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The Federal Government has weighed into a dispute that is delaying 10 freight carriers at the Port of Botany, saying industrial action by the Maritime Union of Australia (MUA) is "holding the country to ransom".
Key points:
- Ten ships are waiting off Sydney; others have been diverted to Melbourne, Brisbane, Adelaide and Perth
- Industry groups are calling the situation a "disaster" for exporters
- The maritime union denies the action is capable of causing the delays being claimed
The union has been negotiating with three stevedoring companies for a 6 per cent wage increase over four years.
A four-hour work ban stopped activity on the wharves briefly a month ago, but the union has continued with bans on overtime.
DP World, Australia's biggest port operator, has reached a deal with the MUA, but Patricks, another stevedoring company, is preparing to make its case at the Fair Work Commission.
Christian Porter, the Attorney-General and Minister for Industrial Relations, said the Government would intervene in support of the company's bid to halt the industrial action.
"For a union to be attempting to hold the national economy to ransom to leverage its push for a 6 per cent annual pay rise is simply unforgiveable, especially at a time when we are in the grip of a global health and economic crisis," Mr Porter said.
"The MUA's action is also a slap in the face to the million Australians currently out of work who must be amazed by the apparent indifference of the union's leadership to their plight.
"It is vital that we see a quick resolution to this dispute."
Ten ships are waiting off Sydney while others have been diverted to Melbourne, Brisbane, Adelaide and Perth.
It costs operators $25,000 a day to cover operating costs while waiting to berth.
The world's biggest freight line, Maersk, has stopped sending ships to Sydney.
On its website the company said it was experiencing delays due to congestion and industrial action at Sydney port.
"To remove uncertainty for our customers supply chain and to assist handling of our vessels calling Sydney, Maersk is taking the difficult decision to temporarily stop acceptance of all new bookings from Asia, Europe, Middle East, Africa and India Sub-Continent to Sydney effective immediately."
It will resume in October and is still operating out of other Australian ports.
Exporters facing congestion charges
Industry groups are calling the situation a "disaster" for exporters.
The Freight and Trade Alliance said key commodities were being affected by the delays.
Director Paul Zalai said exporters were being charged an extra $US350 per 20-foot containers plus a surcharge for different commodity groups.
"Grain exporters an extra $17 per tonne, cotton $5 per bale and wool as well."
He said getting the big grain crops expected this harvest to export markets would be impossible.
"It doesn't matter what we do now, we have a narrow gateway to move a whole lot of goods out of the country."
Headed to Fair Work Commission
Andrew Adam, chief operating officer for terminals at DP World, said the company had reached a national agreement with the union.
"The maritime union's decision to withdraw all industrial action at DP World Sydney has enabled productive negotiations at our Sydney terminal to resume," he said.
Its operations are back to normal and they anticipate finalising individual work place agreements within a week.
Patricks, the stevedoring company at the centre of the union-breaking wharf dispute of the late 1990s, said it was "bewildered" by the pay claim as the average permanent worker on the wharves already earned about $155,000 a year.
The Freight and Trade Alliance has urged Patrick to take the matter to the Fair Work Commission and get it resolved immediately.
Union doubts delay claims
MUA national secretary Paddy Crumlinsaid none of the industrial action was capable of causing the massive delays being claimed.
"Our members worked throughout the COVID crisis to keep the economy ticking over," he said.
"In fact, it was our efforts to implement separation, segregation and sanitisation protocols that ensured not one day was lost at any Patrick terminal throughout the crisis."
He claimed Patrick wanted to "rip up 50 pages of conditions".
"Patrick is attempting to impose wholesale cuts to terms and conditions of employment."
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