C2001/1495, Transcript of Proceedings [2001] AIRCTrans 513 (9 April 2001)

AUSCRIPT PTY LTD
ABN 76 082 664 220

Level 10, MLC Court 15 Adelaide St BRISBANE Qld 4000
(PO Box 38 Roma St Brisbane Qld 4003) Tel:[phone] Fax:[phone]

TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER WILKS

C NO 2001/1495

CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION

AND

NORTH GOONYELLA COAL MINES LTD

NOTIFICATION PURSUANT TO SECTION 99 OF THE ACT OF A DISPUTE RE USE OF CONTRACTORS AND CONDITIONS OF EMPLOYMENT

BRISBANE

8.36 AM, THURSDAY, 22 MARCH 2001

PN1

THE COMMISSIONER: Appearances, please.

PN2

MR A. VICKERS: Thank you, Commissioner. I appear for the CFMEU. With me I have MR RAY BARKER, and I would indicate that because of another matter that I'm involved in with another member of the Commission in the not too distant future Mr Barker will, if this matter continues, end up with carriage of this matter. Thus we have MR TOM HALL AND MR SHANE BRUNKER, the President and the Secretary of the Lodge respectively.

PN3

THE COMMISSIONER: Thanks, Mr Vickers.

PN4

MR M. NASH: I appear for Thiess Pty Limited, if it please the Commission.

PN5

THE COMMISSIONER: Thanks, Mr Nash. Well, Mr Vickers, this is your application.

PN6

MR VICKERS: Thank you, Commissioner. Commissioner, it's certainly the preference of the CFMEU to,as quickly as possible, move into conciliation. I don't know how much background information you might require formally on the record. I'm happy to give a brief overview if that would assist.

PN7

THE COMMISSIONER: I've perused the file, Mr Vickers. I'm aware of the substance of the application. It's a matter for you to place on record whatever you wish.

PN8

MR VICKERS: Commissioner, look, I'm actually quite happy to say nothing other than the Commission may well be aware that North Goonyella is a large underground mine west of Mackay. It has been the subject of a series of ownership and management changes in recent times. There is in place an existing certified agreement certified by the Commission in 1998, an agreement which as yet has not reached its normal expiry date so obviously remains in force. The agreement, Commissioner, was negotiated with the operators of the mine at the time who were, in fact, Cypress. Cypress, as you would be aware from your knowledge of the industry, have since departed.

PN9

A new management group was then inserted by the owners of the operation. They lasted, I think, a little less than 12 months or so. And in more recent times at the latter end of last year Sumitomo Coal Development, who owned the operation, sold that to, as I understand it, a joint venture between Thiess and RAG. And Thiess have a contract, the details of which I don't think are important but a contract to operate the mine on behalf of the joint venture company. There are understandably perhaps ongoing differences of opinion between the current management and the employees over the operation of the certified agreement.

PN10

All of the issues which have been notified in the application go to effectively the application of the certified agreement. The only other thing, Commissioner, by way of very brief background information would be that shortly after Thiess became the operator of the mine they instituted a restructuring of the mine which saw a quite significant redundancy program put into place. It was initially commenced with a voluntary redundancy program of which there was a quite significant take-up and on or about 15 January this year that restructuring process in terms of redundancies was finalised by way of forced redundancies.

PN11

All of that was done in accordance with the certified agreement. So as you would perhaps appreciate issues of use of contractors at the mine have become significantly more emotional as a result of the large scale redundancy. Now, that's a brief background to it all and really I don't think I need to put anything more on the record. I don't wish to put anything more on the record if that satisfies you as far as brief background information.

PN12

THE COMMISSIONER: Yes. Thanks, Mr Vickers. Mr Nash, do you have anything to say in response to that?

PN13

MR NASH: No, Commissioner. I'm quite happy to go into conciliation at this time, thank you.

PN14

THE COMMISSIONER: Okay, thank you. We will adjourn into private conference and leave the record now.

OFF THE RECORD [8.40am]

RESUMED [11.50am]

PN15

THE COMMISSIONER: Having consulted with the parties in private conference, there has been a series of understandings reached in relation to the five matters notified plus at leat one other matter. I will deal with them in the order in which they were discussed. That order may not necessarily accord with the order in which they are listed in the application. The first issue relates to the notification of the use of contractors. The understanding reached between the parties is that in relation to matters already agreed between the parties that no further notification will be required.

PN16

There is a list of those matters already in existence which the parties have noted. In relation to new issues related to contractors the management will provide notification in relation to those contractors by e-mail and the union will respond to that notification within four hours in relation to whether or not it has a difficulty with the use of those contractors relative to the clause in the agreement. Where there is an issue the parties will meet expeditiously to discuss any concerns that might exist. If the concerns are not able to be resolved they will be dealt with in accordance with the Disputes Procedure and that process will not cause any delay in the performance of the work.

PN17

In relation to item 4 of the notification, that is the travel costs and arrangements for Coal Board medicals, it's been agreed that those costs will be paid by the company. In relation to the cleaning of offices at the mine by contractors there is an understanding reached between the parties, without prejudice to the position of either party, that the office will be cleaned by contract cleaners and the company will engage two additional permanent employees for the night shift. In relation to point 2 of the notification, that is the intended utilisation of mine equipment by contractors, that matter relates to the removal of reject material from the wash plant and essentially is an issue of resource allocation, an operational issue for management.

PN18

The parties are aware of their obligations under the agreement in relation to that matter. The concern of the union relates to the inability of the plant to continue to wash coal in the event that the machinery is not available to remove reject. The union's concern has been noted and management will comply with its obligations under the terms of the contractor's agreement in relation to that matter. Should the union's concerns materialise it's open to the parties to deal with that matter under the Disputes Procedure and to refer the matter to the Commission for resolution if necessary.

PN19

The additional matter that was raised was in relation to - I'll withdraw that. I will come to that in a moment. Point 5 of the notification relates to planning for the future development of the mine. The unions express concerns about the way in which that future development will be undertaken. That matter has been canvassed between the parties and Mr Barker, it's your intention to, I understand, table some correspondence expressing the union's concern. Mr Nash will, no doubt, want to make some response to that correspondence on the record before we conclude these proceedings.

PN20

From the Commission's perspective the matter ought not be a source of disputation between the parties based on the comments that have been made in conference before me today. However, the parties are, of course, at liberty in accordance with the Disputes Procedure to raise any issues that might arise into the future. The last matter which was a matter not notified but which has arisen during the course of the conference relates to the cost of bus transport for the employees which was necessary as a result of recent stoppages. Without canvassing the issue of the stoppage itself the company has undertaken to provide the union with a response to its claim by Monday morning and subsequent to that answer, no doubt, the further progress of that issue will be determined between the parties.

PN21

I will come to you, Mr Barker, in a moment but before I do I'll conclude that summary of where the parties have got to on these issues today by saying that it seems to the Commission that many of these issues could be overcome and resolved by the conclusion of a new certified agreement to replace the one which is about to draw to a close. It would be my suggestion that as many of these issues should be covered off in that agreement as possible to ensure the smooth operation of the mine and hopefully the continued operation of it into the future. Having said that, Mr Barker, I will come to you in relation to that correspondence.

PN22

MR BARKER: Thank you, Commissioner. Commissioner, first of all I concur with your summary of the matters that were canvassed in private conference. In relation to the planning and future development of the mine we would ask the Commission to note a letter that we have sent under the signature of the Lodge Secretary to Project Manager and ask that that letter be domiciled within the file in this matter.

PN23

THE COMMISSIONER: Okay. I will mark that B1.

EXHIBIT #B1 LETTER TO PROJECT MANAGER FROM LODGE SECRETARY

PN24

MR BARKER: Thank you, Commissioner.

PN25

THE COMMISSIONER: Mr Nash, do you want to respond to that correspondence for the record?

PN26

MR NASH: Yes, just briefly, thank you, Commissioner. As I indicated during our discussions that work is planned over the next six months and ought to be completed within six months. It is not the intent of the company to use contractors to do that work and I believe there's been indication from management at site to the Lodge that in the first instance they would look at the retrenched mine workers' list to accommodate further labour should we need it to conduct that work. Thanks, Commissioner.

PN27

THE COMMISSIONER: Thank you, Mr Nash. All right, on that basis it's my intention to adjourn these proceedings. The parties are, of course, at liberty to make further application should that be necessary. Are there any further comments from the parties?

PN28

MR BARKER: Just one, Commissioner, if the transcript could be released to the parties.

PN29

THE COMMISSIONER: Yes, I will arrange for transcript to be available. On that basis then these proceedings are adjourned.

ADJOURNED INDEFINITELY [12.00noon]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #B1 LETTER TO PROJECT MANAGER FROM LODGE SECRETARY PN24