Amid tensions in the Australian maritime sector, the Maritime Union of Australia (MUA) has scaled back its industrial action against stevedoring giant DP World. 

However, the conflict has taken a contentious turn, with allegations of xenophobia marring the dialogue.

Previously, the MUA had planned eight-hour delays and bans on certain shipping lines, but these have been replaced by two-hour work pauses and a refusal of overtime. 

This move strategically avoids triggering DP World's ‘pseudo-lockout’ response, which was enacted at terminals in Sydney, Fremantle, and Brisbane last Friday.

The union's demands centre around a 16 per cent pay increase over two years for its members, who currently earn a reported average of $130,000.

This push for higher wages comes amid ongoing stoppages and disruptions, posing a substantial threat to the efficiency of Australia's ports.

Sally McManus, Secretary of the Australian Council of Trade Unions, fiercely criticised Opposition Leader Peter Dutton's weekend call for government intervention in the dispute. 

McManus accused Dutton of supporting the interests of Dubai's elite over Australian workers, saying; “We have Peter Dutton getting up like he’s a union delegate for the sheikhs and sultans of Dubai, backing them in all the way, rather than his own people, the Australian people and their families.”

In response, Innes Willox of the Ai Group accused McManus of xenophobia, arguing that such rhetoric could deter foreign investment and was reminiscent of an outdated, bigoted era.

DP World Australia, responsible for about 40 per cent of the country's container freight and part of the Dubai-based DP World group, has voiced concerns over the union's actions. 

Despite this, the union remains steadfast. 

“If the AIG want to back in the ruling elite of an undemocratic government who follow a system of indentured labour akin to modern slavery that’s a matter for them,” McManus said. 

The deadlock prompted a meeting between Mr Noes and the union’s lead negotiator, Adrian Evans, with the Fair Work Commission, overseen by commissioner Bernie Riordan. The outcome of this meeting remains undisclosed.

The union's ongoing actions, though less disruptive than initially planned, continue to impact Australia's supply chains. 

DP World has expressed disappointment with the union's offer, which it views as unsustainable and potentially leading to more industrial strife in 2025.

Amidst these tensions, freight and trade groups have criticised DP World for its substantial fee increases for container movements, set to rise by up to 50 per cent from February 1. 

In contrast, Evans emphasises the union's position as “fair, reasonable, and sustainable,” highlighting their withdrawal of certain industrial actions to prevent exacerbating the situation.

As the dispute continues, the Australian economy faces potential repercussions, with industries and supply chains feeling the strain of the ongoing conflict.