Fair Work Commission rejects Rail Commissioner’s appeal against redundancy decision

The Fair Work Commission has shut down the government’s appeal against a ruling that could lead to train drivers spending years in a “waiting lounge”.

The Full Sitting of the Fair Work Commission rejected the Rail Commissioner’s appeal. File picture

More than 200 rail workers will go into a public sector “waiting lounge” indefinitely, after the Transport Department failed to overturn a Fair Work ruling.

The ruling, which puts no “absolute time limit” on rail workers finding a new job in the public sector, was appealed by Rail Commissioner Tony Braxton-Smith. But his appeal was reject­ed by the full sitting of the commission on Wednesday.

The decision could have widespread implications on future enterprise agreements. In its ruling, the commission found that train drivers’ redundancy payments should include expected penalty rates and overtime.

It also found the State Government could not impose a time limit on the redeployment process for train drivers who were not needed after outsourcing to new private operator Keolis Downer.

The Rail, Tram and Bus Union estimated that up to 230 train workers, including drivers, were eligible to end up on the redeployment list.

Tony Braxton-Smith is the chief executive of the Department for Infrastructure and Transport.

South Australian Treasurer Rob Lucas said the government would consider further legal advice on the issue.

Secretary Darren Phillips said the commission’s decision confirms rail workers won’t be “arbitrarily made redundant” if they have not been offered a suitable position in the public sector after 12 months.

In his notice of appeal, Mr Braxton-Smith wrote: “The appeal raises interpretation questions, which may have broader application across a number of federal and South Australian enterprise agreements.”

Treasurer Rob Lucas said the government would take legal advice before considering any further action.

“If our legal advice says there are good grounds for appeal and the commission got it wrong, well, then we have the option of taking it to the Federal Court,” he said.

Under an enterprise agreement, rail workers who are no longer required because of outsourcing go into a redeployment process, where they can get work elsewhere in the public sector.

The Rail Commissioner had fought for a 12-month redeployment period, after which workers would be sacked even if they were not offered a new job.

Opposition transport spokesman Tom Koutsantonis said the latest decision was another “crisis” for the State Government.

“The privatisation process has been ill-conceived … and will end up costing South Australians more than it currently costs in public hands,” he said.

[e-mail]