DP World Australia workers strike over working conditions and pay

The work stoppages by local employees came as the UAE-based ports operator announced plans to develop a free zone in Senegal.

The first stoppage was taken at DP World Sydney on Wednesday, October 1, and is to be followed by one in Melbourne the next day and culminating in stoppages in Brisbane on Friday. Randi Sokoloff / TheShow more

DP World’s operations in Australia have been hit by a series of strikes as part of wrangling between the company and local trade unions over working conditions and pay.

The work stoppages by local employees came as the UAE-based ports operator yesterday announced plans to develop a free zone in Senegal.

The Maritime Union of Australia (MUA) said that it would take a series of limited industrial actions at three DP World ports in the country between yesterday and tomorrow.

The strikes are being taken because of negotiations between the union and DP World Australia over an enterprise agreement between the two parties, determining a series of factors related to pay and working conditions at DP World's port facilities.

The first stoppage was taken yesterday at DP World Sydney, and is to be followed by one in Melbourne today, culminating in stoppages in Brisbane tomorrow.

The strikes come after a similar stoppage in DP World Australia’s port in Fremantle at the end of July.

“DP World Australia strongly disagrees with this action and believes it is neither required nor deserved,” the ports operator said.

“This action is disruptive to our customers and to the broader transport and logistics industry, which depend on efficient and reliable waterside operation through our terminals.”

“DP World Australia believes both parties would be better served to continue negotiations in good faith. We urge the MUA to withdraw their threat of protected action and return to the negotiating table.”

An MUA spokesman said yesterday that negotiations with DP World were ongoing, declining to comment further.

A DP World UAE spokesman in Dubai said yesterday that the financial effect on the group – which owns a 25 per cent stake in DP World Australia – was likely to be limited.

DP World Australia and MUA are understood to have held about 35 meetings over the proposed new enterprise agreement, after the previous one expired in January.

Negotiations over the previous enterprise agreement signed between the two parties are understood to have lasted 14 months.

Meanwhile, DP World said that it was looking to expand its operations in Senegal by developing a free zone in the country, the company’s chairman, Sultan Ahmed bin Sulayem, said yesterday at the Africa Global Business Forum in Dubai. No details were given regarding the timing of such a move.

DP World has operated Dakar’s port since 2008.

Mr bin Sulayem also expressed confidence that its operations in Djibouti “will go back to normal”, after the country’s government revoked the company’s 30-year concession to manage its container port in July.

Djibouti launched arbitration against DP World in London in July, saying that the agreement unfairly favoured the company, accusing it of bribery.

“I’m sure operations in Djibouti will go back to normal. I am positive about that,” Mr bin Sulayem said during an onstage question and answer session at yesterday’s forum.

DP World shares on the Nasdaq Dubai suffered their largest one-day fall since mid-June yesterday, ending the day down 4.58 per cent at US$19.80.

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