A growing industrial conflict between Australia's principal stevedore, DP World, and the union representing its workers is causing an increase in supply chain costs and distress for businesses in the maritime-reliant nation.
Joseph Saina, a director at a fresh produce logistics firm, A.S. Barr, and chairman of the Australian Horticultural Exporters' & Importers' Association, is dealing with the consequences daily. For instance, a shipment of produce meant for Singapore was delayed at DP World.
Since October, DP World, owned by the UAE, has been in a dispute with the Maritime Union of Australia (MUA), which is advocating for a pay rise for wharf workers and opposing proposed changes to the roster system.
Many workers at DP World's four terminals have participated in a series of protected industrial actions while negotiating a new enterprise bargaining agreement (EBA). The industrial action has disrupted shipping at the company's container terminals, which handle approximately 40% of Australia's sea freight.
DP World announced on Jan. 8 that it would deduct a full day's pay from employees participating in partial work bans. The company said the industrial action had made operations "almost impossible".
DP World estimates the industrial action has cost Australia an average of AU$84 million in lost productivity per week since it began, leading to a backlog of over 48,000 containers that will take months to clear. The company, the opposition coalition, and industry groups for affected sectors are urging the federal government to intervene.
Source: asia.nikkei.com