SVITZER has abandoned action to terminate an enterprise bargaining agreement with three unions representing its tugboat workers.

Svitzer announced in August last year it would proceed with plans to cancel its EBA with the Maritime Union of Australia, the Australian Maritime Officers Union and the Australian Institute of Marine and Power Engineers.

In an update issued on Monday (17 April), Svitzer Australia managing director Nicolaj Noes said the company had been bargaining “exhaustively” with the unions over the past four months with assistance from the Fair Work Commission.

“Unfortunately, despite significant efforts by Svitzer to reach a compromise we have not yet reached an agreement,” Mr Noes said.

“However, Svitzer can today advise that in further efforts to try reach a deal, on Friday (14 April) Svitzer agreed to withdraw its application to terminate the enterprise agreement.”

The Maritime Union of Australia welcomed Svitzer’s decision; it said termination of the agreement would have resulted in a 47% pay cut for almost 600 tugboat workers around the country.

MUA assistant national secretary Jamie Newlyn said tugboat workers had not received a pay rise in four years and also faced the possibility of the EBA termination.

“Removing this threat will allow us to move forward constructively, and the three maritime unions will now work towards finalising a new agreement with Svitzer that delivers a fair pay rise along with the safety and job security measures our members depend on,” Mr Newlyn said.

MUA Sydney Branch deputy secretary Paul Garrett said Svitzer’s decision was “a significant moment” but that a considerable amount of time, energy and resources had been spent on the process.

“These resources could have long ago been better put by Svitzer towards rewarding the hard work and loyalty of their employees with a fair pay rise,” Mr Garrett said.

The MUA noted the latest development would allow the two parties to engage in good faith bargaining before the Fair Work Commission to finalise a new employment agreement to replace the one which expired in 2019.

“Svitzer and the unions will now continue to bargain in good faith, with the ongoing assistance of the FWC, until the 31st of May,” Mr Noes said.

“The parties have also agreed to not undertake any industrial action during this period.”

Mr Noes said Svitzer’s focus is on “reaching a new, fair agreement” and industrial stability that improves the safety, reliability and efficiency of shipping operations and the productivity of the national supply chain.

He also said the company will work toward an agreement that improves the diversity and development opportunities for current and new workforce within the maritime sector and improve Svitzer’s competitiveness.