After a four-year long dispute between unions and Australia’s largest tugboat operator, the outcome of Svitzer’s National Towage Enterprise Agreement ballot – held the week before last – is that a majority (63%) of almost 600 eligible employees voted in favour (‘Yes’) of a new enterprise agreement.
It should be noted the Agreement now needs to be ratified by the Fair Work Commission (FWC), which could take some weeks. The agreement is for four years from date of FWC approval.
The company’s managing director, Nicolaj Noes, welcomed the deal, saying it “finds the right balance of productivity and competitiveness improvements essential to the success of our business while continuing to provide rewarding and fulfilling roles for our colleagues on the tugs.”
In the ballot, the Svitzer’s maritime workforce – represented by the Maritime Union of Australia (MUA), the Australian Maritime Officers Union (AMOU) and the Australian Institute of Marine and Power Engineers (AIMPE) – were asked to vote “yes” or “no” to the agreement.
It is understood that the deal will deliver a 5% nominal pay rise, backdated to April, followed by increases of 2–5 % in January 2024 and 2–4 % in each of the following three years. Workers will also receive a one-off signing bonus of $2,500.
- $2500 sign-on bonus
- 5% from 1 April 2023
- CPI from 1 January 2024 – capped at 5% (minimum 2%)
- CPI from 1 January 2025 = capped at 4% (minimum 2%)
- CPI from 1 January 2026 – capped at 4% (minimum2%)
- CPI from 1 January 2027 – capped at 4% (minimum 2%)
AIMPE federal president Martin Byrne said the union had worked closely with the AMOU and the MUA over almost four years of negotiations following the expiry of the 2016 agreement.
The dispute has been part of a global process, as governments and corporations, including the multi-national shipping giants, have faced off against each other. As we have reported in the past, the situation was exacerbated when Svitzer’s parent company declared massive profits over the past couple of years. Svitzer is owned by Danish shipping giant Maersk who, in 2021, recorded a net profit of $US18.7 billion – the largest figure ever recorded by any shipping company. Svitzer’s cost-cutting operations have also come under attack in the UK and the Netherlands.
We will reconfirm the final outcome when the FWC has ratified the agreement.
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