “legitimate, lawful and reasonable” action prompted DP World to return to the bargaining table next week and in early January.

“It is our preference to sit down and promptly negotiate a new agreement, but for this, we need the co-operation and attendance of Dubai Ports’ Australian managers which over the past nine months of this lengthy bargaining process has not been forthcoming,” he said.

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The parties are negotiating the terminal-specific parts of the agreement rather than the more controversial claims.

A DP World spokesman said: “In the new year, there will be more extensive discussions on the major bargaining themes.”

The union has agreed to suspend its action on the days of the talks, Wednesday and Thursday, but only those actions relevant to the terminals under negotiation. All stoppages and bans will continue on Monday, Tuesday and Friday next week.

David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

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