The Fair Work Commission (FWC) has ordered Svitzer Australia to scrap its planned lockout of tugboat workers which was set to start today. As we reported on Tuesday, AP Møller-Maersk-owned Svitzer intended to bring Australia’s container ports to a standstill by preventing its tug boat crews from working, the latest escalation in a three-year battle with trade unions over a new employment agreement. (Above Image Credit – Flikr: Kees Torn)
The commission on Thursday ruled it was satisfied the lockout of maritime workers would cause significant damage to the Australian economy. The FWC heard if the action went ahead, shipping would be reduced by 90% at the 17 major ports where the company operated.
During the hearing, Mark Gibian SC, on behalf of the Maritime Union of Australia, said Svitzer had chosen “the nuclear option” to force the commission to terminate the action and put both parties into arbitration.
It came a day after a federal minister labelled the planned lockout an act of “economic vandalism”. Minister for Workplace Relations Tony Burke took aim at Svitzer Australia’s plans, saying the action would cripple supply chains, with Svitzer holding a near-monopoly on tugboat services across the country. Mr Burke confirmed the government had intervened in the deliberations to argue the action should be terminated.
It is yet to be decided whether the commission will suspend the lockout for a set amount of time or terminate it completely. The maritime unions had advised yesterday they had temporarily suspended all industrial action against Svitzer, but the Danish company insisted it wanted push ahead with the lockout regardless. They have considerable support from shipping lines and other stakeholders who say they are fed up with the unions’ stranglehold on ports.
So, for the moment, the threat of movement of cargo being halted ahead of Christmas has been averted, however the situation cannot yet be seen as being resolved. We will continue to monitor and bring you further updates on events as they occur. Please do not hesitate to call us to discuss any concerns you may have about your shipments.
For information on all aspects of shipping and transport, contact us here at Colless Young. As licensed Customs Brokers and Freight Forwarders, we handle your imports and exports professionally and economically. We are based in Brisbane and offer a complete range of logistics services, by airfreight and sea cargo, through all Australian ports and airports.
