FedEx has become the first major transport company to face a protected strike ballot as the Transport Workers’ Union (TWU) ramps up its enterprise bargaining for more than 220 workplace agreements in Australia’s transport and logistics sector.

At the centre of the dispute is automation, AI and outsourcing, with the TWU seeking stronger limits on outsourcing and mandatory consultation over the introduction of automation and new technologies. TWU argues that workers need greater protection as AI and robotics increasingly reshape operations in freight and logistics companies. 

The dispute highlights the growing tension between workers and employers, as employers seek automation technology and productivity gains. The unions are pushing for consultation before AI, robotics and other technologies affecting labour are introduced into logistics operations. 

Industrial action at FedEx could affect deliveries for retailers, manufacturers and e-commerce businesses that rely on the carrier, particularly if disputes spread to other operators.

With 220 agreements under negotiation, the union warns the FedEx dispute could be the first of many. If so, it could be the largest of its kind in Australia’s transport sector. 

Rather than negotiating on a company-by-company basis, the TWU is seeking common standards across transport companies covering job security, technology adoption and contract arrangements.

Industrial action, particularly if it becomes drawn out and involves multiple transport operators, has the potential to place pressure on Australia’s supply chains and delivery networks leading to impacts on retailers, distributors and manufacturers.Â