Miner faces legal action over redundancy payouts
The dispute marks the latest instalment in a long-running effort by Rio Tinto to curb the influence of unions across its workforce.
The Construction, Forestry, Mining and Energy Union has accused the mining giant of discriminating between union and non-union members as it was preparing to close the Blair Athol coalmine last November. In a statement of claim filed in the New South Wales Federal Court, the CFMEU claims Rio Tinto breached four sections of the Fair Work Act by discriminating against members of an industrial association.
The union is seeking penalties against the mining giant and compensation for 29 members made redundant when the mine closed. It also wants any penalties imposed on Rio to be paid to the CFMEU. The matter is due to be heard in March before Justice Geoffrey Flick.
"Rio have attempted to penalise those workers that chose to remain on a collective agreement," said Alex Bukarica, the CFMEU's national legal officer.
Although redundancy payments "were in accordance with the collective agreement", Rio Tinto discriminated against one group of employees, he said.
A spokesman for Rio Tinto said employees at Blair Athol chose to work under the collective agreement or on individual arrangements. "Employees who chose to be on the collective agreement benefited from a number of secure working conditions and benefits over many years. Redundancy payments were made in accordance with the employee's conditions of employment, which Rio Tinto believes was fair," he said.
Rio Tinto decided in 2005 to close the 30-year old Blair Athol coalmine because it was reaching the end of its planned life. Coal for the site was becoming more costly to mine just as global prices for thermal coal were falling. The site employed between 140 and 170 people.
Union members received redundancy entitlements based on their base salary plus a "market allowance", the statement of claim said.
But workers on individual contracts got entitlements based on actual remuneration - including overtime, rostering allowances and superannuation - plus an extra three months' salary. The difference in payout is believed to be between $40,000 and $120,000 depending on salary and years of service.
Rio Tinto and the CFMEU have been fighting over wages and conditions at the Blair Athol mine for years and union members went on strike for 36 hours to protest the different redundancy payments shortly before the mine closed. The legal action started in late December 2012.
Frequently Asked Questions about this Article…
The dispute concerns claims that Rio Tinto discriminated between union and non‑union miners when it closed the Blair Athol coalmine, giving some workers on individual contracts significantly larger redundancy payments than union members. The Construction, Forestry, Mining and Energy Union (CFMEU) has taken legal action alleging breaches of the Fair Work Act.
The CFMEU filed a statement of claim in the New South Wales Federal Court. The matter was due to be heard in March before Justice Geoffrey Flick.
The CFMEU alleges Rio Tinto discriminated against members of an industrial association by paying workers on individual contracts redundancy entitlements based on higher actual remuneration plus an extra three months' salary, while union members received entitlements under the collective agreement, resulting in a significant pay gap.
According to the statement of claim, the difference in payouts between union members and workers on individual contracts was believed to be between $40,000 and $120,000, depending on salary and years of service.
The CFMEU is seeking compensation for 29 members who were made redundant when the Blair Athol mine closed, as well as penalties against Rio Tinto, and it wants any imposed penalties to be paid to the union.
A Rio Tinto spokesman said employees at Blair Athol chose either the collective agreement or individual arrangements and that redundancy payments were made in accordance with each employee's conditions of employment. He also said those on the collective agreement had benefited from secure conditions and benefits over many years.
Rio Tinto decided to close the 30‑year‑old Blair Athol mine because it was reaching the end of its planned life. The company said coal at the site was becoming more costly to mine while global prices for thermal coal were falling.
Rio Tinto and the CFMEU had been disputing wages and conditions at Blair Athol for years. The article notes union members staged a 36‑hour strike in protest over the differing redundancy payments shortly before the mine closed, and the legal action began in late December 2012.
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