The Australian waterfront dispute of 1998 was an event in Australian industrial relations history, in which the Patrick Corporation undertook a restructuring of their operations for the purpose of dismissing their workforce. The restructuring by Patrick Corporation was later ruled illegal by Australian courts. The dispute involved Patrick Corporation terminating the employment of its workforce and locking out the workers of the workplace after the restructuring had taken place, with many of these workers members of the dominant Maritime Union of Australia. The resulting dismissal and locking out of their unionised workforce was supported and backed by the Australian Liberal/National Coalition Government.
Major events in the dispute occurred in four major ports, where the Patrick Corporation had significant operations: Melbourne, Brisbane, Fremantle and Sydney. [1] It revolved around attempts by Patrick Corporation and the federal government to improve efficiency on Australia's wharves; primarily by reducing staffing numbers and the power of the Maritime Union of Australia.
Around 1995–96 approximately 70% of Australia's imports and 78% of exports were transported by sea, amounting to approximately $60 billion in trade. This, however, does not include the revenue on car importations.
Data was collected throughout 1997 by the Productivity Commission, comparing international container stevedoring performance for the same ships and trades. The data indicated that Australia charged generally higher, productivity was lower and services were less reliable than overseas. With the exception of bulk grain loading, other areas of traditional stevedoring also performed relatively poorly. It also found that marine service and port infrastructure charges were, in total, two to three times greater than at overseas ports – noting that only some of this reflects cost-recovery pricing in Australia. [2]
Together with other problems in the transport chain, this under-performance was not only resulting in higher direct costs to shippers, but also significant indirect costs from delays and unreliability which could have been reduced. Overall, the international benchmarking revealed significant scope for improvement in Australia's performance.
John Howard, before being elected in 1996, had promised significant industrial relations reform. In January 1997, the Howard Government substantially amended the Industrial Relations Act 1988, and renamed it the Workplace Relations Act 1996 . The stated aim of this legislation was to foster individual choice in workplace bargaining by reducing the powers of external organisations, particularly trade unions, to intervene. In addition, the legislation reduced powers of the Australian Industrial Relations Commission to arbitrate disputes. The Act also introduced individual statutory employment contracts. These were known as Australian Workplace Agreements or AWAs. The watering down of collective bargaining provisions was a source of objection from many workers and unions.
Australian waterfront productivity had been an issue of concern since the 1980s. Patrick Corporation sought to improve productivity by creating redundancies and reducing overtime entitlements for its permanent employees, as well as hiring more employees on a casual basis. The Maritime Union of Australia (MUA) was formed through the amalgamation of two unions: the Seafarers Union of Australia (SUA), and the Waterside Workers Federation (WWF). The MUA was born from this background and retained a heavy union presence on the waterside.
At the time, it was mandatory for prospective employees to be card-carrying members of the MUA. The Howard Government sought to encourage a non-union workforce to compete against the MUA and made new legislative changes to bring this about.
After the legislative introduction of Australian Workplace Agreements, a number of stevedoring operators toyed with bringing individual contract workers into their workforces but abandoned their plans in the face of strident union opposition and activism.
One Australian stevedoring company, Fynwest Pty Ltd, sought to recruit former and current Australian Defence Force members to counter the MUA. [3] In particular, from December 1997, Fynwest began a campaign to recruit former and current members of the Special Air Service (SAS), paratroopers from 3RAR, commandos from 4RAR and other military specialists, to become stevedores. [4] Others were recruited from controversial private military and security consulting companies, such as Sandline International [5] and the Control Risks Group. This led to the use of terms like 'industrial mercenaries' in political and media circles.
Fynwest planned to send these recruits to Dubai in the United Arab Emirates, where international standard training could be provided. The newly trained stevedores would then take part in an Australian non-union dock workers training program.
The MUA was "tipped off" about the planned Fynwest operation and took the matter to the media who met the departing Fynwest employees as they boarded a flight to Dubai and questioned their "tourist" status. Intense criticism and the threat of international industrial retaliation forced the Dubai government to cancel visas for the Fynwest company employees.
In September 1997, Patrick implemented a restructure whereby the functions of employing its unionised workforce and owning its stevedoring business were divided into different companies. The stevedoring businesses and assets previously held by the employer entities were transferred to other companies within the Patricks Group. In addition, the employer entities entered into various labour supply agreements with the owner entities to supply Patricks with labour. As a consequence, the labour supply agreements became the major asset of the employer entities.
Significantly, the labour supply agreements were terminable by the owner entities without notice in circumstances of industrial action. The details of the corporate restructure were not made known to Patrick's employees or the MUA.
In late 1997 and early 1998, Patrick's employees engaged in industrial action, most notably at Melbourne's No 5 Webb Dock.
On 8 April 1998, Patrick's management dismissed all of its employees; liquidated its assets, becoming technically insolvent; and imposed a lockout at most ports in which it operated.
Minister for Workplace Relations, Peter Reith read from a prepared brief, stating that the government fully supported Patrick in their action. [6]
By the following morning the docks were fully operational with new non-union staff in place.
Industrial action and pickets continued at Patrick's Docks around the country. A Supreme Court Injunction was obtained by Patrick's effectively barring anyone from picketing the Webb Dock on 21 April which unions threaten to defy [7]
The case went before the Federal Court with Justice North finding in favour of the union. He found that the company had deliberately restructured their corporate structure with the sole intent to dismiss their unionised workers. [8]
The company with the support of the government appealed this decision to the full bench of the Federal Court which upheld Justice North's earlier decision. The company appealed to the High Court of Australia with the government's support. [9] The High Court upheld the substance of the orders, but modified them to acknowledged the legitimate role of the (now insolvent) company's administrators. [10]
The MUA and Patrick negotiated a new work agreement, which was adopted by the company and workers in June 1998. The agreement specified a near-halving of the permanent workforce through voluntary redundancies, the casualisation and contracting out of some jobs, smaller work crews, longer regular hours, company control over rostering, and productivity bonuses for faster loading. While the union retained the ability to represent maritime workers, the company achieved significant changes to work practices as it desired. Workplace Relations Minister Peter Reith stated at the time "There appears to be a number of reforms which will satisfy the seven benchmark objectives which are very important." [11]
The original former military non-union workers had their contracts paid out by the employer (Fynwest/Patricks) at the conclusion of the dispute and received very generous payouts and bonuses in the order of $50,000 to $70,000 each.[ citation needed ]
The Australian Council of Trade Unions (ACTU), originally the Australasian Council of Trade Unions, is the largest peak body representing workers in Australia. It is a national trade union centre of 46 affiliated unions and eight trades and labour councils. The ACTU is a member of the International Trade Union Confederation.
A lockout is a work stoppage or denial of employment initiated by the management of a company during a labor dispute. In contrast to a strike, in which employees refuse to work, a lockout is initiated by employers or industry owners.
A dockworker is a waterfront manual laborer who is involved in loading and unloading ships.
Peter Keaston Reith was an Australian politician who served in the House of Representatives from 1982 to 1983 and from 1984 to 2001, representing the Liberal Party. He was the party's deputy leader from 1990 to 1993, and served as a minister in the Howard government.
Australian labour law sets the rights of working people, the role of trade unions, and democracy at work, and the duties of employers, across the Commonwealth and in states. Under the Fair Work Act 2009, the Fair Work Commission creates a national minimum wage and oversees National Employment Standards for fair hours, holidays, parental leave and job security. The FWC also creates modern awards that apply to most sectors of work, numbering 150 in 2024, with minimum pay scales, and better rights for overtime, holidays, paid leave, and superannuation for a pension in retirement. Beyond this floor of rights, trade unions and employers often create enterprise bargaining agreements for better wages and conditions in their workplaces. In 2024, collective agreements covered 15% of employees, while 22% of employees were classified as "casual", meaning that they lose many protections other workers have. Australia's laws on the right to take collective action are among the most restrictive in the developed world, and Australia does not have a general law protecting workers' rights to vote and elect worker directors on corporation boards as do most other wealthy OECD countries.
The Australian labour movement began in the early 19th century and since the late 19th century has included industrial and political wings. Trade unions in Australia may be organised on the basis of craft unionism, general unionism, or industrial unionism. Almost all unions in Australia are affiliated with the Australian Council of Trade Unions (ACTU), many of which have undergone a significant process of amalgamations, especially in the late 1980s and early 1990s. The leadership and membership of unions hold and have at other times held a wide range of political views, including socialist, democratic and right-wing views.
Patrick Corporation is an Australian seaport operator with operations in Brisbane, Fremantle, Melbourne and Sydney. Formerly listed on the Australian Securities Exchange, it is owned by Brookfield Asset Management and Qube Holdings.
Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [1998] HCA 30 is an Australian labour law case in the High Court which culminated the legal aspects of the 1998 Australian waterfront dispute, in which a major stevedoring operation, the Patrick group of companies, sought to replace its largely unionised workforce with a non-union workforce.
An Australian workplace agreement (AWA) was a type of formalised individual agreement negotiated between an employer and employee in Australia that existed from 1996 to 2009. Employers could offer a "take it or leave it" AWA as a condition of employment. They were registered by the Employment Advocate and did not require a dispute resolution procedure. These agreements operated only at the federal level. AWAs were individual written agreements concerning terms and conditions of employment between an employer and employee in Australia, under the Workplace Relations Act 1996. An AWA could override employment conditions in state or territory laws except those relating to occupational health and safety, workers' compensation, or training arrangements. An AWA was required to meet only the most minimal Australian Fair Pay and Conditions Standard. Agreements were not required to include effective dispute resolution procedures, and could not include prohibited content. Agreements were for a maximum of five years; approved, promoted and registered by the Workplace Authority; operated to the exclusion of any award; and prohibited industrial action regarding details in the agreement for the life of the agreement. The introduction of AWAs was a very controversial industrial relations issue in Australia.
The Maritime Union of Australia (MUA) was a union which covered waterside workers, seafarers, port workers, professional divers, and office workers associated with Australian ports. The MUA was formed in 1993 with merger of the Seamen's Union of Australia and the Waterside Workers' Federation of Australia.
The Construction, Forestry and Maritime Employees Union (CFMEU) is the largest union in construction, forestry, maritime, textile, clothing and footwear production. The CFMEU is affiliated with the Australian Council of Trade Unions and the Australian Labor Party.
WorkChoices was the name given to changes made to the federal industrial relations laws in Australia by the Howard government in 2005, being amendments to the Workplace Relations Act 1996 by the Workplace Relations Amendment Act 2005, sometimes referred to as the Workplace Relations Amendment Act 2005, that came into effect on 27 March 2006.
Overtime bans are a type of strike in which workers refuse to engage in overtime work, being any work that falls outside of contracted hours. They do this to leverage their employer into negotiating various working conditions. Often organised in unions, workers may choose this form of industrial action to bargain for a higher rate of pay, better working conditions or to discourage an employer from making redundancies. Unlike a full strike in which employees are usually in breach of their contract, workers engaging in overtime bans are typically well protected. Employers cannot legally withhold normal wages during an overtime ban if employees are not breaching the terms of their employment contracts by refusing to do overtime work. However, the legalities of overtime bans do vary between countries. Overtime bans are effective where "industries and organisations run on such habitually high levels of overtime or goodwill that overtime bans ... can have a significant and immediate impact upon the availability of a good or service". Historically, unions have at times received criticism on ethical grounds for choosing to enact overtime bans. The literature records the occurrence of such bans from the 1800s and there is documentation of their use in four continents.
The British Columbia Maritime Employers Association is an association representing the interests of member companies in industrial relations on Vancouver's and other British Columbian seaports.
Josh Bornstein is an Australian lawyer specialising in employment and labour relations law who has acted in several high profile legal matters. He is a member of the Board of economic think tank, Per Capita and the Advisory Board of the Centre for Employment and Labour Relations Law at the University of Melbourne. He is also head of Industrial Relations at Maurice Blackburn Lawyers, is deputy Chair of the Racing Appeals and Disciplinary Board. He is President of Tzedek.org, an advocacy organisation for victims of child sexual abuse within the Jewish community in Australia. Bornstein regularly represents women who have been subject to bullying or sexual harassment in the workplace. In 2021, Bornstein ran for preselection to represent the Australian Labor Party. Bornstein withdrew from the nomination following an article by The Australian, after it was revealed he had referred to Chris Bowen as a "muppet". Bornstein is said to be considering a second attempt at running for the senate.
Chris Corrigan is an Australian businessman. He was the managing director of the Patrick Corporation until it was taken over in 2006.
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power.
The International Longshore and Warehouse Union (ILWU) is a labor union which primarily represents dock workers on the West Coast of the United States, Hawaii, and in British Columbia, Canada; on the East Coast, the dominant union is the International Longshoremen's Association. The union was established in 1937 after the 1934 West Coast Waterfront Strike, a three-month-long strike that culminated in a four-day general strike in San Francisco, California, and the Bay Area. It disaffiliated from the AFL–CIO on August 30, 2013.
The Waterside Workers' Federation of Australia (WWF) was an Australian trade union that existed from 1902 to 1993. After a period of negotiations between other Australian maritime unions, it was federated in 1902 and first federally registered in 1907; its first general president was Billy Hughes.
Lilyvale Stand Monument is a heritage-listed memorial at Lilyvale Road, Crinum, Central Highlands Region, Queensland, Australia. It was built in 1998. It was added to the Queensland Heritage Register on 2 April 2004.