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Workplace Relations Minister Tony Burke has accused port operator DP World of acting in bad faith in its pay dispute with the Maritime Union.
Key points:
- Tony Burke says port company DP World is focused on a "media strategy" instead of negotiating in good faith
- Mr Burke has ruled out using his ministerial powers to intervene in the ongoing dispute between the company and the Maritime Union
- The comments came after Mr Burke held meetings with both parties today
Mr Burke met with both parties to the dispute today and has ruled out using ministerial powers to intervene.
The dispute has spilled into the public sphere, as the stevedoring company and businesses warn any ongoing industrial action could impact trade and fuel cost of living increases.
Mr Burke accused DP World of waging a "media campaign" instead of trying to reach an agreement before the Fair Work Commission as "every other business in Australia does".
"I have made clear to the company: if they had invested as much into negotiating as they have into their media campaign, they may already have an agreement."
The union is asking for a 16 per cent pay rise for more than 1,500 workers over two years, which it says is still below the rate paid by bigger rival Patrick. It also wants an increase to back pay of 27 per cent over two years.
Last week, the Fair Work Commission approved workers' bid for industrial action at port terminals in Sydney, Brisbane and Fremantle. The union had initially planned to enact eight hour delays and bans on some shipping lines, but opted instead for two-hour work pauses.
Mr Burke suggested DP World had waged a media strategy in the "misguided" view it would pressure him to intervene via ministerial powers which have never before been deployed.
"Every other business in Australia is expected to negotiate with their workforce, but this business wants to rely on ministerial intervention. [That] is not a view that impresses me," he said.
"Everybody needs to give a bit. That's how you get to agreements… and I have no doubt that that is possible and available for [DP World] now."
DP World has claimed the dispute is costing Australia $84 million in port delays. Mr Burke said advice from his department did not suggest the impact was large, but he acknowledged there was a cost to consumers and that the government wanted to see an agreement reached "as quickly as possible."
The Australian Retailers Association said the ongoing industrial action had led to a 2-8 week backlog in shipments and 48,000 shipping containers standing idle nationwide.
"Up until now, retailers have managed to minimise the impact of this industrial action on consumers. However, we are increasingly concerned that the inconvenience of out-of-stocks and delays in fulfilling customer orders could soon escalate into higher prices on everyday essentials if the situation is not resolved soon," the Association's chief executive Paul Zahra said.
Shadow Workplace Relations Minister Michaelia Cash said Mr Burke was "unable to acknowledge the damage this dispute is doing to Australia's economy," and called on him to intervene.
"For the good of the country and all Australians who will pay the price for this dispute [which] will only make our cost-of-living crisis worse."
A lack of 'trust' in DP World
Mr Burke also launched a personal attack on DP World's Oceania vice president Nicolaj Noes, who was previously managing director of maritime company Svitzer.
"I have trouble believing that DP World has the interests of Australian consumers at heart when it is being run by the same person who previously [at Svitzer], he made the announcement that he was effectively going to shut down every single major port in Australia," Mr Burke said, referring to a 2022 industrial dispute.
"We are being told by some of the media lines for the company that they can send as much money overseas as they want and it's not about Australian consumers, they can charge Australian small businesses as much as they want and that's not about Australian consumers, but they have to pay their workers the same as what [rival company] Patrick pay their workers and that is all about Australian consumers. I think people are sick to death of being told that their wages are always the problem."
Ms Noes said in a statement: "DP World's request for government intervention is driven by the severe economic impact of customer frustration and a substantial backlog of containers."
"The company is committed to the Fair Work Commission process to find a fair and sustainable resolution that addresses the consequences of the industrial action and seeks to end it."