Full work bans are in effect at DP World Sydney, Brisbane and Fremantle.
Highly disrupted operations are in effect at DP World Melbourne.
As has been reported several times now by Shipping Australia, by others in the supply chain, and in extensive reporting in the general media, Australia’s supply chains are now near – if not at – breaking point.
Shipping Australia has heard testimony from truck operators of extreme costs and delay and that if the industrial action goes on for much longer then the business operators fear for their businesses. We have heard of issues for exporters in getting their products exported, and in a variety of other sectors such as automotive, fast moving consumer goods and more, that stocking issues can be foreseen. Ocean shipping is experiencing severe problems – there are delays now routinely of about 10 days but up to 20 in extreme cases, we have been advised. Shipping company executives have warned of “a devastating impact on cargo flows in and out of Australia”.
New economic modelling from DP World shows that the wide range of industrial action taken to date has cost the nation $34 million in lost productivity per day, building on an average impact of $84 million per week since the MUA’s protected industrial action commenced in September 2023. The backlog of containers across Australian ports now exceeds 48,000 and will take months to recover from.
DP World has advised that: “ongoing industrial action despite the non-acceptance of partial work bans is set to further damage the nation’s supply chain with delays on essential items, which are already between two and eight weeks behind schedule, to now widen further”.
The response from our political leaders appears to be absent or in denial.
Shipping Australia has twice written to the Federal Workplace Minister, the Hon Tony Burke MP to intervene and to use his powers under the Fair Work Act.
We have had no response.
Many other parties have made similar calls too.
Yet Minister Burke is simply missing in action during a time when he has the power to intervene and bring an end to this disruption.
Let’s not let the State Ministers off the hook either.
They too have power to intervene under s424 of the Fair Work Act. They could refer the dispute to the Fair Work Commission but they haven’t done so.
The Victorian Ports & Freight Minister, the Hon Melissa Horne, said in the Victorian Parliament on 11 December 2023 that: “To date, the ongoing protected industrial action by the MUA at DP World’s terminals in Australia has not resulted in significant disruptions to the supply chain in Victoria, with other terminals at the Port of Melbourne subcontracted to service vessels affected by the stoppages.”
And yet, here we are, a little over one month later and the main Victorian terminal is now, in effect, at a standstill. That’s a terminal operator that handles about 38% or so of the nation’s container trade. Shipping Australia is hearing that the other terminals are experiencing issues because they simply cannot handle the upsurge in business. That’s no criticism of the terminal operators.
But it is rather revealing of the inadequacy of Minister Horne’s comments in Parliament.
In New South Wales, the Hon Damien Tudehope, Member of the Legislative Council, directed a question to the NSW Government on 23 November asking what steps the Government had taken in respect of the ports dispute.
The answer was received on 14 December 2023 and it was as follows: “As a partner in the Fair Work system, the NSW Government works closely with the Commonwealth Government to support positive industrial relations outcomes and is available to provide advice and assistance, if required”.
You couldn’t wish for a finer non-response.
As the crisis deepens, as the consequences get worse, as the difficulties mount, and as the harm experienced by Australian businesses and families gets worse, just remember this: the Federal and State Governments had the power to intervene to protect their constituents and their people.
They had the power to act so as to prevent harm.
They had the chance to do something.
And they chose to do nothing.
