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Newcastle Herald
Newcastle Herald
National
Ian Kirkwood

Fair Work Commission suspends Svitzer industrial action for six months

THE Fair Work Commission yesterday suspended industrial action at the Svitzer Australia towage business for six months, meaning there can be no strikes or bans by unions - or lockouts by the company - until mid-May.

The commission's decision was welcomed by the three unions involved in the dispute, and by a range of port customers and peak bodies representing the various sectors of the Australian economy dependent on shipping for imports, exports and interstate goods movement.

As the Newcastle Herald has reported this week, a three-year dispute over the terms and conditions of a new enterprise agreement to replace the expired 2016 document accelerated on Monday when Svtizer gave official notice under the Fair Work Act that it intended to lock out all of its 580-strong workforce, indefinitely, at the 17 ports it operates in.

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After subsequent hearings of the commission, including a full bench hearing, the parties returned to the industrial umpire yesterday morning to receive its decision.

Having opted to intervene under its own rarely used powers, the commission had a choice of terminating the lockout - and moving directly to arbitration - or to suspend it.

After confirming a lockout would "threaten to cause significant damage to the Australian economy", it decided "the appropriate course is to make an order suspending Svitzer's industrial action for six months".

This meant "no party will be able to take protected industrial action for the period of the suspension".

The Australian economy depends heavily on commodity exports for earnings and imported goods for domestic consumption, and with coal, grain and iron ore prices all above long-run averages, Australia's current account is in a rare periods of surplus, with exports exceeding imports by $18.3 billion for the June quarter.

The NSW Minerals Council says coal shipments through the Port of Newcastle are worth up to $200 million a day.

The NSW Port Authority, which has the final say over shipping movements in NSW, rearranged shipping schedules this week to try to minimise the impact of a proposed strike as well as the company lockout - before they were both cancelled.

But a strong southerly swell topping six metres off Nobbys on Thursday led the harbour master to close the port until the swell abated.

Svitzer tugs are also crucial to the grain export industry, with two terminals, GrainCorp and Newcastle Agri Terminal, operating in the port. Zach Whale, from the peak body GrainGrowers, welcomed the suspension of the lockout, saying it would have coincided with a "crucial harvest period" when growers were already struggling to keep up with demand.

"It is critical that industrial relations arrangements are managed to ensure goods can be moved through the most appropriate port, avoiding delays and increased costs," Mr Whale said.

Agriculture Minister Murray Watt said the Albanese government was "far from happy with what Svitzer is doing".

Industry watchers say the Svitzer lockout would have been the first since Qantas grounded its fleet in 2011.

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