Industry warns of $100m port bill over industrial dispute

Ai Group chief executive Innes Willox says the industrial dispute at the nation’s ports was estimated to cost the economy about $100m per day.

Australian Industry Group chief executive Innes Willox. Picture: Aaron Francis

The Australian Industry Group is warning the industrial dispute between DP World and the Maritime Union of Australia is costing the national economy “about $100 million per day” with the potential to “force up prices” across the country during a cost of living crisis.

DP World regional vice-president Nicolaj Noes told ABC radio on Wednesday that the conflict had “come to a head” after several months of industrial action, with the stevedore standing by its threat to dock pay from this Friday if a breakthrough was not reached.

The federal Opposition and industry groups are urging Workplace Relations Minister Tony Burke to intervene in the dispute with the stevedore, which controls about 40 per cent of the freight capacity at the nation’s ports, after Mr Burke last year urged the industrial umpire to end the damaging ports stand-off with tugboat operator Svitzer.

Opposition spokeswoman for workplace relations Michaelia Cash said Mr Burke should now “take that option” to intervene, but accused him of being unwilling “because he wants to keep his paymasters in the union movement happy”.

“Our ports are the lifeblood of the economy and need to be fully operational for the health of our national economy,” Senator Cash said. “Delays at our ports lead to increased costs for businesses that will inevitably be passed onto consumers.”

AIG chief executive Innes Willox said the government “needs to intervene to resolve the ongoing industrial action at DP World ports to stop the accumulating national economic damage the dispute is creating”.

“The dispute is estimated to be costing the national economy about $100 million per day. Coupled with the productivity costs, it is vital that the government acts in the national interest to move to resolve the dispute,” he said. The $100m estimate comes after DP World suggested the ongoing dispute with its stevedores over wages and rostering had, so far, cost the nation more than $84m per week due to delays loading and unloading containers from ships.

It has urged the government to arbitrate a solution, warning the dispute had stalled about 44,000 containers and that it would take up to eight weeks to clear the backlog.

The MUA is seeking a two-year pay deal with a 16 per cent pay rise, arguing that Patrick stevedores had a 17 per cent higher rate than DP World’s – a claim contested by Mr Noes.

A spokesman for Mr Burke this week said that DP World and the MUA needed to work together on a solution.

Treasurer Jim Chalmers said the government wanted to see “well-paid workers” and a “productive waterfront”.

“We want to see less conflict,” he said. “So we urge the parties to come to a concluded view where there is a win-win outcome for people and where our ports can continue to be successful.”