unions set to cripple coal exports

Unions set to cripple coal exports

JOE KELLY From: The Australian June 28, 2012 12:00AM


ONE of the nation's busiest ports faces a seven-day shutdown, with three unions threatening industrial action that could cripple coal exports from Gladstone Harbour in central Queensland.

Unions have filed notices of the action to begin at 7pm tomorrow against Dutch-based towage company Smit, which holds an exclusive licensing agreement for harbour towage with the Gladstone Ports Corporation.

The proposed action follows eight months of negotiations between the company and the Maritime Union of Australia, the Australian Maritime Officers Union and the Australian Institute of Marine and Power Engineers over new enterprise bargaining agreements.

Negotiations began before the expiry of the previous agreements in December but no breakthrough has been reached on wages.

Smit is understood to have offered a 4.5 per cent annual increase, accompanied by productivity trade-offs.

The Australian understands Workplace Relations Minister Bill Shorten held discussions with the Queensland government, the Gladstone Ports Corporation and the three unions involved yesterday.

Over the past year, the value of exports through the Port of Gladstone has amounted to an average of $169.8 million a week, with coal exports making up $120m of it.

Rio Tinto, Cement Australia and Orica are all major users of the port.

The Gladstone Ports Corporation confirmed yesterday that the industrial action would close down the harbour.

"During this time no commercial ships will be able to enter or sail," a spokeswoman said. "Ships at berth will have their loads completed and then will have to wait until the completion of the strike action before they can leave the berth."

Speculation also focused yesterday on whether the action could mean Rio Tinto bauxite stockpiles at its alumina refineries fronting the port being exhausted.

Rio Tinto spokesman Bruce Tobin said: "We are aware of potential industrial action at the Gladstone port and we are monitoring the situation.

"Rio Tinto urges all the parties to work towards a resolution of the dispute to ensure there is no impact on our operations."

Speaking from The Netherlands last night, Smit spokesman Martijn Schuttevaer said the company had offered a "firm and responsible package" based on Australian market rates.

"We've maintained an open line of communications with our stakeholders and we are concerned about the potential implications," he said.

"It is our endeavour to reach that agreement with unions within all boundaries of reasonableness."

Notices for consecutive 24-hour stoppages have been filed by the unions. Although they are to begin tomorrow and run for a week, the notices can be retracted.

MUA assistant national secretary Ian Bray said yesterday that it was "unfortunate" the union had been forced to consider taking industrial action.

"It's only ever intended to be used as a last resort and we stand by ready to meet with the company if they can find a way to get to the table to continue negotiations," Mr Bray said.

"We will seriously look at our options in terms of retracting the action on the basis that good-faith negotiations will continue."

http://www.theaustralian.com.au/national-affairs/industrial-relations/unions-set-to-cripple-coal-exports/story-fn59noo3-1226410516882