Ongoing industrial issues at Fremantle Port between DP World and the Maritime Union of Australia is impacting WA's economy by $10.7 million per week, CCIWA has warned.
Ongoing industrial issues at the Fremantle Port between logistics company DP World and the Maritime Union of Australia is affecting Western Australia's economy by $10.7 million per week.
Further, the Chamber of Commerce and Industry WA has warned, the dispute could further impact supply chains.
The announcement follows a statement by Workplace Relations Minister Tony Burke yesterday that he wouldn't intervene in the national dispute, despite DP World and the CCIWA calling for government intervention.
The $10.7 million weekly figure, comprised of direct and indirect impacts, includes cost delays and potential loss of fresh produce bound for export.
On Monday, DP World said approximately 50,000 of its shipping containers were backlogged across Australia due to the dispute, with 6,000 of these at Fremantle.
It also stated it had lost approximately $78.7 million in disrupted exports, with $8.9 million of this loss occuring at its Fremantle terminal.
The Fair Work Commission also ordered that the MUA hold a 14-day protection action ballot for DP World employees, which would give them an opportunity to vote on the protected industrial action, which included an unlimited number of 16-hour work bans in any ship, as soon as it tied to the wharf.
DP World's dispute with the union has also resulted in rolling two-hour stoppages, along with an overtime ban, which has been enforced since November last year.
CCIWA chief economist Aaron Morey said the disruption was significant as WA's ecomony relied heavily on international trade.
"Ninety-nine per cent of international trade happens through Australia’s ports, so any impact on port operations will have an impact across the economy, particularly for our farmers who rely on fresh produce being handled efficiently,” he said.
"WA is also at the end of incoming global supply chains, so it poses a real risk for industries that rely on imports for the crucial components required to run their business, like vehicles, machinery parts, appliances, pharmaceuticals and fertilisers."
