Home > Latest News > Winnings, & E&S Facing Appliance Supply Problems, Construction Industry Set To Be Hit

Winnings, & E&S Facing Appliance Supply Problems, Construction Industry Set To Be Hit

The CE and appliance industry is facing a major problem with tens of thousands of products now sitting in containers at Australian ports, as unions and the Labor Federal Government play ball with the Australian economy, and the building industry faces a major crisis, with insiders telling ChannelNews that the dispute could go on for 9 months due to the actions of the Federal Labor Government.

The issue is set to hit retailers such as Winnings, E&S and the Bing Lee owned Signature Appliances, who take millions of dollars worth of orders for indented appliances, that were set to be installed in new or renovated homes.

As a result, builders and developers are now unable to finish a kitchen or hand over a home.

Major retailers including Narta retailers Harvey Norman, The Good Guys, Bing Lee and JB Hi Fi, believe that there are now over 80,000 appliance products alone sitting on wharves that should either in stores or fulfilling orders placed after the Black Friday and Boxing Day sales.

Brands facing the biggest problems are European appliance manufacturers such as Miele, Electrolux, and Bosch who are also facing increased costs due to problems in the Red Sea with European suppliers having to pay additional costs for freight.

News Corp claims that almost one out of every five freight ships bound for Port Botany from China have been cancelled over January with the DP World and Maritime industry dispute appearing to be a long way from being resolved.

“This is what you get when you vote a Labor Government into power, the unions take control as they try to strip profits away from businesses with no regard as to who they are taking down along the way. This dispute could not have come at a worse time” a Queensland based Harvey Norman franchisee told ChannelNews.

 

A log of vessels due to travel to Australia from China, seen by The Telegraph, shows 18 per cent of incoming ships have been axed, with 13 voyages cancelled out of a scheduled total of 69.

Freight and Trade Alliance director Paul Zalai said congestion caused at docks across the country due to Maritime Union of Australia (MUA) industrial action was to be blamed.

“The government has made it extremely clear that they’re not going to get involved – so it’s really forcing DP World to come back to the table with unions.”

Instead of forcing the Unions and the Maritime Unions to independent arbitration the Federal Labor Government appear to be prepared to accept the damage the dispute is having on various industries in Australia claim industry executives.

Workplace relations Minister Tony Burke last week ruled out the Federal Government stepping in to end the dispute, saying ““I’ve made clear to both groups … that I have no intention of intervening”.

“I think people are sick to death of being told that their wages are always the problem,” Mr Burke said last week in an apparent sign of support for the union.

Deputy Liberal leader Sussan Ley said the government should focus on solving the ports dispute, instead of a planned meeting at Canberra this week which will see Labor politicians flown in from across the country to discuss cost of living issues.

DP World has claimed the dispute is costing the national economy $84m a week, although Mr Zalai said his “gut feeling is this is very conservative”.

The MUA has been locked in a months-long scrap with DP World, Australia’s second largest ports operator, overpay and working conditions with more than 85,000 containers stuck on docks that observers claim will take close to 10 to 12 weeks to shift if the dispute ended today.

The MUA argues that staff at DP World are paid about 17 per cent less than their counterparts at the country’s largest port operator, Patrick, which has a higher level of automation at its ports after spending $1 billion on technology upgrades in the last decade.

Deputy Liberal leader Sussan Ley said the government should focus on solving the ports dispute, instead of a planned meeting at Canberra this week which will see Labor politicians flown in from across the country to discuss cost of living issues.

She claims that Tony Burke’s refusal to step in on the brawl, means the union can continue industrial action until the middle of the year – with current laws not requiring mandatory arbitration until after nine months of action.

Australian Retailers Association CEO Paul Zahra said the supply chain crunch was yet to fully hit consumers, but warned “Australian retailers won’t be able to handle a full nine months of stock delays”.

“Up until now retailers have managed to minimise the impact on consumers – but we’re now at that tipping point. Right now, Australians don’t need any other issue that’s going to impact their cost of living,” he said.

 



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