The long-running standoff between stevedore DP World and the Maritime Union of Australia has resulted in port workers refusing to carry out certain parts of dock work amid pay negotiations.

While staff have still been paid during the industrial action, DP World has threatened to dock pay from Friday for those taking part.

Despite fears an escalation in the dispute could lead to disruption in some of Australia’s busiest ports, ACTU president Michele O’Neil rejected suggestions the federal government should intervene.

“It doesn’t need an intervention, what it needs is some fair negotiation and for the company to stop taking extreme action and threaten that action,” she told ABC Radio on Thursday.

“This is hard and dangerous work that these workers do for us on the docks, so the proposals that company have put forward are unreasonable. The union is trying to find some common ground.”

DP World is the second largest port operator in Australia and manages about 40 per cent of maritime freight.

The federal opposition has warned an escalation of the pay dispute could lead to economic disruption.

Shadow treasurer Angus Taylor urged Workplace Minister Tony Burke to step in to help resolve issues in the dispute.

“We all pay a much higher price when Australia’s ports aren’t working properly, we’ve learned that in the past,” Mr Taylor told ABC Radio.

“There’s every sign it will (get worse) and it’s time for Minister Burke to intervene to get control of this and (get it) sorted out.”

Negotiations between DP World and the maritime union are set to continue until Thursday.

Ms O’Neil encouraged DP World to come to the table with a better deal for its workers.

“I’ve just urged the company to step back from escalating it, don’t threaten to stand people down, which will cause more problems on the dock,” she said.

“They just need to take a breath, look at what’s being proposed from the union, stop trying to cut wages in the middle of a cost of living crisis.”