DP World Industrial Action Turmoil Continues

DP World Industrial Action Turmoil Continues

As the latest round of negotiations between DP World and the Maritime Union of Australia (MUA) failed to achieve any meaningful outcomes, further industrial action is set to continue across major Australian ports.

With approximately 40% of Australia’s container freight managed by DP World, the ongoing industrial action which to date has included work stoppages, ceasing of receiver and delivery operations, bans on overtime and more, will further exacerbate delays.

As of 12 January 2024, any DP World employee engaging in work bans will not receive wages until they return to their normal duties, a step taken in a bid to stop the MUA from accelerating and prolonging industrial action.

As of this week, DP World has called for Federal government intervention to introduce earlier access to unilateral arbitration so it does not have to wait nine months before seeking assistance from the Fair Work Commission, which may result in current industrial action extending until June, further impacting the supply chain.

According to DP World, the ongoing industrial action is costing the wider economy $84 million a week, and has resulted in a backlog of 54,330 containers that will take up to 8 weeks to clear.

However, Workplace Relations Minister Tony Burke has confirmed that the Government has no intention of intervening to stop the industrial action.

It is not only speculated that the level of disruption is set to increase as DP World has recently announced that it will no longer tolerate partial work bans in its ongoing dispute with the MUA, but that there is an increasing risk that industrial action may hit additional organisations, further crippling Australian supply chains.

Click here to view a list of upcoming protected industrial actions up to 30th January 2024.

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