After a long period of protracted negotiations, stevedores at Dubai Ports World (DP World) have unanimously decided to take industrial action. DP World, a United Arab Emirates (UAE) majority state-owned enterprise, is the fifth largest port operator in the world.
There will be a series of strikes through the rest of October that will impact shipping operations around the country. Nicolej Noes, DP World Oceania Executive, says reaching an agreement with the Maritime Union of Australia (MUA, the maritime division of the CFMMEU) will be an “utmost priority.”
A combative company
Recently, Noes concluded an agreement with the MUA and Svitzer Australia, a tugboat operator. As managing director of Svitzer, he threatened to lock out its entire workforce indefinitely and terminate its enterprise agreement.
With the Maritime Officers Union (AMOU) and the Engineers Union (AIMPE) folding, MUA members felt they had little choice but to accept a newly negotiated agreement despite concerns over clauses that allow for outsourcing. This ended over two and half years of a long, drawn-out dispute.
Although the result was not a total victory for Svitzer – the agreement did make some advances for the workforce – it marked Noes as a hardline warrior for big business. DP World has been happy to acquire his dubious talents.
DP World, a Dubai-based global port operator, has for the last decade sought to undermine hard-fought gains stevedores have won through their union at every opportunity. Each period of enterprise agreement negotiations has led to significant disputes.
In 2015, the negotiations were acrimonious. The Fair Work Commission (FWC) ordered the MUA to cease industrial action and several members were terminated by DP World due to allegations of bullying. Nevertheless, the MUA’s action was effective enough to secure pay rises above Consumer Price Index (CPI) and achieve greater job security.
In 2018, DP World walked out of negotiations after the MUA raised legitimate safety concerns over an incident in Port Botany, Sydney. As negotiations dragged on, it sacked 200 of its workers – reversing previous gains of permanency.
The FWC again placed restrictions on industrial action. It was not until 2020 that the MUA could finalise an agreement with the company that provided members with some incremental gains.
This time, the gloves are off
Previous disputes had murky outcomes because the MUA was not united enough to achieve decisive victories, instead being beset by internal divisions within its leadership. The Victorian branch of the MUA has had three leadership changes in ten years, while leadership changes have also occurred in Queensland and New South Wales (NSW).
This time, under the leadership of Robert Lumsden, formerly a stevedore at Patricks, the Victorian MUA branch – as part of nationwide industrial action – is determined to fight back.
Workers at the largest container terminal, DP World Melbourne, struck for 24 hours on 8 October and have implemented bans on overtime and shift extensions. Further strikes will follow on the 9th and 10th, and there will be bans on unloading trucks – the highest level of industrial action in the country.
Red Ant spoke to dockworkers at Swanson Dock, some who have worked there for over fifteen years. Daniel Sweeze, a straddle driver, explained, “DP World is not open to discussing the MUA’s claims. All correspondence from DPW centres around the needs of management and the shipping companies. Employees are rarely even mentioned. Profits come first.”
Foreman Billy Patches remarked, “Of all the container terminal companies, DPW has the reputation as being the worst to work for and it’s the lowest paying port. It has the worst management and the highest rates of bullying and harassment. And it’s the worst when it comes to safety. Currently, 20% of the Melbourne workforce are on workers compensation or light duties.”
Crane driver Peter Crumpton stated, “It is nothing short of outrageous that DP World is seeking to strip and gut the entitlements of its workforce. All workers are facing a cost-of-living crisis – one that is driven by the very likes of DP World, which has raised its cartage rates year on year. Tearing up existing conditions is no basis for negotiations to continue, especially when the company is doing so well.”
Workers at Fremantle struck for 24 hours on 6 October, while Sydney and Brisbane MUA members have also placed bans on overtime and shift extensions. Each port voted yes with a rate of 99-100% to every question in the ballot for protected industrial action with a 92% participation rate. Even the most experienced of stevedores cannot remember a time when workers were so united in anger against the company.
The strikes have been effective. DP World released a statement published by Daily Cargo News stating, “Since the bans initiated by the CFMEU-MUA division on 6 October 2023, there has been a considerable strain on the supply chain, jeopardising service efficiency and having cascading effects on our customers and the Australian households at large.”
‘Flexible work arrangements’
Noes has cited “inflexible work arrangements” as a barrier to securing a new agreement and seeks “an even spread of availability” across all shifts, including weekends.
The notion of flexibility is problematic to the point of absurdity and assumes humans have no limits to their exploitation. Red Ant got a copy of the proposed roster and can confirm this means that stevedores will be working three out of four weekends.
Noes has also been telling the media that the “base rate of pay will not go backwards.” However, the new rostering arrangements, if implemented, will lead to pay cuts of up to 32% and the loss of the 35-hour week. In Noes’ worldview, only the rich are allowed to value their weekends.
Current rosters allow stevedores at DP World to take every eighth week off. Since stevedores work a dangerous, demanding and high-pressure job based on rotating shifts, this week is considered essential for rest and recuperation.
DP World claim to have engaged in over 90 hours of negotiations with the MUA, but the reality is it has been stonewalling them and leaving them with ultimatums. According to the MUA, the company is seeking the right to have the ability to outsource all jobs, cut real wages, cancel rostered work and salaries, and reduce key employment conditions.
Stevedores at DP World have already made sacrifices for the company. During COVID-19, these workers were forced to carry a disproportionate risk of virus exposure to ensure commodities – from basic necessities to luxury goods – could still be provided.
While there has been a global decline in shipping container volumes of 2%, DP World’s volumes have increased by over 3%. Their own website states, “Australia has shown resilience amidst these challenges and has maintained a more robust performance.”
According to Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, “Our balance sheet remains robust, and we continue to generate high levels of cash flow, which provides us the flexibility to invest in the growth of our existing portfolio and new investment opportunities when they arise.”
In the first six months of 2023, on a reported basis, revenue grew by 13.9% to $9 billion. Over a twelve-month period, revenue is reported to be $17 billion, a 59% increase. This gave them a profit of $2.6 billion (before tax) in the first six months of 2023 for a total of $5 billion in twelve months, a 37% increase – on top of record profits from previous years.
While Noes has stated that Part A negotiations are nearly finalised, the MUA has not agreed to any of the cuts, and it will fight on.
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