Read The Times Australia

Daily Bulletin

Explainer: what is the latest waterfront dispute about?

  • Written by: Peter van Duyn, Maritime Logistics Expert, Centre for Supply Chain and Logistics (CSCL), Deakin University

Twenty-two years ago, images of balaclava-clad security guards with German shepherds, locking out wharfies at the Patrick container terminals shocked the nation.

With a fresh industrial dispute underway at the Patrick container terminals, are we on track for another war on the waterfront? And what will this mean for medication and food supplies?

What is this dispute about?

Patrick Terminals is one of Australia’s biggest container terminal operators.

About seven months ago, Patrick and the Maritime Union of Australia (MUA) started negotiations over a new nationwide enterprise agreement, which expired on June 30.

Seagull in front of a container ship in Port Botany. Negotiations between Patrick and the Maritime Union of Australia have been going for months. Joel Carrett/AAP

The dispute centres around a wage increase, improved rostering arrangements, minimising casualisation of the workforce and increased superannuation contributions. The union initially asked for a 6% annual pay increase but is now negotiating for 2.5%.

Unhappy with the progress of negotiations, the wharfies voted in late August to take protected action against the company, including 24-hour strikes, stop-work meetings and bans on overtime. Patrick says this severely limits its ability to run the business, including efficiently to service ships, trucks and trains.

Normally, negotiations would run over a longer period before industrial action would be taken. But given recent industrial action with another container stevedore, DP World, (which has now ceased), the effect of the delays built up quickly and Patrick went to the Fair Work Commission (FWC).

What’s at stake?

Patrick has warned more than 100,000 containers face delays if the partial work bans continue into next week.

“The delays are real,” Patrick chief executive Michael Jovicic told Radio National on Wednesday.

Read more: Is global shipping in the doldrums?

Patrick says ships face lengthy delays to find a berth in Port Botany. Or they are being diverted to other ports, which has seen additional expenses for importers and exporters.

The cost to run a ship can amount to A$25,000 per day. In an effort to recoup the costs they incur in having to wait at sea for a berth, shipping lines have instigated so-called “port congestion charges” of up to US$350 per container (A$492).

On top of incurring delays to their cargo, importers and exporters also have to absorb these additional costs.

Supply chains, already under pressure due to COVID-19, will come under more strain if the dispute is not resolved quickly. If it drags on much longer, cargo will bank up further and it will become harder to catch up in time to get imported goods on shelves before Christmas.

This could result in additional costs for imported goods, as well as shortages leading up to the usually busy festive period. Exporters will also lose out if they cannot get their goods overseas.

Strong words

The situation has now reached fever pitch. On Tuesday, Prime Minister Scott Morrison described the union behaviour as “appalling”. As he told reporters,

we cannot have the militant end of the union movement effectively engaging in a campaign of extortion against the Australian people in the middle of a COVID-19 recession.

Explainer: what is the latest waterfront dispute about? Prime Minister Scott Morrison has accused the unions of ‘extortion’. Mick Tsikas/AAP

The National Farmers’ Federation says the dispute is threatening the sector’s recovery from the drought and COVID-19, while the Australian Industry Group has raised concerns about the flow of white goods, construction supplies and food manufacturing.

There have also been concerns medical supplies could be delayed. The union has rejected these claims, while Medicines Australia says there are no current shortages.

The MUA’s national secretary Paddy Crumlin, meanwhile, says talk of huge delays is “fake news”. He says Patrick is trying to

slash the conditions of their workforce under the cover of the COVID crisis.

All key parties are highlighting their own interests — using examples to suit their case and try and resonate with the public.

Will it be resolved?

On Wednesday, Patrick and the MUA went to the FWC for a conciliation hearing.

Ahead of this, the union offered a peace deal. It proposed the existing workplace agreement is rolled over for 12 months in return for a 2.5% pay rise and both parties to negotiate in good faith during the next 12 months.

After talks lasted into the evening on Wednesday, Patrick and the MUA will continue negotiations to try and settle the dispute on Thursday.

Remember the history

We need to heed the lessons of 1998. As the infamous waterfront dispute dragged on, more parties were affected and became involved, resulting in long, drawn out legal arguments in the courts.

Read more: Morrison wants unions and business to 'put down the weapons' on IR. But real reform will not be easy.

It’s time for cool heads to prevail. Inflammatory language from parties not directly involved in the dispute will do nothing to ensure a negotiated outcome.

Authors: Peter van Duyn, Maritime Logistics Expert, Centre for Supply Chain and Logistics (CSCL), Deakin University

Read more https://theconversation.com/explainer-what-is-the-latest-waterfront-dispute-about-147100

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Small Acts, Big Impact: How Australians Can Give Back to Their Communities

There is a common belief that giving back requires either a lot of money or a lot of time. Big chequ...

The Lost Art of Saying Thank You and Why It Still Matters

Somewhere between the arrival of email and the rise of the reaction emoji, the humble thank you shra...

How Non-Competitive Sports Programs Benefit Early Childhood Development

Australia is known globally as a sporting nation, yet recent statistics paint a surprisingly differe...

The Hidden Health Impacts of Digital Screens on Developing Eyes

Modern Australian childhood is undeniably intertwined with technology. From educational tablets in p...

GRC Consulting and Cyber Security Consulting for Businesses

Businesses face risks such as ransomware attacks, data breaches, violations of regulatory standards ...

How to Set a Budget Before Bidding at Auction

Placing a bid at an online art auction is an exciting way to discover rare paintings, home content...

Does a Modern James Bond Exist?

Image Credit: MysteryShot What the Movies Get Right About Private Investigators There are a few mov...

How Australian Businesses Can Effectively Manage Tax Audits and Disputes

Managing a small business in Australia is inherently challenging, but recent shifts in regulatory ...

From Coastal Calm to Classic Comfort: The Right Carpet for Every Style of Home

Carpet is often chosen near the end of a room makeover, after the walls, furniture, and lighting h...