The Morrison government has ordered a review into the efficiency of Australia’s ports, setting up a stoush with Labor over the maritime union’s industrial might.
The treasurer, Josh Frydenberg, has tasked the productivity commission with examining the “long-term trends, structural changes, and impediments” that affect maritime logistics, with a report due mid next year.
Amid a long-running industrial dispute between the Maritime Union of Australia (MUA) and container terminal operator Patrick Terminals, the commission’s review will include examining workforce issues and industrial relations.
“The efficiency of Australia’s ports are vital to our economic success,” Frydenberg said in a statement announcing the terms of reference of the review.
“With more than $400bn goods imported and exported every year, it’s critical that we lift productivity at our ports.
“The Morrison government will continue to respond to global supply chain disruptions and importantly, through this review, will consider what domestic changes can be made to improve the efficiency of our ports.”
The review into Australia’s ports was flagged by the prime minister, Scott Morrison, in a speech to the Australian Industry Group last week, in which he invoked the Howard government’s infamous waterfront intervention of 1998, which led to the entire workforce of the then-named Patrick Stevedores being sacked and replaced.
Morrison said that “inefficient ports are a tax on us all” and flagged the government would be prepared to again intervene “to protect the Australian economy from serious harm”.
The MUA and Patrick have been locked in bargaining negotiations for the past 18 months, during which time the MUA has launched more than 220 industrial actions.
The two parties have agreed to a ceasefire, halting industrial action until 10 December in exchange for Patrick withdrawing an application to the Fair Work Commission alleging strikes were “causing significant issues in the economy”.
Following Morrison’s remarks, the MUA accused him of peddling “lies about wharfies”.
“For Scott Morrison to join this attack on working people is a disgrace and reflects the fact that his government will never represent working women and men and will always suck up to big business, wealth and international corporate elitism,” national secretary of the MUA, Paddy Crumlin, said.
“Scott Morrison is like that bloke in the pub looking for a fight at the end of the night because he’s got nothing else going for himself. Taking a swing at wharfies and their families in the lead up to Christmas only proves how desperate his leadership has become.”
Labor’s industrial relations spokesperson, Tony Burke, told the Australian Financial Review the move was a “tired old union-bashing routine” and accused the government of trying to stir up conflict ahead of the election.
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A report from the Australian and Competition and Consumer Commission in November highlighted problems in the global container freight supply chain that were being exacerbated by systemic industrial relations issues and restrictive work practices in Australian ports.
It found that the MUA had pushed for “restrictive work practices”, including enterprise agreements that limited the ability of stevedores to automate and make recruitment decisions, for example being required to recruit “family and friends” of existing employees or people chosen by the MUA.
“The long-running labour issues in the container stevedoring industry have resulted in lower productivity and higher costs for Australian cargo owners,” chair of the ACCC, Rod Sims, said.
The report also found that the Covid-19 pandemic had destabilised the global container freight supply chain, causing delayed shipments and rapidly rising freight rates.
Freight rates have increased almost seven-fold in key global trade routes over the past year.
The MUA, however, argues that the cause of delays and rising costs is due to “unprecedented domestic demand for imported goods along with poor infrastructure planning by state governments and expert manipulation of pricing and scheduling by international shipping cartels.”
It said the ACCC had “recklessly” conflated these issues “with waterside workers seeking fair pay, job security and safety at work.”
Patrick operates four of Australia’s five major ports, including Melbourne, Sydney, Brisbane and Fremantle.
The five ports account for 94.7% of total containerised trade in Australia, with more than 85% of merchandise imported or exported via sea.
