As most of you have probably heard already, the MUA have decided to ramp up their protected industrial action at Patrick Container Terminals around Australia particularly Sydney and Melbourne.

This action by the MUA comes on top of the already extremely difficult shipping situation that everyone has been dealing with during this pandemic with massively high freight costs being incurred while being subjected to below average service from the carriers.   

We’ve received the following update from Patricks that’s been sent to our industry body, explaining the impact of these proposed actions by the MUA and we wanted to pass on this information, as there could be serious delays with cargo deliveries and additional charges being incurred as a result of this industrial action. Also, its most likely that some carriers will again start to omit these ports if the Patrick Terminals are heavily impacted and delayed due to this industrial action, which will further delay the movement of cargo into and out of Australia and cause more schedule havoc for the carriers.

 

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) wish to advise that we have received an update from Patrick Terminals in relation to the impact of “Protected Industrial Action (PIA)” by the Maritime Union of Australia (MUA) at Patrick Terminals nationwide.

Following recent industrial notifications and misinformation circulated by the Maritime Union of Australia, we wish to clarify the forecasted impact of current and upcoming industrial action on our container terminals. The capacity for sub-contracting of vessels to other Terminal Operators is extremely limited as these terminals also work through peak volumes and the impact of COVID on their operations. Any additional notifications of industrial action will further impact this information.

Terminal Operations Update

Patrick Terminals – Sydney AutoStrad

• Detailed scheduling has been completed to assess the impact of industrial action in Sydney
• Two concurrent 24-hour stoppages will occur at the terminal due to industrial action coinciding with the NRL football finals and the Labour Day October long weekend
• Delays are forecast to reach an average of 5.8 days by the 11th October after the 48-hour stoppage and other work bans pending no additional industrial action launched
• DP World has no short term capacity to take sub-contracts, however, capacity may become available mid-month 
• Hutchinson has no capacity to take sub-contracts

Patrick Terminals – Brisbane AutoStrad

• The terminal is currently experiencing low-level impact from industrial action

Patrick Terminals – Fremantle

• Following a 48 hour stoppage last weekend to coincide with the AFL Grand Final in Perth, the terminal continues to be impacted by industrial action resulting in some extended port stays for vessels.
• DP World has no capacity for sub-contracting until mid-October at the earliest.

Patrick Terminals – Melbourne

• Our Melbourne terminal schedule is busy with back to back vessels for the month of October
• Delays are forecast to increase to 7 days by mid-October due to the 40 industrial actions taken by the MUA and will continue to increase throughout the month due to rolling stoppages by the MUA
• DP World operations have been impacted by a positive COVID case and sub-contracting capacity is unknown at this stage
• VICTL has no capacity for sub-contracting due to positive COVID cases and employee isolation requirements

Update on MUA Negotiations

• Approx 70 formal meetings have been held with the MUA since February 2020 in an attempt to reach an agreement.
• The MUA has now launched 197 industrial actions against our business since May 2021.
• Patrick Terminals issued the MUA with a final letter offer providing pay increases and job security. Employees will receive their pay increases as soon as the agreement is ratified. Employees have not received pay increases due to the MUA’s non-acceptance of the offer.
• Patrick Terminals issued a letter of impasse to the MUA on the 19th of August.

Patrick Terminals appreciates the ongoing support of our customers during this challenging time. We continue to work with customers to minimise the impact of this industrial action by the MUA. It is important that we achieve an agreement with the MUA that ensures that we have the flexibility and capacity to service our customer requirements and keep the Australian economy moving. 

Please reach out to your Client Services Manager if you would like any further details.

Regards,

Patrick Terminals