BREAKING NEWS - VICT RECEIVES TEMPORARY INDUSTRIAL ACTION REPRIEVE VIA THE FAIR WORK COMMISSION

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) Committee of Management received an operational briefing from Victoria International Container Terminal (VICT) executives last week and subsequently obtained advice last night that a submission has been made to the Fair Work Commission (FWC). The result being that an Interim Order has been issued suspending industrial action by the Maritime Union of Australia (MUA) effective from 0600 today (Saturday, 20 February). Importantly, this outcome also prevents the MUA from taking industrial action until a mid-March hearing is held.

OPERATIONAL IMPACTS   The following commentary has been provided by the Container Transport Alliance Australia (CTAA):   VICT has adjusted its vessel schedule, export cut-offs and import availability, and, as of late Friday afternoon (19/2), has released additional vehicle booking slots for Sunday (21/2) and Monday (22/2). VICT is conscious of the late notice of changed import pick up and export receival times, and the impact this will have on the landside logistics sector this weekend. VICT has pledged to do all it can to assist with slot availability, most importantly for export receivals prior to cut off for vessels such as Venita and OOCL Beijing. It is welcome news that the FWC has ruled this way, at least on an interim basis. However, it is now the landside logistics operators who have to readjust and "pick up the pieces" this weekend (and beyond) to ensure that import and export container cargoes continue to flow through VICT.

ECONOMIC IMPACTS   The following commentary has been provided by the Shipping Australia Ltd (SAL):   Shipping Australia CEO Melwyn Noronha noted: "Everyday Australians rely on maritime trade no matter how far they live from the sea or from a port. The import / export trade accounts for about 46% to 47% of Australia's economy. Seaborne imports and exports are part of, and drive, the logistics industry. That industry supports about 1.2 million jobs, which accounts for about 10% of the total Australian workforce. "However, we continue to have severe industrial relations-induced disruption on the waterfront. Industrial relations need to be looked at as a matter of urgency by the Federal Government or disruptions will continue to persist to the detriment of all Australians, no matter who they are or where they live. "Shipping Australia calls upon the Federal Government to include a review of waterfront industrial relations as part of any reform package".

FTA / APSA ADVOCACY POSITION   It is not our position to comment or intervene in industrial relations matters. This is a matter that must be resolved between the employer, workforce and union. Having stated that, prolonged industrial action, as evidenced during 2020, has devastating impacts on a fragile international shipping supply chain that can take many months to recover.   In line with the above position, whilst supporting members' needs, FTA / APSA has offered to provide evidence as an expert witness before the FWC focussing purely on the economic impacts of waterside industrial action to Australian commerce.   Supporting this approach, the Australian Peak Shippers Association (APSA) has made a formal submission to the Australian International Trade and Transport Industry Development Fund Limited (ITDF) to support the production of a paper titled 'The importance of keeping freight moving and the impact of disruptive events'. As well as addressing the impacts of industrial action, the consultation, research and paper will have a scope including an examination of other disruptive events such as extreme weather conditions, operational accidents, cyber, trade embargoes and the like.   All IP created within the project will be retained by the ITDF and will be available for all of industry.   We look forward to engagement with the ITDF board and if successful, engaging consultants and commencing this research that will provide immediate support and provide a vitally important industry resource for the years ahead.

Paul Zalai -  Director and Co-Founder, FTA / Secretariat, APSA