How restrictive work practices at ports are costing us more
According to a new report by the ACCC, imported goods are costing us all far more than they should. And it’s largely because enterprise agreements covering stevedores at our container ports contain provisions that limit the ability of port operators to automate, cut labour costs and choose who they hire. These provisions are hampering productivity, increasing disruptions, and driving up the cost of goods.
The ACCC’s 2021 annual report into stevedoring in Australia lifts the lid on why so much of what we eat, wear and enjoy is costing more than it should. Sure, the pandemic has thrown a spanner in the global supply chain, but certain practices are making it worse, and these were in place prior to the pandemic.
The ACCC has observed, in Australia, some archaic practices, included contracted nepotism. Indeed, it’s only a slight stretch to say what is going on at Australia’s ports is adversely affecting the quality of life for most other Australians.
The vast majority of this blog post is extracted verbatim from the ACCC’s report. And it’s an eye-opener.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
