More than 40,000 shipping containers are standing idle nationwide amid a long-running industrial dispute that is affecting retailers' stockpiles across Australia.
The dispute is between Dubai Ports (DP World) and the Maritime Union of Australia (MUA) around pay increases for its workers.
Over 1,500 workers at DP World have engaged in protected industrial action since October 1, with claims the company is attempting to slash penalty rates. It has also been reported that the company is trying to impose a sub-inflationary pay rise.
The action impacting DP World has resulted in a two to eight week backlog in shipments. Global shipping company Maersk, which also operates in Australia, claims the action is affecting ports in Sydney, Brisbane, Melbourne and Fremantle (Perth), and includes eight-hour quayside stoppages, with workers refusing to work overtime.
The MUA is seeking a 16% pay increase for the workers over two years.
The Australian Retailers Association (ARA) claims many business owners are reporting delays and significant out-of-stock issues, with continued concern around the potential impact on pricing, adding to the cost-of-living crisis.
ARA CEO Paul Zahra said it has now become critical that both parties bring the dispute to a head as a matter of urgency, in order to minimise any further adverse impacts for importers, retailers and consumers.
“Australian retailers need unimpeded access to the global supply chain to operate and this industrial action is starting to have an unacceptable impact on the flow of goods from overseas suppliers into our sector,” Zahra said.
“All categories are affected but we are particularly concerned about perishable food, fresh produce, pharmaceuticals and other essential goods including back-to school merchandise.”
Zahra said retailers have managed to minimise the impact of this industrial action on consumers, but warns that this could soon escalate.
“We are increasingly concerned that the inconvenience of out-of-stocks and delays in fulfilling customer orders could soon escalate into higher prices on everyday essentials if the situation is not resolved soon," he said.
“Through the pandemic, Australian retailers demonstrated tremendous agility and ingenuity in response to supply chain disruptions.
“However, the underlying pressure on the supply chain is ever present and with geo-political wars this will only intensify in coming months due to external forces entirely out of our control as a country.
"That’s why we are urging the parties to get back to the negotiating table and resolve their differences in good faith quickly, to stop a bad situation from getting worse.”
Minister for Employment and Workplace Relations Tony Burke is expected to meet with both parties. Zahra said retailers see this intervention as just the first step to get shipments moving again.