C2001/2875, Transcript of Proceedings [2001] AIRCTrans 1169 (19 June 2001)

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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

MUNRO J

C2001/2875

AUSTRALIAN INDUSTRY GROUP

and

THE AUTOMOTIVE, FOOD, METALS,
ENGINEERING, PRINTING AND KINDRED
INDUSTRIES UNION and OTHERS

Notification pursuant to Section 99 of the Act
of a dispute re AIG members engaged as contractors
to BHP Port Kembla Steelworks allegedly prevented
from attending work on site due to alleged picketing
and other action by striking BHP employees

SYDNEY

10.30 AM, FRIDAY, 25 MAY 2001

Adjourned sine die

PN1

HIS HONOUR: This is matter 2875 of 2001. It is a section 99 notification of industrial dispute lodged by the AIG on behalf of member companies on 24 May 2001. It was listed as matter of some urgency because of the nature of the contention as to the matter in dispute and because of a request for urgent assistance. Could I have appearances, please?

PN2

MR B. O'DONNELL: If it please the Commission, I appear for the Australian Industry Group on behalf of members of the Australian Industry Group in the Illawarra region.

PN3

MS S. TERPSTRA: If it pleases the Commission, I appear on behalf of the Australian Manufacturing Workers Union, and I would also like to mention an appearance for the Australian Workers Union, Port Kembla branch and the CEPU.

PN4

MR S. SMITH: May it please the Commission, I appear for the CFMEU.

PN5

HIS HONOUR: Yes, Mr O'Donnell?

PN6

MR O'DONNELL: Thank you, your Honour. Initially I might say that I received advice only half an hour ago that there has been a return to work on the project at about 10 o'clock this morning. Despite that, your Honour, there are still a number of matters that we think are significant that we would like to raise before the Commission and we are appreciative of the immediate response that the Commission has given to this notification.

PN7

This notification is being made in response to industrial action undertaken by the unions referred to at BHP Steel Works Port Kembla. The action over the past three days has included picket lines and has prevented a significant number of Australian Industry Group member companies from performing work for BHP under engineering and other maintenance contracts.

PN8

Your Honour, the industrial action of the past three days has had a significant effect on those companies. By way of example, the Australian Industry Group surveyed member companies yesterday afternoon and from those responses in excess of 500 employees of those responding companies have been progressively unable to be usefully employed as of late yesterday afternoon. The contractors do all that they can to maintain good relations with their workforce, however, the length of this stoppage and the greater use of pickets which previously were not generally a strong feature, has made the situation more difficult for those employers seeking to avoid the standing down of its employees.

PN9

Your Honour, unions need to appreciate the effect of this sort of action that it has on the whole region given the nature of the BHP Steel Works. That effect also has a longer term damage on the image of the Illawarra based companies who increasingly are finding it necessary to look for work outside the Illawarra region and the reputation that they have attached to them which arises from the sort of industrial action that has in recent times been undertaken in the Illawarra, certainly doesn't assist them in gaining alternative work.

PN10

We understand that the decision this morning to resume work has been taken and that the terms of that resumption of work has not been advised to us at the time of standing up, your Honour. What we are seeking from the Commission and from the parties represented here is a commitment that there should be discussions prior to and during any industrial action which may, for example, involve the steel works about the ways of elevating the effects of any industrial action upon those contractors that are represented by the Australian Industry Group, if your Honour pleases.

PN11

HIS HONOUR: Thank you. Ms Terpstra?

PN12

MS TERPSTRA: Thank you, your Honour. I have spoken to our organisers at Port Kembla. I understand that there are ongoing discussions this morning with BHP following a resumption of work. Effectively, your Honour, I might just for the record state what my understanding is of the dispute, and I have heard what my friend has had to say in respect of the matter.

PN13

Your Honour, I understand that the issue was dealt with also in the New South Wales Industrial Relations Commission before Deputy President Grayson yesterday. I understand that the company had discussions in conciliation and there was a recommendation issued by Deputy President Grayson in relation to the dispute. I understand that BHP has undertaken to comply with the recommendation of Deputy President Grayson. I understand that the recommendation was that there is a steel industry agreement which is a state registered industrial instrument, and that instrument provides for consultation. Now, I understand that the dispute principally arose out of BHPs decision to invite a contract from SERCO to undertake some work in the protective services area which would have an affect on workers who undertake duties in the Fire Services and Ambulance Services area.

PN14

I understand that that contract was to take effect from 18 June and I understand that there was also discussions in order to fulfil the contract that workers engaged in that area would be offered AWAs and that I understand that the issue that was of concern was that there was no consultation in relation to that. Again, your Honour, I return to the recommendation of Deputy President Grayson and that was that the status quo should remain in relation to letting of the contract until the dispute between the workers and BHP has been resolved. I understand that discussion of signing AWAs has been withdrawn and that's hence why the unions are having further discussions with BHP this morning in relation to their decision to contract out that work.

PN15

That's what I understand the nature of the discussion is. I understand that the decision to contract out to SERCO which was to take effect on 18 June, that date has now been put back to a undetermined date at this point in order to allow consultation to take place in accordance with the steel industry agreement which is the registered agreement down there. That's what I understand the nature of it is. That's what I understand that was reported back to the workers this morning and that on that basis they have returned to work.

PN16

HIS HONOUR: Yes, thank you, Ms Terpstra. Mr Smith?

PN17

MR SMITH: We have nothing more to add, your Honour. We rely upon the submissions of Ms Terpstra.

PN18

HIS HONOUR: Mr O'Donnell, did you have anything you wished to add.

PN19

MR O'DONNELL: No, your Honour, there's nothing to add. SERCO is not one of the companies that we represent.

PN20

HIS HONOUR: I don't know that I can usefully add anything to the explanations you have respectively put on the record. The matter appears to be before the New South Wales Commission at least in part except for the AWAs which are presumably, I don't know whether we own them either. Very well, the Commission will stand this matter over generally.

ADJOURNED INDEFINITELY [10.40am]