Author: GPSM

DP World Industrial Action – Employee Roster Changes Announced

Significant Landside Delays & Costs:

Landside logistics operators in Melbourne, Sydney, Brisbane and Fremantle have struggled significantly this week in obtaining vehicle booking system slots to pick-up import containers and deliver export receivals from DP World’s Terminals, and have suffered from lengthy truck turnaround times and in some instances non-service of vehicles.

The efforts of DP World to recover from the crippling cyber-attack last weekend and to reopen landside operations have been welcomed.

But now it is taking far longer to recover from the backlog of containers combined with the continuing discharge of imports and receival of exports due to the ongoing industrial actions by DP World’s workforce and the maritime union as part of disputed Enterprise Agreement (EA) negotiations.

The flow-on landside impacts are the imposition of significant additional costs incurred by transport operators, frustrated importers not able to take delivery of their delayed import cargoes, and export containers missing vessel cut-offs and having cargoes rolled to subsequent voyages.

Exporters aren’t fulfilling their overseas supply contracts, and importers are faced with import containers potentially incurring storage fees for late pick-ups from DP World’s terminals despite poor terminal performance.

Insidiously, container shipping lines are indicating to importers that they will not provide container detention relief for the late return of the empty import containers, despite the delays being attributable to their contracted stevedore provider.

This is another clear example of why the ACCC should be authorised to develop mandatory guidelines on when the levying of container detention fees by shipping lines is “reasonable” and when it is not.

Transport operators are incurring the added expense of working additional night and weekend shifts just to try to get sufficient slots to meet the freight demand, and then finding that they end up not being able to service all of the slots due to the cascading effect of terminal delays.

The cost of these delays and added operational pressures are borne initially by the transport operators who either choose to pass on those costs to their customers in the form of waiting time charges or congestion surcharges, or absorb the costs to the substantial detriment of their operating margins.

The delays being incurred are not sustainable. They are costing landside operators collectively hundreds of thousands of dollars per week – a cost eventually borne by exporters, importers and consumers.

DP World Announces Changed Roster Arrangements:

In a move clearly designed to break the impasse with the maritime union on the stalled EA negotiations, DP World has announced today (16 November 2023) to their employees the implementation of roster changes across their four terminals in Melbourne, Sydney, Brisbane and Fremantle (under the terms of the existing EA).

Download from the link above a copy of the DP World statement on the roster changes.

DP World has described the changes as “adapting its roster system to meet dynamic shipping and berthing schedules.”

“This change aims to optimise workforce use and align with new trade patterns. The expected outcome includes increased operational efficiency and flexibility at terminals, as well as adjustments to employee remuneration.”

CTAA understands that in the EA negotiations, DP World has been seeking greater roster flexibility, particularly for night and weekend shifts, which presumably these roster changes will seek to address.

DP World’s letter to its employees also anticipates increased earnings for the vast majority of their workforce resulting from the roster changes, and also laments that their employees “take home pay” has been reduced by -30% on average due to the current strike action. They note that their employees last received a pay increase in October 2022.

We await the reaction of DP World’s employees and the maritime union to these roster changes and how they impact on the ongoing EA negotiations. Importantly when the roster changes are implemented, we wait to see if they will have a positive impact on landside terminal productivity and slot capacity availability.

 

Calls for Federal Industrial Relations Minister to Intervene to Terminate Industrial Action:

Shipping Australia, representing container shipping lines servicing Australian trades, has written to the Federal Industrial Relations Minister, Tony Burke, seeking the Minister’s intervention in the current DP World industrial dispute under Section 431 of the Fair Work Act 2009.

Section 431 of the Act gives the Federal Minister power to make a declaration, in writing, terminating protected industrial action … if the Minister is satisfied that (among other matters) … “the industrial action is threatening or could threaten to cause significant damage to the Australian economy or an important part of it.”

The Shipping Australia letter estimates that the current industrial actions could be causing up to $23 million per day in economic harm to Australia.

CTAA supports the calls from Shipping Australia for the Federal Minister to intervene.

Under the current provisions of the Fair Work Act, the maritime union is entitled to pursue protected industrial action through to June next year. CTAA believes that the current disruption levels to containerised trade through DP World’s terminals are unsustainable for such a lengthy period of time and will cause significant economic harm if they are allowed to continue.

From the above, you will note that the working week from DP World for transport has been cut from seven (7) days to two (2) days, and half days on weekends with all the bans and strikes in place.

This has led to the other Terminals (Patrick’s, VICT and Hutchinsons) are all experiencing high traffic volumes and lengthy delays as a result of the DP World situation. Some of the alternative terminals are also at full capacity at present.

Slots are being booked as early as possible, however many of those bookings are being cancelled by the terminal (often when a truck is already there) as they are unable to service the volume of bookings made, this is causing a backlog of thousands of containers nationally.

We have had staff working overtime and weekends to rebook slots and to move as many containers as possible, but despite all our efforts, shipping lines are not making any adjustments to equipment detention free time during this period, they are all advising that any additional detention charges will be passed on to importers and exporters.

The GPSM Transport Team are working exceptionally hard in trying to ensure that you, our clients, are not adversely affected by the situation, the team will continue to strive to achieve the earliest possible delivery times despite working under an extremely stressful and frustrating situation with little assistance from any outside parties.

Further to our earlier Newsflash this morning, we have now received notification that the situation with DP World operating systems has improved and operations are expected to return to normal.

Extensive system testing was undertaken on Sunday and DP World have now advised the situation has been contained and operations are slowly returning to normal, there will still be delays but at least a gradual return to operations is a good sign the threat has been resolved.

GPSM Transport Team will continue to monitor the situation in all states and they will keep affected clients updated asap.

As you may have seen and heard on the news, DP World Terminals have suffered a Cyber Attack that was detected late on Friday and all systems in the terminals around Australia are affected.

It has been indicated that the national emergency response coordination mechanism had been evoked as DP World Australia seeks to recover its software systems. It was reported that National Cyber Security Coordinator, Air Marshal Darren Goldie, was providing technical advice and assistance, and was quoted publicly as saying that that “this interruption is likely to continue for a number of days and will impact the movement of goods into and out of the country.”

It is understood that some 30,000 containers are impacted by the Cyber Attack in DP World Terminals in Sydney, Melbourne, Brisbane and Fremantle, no official statement has yet been released by DP World at this time and to when systems are expected to be returned to normal.

The Cyber Attack comes after protestors rallied on Friday outside DP World Sydney Terminal against an Israeli ZIM Line vessel that was due to berth, however the vessel was delayed and sat off anchor to avoid the clash. There has also been on-going protected industrial action by the Maritime Union for the past 2 weeks with work-bans and full day strikes disrupting operations.

DP World handle approximately 40% of Australia’s import and export containers so major delays are expected to be encountered in finalizing deliveries of imports and exports, the GPSM Transport Team will keep all clients fully updated on developments as soon as further information is available.

Dear Customers,

Please see below Newsflash regarding DP World Terminals, GPSM Transport Team will be in contact with clients directly affected by these outages:

DP WORLD TERMINALS – SYSTEM ISSUES

URGENT NOTICE

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) would like to inform members that DP World terminals are currently experiencing a systems outage, impacting communications both internal and external.

As a result, extensive disruptions are being experienced at DP World Terminals around the country with transport operators being informed by DP World to not send drivers to the terminals whilst they deal with the issue.

DP World have suggested that if customers are trying to contact R&D, to please be patient, and that emails will be responded to once systems are restored.

Updates will be posted on the FTA / APSA website

 

Tom Jensen – Head of International Freight & Logistics – FTA / APSA

Copyright © 2023 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.

Ongoing Industrial Action at DP World Terminals:

Following is the updated advice received from Nicolaj Noes (DP World Australia Executive Vice President – Oceania) on the current status at DP World terminals, with industrial action continuing until 30 October, 2023:

 

Dear Customers,

I write to provide an important update on the current protected industrial action being undertaken by the CFMMEU-MUA DIVISION and its impact on our operations.

Since the inception of the bans by the CFMMEU-MUA DIVISON on 6th October 2023, there have been tangible disruptions across all our terminals. Exporters, importers, and the broader supply chain have felt the ripple effects of these disruptions, particularly in berthing arrangements and landside services, including road and rail operations.

However, we are fully committed to seeking efficient alternatives at DP World. We aim to ensure vessels are serviced proficiently, upholding our scheduling commitments.

Over the last six months of Enterprise Bargaining, we’ve approached negotiations in the spirit of collaboration and good faith. Our stance has been flexible, making concessions where they align with the broader interests of our business, our customers, and the Australian community. However, the CFMMEU-MUA DIVISON’s current stance has posed challenges. Recent discussions held in September 2023 brought limited progress. While we had scheduled further meetings for 17-19 October 2023, their continuation is contingent on the cessation of protected industrial actions, a condition the Union has not yet agreed to.

Our priority remains clear: serving the Australian public and ensuring service disruptions are kept to a minimum. In the spirit of transparency and community interest, we implore the CFMMEU-MUA DIVISION to engage in constructive dialogue. While we recognise the right of the CFMMEU-MUA DIVISION to take industrial action, its repercussions are felt by our hardworking employees and the wider Australian community.

In compliance with Section 414(2)(b) of the Fair Work Act 2009 (Cth), please be informed of the forthcoming protected industrial actions by members of the CFMMEU covered under the DP World Enterprise Agreements. These actions aim to advocate for claims concerning a proposed Enterprise Agreement.

For specific concerns:

• Shipping lines and further clarification: [email protected]
• Sales-related concerns: [email protected]

Your understanding and patience during this period are greatly appreciated. Our commitment is unwavering, and we will continue to work towards ensuring seamless services for all our esteemed clients.

Warm regards,

Nicolaj Noes

Executive Vice President, Oceania

DP World Australia

 

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) once again urges all parties involved in the industrial dispute to work together on a quick resolution to minimize the impact on workers, freight and the nation.

GPSM Transport Team are constantly monitoring the situation in all states and will be in contact with customers that are affected by this industrial action.

The beleaguered freight division of Qantas Airways said late last week that it could take another two weeks for some key cargo terminals in Australia to dig out from the logjam of shipments caused by a troublesome switchover to a new cargo management system. Data from the legacy system was supposed to be integrated into the new system but glitches in digital communications and cargo processing immediately cropped up on September 24th.

Nearly two weeks into the crisis, Qantas Freight is struggling to keep shipments flowing and says it will be up to two weeks before warehouse operations at the Sydney and Melbourne airports return to normal, according to a notice posted on their website.

Paul Zalai, director of the Freight & Trade Alliance, on Thursday criticized Qantas’ slow response and suggested angry freight forwarders would demand compensation for financial burdens resulting from multiday delays retrieving shipments.

Logistics providers say manual procedures have not successfully substituted for automated ones. Continuing challenges include the inability of the new system to communicate with X-ray scanning machines, breakdowns in messaging with Australian Customs for clearing imports to enter the country and difficulties tracking the location of shipments.

Qantas management on Friday urged freight forwarders to stop contacting employees they have relationships with seeking favours to expedite their cargo, saying “this in fact is creating duplication of effort across multiple channels and in fact counterproductive to assisting us clear cargo,” according to correspondence shared with members by the Freight & Trade Alliance.

GPSM will keep clients updated as further news comes to hand.

Please see below statement issued by DP World Ports on upcoming and extended industrial action by CFMME Union:

IMPORTANT ANNOUNCEMENT REGARDING UPCOMING EMPLOYEE CLAIM ACTION

Dear Valued Customers,

We hope this notice finds you well. We have an important announcement regarding upcoming employee claim action that may impact our services.

As per the outcome of the Protected Action Ballot No B2023/920, which was declared on 26 September 2023, we are obligated to inform you about the following actions, in accordance with Section 414(2)(b) of the Fair Work Act 2009 (Cth):

• • Starting on Friday 13 October at 0600, all members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 8 hours.

 

• • Starting on Friday 13 October at 1400, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 4 hours.

 

• • Starting on Friday 13 October at 1800, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 2 hours.

 

• • Starting on Friday 13 October at 2000, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in two consecutive work stoppages, each lasting 1 hour.

 

• Starting on Friday 13 October at 2200, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 8 hours.

The below sets out the majority of the bans that have been notified. There are a number of other bans which have also been notified:

 

Please note that during this period, there will be no provision of a bus escort at Port Botany. Additionally, the action will exempt cargo care, but only to the extent required to monitor containers on the usual basis.

We understand that this may cause inconvenience, and we assure you that we are working diligently to minimize disruptions to our services. We will make every effort to resume normal operations as soon as possible after the action has concluded.

The employee claim action being taken is in support or advancement of claims made in respect of a proposed Enterprise Agreement.

We appreciate your understanding and patience during this time.

Please note that GPSM Transport Team will be in direct contact with clients that may be affected by the various industrial actions to reschedule pick-ups and deliveries.

Attached notice from industry body, Freight & Trade Alliance ;lists all industrial action at DP World Terminals expected to be actioned in the coming week.

In addition, Patricks Terminal in Sydney have announced an 8 hour operations shut down from 6am until 2pm on Thursday 5th October, 2023.

Attachments:

• MUA INDUSTRIAL ACTION AT DP WORLD TERMINALS email

The GPSM Transport Team will be in contact with any customers that will have deliveries affected by these industrial disruptions.