Maritime union and Patrick fail to reach a deal but workers agree not to strike

Talks between the maritime union and Patrick Terminals have failed to seal a pay deal but the union has agreed to suspend all industrial action until later in October.

After two days of conciliation, the Maritime Union of Australia has decided to suspend its actions until the Fair Work Commission can hear the company’s bid to permanently terminate the actions on 26 and 27 October.

The union’s industrial actions, which consisted mainly of bans on overtime and acting in higher duties, were used by Patrick Terminals and Scott Morrison to blame the MUA for delays of up to 20 days to unload ships at Sydney’s Port Botany.

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Patrick Terminals chief executive, Michael Jovicic, greeted what he called a backdown after the union “lost in the court of public opinion” but acknowledged the MUA had only retreated “to fight another day”.

“At least now we can get on with clearing the backlog which exceeds more than 100,000 containers around Australia,” he said.

“My operations team estimate it will take between two and three months to return to normal. Hopefully this means we will avoid shortages of goods at Christmas time.”

In the talks, Patrick Terminals offered the MUA 1.5% pay rises for the next four years, with no changes to current conditions or rosters and an extra 50 casual staff to be hired to clear the backlog. The MUA offered to roll over the existing agreement for two years with 2.5% pay rises.

The MUA Sydney assistant branch secretary, Paul Garrett, said the company’s offer would have resulted in “mass casualisation” through engagement of 50 casuals in roles that should be full-time, warning that the union “won’t trade off pay for job insecurity”.

The industrial relations minister, Christian Porter, has said the government will support the Patrick Terminals application, while the prime minister has accused the MUA of “extortion” for engaging in lawful industrial action.

On Thursday, Scott Morrison said the government wanted to ensure the industrial relations system can “employ more people” but also chipped the maritime union for opposing automation.

“We can’t have the rather militant response and approach that we’re currently seeing out there in Port Botany,” he told the National Press Club.

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“I mean, we’re talking about a dispute here where they are seeking to reduce automation technology at our waterfront – to resist the improvements in productivity that will support farmers get their products to international markets.”

Morrison said the government was preparing to introduce a package of industrial relations reforms, despite the fact roundtables between unions and employer groups failed to produce a resolution.

Garrett said the MUA expected Patrick Terminals to come back to the bargaining table. “They can’t hide behind the media, the courts, the prime minister who got it wrong all week,” he said.

The MUA national secretary, Paddy Crumlin, said: “On Monday, the public was told there were 40 container ships sitting off the NSW coast waiting to unload, but by Tuesday it was clear there were only one or two sitting off Port Botany, which is a normal situation.

“On Monday, the public was told medical supplies were being held up, yet by Wednesday the CEO of Patrick was forced to admit he wasn’t aware of a single medical container that was delayed.”

Patrick Terminals announced on Thursday it had been contacted by a freight forwarder seeking assistance to locate and move a container containing diabetes medication.

The ship, which it claims was delayed by three weeks due to the industrial action, will now be discharged from Port Botany.

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The Australian Council of Trade Unions president, Michele O’Neil, said the MUA had “sought to end the dispute as quickly as possible despite Patrick’s cynically creating fears of a medical supply shortage during a pandemic”.

She said the company had spread “outright lies” about the impact of the dispute to try to avoid reaching a fair agreement.

“These workers have been working around the clock seven days a week since the start of the pandemic to ensure that we have everything we need to get through this crisis,” O’Neil said. “They deserve our thanks, not to be attacked by the federal government and their employers.”