Australia’s peak shipping body has urged the federal government to order the end of industrial action at beleaguered port operator DP World, claiming it is wiping $20 million off the wider economy every day.
DP World, which processes about 40 per cent of all Australian freight, was the victim of a cyberattack last week, leading to major delays at ports around the country.
Those delays are being exacerbated by the Maritime Union’s (MUA) strike action, which was planned before the cyberattack occurred, leading Shipping Australia to write to Workplace Relations Minister Tony Burke urging him to order the union members back to work.
“One day of simultaneous industrial action will disrupt cargo at DP World to a value of approximately $201.6 million per day and that, in turn, causes an estimated direct economic loss to the wider economy of $10.1 million a day,” CEO Melwyn Noronha wrote.
“However, as I am sure you are aware, such industrial action has a series of cascade effects that spread the economic damage across the country…
“(The action is causing) an estimated significant economic harm to Australia of more than $23 million a day.
“And this figure does not take into account the fact that longer periods of industrial action, ie, those that take place over more than one day, are likely to cause compounding effects.
“Shipping Australia considers that the combined harm caused by the cyberattacks and the ongoing industrial action is so significantly damaging to the Australian economy (or a part thereof) that it warrants your intervention.”
The strikes are in response to proposed rostering changes for wharfies at DP World, which the MUA says would result in pay cuts and additional weekend work.
DP World claims the roster could increase the pay of some workers.
In a statement, it said it hoped the industrial action would be ended soon.
“DP World remains optimistic that the Maritime Union of Australia will cease its industrial activities and cooperate with us,” a spokesperson said.
“We hold the view that in periods of intense challenges, it’s vital for every involved party to collaborate to uphold the productivity and reliability of our supply chain processes.”
The industrial action, which is a mix of stop-work orders and various bans on specific types of work, is currently scheduled to run until November 26 at ports in Sydney, Melbourne, Brisbane and Fremantle.
(9 News)
