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Australian shipping stakeholders have cause to celebrate as DP World and the Maritime Union of Australia (MUA) have reached an agreement that will end protected industrial action at Australian ports.  

Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which it is estimated has cost the Australian economy A$86m ($56m) a week.    

However, after four months of strike action and three days of negotiations in Sydney before the Fair Work Commission, the Emirati logistics company and the union have settled upon a four-year agreement. It replaces the prior agreement that expired in September 2023. 

The agreement includes fair compensation, enhanced safety measures, effective fatigue management, guarantees of job security and work-life balance for employees.  

After announcing yesterday that the strike would be extended until 10 February, today the MUA announced: “All protected industrial action has been withdrawn and wharfies at Dubai Ports will return to work with the same enthusiasm, hard work and commitment that they have brought to their jobs over many years.” 

The MUA assistant national secretary, Adrian Evans, said: “The past fortnight has shown how quickly a fair and sustainable deal can be resolved once both the workforce and the employer are fully engaged in the negotiation process.  

“Wharfies perform hard, physical work on a 24-hour, seven day working week, in all conditions and all seasons. They are amongst the hardest working, most productive and most flexible workforces in the Australian economic landscape.” 

Vice president at DP World Oceania, Nicolaj Noes, said: “This agreement is a testament to our commitment, to our workforce and to providing uninterrupted services to our customers. We are now focused on moving forward, restoring the supply chain operations and working collaboratively with our employees to rebuild confidence among our customers and make a positive impact on the national economy.” 

There is still a large backlog of containers across Melbourne, Sydney, Brisbane and Freemantle ports, which could take weeks to clear. This means that delays and increased costs will still likely continue into March.  

The Australian Industry Group also warned that while the settlement of the dispute is welcome, it will come at a long-term cost for industry and consumers.  

“The agreement involves a series of wage increases well above the current inflation rate, which is on the downturn. This will inevitably lead to increased costs and charges for industry and end consumers in the years ahead,” it said.  

Head of international freight and logistics at the Freight and Trade Alliance, Tom Jensen, said: “It’s important to note the agreement is still to be voted on by employees and subsequently approved by the Fair Work Commission (FWC) – which generally takes approximately 45 days for complex agreements as per FWC guidelines.  

“But the length of the agreement being for a period of four years as opposed to the mooted two to three years is a good sign both negotiating parties are satisfied with the terms.” 

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