Tony Burke has refused to intervene in the industrial dispute between DP World and the maritime union, accusing the ports operator of running a political and media campaign instead of bargaining with its workers.
After meeting the Maritime Union of Australia and DP World on Thursday morning, the workplace relations minister said Australians were “sick to death” of highly profitable companies refusing to pay their employees as much as competitors, urging both sides to negotiate a resolution.
Workers at DP World have engaged in protected industrial action since 1 October, arguing the company is attempting to slash penalty rates. The action includes declining to work overtime and limited stop-work orders, as the union seeks a 16% pay increase over two years.
DP World, which is responsible for about 40% of container freight, has complained that industrial action has contributed to a backlog of almost 44,000 containers that could take months to clear.
Australia’s Fair Work Act gives the workplace relations minister broad powers to suspend or terminate industrial action if it has a significant adverse impact on the economy, most famously used when Qantas grounded its fleet in 2011 in response to industrial action.
Burke told reporters in Sydney that he had “made it very clear that I expect the parties to be at the table, to be negotiating, and to be resolving this”, suggesting they use the Fair Work Commission to conciliate if necessary.
“There’s been some publicity because of a campaign that has happened over recent months,” he said. “I have made clear to the company … if they had invested as much into negotiating as they have into their media campaign, they may already have an agreement.
“The concept that where every other business in Australia is expected to negotiate with their workforce but this business wants to rely on ministerial intervention is not a view that impresses me.”
Burke said the company’s “presumption that they would find a political answer” to the dispute had been “misguided”.
The minister said his department had “no information” that matched claims made in the media about the market impact of the industrial dispute.
Burke said he has “trouble believing DP World has the interests of Australian consumers at heart”, citing comments from regional vice president Nicolaj Noes when he was chief executive of Svitzer that “he was effectively going to shut down every single major port in Australia”.
The minister denied reports that he had refused multiple meetings, noting that he had instigated Thursday’s meeting.
Noes responded: “DP World’s request for government intervention is driven by the severe economic impact of customer frustration and a substantial backlog of containers.
“The company is committed to the Fair Work Commission process to find a fair and sustainable resolution that addresses the consequences of the industrial action and seeks to end it.”
Last week, the Fair Work Commission ruled DP World’s employees could walk off the job for 16 hours, provided their union gives the company five days’ notice.
In November Guardian Australia revealed that DP World has paid no tax in Australia despite generating revenue of more than $4.5bn over eight years.
A report by the Centre for International Corporate Tax Accountability and Research claimed that DP World’s top Australian subsidiary may have “artificially reduced profits” to achieve the result. DP World responded that it fulfils all its tax obligations.
On Wednesday Anthony Albanese said that DP World is “based in Dubai that’s made considerable profits, and certainly there should be a mutually beneficial outcome”.
“I’d urge both parties to organise in good faith and to get this done,” the prime minister told 2SM radio.
