Coal giants butt into union pay dispute
The Rail, Tram and Bus Union has been in salary negotiations with Asciano's New South Wales coal division, Pacific National Coal. The union's members, who drive trains that transport coal, have threatened to take protected strike action.
Asciano, Australia's largest listed national rail freight and ports operator, walked away from negotiations with the union over a new enterprise agreement last week.
Xstrata Coal NSW, which is not involved in the salary negotiations, has written to the union threatening to take legal action if a strike goes ahead. A third company, Whitehaven Coal, has threatened to make a complaint to the Fair Work Commission.
The dispute is expected to fuel a national union campaign against the return of WorkChoices under a Tony Abbott government, if it is elected this year.
Xstrata's chief operating officer, Ian Cribb, has written to the union saying his company has contracts with Pacific National for rail freight of 30 million tonnes of coal each year from its mines in the Hunter Valley and Tahmoor, south-west of Sydney.
"If any industrial action is organised by the RTBU, and engaged in by its members employed by Pacific National Coal, it will cause significant harm to the business of Xstrata Coal," he said in the letter obtained by BusinessDay.
"Xstrata Coal is entitled to take all necessary steps to prevent any harm to its business," he said. "This may include the commencement of proceedings in a court or tribunal to stop or prevent industrial action from being taken without further notice to the RTBU."
The union's national secretary, Bob Nanva, said it was "unheard of" for a third party, not directly involved in an industrial dispute, to threaten legal action. He said the strike action would be protected, having been approved by Fair Work Australia.
"This is a co-ordinated assault on the right of union members to collectively bargain and strike," he said.
"This is a forerunner to what will happen if Tony Abbott is elected prime minister later this year.
"These companies are straining at the leash and desperately want to bring back WorkChoices."
Pacific National's NSW coal division has been in negotiations over a new enterprise agreement for 12 months. The union said most of its members were on annual base salaries of $63,000.
A spokeswoman for Asciano said its coal division has been negotiating in "good faith" with the union and was keen to finalise a new agreement. "We have put forward what we consider to be a strong wage offer, which is above current CPI and many other current industry wage claims," she said. "Despite having modified the terms of our offer over time, the RTBU has indicated that it is unacceptable and it is now apparent that the bargaining process has been exhausted."
University of Sydney Emeritus Professor Ron McCallum, who specialises in industrial law, said it was unlikely the union could be successfully sued if it was taking protected strike action, unless it had failed to satisfy all legal requirements under the Fair Work Act.
"If the action is protected and they are validly striking during bargaining over content that can be included by law in a collective agreement then that action is protected and one can't bring legal action against it," he said.
Frequently Asked Questions about this Article…
The Rail, Tram and Bus Union (RTBU) has been negotiating a new enterprise agreement with Asciano's New South Wales coal division, Pacific National Coal. The union’s train drivers — who move coal — have threatened protected strike action after about 12 months of bargaining.
The parties named in the article are Asciano (Pacific National Coal), Xstrata Coal NSW and Whitehaven Coal. Xstrata Coal NSW wrote to the union threatening legal action if strikes go ahead, and Whitehaven Coal has threatened to make a complaint to the Fair Work Commission. Asciano is the employer in the bargaining and said it has walked away from negotiations.
Xstrata’s chief operating officer said the company has contracts with Pacific National to freight about 30 million tonnes of coal a year from its Hunter Valley and Tahmoor mines and warned any industrial action would cause ‘significant harm’ to Xstrata Coal’s business. Xstrata said it was entitled to take steps, including court or tribunal proceedings, to prevent harm.
According to the article, the strike action was approved by Fair Work Australia and described as protected. University of Sydney Emeritus Professor Ron McCallum, an industrial law specialist, said it is unlikely the union could be successfully sued if the action is protected and it has met legal requirements under the Fair Work Act.
The article states that most RTBU members involved in the negotiations were on annual base salaries of about $63,000. Asciano said it had put forward a wage offer above current CPI and many other industry wage claims.
Xstrata warned that industrial action by Pacific National-employed drivers would cause significant harm to its business, because it relies on rail freight contracts. The article implies industrial action could disrupt coal movements, though no specific operational impacts were confirmed.
The article says the dispute is expected to fuel a national union campaign against the possible return of WorkChoices under a Tony Abbott government if he were elected, illustrating how industrial disputes can tie into broader political debates about workplace laws.
Based on the article, investors may want to watch outcomes of any Fair Work Commission or legal actions, further statements from Asciano, Xstrata and Whitehaven, whether strike action proceeds and whether it is upheld as protected, and any announcements about the 30 million tonnes freight contracts Xstrata referenced.
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