Patrick Terminals strikes pay deal with MUA on stevedores

Patrick Terminals has struck a pay deal with the maritime union that avoids costly strike action as shippers grapple with the new US tariff regime under US President Donald Trump.

Patrick CEO Michael Jovicic. Picture: Bianca De Marchi/The Australian

Australia’s biggest stevedore operator Patrick Terminals has locked in a wage deal with the Maritime Union of Australia that expires at the end of 2028, taking the port workers’ pay rises over seven years to about 35 per cent, according to the union.

The deal between Patrick and the MUA came faster than expected, given the current enterprise bargaining agreement has not yet expired.

Patrick chief executive Michael Jovicic says the port operator has an “ongoing commitment to productive workplace relations, supporting long-term value creation for all stakeholders,” after locking in the roll-over deal.

“This historic agreement roll-over provides a strong foundation for the future, ensuring stability for our employees and certainty for our customers in an increasingly dynamic global environment,” said Mr Jovicic. “As a trusted Australian container terminal operator, we remain committed to delivering resilient and reliable services to our quayside and landside customers.”

Freemantle, Sydney, Melbourne and Brisbane ports have all agreed the deal which now needs approval by the Fair Work Commission.

The deal would be a relief to importers and exporters who suffered during the rolling strike actions at DP World last year. The cost of rolling industrial actions at the second-biggest stevedore, cost $84m per week, DP World said at the time.

Patrick suffered strike action in 2020 before reaching the deal that has now been rolled over.

The new deal agreed this week includes pay increases of 3.25 per cent or the consumer price index (which ever is higher) for two years, and then a rise of 3.5 per cent or CPI (which ever is higher) in the third year.

Other parts of the deal include a $2000 sign-on bonus, a ban on compulsory redundancies as a result of port automation, and a ban on contracting out any current work.

“MUA members across the country have been vocal and united in their support for the new agreement and its outcomes,” said the MUA Western Australia Branch in a Facebook post. “When combined with the increases in the last EBA, Patrick members have increased their salaries by around 35 per cent across the seven years, as well as other uplifts in conditions, rostering, (and) job security.”