Business News Releases

Legal win for Australian seafarers trying to prevent replacement of MV Portland with foreign vessel

THE Federal Court has handed a major legal victory to 10 Australian seafarers who undertook a two-month sit-in to prevent their vessel, the MV Portland, from being replaced by foreign flag-of-convenience ships crewed by exploited workers.

The seafarers and their union, the Maritime Union of Australia (MUA), have been in a four-and-a-half year legal battle with the Fair Work Ombudsman, which is seeking fines and damages over allegations the crew’s refusal to leave the vessel constituted unlawful industrial action.

In November 2015, the crew found out from media reports that Alcoa was planning to sack 40 Australian seafarers and sell the MV Portland, which had been carrying alumina from Kwinana in Western Australia to its Portland Aluminium Smelter in Victoria for 27 years.

The 10 seafarers on board refused to sail the vessel to Singapore, where it was to be sold, occupying the vessel for two months before they were forcibly removed by security guards in the dead of night and replaced by a foreign crew.

Federal Court Justice Mordecai Bromberg ruled in favour of the MUA’s argument that a clause in the vessel’s employment agreement that stated it was in place “whilst the vessel operates in the trade” meant it had ceased to apply at the time of the sit-in.

In his judgement, Justice Bromberg said that given the critical nature of this argument to the FWO’s case, it would seem to follow that the substantive proceeding should be dismissed.

MUA assistant national secretary Ian Bray said the decision was a significant win for the seafarers involved.

“For four-and-a-half years, the Fair Work Ombudsman has pursued legal action against the union and our members, refusing numerous attempts to mediate a resolution and instead taking it to trial in the Federal Court,” Mr Bray said.

“The ruling by Justice Bromberg, which confirms the long-argued position of the MUA and our members that the employment agreement ceased to operate once Alcoa announced the MV Portland was being replaced from service, blows a hole in the FWO case.

“This is a significant victory for the 10 brave Australian seafarers who spent two months on board this vessel, without pay, in an effort to defend one of the few remaining Australian-registered vessels trading on our coast.

“After four long years, this not only brings us a step closer to averting fines for our members, it could be a watershed industrial relations decision with significant implications for other workers.”

Mr Bray said the public should hold the Turnbull, Abbott and Morrison governments to account for their role in not only sending these jobs offshore, but then prosecuting the Australian workers who tried to save them.

“Every step of the way, the Federal Government has been supporting the loss of these skilled jobs,” he said.

“They issued the temporary licences required to use foreign flag-of-convenience vessels to undertake this trade around the Australian coast, they granted the visas for the foreign crew who were flown in to replace these seafarers, and they then set their industrial relations attack dog on them.

“Rather than support Australian jobs, we have seen successive Coalition governments continue the decimation of Australia’s maritime supply chains, leaving the nation almost completely dependent on foreign vessels to move essential goods around our coastline.

“The only way multi-national companies like Alcoa have been able to get away with slashing the jobs of Australian seafarers is because the Federal Government continues to support this race to the bottom by issuing temporary licenses to use foreign vessels with exploited crews on coastal shipping routes.

“Four-and-a-half years on, Alcoa is continuing to use flag-of-convenience vessels crewed by seafarers that are paid as little as $2 per hour, all while enjoying multimillion dollar taxpayer-funded subsidies from the Victorian Government.

“Despite happily taking millions from Australian taxpayers, this American multinational refuses to employ a single Australian seafarer on what is clearly a permanent domestic trading route.” 

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Beirut blast highlights inadequate Australian shipping regulations for transport of dangerous goods

AUSTRALIA must urgently overhaul security and licensing provisions for shipments of dangerous and high consequence goods, including ammonium nitrate, in light of the catastrophic blast in Beirut that killed at least 135 people and injured thousands more, according to the Maritime Union of Australia (MUA)

The union has repeatedly warned the Australian Government that the reliance on poorly-regulated foreign flag-of-convenience vessels — like the unseaworthy Russian-owned, Moldovan-flagged Rhosus which delivered the explosive material to Beirut — to carry dangerous goods around the coast poses a significant safety risk.

The union said the Australian Government was continuing to issue temporary licences to flag-of-convenience ships carrying dangerous cargoes such as ammonium nitrate without ensuring they adhere to Australian safety standards, and without security checks on the crew members on board.

Among the actions urged is legislation that requires the use of Australian-registered and crewed vessels — which must conform to appropriate safety standards and have properly tra​ined crews​ ​that​ have undergone security checks — to carry high consequence cargoes such as explosives, munitions, weapons, aviation gas, and other liquid and gas fuels.

While Australian seafarers are required to undergo thorough security checks before being issued Maritime Security Identification Cards, foreign workers on flag-of-convenience vessels are exempt from these checks, instead being issued a Maritime Crew Visa without any background checks.

MUA national secretary Paddy Crumlin said inadequate shipping regulations and security checks were creating a ticking time bomb on Australia’s coast.

“The situation in Beirut, where a dangerous cargo arrived on an unseaworthy flag-of-convenience vessel that lacked the ability to safely store it, could easily be repeated in Australia,” Mr Crumlin said.

“Dangerous goods like weapons-grade ammonium nitrate come in and out of Australian ports on flag-of-convenience ships without any process to ensure they can safely carry that dangerous cargo, or that their crew members don’t pose security risks.

“The porous and substandard level of background checks on foreign workers through the Maritime Crew Visa — which is issued electronically without background checks — is completely inadequate and inappropriate for such high consequence cargoes.

“This coastal and international shipping trade has been left open to the lowest bidders who utilise exploited foreign crews who are often extremely fatigued due to spending more than a year at sea.”

Mr Crumlin said urgent actions were needed to protect the Australian coastline, as well as workers and nearby residents at ports that handle dangerous cargoes.

“Last year, 85,000 tonnes of ammonium nitrate moved through the Port of Newcastle alone — 30 times the amount that devastated Beirut — posing a significant threat to safety,” he said.

“The Australian Government must urgently tighten shipping regulations to ensure dangerous goods are carried on vessels that are registered in Australia and crewed by Australian seafarers who have undergone appropriate training and security checks.

“Using Australian owned, operated and crewed ships for the transport of dangerous goods is a simple way to ensure safety standards are met, significantly reducing the danger posed by shipping.

“This would also ensure that all seafarers moving this cargo have undergone the strict background checks and ongoing compliance that is required to be issued with a Maritime Security Identification Card.”

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Travel agencies at the frontline of tourism devastation

THE Australian Federation of Travel Agents (AFTA) has warned that the quarterly tourism labour statistics released this week only hint at the current and future employment carnage across travel agencies.

The Australian Bureau of Statistics Tourism Satellite Account: tourism labour statistics[1] track the health of the tourism sector over the year to March 2020 and capture the impact of the December 2019 and January bushfires and the beginning of international travel restrictions due to COVID-10.

The quarterly report shows that the impact of the bushfires and the beginning of COVID-19 alone cost the sector 21,900 jobs, 74 percent of which were full time positions. This is the largest ever fall recorded by the ABS since tracking of tourism jobs began in 2004.

“Prior to the COVID-19 pandemic, travel agents operated close to 3,000 locations nationally and employed 40,000 Australians," AFTA CEO, Darren Rudd said. "A recent AFTA member survey showed 98 percent of our member travel agents have seen revenues drop by 90 percent and more as a result of the pandemic.

“These ABS quarterly stats reflect the fact that tourism has been harder hit than the wider economy however we know from our member agents that while JobKeeper has been a very welcome lifeline to keep travel consultants working, this situation has already worsened significantly since March.

“AFTA continues to work closely and collaboratively with government and across the business community to find the best path forward that will allow things to start returning to normal while accommodating the necessary health measures. In addition to pushing for additional support, AFTA continues to push hard for the introduction of travel bubbles," Mr Rudd said.

“Today’s news that JobKeeper eligibility will be further eased to allow businesses easier access to the extension is also greatly welcomed.

“Only three countries in the world have completely closed their borders – India, New Zealand and Australia. While we understand the health rationale, we need to find a way forward by working together to end this commercial and cultural discrimination and get us travelling again.”

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[1] https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/980F9B8D39809902CA2585BB00254CED?OpenDocument

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Gym owners see public flocking to exercise amidst pandemic

SUCCESSFUL Australian franchise business, Snap Fitness, reported it has seen locals emerge from lockdown with a new zest for life as sign ups skyrocket.

With at-home workouts taking a back seat, Australians seem keen to hit the gym and take advantage of flexible access despite the everchanging public environment. The brand is set to open 10 new clubs across the country before the year is out.

Snap Fitness is seeing record numbers flocking to clubs with membership growth of 89 percent  in June and 72 percent in July, making it clear fitness is a priority or those wanting to get back into the swing of things.

Predicting 3.8 percent of growth annually over the next five years, the fitness industry is currently worth $3 billion in Australia, employing over 21,000 people. Although the sector was hit hard by COVID-19, this growth doesn’t seem to be slowing down.

Snap Fitness national franchise sales manager, Gabe Condello said, “If you have ever been looking to invest in a business, now is the time to consider the fitness industry, as it can take up to 6-12 months to get a club open. We are seeing great opportunities present themselves right now, from landlords providing flexible arrangements to more people than ever wanting to be fit and healthy, leading to solid returns for clubs coming out of COVID.”

While Snap Fitness has said it was excited to welcome gym goers back through their doors, new precautions will be taken to ensure their workout spaces align with current health and safety guidelines.

Equipment has been set up to allow for social distancing, self-cleaning stations are available at all clubs, increased cleaning procedures are in place and clubs have updated their amenities to abide by guidelines including showers, water coolers, fans and spaced out lockers.

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You can count on us says Qld resources industry

QUEENSLANDERS can count on the resources industry to continue to strictly comply with all government protocols to prevent the spread of COVID-19 in the community, the Queensland Resources Council (QRC) said this week.

QRC chief executive Ian Macfarlane said the industry was working closely with the State Government and office of the Chief Health Officer (CHO) to prevent the spread of the virus, especially into regional areas, and will do whatever is necessary to protect workers and the community.

“From Saturday, interstate FIFO workers from New South Wales and the ACT either need to be based in Queensland, or they will not be allowed to work here until restrictions are lifted,” Mr Macfarlane said.

“The only exception is if there is a potential safety incident, serious failure of equipment or a critical maintenance issue on a site.

“The latest protocols allow for a small number of highly skilled safety personnel and specialist maintenance workers to enter Queensland on a case-by-case basis as assessed by the CHO Dr Jeannette Young, but only under extremely strict conditions,” he said.

“The resources industry has been preparing for the possibility of more border closures for months, so bringing in specialist workers from interstate will only be necessary in the event of an unforeseen or unavoidable incident.”

He said the QRC would continue to work closely with the State Government to prioritise the health and security of the community and the economy, and to support the 372,000 people who currently work in the resources sector.

“To give people an idea of just how critical the resources industry is to Queensland, total state exports for the 12 months to June was $77.4 billion,” Mr Macfarlane said.

“Mining and energy exports contributed a massive or $63 billion, or 81 percent, to that figure.

“It’s crucial the industry is able to continue to operate and maintain jobs, support local businesses and underpin the Queensland economy,” he said.

“For everyone’s sake, we need to continue to work together to keep the mining and energy sector healthy and fully operational, to help Queensland recover financially from COVID-19.”

www.qrc.org.au

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