A deal struck between wharfies and port operator DP World after a months-long industrial dispute should see fuller supermarket shelves and more reliable deliveries, according to one expert.
But consumers should not get too comfortable as another terminal operator will soon enter negotiations.
Since late 2023, the Dubai-based DP World has been caught up in a pay dispute with unions, prompting wharfies to stop work for hours on end as tens of thousands of containers joined the terminals’ backlogs.
When negotiations ground to a halt, DP World threatened to dock the wages of workers involved in industrial action and called on the government to intervene, claiming the action had cost Australia almost $84 million (US$55.5 million) per week.
The Maritime Union of Australia (MUA) on Feb. 2 announced it had come to an “in-principle agreement” with DP World after three days of negotiations and would withdraw all industrial action as wharfies returned to work.
Vinh Thai, a logistics and supply chain management expert at Royal Melbourne Institute of Technology (RMIT) and founder of the Australian Maritime Logistics Research Network, said the resolution would allow things to return to normal.
“Shelves in the supermarket will be filled up,” Mr. Thai told AAP.
“If we order something from overseas that should start to arrive soon and exporter competitiveness will be improved again.”
It will take another few months to clear their backlog but with an enhanced agreement, Professor Thai believes productivity could improve in the long-term.
The new four-year deal would provide fair pay, safety and fatigue management measures, improved job security and a better work-life balance for workers, MUA assistant national secretary Adrian Evans said.
Although the deal was yet to be endorsed by union members, the MUA was pleased negotiations had ended.
“Wharfies perform hard, physical work on a 24-hour, seven-day working week in all conditions and all seasons,” Mr. Evans said.
“The past fortnight has shown how quickly a fair and sustainable deal can be solved once both the workforce and the employer are fully engaged in the negotiation process.”
DP World is the second-largest port operator in Australia and accounts for about 40 percent of the cargo that comes through the nation’s maritime terminals.
When wharfies stopped working, farmers, producers and retail groups criticised the unions for disrupting Australia’s supply chains and pushing up prices during a cost of living crisis.
DP World Oceania’s executive vice president Nicolaj Noes said he was satisfied with the outcome.
“This agreement is a testament to our commitment to our workforce and to providing uninterrupted services to our customers,” he said in a statement on Feb. 2.
“We are now focused on moving forward.”
Avocados Australia executive John Tyas said growers, who'd lost millions in international trade during the dispute, were relieved by the deal.
“Time will tell, we'll just have to see but hopefully our exporters will get back to our normal supply plans,” Mr. Tyas told AAP.
But Prof. Thai warned history could repeat when the nation’s leading container terminal operator Patrick Terminals’ agreement expired in 18 months.
“We are living in a country where normal maritime dependence is very high ... everyday commodities, household items are imported from overseas,” he said.
“For every day or week a (shipment) is delayed, it has a very negative impact.”
Workplace Relations Minister Tony Burke welcomed the news, applauding both parties for reaching a resolution without government intervention.
“This is how enterprise bargaining is meant to work: both parties negotiating in good faith to reach an agreement that acknowledges the common interests between employers and workers,” he said.
Shadow Treasurer Angus Taylor accused the government of “sticking union officials” in the middle of disputes and claimed it would put union officials in charge of the workplace.
