DP World strikes end but container backlog expected to continue for weeks

Shipping Containers

DP World and the Maritime Union of Australia (MUA) have reached an “in-principle agreement” after months of industrial action, which has resulted in major backlogs.

Following facilitated negotiations in Sydney before the Fair Work Commission, Australia’s second-largest port operator and the MUA finally sealed a deal, which the Union said delivers “fair pay, safety and fatigue management measures, and provides job security and a fair work-life balance for Australian wharfies.” 

Wharfies will reportedly receive a 23.5 per cent pay rise over four years, plus a $2000 sign-on bonus, but full details will not emerge until stevedores have voted on the deal.

The MUA had initially asked for a 16 per cent rise over two years, to bring pay closer in line to the rate of wharfies at top rival Patrick Corporation.

In an official statement, the MUA said, “All protected industrial action has been withdrawn and wharfies at Dubai Ports will return to work with the same enthusiasm, hard work and commitment that they have brought to their jobs over many years”.

Further praising Australian wharfies, The Union’s Assistant National Secretary, Adrian Evans, said he was pleased with the conclusion.

“The past fortnight has shown how quickly a fair and sustainable deal can be resolved once both the workforce and the employer are fully engaged in the negotiation process. 

“The MUA sought to commence this process in March last year, well before the last agreement expired, so that a new agreement could be settled early and without disputation. We are pleased that the negotiation process has now concluded.

“Wharfies perform hard, physical work on a 24 hour, seven day working week, in all conditions and all seasons. They are amongst the hardest working, most productive and most flexible workforces in the Australian economic landscape”.

The after-effects of the long-running dispute are expected to be felt for weeks to come, resulting in extra costs due to the backlog of containers at DP terminals in Sydney, Melbourne, Brisbane and Fremantle.

It’s estimated that around 50,000 containers are piled up, which will take six weeks to clear, while DP World said the dispute had cost Australians $84m per week since October.

Workplace relations minister Tony Burke, who refused to intervene in the dispute, said the Government welcomed the news. 

“This is how enterprise bargaining is meant to work: both parties negotiating in good faith to reach an agreement that acknowledges the common interests between employers and workers,” he said in an official statement.

“While there are some processes still to complete, this in-principle agreement is good for the company, good for the workers and good for the Australian community.

“Had I intervened – as Peter Dutton and others encouraged me to do – this dispute would have dragged on for months.

“It would have been the wrong call and it highlights Mr Dutton’s appalling judgement”.