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Business

Minister accuses tugboat company of 'economic vandalism' over planned lockout of workers

Australia's largest tugboat company has been accused of "economic vandalism" over plans to lock out hundreds of workerswith the federal government intervening to stop the action.

Minister for Workplace Relations Tony Burke took aim at Svitzer Australia's plans to indefinitely lock out workers from 17 ports across Australia on Friday following three years of stalled negotiations with the unions.

An escalating industrial dispute between maritime unions and Svitzer threatens to disrupt Christmas supply chains, and cause havoc on ports across the country.

"What Svitzer are attempting to do is economic vandalism," Mr Burke said.

"They have decided to act now in a way that puts a whole lot of the Australian economy at risk, not simply their own workplace."

The proposed lockout would cripple supply chains with the company holding a near-monopoly on tugboat services at dozens of ports across the country.

"We are making clear the potential damage to the Australia economy of this dispute," Mr Burke said.

The comments come as the Fair Work Commission (FWC) is set to deliberate on whether to suspend or terminate the industrial action after finding it could cause significant damage to the Australian economy. 

Mr Burke confirmed the government had intervened in those deliberations to argue the action should be terminated. 

"The Federal Government believes the worker lockout proposed by tugboat company Svitzer should not go ahead," the minister said in a statement.

"That is why we have intervened in the Fair Work Commission's case to argue this action should be terminated.

"The Commonwealth will be providing economic evidence to the Commission to demonstrate the significant harm to the national economy that would result if the company's industrial action went ahead."

The Commission will sit from 1pm on Thursday to hear from representatives from Svitzer, the unions and other port entities. 

"I think everyone agrees this lockout should not go ahead," Commission vice president Adam Hatcher told the tribunal. 

At an issues hearing on Wednesday representatives from Svitzer Australia argued for the industrial action to be terminated which would result in a mediated settlement between the company and the unions.

The company argued after three years of failed negotiations over a new enterprise bargaining agreement it was necessary for the FWC to step in.

The representatives from three maritime unions argued for a suspension of actions until after Christmas so the two parties could continue to negotiate a settlement.

The Maritime Union of Australia said reaching an agreement was still possible.

"The people of Australia deserve to have the tugboats moving," deputy secretary Paul Garrett said.

"If the company is fair dinkum we can sit down and resolve [the dispute] this afternoon."

Svitzer Australia has been contacted for comment.

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