DP World, which runs several port terminals across Australia, had been in a pay dispute with unions, during which the multinational logistics company threatened to dock the wages of wharfies involved in industrial action.

As negotiations ground to a halt in in late 2023, the company called on the government to intervene, claiming industrial action had cost the nation $34 million per day and created a significant container backlog.

But on Friday, Maritime Union of Australia (MUA) assistant national secretary Adrian Evans announced the two parties had come to an “in-principle agreement” after three days of negotiations before the Fair Work Commission.

The new four-year deal would provide fair pay, safety and fatigue management measures, improved job security and a better work-life balance for workers, the union said.

The deal was yet to be endorsed by union members, but Mr Evans said the MUA was pleased negotiations had come to an end.

“Wharfies perform hard, physical work on a 24-hour, seven-day working week in all conditions and all seasons,” Mr Evans said.

“The past fortnight has shown how quickly a fair and sustainable deal can be solved once both the workforce and the employer are fully engaged in the negotiation process.”

All industrial action has been withdrawn and DP World employees will return to work.

Based in Dubai, DP World is the second-largest port operator in Australia and accounts for about 40 per cent of the cargo that comes through the nation’s maritime terminals.

As such the union’s work stoppages drew fierce criticism from farmers, producers and retail groups who claimed it disrupted Australia’s supply chains in a way that could raise prices amidst a cost of living crisis.

DP World Oceania’s executive vice president Nicolaj Noes said the new deal comes as a relief.

“This agreement is a testament to our commitment to our workforce and to providing uninterrupted services to our customers,” he said in a statement on Friday.

“We are now focused on moving forward, restoring the supply chain operations, and working collaboratively with our employees to rebuild confidence among our customers and make a positive impact on the national economy.”

Upon hearing the news for the first time, Assistant Trade Minister Tim Ayres called the agreement a “very good development”.

“There is always a settlement that is available for workers and employers in these kinds of situations,” he told Sky News.

“All agreements require compromise and there is never a perfect outcome in a negotiation, so it is good that their outcome has been reached.”