PROCEEDINGS that could have seen Svitzer Australia terminate its enterprise bargaining agreement with three unions representing the company’s maritime workforce have been pushed to the end of this year.

The towage company said it believes the unions sought to delay the cancellation “in the hope, and perhaps in the knowledge” that the government might change the law before the case has reached its conclusion.

The Fair Work Commission hearing, previously scheduled for Monday 8 August, was pushed back after the Maritime Union of Australia, the Australian Institute of Marine and Power Engineers and the Australian Maritime Officers Union obtained a four-month adjournment.

The enterprise agreement termination hearing is now scheduled for 8 December and three more weeks in February 2023.

If Svitzer was successful in terminating the agreement, Monday’s proceedings could have seen the company’s Australian tug workers receive a 47% pay cut, as they would instead be employed under the Marine Towage Award 2020.

MUA, AIMPE and AMOU launched industrial action around the country on Friday, at some ports stopping work for as long as 24 hours.

With work stoppages in place, Sally McManus, secretary of the Australian Council of Trade Unions, addressed members at a virtual town hall.

At a press conference on Friday, MUA assistant national secretary Jamie Newlyn said the unions had arrived at three priorities and demands during the virtual meeting.

Firstly, they again called on Svitzer to return to the negotiating table and “bargain in good faith” for a new enterprise agreement; secondly, they called on the federal government to change the Fair Work Act to disallow the termination of bargaining agreements; and thirdly, they called on the CEO of Svitzer to “show some leadership” and participate in bargaining with local managers.

“Interest rates are going up, inflation is through the roof; these workers haven’t had a pay rise since 2019,” Mr Newlyn said.

“[It’s] unfortunate that Svitzer have taken us to the Fair Work Commission to terminate the agreement and reduce wages by 47%. It is an outrage, in this day and age, that the company are allowed to do this.”

AMOU executive officer Mark Davis said terminating the enterprise agreement would also impact hours of work, and in turn the efficiency and safety of port operations and the wellbeing of crewmembers. He emphasised the issue of fatigue.

“It’s totally unsustainable, especially when it’s the master of the tug … because if he or she is unrested before they come on shift, they’re not going to be able to perform … and they’re going to be a risk to the environment, and to the tug, to the crew and to the port.

“Unless tug masters are adequately rested before they take their shift, and they get adequate rest after they finish the shift, then it’s a hazard that’s waiting to happen.

“We’ve got a towage company that is being seen to be prepared to put the masters in that sort of situation.”

Paul Garrett, MUA’s Sydney branch deputy secretary, recalled the recent situation in which Svitzer tug crews (together with Engage tug crews) prevented bulk carrier Portland Bay from running aground. He said the workers’ efforts and heroism should be considered by management.

“Svitzer management locally should resign in disgust and disgrace,” Mr Garrett said.

“Only a few weeks ago, even the premier came out and called these tugboat workers heroes, and they rightfully were.

“A few weeks later, to go back and push the agenda to cut their wages by 47%; it’s disgusting, it’s un-Australian and honestly should be held to account.”

Svitzer Australia said the company was disappointed the unions had continued to “take advantage of a broken bargaining system” which had allowed them to stall the process.

“We know the unions want to delay the negotiation,” a Svitzer spokesperson said.

“We know they want to delay the Fair Work Commission process. They are banking on the federal government to make change aimed at strengthening their position,” they said.

Indeed, at a press conference on Thursday, Prime Minister Anthony Albanese said the unilateral termination of enterprise bargaining agreements would likely be discussed at the upcoming Jobs and Skills Summit.

“We’ve said repeatedly that the industrial relations system is not working in the interests of business or in the interests of workers,” Mr Albanese said.

“We will look to have constructive discussions between both employers and unions around how we can change that.”

Svitzer said it is facing competition from other players which are unburdened by the “restrictive” terms and conditions of enterprise agreements.

The company highlighted restrictions around recruitment, who is selected to complete work, and around employees receiving as many as four days’ pay for working as little as two hours.

It said the three unions have been insisting on terms and conditions negotiated more than 20 years ago, which “are not fit for purpose and are not fit for a modern towage operation”.

Svitzer also suggested the unions have been misinforming employees.

“Whatever happens, Svitzer has promised to maintain the generous salaries and current core conditions including rosters,” the spokesperson said.

“The unions know this but are telling employees and the public otherwise,” they said.

“All we want is to remove restrictions which are costly and unproductive to ensure that we can compete now and in the future and lift productivity.

“The union misinformation campaign includes telling our people and the media that we are refusing to meet or bargain. As they well know, we are awaiting a response from them.”