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Wharfie strikes causing delays that ‘could empty stores at Christmas’

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

Nearly three weeks of rolling work bans and strikes at DP World terminals across the country are causing shipping delays of up to eight days and threaten to leave store shelves empty before Christmas, the stevedore has warned.

On Monday, the Maritime Union of Australia extended its industrial action at DP World’s Sydney, Melbourne, Brisbane and Fremantle terminals until November 6 in protest over proposed roster changes, including bans on loading and unloading containers on trucks.

The 24-hour trucking bans, starting on Friday in Sydney and then at all terminals next Friday, is a significant escalation of action that has been taking place since October 6.

They will follow a 24-hour strike at Sydney on Monday and three rounds of two-hour stoppages each day at Melbourne, Fremantle and Brisbane next week.

In a statement, DP World said past action had blown out the usual two days it took to offload cargo from ships.

“Due to the union’s protected industrial action, the timeline to offload a ship has extended to seven to eight days, resulting in increased cargo emissions, significantly slowing the flow of goods in Australia and creating a dire and direct impact on small to medium enterprises,” the company said.

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“If the union continues in this direction, it’s highly likely that our customers will encounter shelves with scarce inventory. The disruption and delays in the supply chain caused by the [protected industrial action] will create an unsettling impact for the upcoming holiday preparations for countless households across the nation.”

The DP World strikes follow a month of freight delays at Qantas, which was resolved only recently.

Knock-on effect

Commercial Freight Logistics general manager David Scott said the week-long delay to discharge containers was having “a knock-on effect on every other port”, creating large backlogs during peak season.

“Most vessels go to two to three ports in Australia and a delay at each port will also cause the next voyage to be late by weeks,” he said.

“It’s not just affecting Australia, it’s affecting ships all over the world.”

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Southern Cross Cargo told clients on Monday that one of its truck providers had been forced to work more over the weekend at high overtime costs because it was experiencing up to four-hour delays at terminals because of the industrial action.

“As a flow-on effect, we have seen changes in vessel schedules, limited timeslots, disruption to delivery services and the return of empty containers,” the transport provider said. It has introduced a $50 surcharge for Sunday work to cover the cost.

Flexible roster system

The MUA is protesting against DP World’s proposal to introduce a flexible roster system that is more responsive to client demands, which the union says will cut pay by up to 32 per cent – a claim DP World denies. The union says the roster will require wharfies to work 65 Saturday or Sunday shifts a year, up from the current 52.

Wharfies also want “cost of living” pay rises of at least 7.3 per cent this year, which they say is the same granted to Patrick employees in January, and they argue that DP World is already paying 10 per cent less than other stevedores.

DP World stevedores are understood to be paid an average of $144,000 a year for a 35-hour week plus penalty rates for nights and weekends, with entry-level positions starting at $110,754. Superannuation is paid out at 12 per cent and workers enjoy five weeks’ leave.

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MUA national assistant secretary Adrian Evans said “Dubai Ports’ Australian managers are in fantasy land”.

“The community is rightfully tired of being force-fed the same tedious nonsense year in and year out by billion-dollar multinational employers like Dubai Ports telling lies about hard-working Australian wharfies supposedly plotting to steal Christmas,” he said. “It’s bullshit.”

He said the union had gone through six months of negotiations without industrial action but claimed that “the company refused to move on anything, they cancelled meetings and issued inflammatory statements to members”.

“Their deliberate strategy of derailing good faith negotiations by seeking wage cuts of 32 per cent and outrageous roster changes that will enforce more night shifts and weekend work on our hard-working members without the appropriate compensation are what has triggered this dispute,” he said.

DP World is demanding that the MUA ends its industrial action before it resumes talks. It cancelled scheduled negotiations last week because the union refused to do so.

It says the MUA, in turn, is demanding that DP World consent to all 365 of the union’s demands, which would “result in considerable financial strain on our company”.

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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