The Maritime Union of Australia has once again extended its industrial action at all DP World Terminals until 22 January 2024 after wage negotiations continued to deteriorate.
The months-long industrial action, which began in early October, is said to have impacted around 40% of Australian cargo and increased the cost for the meat, agriculture and retail sectors in particular.
In an announcement released by DP World's Vice President of Commercial Ports and Terminals, Ravi Sheshadri, the company plans to stop paying workers participating in the strike action beginning this week.
"Effective Friday 12 January 2024, DP World Australia will no longer tolerate partial work bans. As a result, employees participating in these actions will not be entitled to any payment until they are ready and willing to perform all of their normal duties."
The operator believes this move is necessary to address the "detrimental effects of the industrial action on vital industries such as meat, agriculture, and retail."
However, some industry players speculate this could spark full-on strikes and a complete halt to container movements instead.
Request for government intervention
In a separate media release, DP World requested federal government intervention to solve its ongoing dispute with the union, which is placing a heavy cost on the Australian economy.
"Following consultation with an external economist, DP World has determined the cost of loss of output resulting from the MUA's industrial action, involving work bans and stoppages at Australia's major port terminals, is now exceeding $84 million per week," it said.
"The MUA's protected industrial action has therefore already cost the nation an estimated $1.34 billion since it began in October last year."
According to DP World Oceania Executive Vice President Nicolaj Noes, the industrial action is disrupting the flow of an estimated 44,000 containers, many of which are stuck at the nation's ports. This is estimated to take two to eight weeks to clear.
In addition, the prioritisation of loading full containers onto vessels, the number of empty containers is stacking up at the ports.
Due to severe supply chain disruptions caused by the drawn-out negotiations, DP World has garnered support from Shipping Australia - an industry body representing the interests of ship owners and shipping agents - in its request for government intervention.
"We support DP World's call today for government intervention in the DP World dispute. And we, today, re-iterate our own call for government intervention to end the dispute and prevent a further escalation of costs," it said in a news post.
Kuehne+Nagel continues to monitor the situation closely and work with transporters to minimise shipment delays. Should you require assistance with your cargo, please do not hesitate to contact your local Kuehne + Nagel representative.
