Australia is set to be left with just one locally crewed fuel tanker ship after a failed bid to stop workers on Caltex's Alexander Spirit being replaced with cheaper foreign labour.
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The Fair Work Commission has upheld its ruling that the crew of the oil tanker engaged in illegal industrial action after a lengthy waterfront stand-off in Devonport.
The 36 crew members on the Alexander Spirit had refused to set sail to Singapore where they were going to made redundant and replaced by a foreign crew on a new international route.
On Saturday, the ship is scheduled to sail from Devonport for Singapore.
Federal Employment Minister Eric Abetz offered no hope that after this case, losses of Australian-crewed ships would be stemmed under the Abbott Government.
"Our reforms ... are designed to ensure that Australian consumers in particular, and Australian manufacturers, and onshore jobs, are protected as much as possible," Senator Abetz said.
ACTU president Ged Kearney called on the Abbott government to stop denigrating Australian workers who are standing up for their jobs.
"Unemployment is already too high, yet the Abbott government sits back as good, local jobs go overseas," Ms Kearney said.
According to the MUA, just 14 ships are left with Australian crews, including BP's British Fidelity, which runs out of Kwinana, Western Australia, and is the sole remaining coastal fuel tanker.
"BP recently invested significantly into the Kwinana Refinery and we believe it is uniquely placed to remain competitive," Head of BP Country Communications Joanne McDonald said.
In the Alexander Spirit dispute, Caltex last week advised the ship's manager, Bermuda-based Teekay Holdings that it wanted to change the "nationality matrix" of the ship.
"Specifically, Caltex requests that the current crew of the Alexander Spirit be replaced by an international crew," Caltex general manager Adam Ritchie said.
The shift follows the closure of another domestic fuel refinery, this time in Brisbane. "Hence there is no longer a need for Caltex to have a dedicated vessel to perform coastal voyages to other ports," Mr Ritchie wrote.
The MUA sought to halt the ship's departure in the Fair Work Commission, claiming the crew were too distressed at the dismissal to sail.
But the commission's full bench on Friday rejected an appeal, with reasons yet to be made public, a spokeswoman said. The ship's departure was listed by Tasports for Saturday morning.
MUA assistant national secretary Ian Bray said the decision was disappointing but vowed to continue standing up for Australian jobs.
Mr Bray said he was "furious" that the job cuts were going ahead on the same day Caltex reported a 34 per cent lift in half-year profits to $251 million.
Ahead of the appeal decision, Fair Work Ombudsman inspectors contacted nine crew organising industrial action to ensure orders for them to cease were understood.
Unions Tasmania secretary Steve Walsh said he was concerned at potential intimidation of workers who had breached no law.
The Fair Work Ombudsman's spokesman said it acted of its own volition to facilitate compliance with workplace relations laws, and in its role of educating workers and employers about workplace relations laws.
