Strikes threatened by some employees of bulk handling co-operative CBH could extend existing shipping delays from its Western Australian (WA) ports.
Union members voted in overwhelming favour of protected industrial action in July, which was extended last week for an additional 30 days from 14 August, allowing some workers at CBH to take part in legal work stoppages of between one hour and 28 days. Other threatened activities include bans on unloading and loading of trucks and rail wagons, on weighbridge duties and grain sampling.
The strikes could go ahead if CBH fails to reach an agreement on employment conditions and wages with members of the Construction, Forestry and Maritime Employees Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.
Delays of three weeks or longer have occurred at some major WA ports owned by CBH, which has led to expensive demurrage costs, market participants said. The delay is likely because of port congestion and unseasonal demand, market participants said. A ship currently being loaded at Geraldton, WA, was estimated to have arrived on 4 July, according to the CBH shipping stem. Compounding the delay is a planned shutdown at CBH's Geraldton terminal for the second half of August and a shutdown at the Kwinana terminal for the first half of September, company data show as of 10 July. Esperance Port is also shut down for the first half of August but will have 160,000t in spare capacity in late August to September.
The unions would be required to give CBH at least several days' notice of their intention to strike, which could moderate the impact of any industrial action. Only 118 workers were eligible to vote in the protected action ballot which may also limit the impact of any strikes.
CBH and union representatives had not responded at the time of writing to Argus' enquires if industrial activity had started, which terminals may be impacted, or if the activity would extend the current delays at CBH's port terminals.
