The stated aim of this legislation was to foster individual choice in workplace bargaining by reducing the powers of external organisations, particularly trade unions, to intervene.
After the legislative introduction of Australian Workplace Agreements, a number of stevedoring operators toyed with bringing individual contract workers into their workforces but abandoned their plans in the face of strident union opposition and activism.
[3] In particular, from December 1997, Fynwest began a campaign to recruit former and current members of the Special Air Service (SAS), paratroopers from 3RAR, commandos from 4RAR and other military specialists, to become stevedores.
Fynwest planned to send these recruits to Dubai in the United Arab Emirates, where international standard training could be provided.
Intense criticism and the threat of international industrial retaliation forced the Dubai government to cancel visas for the Fynwest company employees.
In September 1997, Patrick implemented a restructure whereby the functions of employing its unionised workforce and owning its stevedoring business were divided into different companies.
On 8 April 1998, Patrick's management dismissed all of its employees; liquidated its assets, becoming technically insolvent; and imposed a lockout at most ports in which it operated.
Minister for Workplace Relations, Peter Reith read from a prepared brief, stating that the government fully supported Patrick in their action.
The agreement specified a near-halving of the permanent workforce through voluntary redundancies, the casualisation and contracting out of some jobs, smaller work crews, longer regular hours, company control over rostering, and productivity bonuses for faster loading.
Workplace Relations Minister Peter Reith stated at the time "There appears to be a number of reforms which will satisfy the seven benchmark objectives which are very important.
"[11] The original former military non-union workers had their contracts paid out by the employer (Fynwest/Patricks) at the conclusion of the dispute and received very generous payouts and bonuses in the order of $50,000 to $70,000 each.