FTA / APSA ESCALATE ADVOCACY - SYDNEY WATERFRONT INDUSTRIAL ACTION

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have been inundated with serious concerns expressed by members in terms of the impacts of port congestion in Sydney.   It is essential that the ongoing industrial action across all three Port Botany stevedores be resolved as a starting point to ease port congestion, avoid further disastrous impacts to New South Wales supply chains, prevent a  'domino-effect' of congestion at other ports and to avoid ruinous implications to the Australian economy already suffering a recession due the implications of the global pandemic.   A snapshot of recent developments are listed below:   DPW AUSTRALIA (DPWA)   As reported in our member notice on Saturday 19 September , DPWA advised that the Maritime Union of Australia (MUA) will not be taking industrial action of any kind at their Port Botany terminal before 1 November 2020 'Without the distraction of bans and limitations, we anticipate we'll be able to progress outstanding local matters at DP World Sydney in the pursuit of a finalised enterprise agreement.'   We understand from DPWA executive that operations are proceeding well this week.   HUTCHISON   We separately reached out to Hutchison Port executive who acknowledged the adverse impacts of industrial action however are confident that via further upcoming negotiations they will soon be able to address outstanding areas of concern and return to a regular and reliable service offering.   PATRICK   The terminal requiring urgent resolution is Patrick which we understand has the major stevedore market share at Port Botany.   Based on our engagement with their executive this week it evident that their Port Botany operations is rapidly becoming more gridlocked with '58 thousand TEU in the system' and 'by the end of the week the delays at Port Botany will be out to 18 days'.

Patrick indicated that they cannot operate at anywhere near capacity as a result of Protected Industrial Action (PIA) that includes i) ban on the performance of upgrades and higher duties; ii) ban on the working of overtime; iii) ban on the working of extensions; iv) ban on the working of vessels that have been subcontracted by other stevedoring companies; and v) ban on the performance of work on Project Sabre.    FTA / APSA ADVOCACY   Further to our advocacy update as reported on 13 September 2020, we have been in regular contact with the Attorney General's department and have been engaging with key ministers at both a state and federal level. Outcomes can be broadly summarised as follows: the New South Wales government does not see this as a state based issue, noting that Industrial Relations matters are to be addressed at a Federal Government level; the Federal Government has intervened only to the extent of issuing a media release on 12 September 2020  titled 'SYDNEY WATERFRONT INDUSTRIAL ACTION' urging all parties involved in Sydney's waterfront industrial dispute to work together on a quick resolution to minimise the impact on workers, freight and the nation; and public statements and accusations from both Patrick and the MUA suggest that it is unlikely that the parties will be able to adequately enter into meaningful negotiations and resolve outstanding claims. In response: FTA / APSA has extended its reach with major trade representative bodies and in what is an extremely encouraging development, we met late yesterday afternoon with the National Farmers Federation (NFF) executive who have agreed to lead an escalated media campaign; and after a few days of intensive engagement with the full  APSA Committee of Management, direction was followed last night (23 September 2020) in FTA / APSA providing formal correspondence to the Chief Executive Officer of Patrick Terminals recommending national action to immediately and permanently resolve outstanding industrial relations via the Fair Work Commission.   FTA / APSA LETTER TO MICHAEL JOVICIC, CEO PATRICK TERMINAL – REFER HERE   FTA / APSA will continue to keep members up to date on developments emerging from our advocacy activities and will be providing regular and structured updates for the duration of ongoing national Protected industrial Action.  Paul Zalai -  Director and Co-Founder, FTA / Secretariat, APSA