DP World flags 50k container backlog

DP World estimates around 50,000 shipping containers are backlogged due to industrial action by local workers, despite the Maritime Union of Australia’s move not to enact longer strikes.

The MUA withdrew a move to undertake select work bans at DP World port operations in Fremantle, Sydney and Brisbane today, but is continuing other forms of protected action against the Dubai-based shipping company.

The union's change of plans led to speculation of progress between the two parties, but DP World said a resolution on the ongoing dispute was no closer.

DP World executive vice-president, Oceana APAC, Nicolaj Noes, said the company was dealing with a 50,000-container backlog across the country, with hundreds of ships waiting offshore.

“While the MUA withdrew select bans this morning, severe forms of PIA [protected industrial action] remain ongoing that make it practically impossible to run our operations and clear the backlog,” he said.

“There continues to remain the threat that the MUA will ramp up PIA as it suits their agenda in the coming weeks.”

Mr Noes said the ongoing use of eight-hour work stoppages on ships for eight hours after berthing was “the equivalent of being a fast-food restaurant with a truck parked in your takeaway line”.

“Simply nothing happens until it moves,” he said.

DP World has been battling industrial action at its Australian port operations for more than three months, and the company said its discussions with the union were still a long way from resolved.

“The terms put forward by the MUA are not financially sustainable, and they continue to demand unreasonable and excessive control of our operations,” Mr Noes said.

“Further, the MUA’s insistence on a two-year deal timeframe is concerning. If accepted, we could be back in negotiations with the MUA about a new deal in a matter of months.

“This approach is not in good faith and leaves the national economy exposed.”

The industrial dispute has become a political issue, with federal opposition leader Peter Dutton calling for government intervention over the weekend.

Workplace Minister Tony Burke has today agreed to meet with DP World.

Mr Burke's ministerial powers enable him to intervene in the carrying out of protected industrial action, but only if it is deemed to endanger the life, personal health and safety or welfare of the public, or cause significant damage to all or part of the nation’s economy.

His meeting with the nation’s second-largest stevedore will take place early on Thursday.

DP World previously estimated the industrial action had cost the nation $34 million per day in lost productivity since September.

The local branch of the MUA has been contacted for comment.