Fair Work called in for dock dispute

Port operator DP World has applied to the Fair Work Commission to conciliate its impasse with workers.

Hundreds of dock workers have been locked out of major terminals in Sydney and Melbourne as a result of the dispute over a new enterprise bargaining agreement.

DP World chief executive Paul Scurrah says the company's offer of a 2.8 per cent annual wage increase is "very generous" given a challenging and changing environment.

He says he hopes the commission, as an independent umpire, will bring "focus and discipline" to negotiations set down for Friday and help get everyone back to work before Christmas.

The Maritime Union of Australia says the company wants to scrap penalty rates, with assistant national secretary Warren Smith warning of industrial action in Sydney on Monday and Tuesday if an agreement is not reached.