Bill sought for port fight
DP World has called for government intervention in port disputes.
In a move to mitigate the escalating economic fallout from industrial action by the Maritime Union of Australia (MUA), DP World, a leading port operator, has urged the Albanese government for a legislative amendment that would allow for earlier arbitration in disputes involving stevedores.
The ongoing strikes, which commenced in October, have led to significant disruptions, including a backlog of 54,330 containers, and are estimated to be costing the Australian economy approximately $84 million weekly.
Blake Tierney, DP World's Corporate Affairs Head, expressed concern over the proposed Closing Loopholes Bill during a Senate hearing, highlighting its potential to prolong disputes.
The bill, a collaboration between Labor and the Greens set for debate next month, aims to protect workers from a reduction in existing conditions, even if their claims lead to unilateral arbitration after nine months of bargaining.
However, DP World argues that this provision could incentivise extended disputes and adversely affect essential services like stevedoring.
Tierney has called for a shorter, six-month period before arbitration can be sought, to alleviate the significant economic and supply chain impact.
The company's stance is underscored by a report from transport economist Houston Kemp, which outlines the broader economic cost of the industrial action at $1.34 billion.
Despite DP World's call for intervention, Workplace Relations Minister Tony Burke has refrained from stepping in, maintaining that the government's no-disadvantage test aligns with previous arbitration laws.
The ongoing dispute has raised alarms beyond the shipping industry, with the Australian Retailers Association (ARA) warning of potential price hikes for consumers due to the protracted industrial action and global shipping challenges.
ARA CEO Paul Zahra says the dispute must be resolved for the Australian economy and consumers, particularly in light of rising global shipping costs exacerbated by conflict in the Red Sea.
DP World's proposal includes not only earlier arbitration access but also the inclusion of productivity clauses in agreements to maintain negotiation focus on productivity.
With the MUA seeking significant pay rises against a backdrop of international comparisons, Tierney has called for a collective effort to mitigate the impact of protected industrial action on the supply chain and the community.