Australia’s industrial umpire has ordered a major tugboat operator to dump its planned lockout of workers from ports across the country.

A full bench of the Fair Work Commission on Thursday ruled a lockout by Svitzer would cause significant damage to the Australian economy.

Svitzer had planned to lock out more than 580 workers indefinitely from Friday across 17 ports in NSW, Victoria, Queensland, Western Australia and South Australia.

The commission will continue its hearing on Friday, when it will consider whether to suspend the industrial action for a set amount of time or terminate it completely.

In a statement, the Danish-owned company advised its customers of the ruling and that the lockout will not go ahead.

“The FWC is giving considerations overnight as to whether to suspend or terminate the protected industrial action – but they have made it clear they will issue an order before midday,” Svitzer said.

“On this basis, the lockout will not proceed and customers can return to planned shipping movements and recommence port operations.”

Svitzer announced the lockout of tugboat workers in response to a number of strikes over the past month due to a three-year bargaining dispute.

Workplace Relations Minister Tony Burke said the action would cripple supply chains.

– AAP