DP WORLD

A major development has now occurred with DP World Australia (DPWA) indicating to its customers and employees that from Friday 12 January 2024, DPWA will no longer tolerate partial work bans as part of the Protected Industrial Actions (PIA) being taken.

The Notice says “As a result, employees participating in these actions will not be entitled to any payment until they are ready and willing to perform all of their normal duties.”

The full statement from DPWA is reproduced below.

IMPORTANT ANNOUNCEMENT: DP WORLD AUSTRALIA’S STANCE ON PARTIAL WORK BANS AND ENSURING SUPPLY OF CRITICAL GOODS

 

Dear Valued Customers,

We hope this email finds you well.

We are writing to inform you of an important announcement regarding DP World Australia’s stance on partial work bans amidst the ongoing industrial dispute.

Effective Friday12 January 2024, DP World Australia will no longer tolerate partial work bans. As a result, employees participating in these actions will not be entitled to any payment until they are ready and willing to perform all of their normal duties. This decision comes after exhaustive negotiations with the Maritime Union of Australia (MUA), with the assistance of the Fair Work Commission.

This is a necessary step to address the detrimental effects of the industrial action on vital industries such as meat, agriculture, and retail. The livelihoods of countless individuals are at stake, and we must take action to curb economic losses and stabilise port operations.

We want to assure you that DP World Australia remains fully committed to resolving the dispute while protecting our business interests and the broader economy from the impacts of the industrial action. Our Executive Vice President, Nicolaj Noes, emphasises that finding a fair and sustainable solution remains our top priority.

Amidst this challenging situation, we want to emphasise our unwavering commitment to ensuring the supply of critical goods and medicines. Throughout the industrial action, DP World Australia will prioritise the handling of vessels carrying perishable foods, medical supplies, and humanitarian aid. We have put in place procedures to ensure swift and efficient processing of these essential goods, minimising any disruption to vital supply chains.

We understand the importance of these critical goods and medicines, especially during this period of industrial action. We are fully aware of the impact that any disruption in the supply chain can have on individuals and communities. Rest assured, we are working diligently to ensure their timely and uninterrupted delivery.

We would like to take this opportunity to express our gratitude for your continued support and understanding during this challenging time. We value our partnership with you and remain committed to providing the highest level of service despite the ongoing industrial dispute.

If you have any questions or concerns, please do not hesitate to reach out to us. We appreciate your patience and cooperation as we navigate through this situation.

Thank you for your attention, and we look forward to serving you.

Sincerely,

Ravi Sheshadri

Vice President – Commercial – Ports & Terminals

Oceania – APAC

DP World

 

The impact of this could be that DPWA employees may turn up for their shift this coming Friday, refuse to work the full shift (given the notified PIA by their union), and then will not be paid. Effectively, this might lead to what could be described as a “reverse lock-out” of employees by DPWA.

This is a significant escalation of the industrial situation, and ultimately (worst case scenario) may mean that by the end of this week, some or all of DPWA’s container terminals will not be staffed for operations.

In other words, it could mean that more than one third of Australia’s container terminal capacity to handle imports and exports will not be available to service Australia’s container trades, except perhaps for “urgent” cargoes already within the terminals (i.e. the notice talks about critical goods and medicines).

We understand that the scheduled Enterprise Agreement negotiations between the bargaining parties are still proceeding on Tuesday, 9 January, with the assistance of the Fair Work Commission (FWC). How though the two announcements today from DPWA will influence these discussions is a question that only time will answer.

DPWA is clearly seeking Government intervention to terminate the PIA, and for the Federal Minister (or the President of the FWC) to order arbitration to be commenced through the FWC.

The economic harm to Australia will escalate rapidly if DPWA’s terminals are non-operational for any length of time.