An update on the Protected Industrial Action (PIA) at DP World Australia
As you would be aware, the Enterprise Agreement (EA) between DP World Australia (DPWA) and the CFMMEU for our four terminals expired on 28 February 2019 without agreement on replacement terms.
Background to the current dispute:
I wanted to take this opportunity to highlight our extreme disappointment on this lack of progress in reaching a new agreement. Particularly after we provided a very reasonable offer to roll over the EA on current terms which included a wage increase of 2.6% from 1st March. This was a generous wage offer and is almost 1% higher than the current CPI. In addition to this wage increase, we offered the continuation of Income Protection (IP) which we maintain ceased on 28th February 2019. The CFMMEU's wage claim of 5%, plus 5% plus 5% over three years as well as IP was predictably rejected by DPWA. It is completely out of touch with the financial outlook of the Company and unsustainable in our competitive industry which includes other participants with a much lower cost base due to automated handling of Containers.
DP World Australia will not support claims if they fail to better business outcomes in the form of improved service levels to our customers and the cost of operating the business.
We are extremely disappointed not to have reached an agreement with the CFMMEU at this point in time as the business and the industry can ill afford the disruption and financial burden caused by Protected or Unprotected industrial action.
Industrial Action:
On18 March we advised you of the details of protected action planned for each terminal.The business will be challenged through this period and in the immediate future due to the stoppages planned and also the limitations placed on the business. The CFMMEU has advised us that our employees are not able to perform work upgrades. They have also placed bans on working continuous operations, advance/delay starts and extensions and call ins therefore restricting the ability of the business to deliver the required labour allocation to meet the current vessel schedule.
Due to the restrictions applied by the CFMMEU there will be disruptions to our customers vessels calling our terminals during this period. The Customer Centre and our Operations Teams are working tirelessly to continue to review the operation at each of our terminals to minimise the impact where possible.
Minimising disruption:
The Customer Centre Team will continue to be in communication with our shipping line customers to keep them informed of the status of their vessels. During this period of protected industrial action, we will continue to explore opportunities where possible to sub contract vessels and change port rotation where it is beneficial to do so. They will also work closely with the central planners to affect the best plan to minimise disruption.
Our berthing protocols through this period will be to work vessels in order of arrival.
We will continue to work closely with all our shipping line customers to minimise disruption as we work through this period of protected industrial action. |
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