Supply chain fears ease as Fair Work Commission decides to suspend Svitzer lockout for six months | UPDATED

The decision was widely expected after the full bench hearing started yesterday, and has been welcomed by the unions involved.

The Maritime Union of Australia's Newcastle secretary Glen Williams said the six-month suspension allowed everyone to take stock of what had happened.

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Mr Williams said Svitzer had deliberately dragged out negotiations over three years, and said its tactics were as much about trying to remove the unions from its business as they were about setting pay and conditions.

A full bench of the commission ruled this morning that a lockout by Svitzer would cause significant damage to the Australian economy and "endanger the welfare of the Australian population or part of it".

The commission published a short, two-page decision summarising the situation, with separate orders to follow today and a full decision to be published later.

"We consider that the appropriate course is to make an order suspending Svitzer's protected industrial action for a period of six months," the decision by a commission full bench says.

"The effect of this order under the Fair Work Act will be that no party will be able to take protected industrial action for the period of the suspension."

Svitzer had planned to lock out more than 580 workers indefinitely from Friday across 17 ports in NSW, Victoria, Queensland, Western Australia and South Australia.

In a statement, the Danish-owned company advised its customers of the ruling and that the lockout will not go ahead.

"The lockout will not proceed and customers can return to planned shipping movements and recommence port operations," the Svitzer letter to customers said.

The federal government has criticised Svitzer's actions and attitude to bargaining, with Workplace Relations Minister Tony Burke saying the lockout would have crippled supply chains in and out of the nation's ports.

In a letter this morning to its customers, Svitzer said the si-month suspension meant " neither party can take industrial action during this period while they attempt to resolve the issues and reach an agreement".

"Svitzer Australia acknowledges the decision by the Fair Work Commission today which will ensure no industrial action by any party for the period of suspension.

"We welcome the certainty this brings to our customers and stakeholders. We thank them for their ongoing patience and understanding."

"It remains to be seen whether the maritime unions will participate in negotiations constructively or whether we will see more of the same."

Svitzer said it provided "high-value, well-compensated, Australian maritime jobs" and was " Australia's largest employer of Australian seafarers".

The Newcastle Herald will update this story as more information comes to hand.

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