‘They’re taking the proverbial’: How negotiations with the rail unions unravelled

The news

Sydney’s rail network has been plagued by delays and uncertainty since Friday, after negotiations between the Minns government and rail unions sensationally collapsed.

After 10 months, both parties seemed close to resolving the impasse on Thursday before the deal collapsed over a $4500 “one-off” bonus payment. When one union said it would resume industrial action through so-called “go slow” action, the government slapped what’s called a 471-notice on the workforce.

Those notices, which the unions call a “lockout”, mean workers engaging in industrial action can be docked their pay. Hundreds have responded by simply refusing to show up, causing massive uncertainty on the rail network and sparking a political crisis which had led to calls for Anthony Albanese to intervene.

On Wednesday the NSW government will face off against the rail unions in the Fair Work Commission in a bid to end the latest round of industrial action.

But, if that doesn’t work, Premier Chris Minns has not ruled out asking the federal government to invoke never-before-used powers to cancel the action.

How we got here

Negotiations between the combined rail unions — there are six representing various parts of the workforce — dragged on interminably for most of 2024, and have spanned a dizzying array of claims; the unions have asked for 50¢ fares, fare-free days, and demanded to be paid more when the temperature goes above 30 degrees if they can’t wear shorts.

Most of that was for show. However, the union has been seeking a better pay deal from the government and – after months of back-and-forth negotiation, industrial action, trips to the commission and even a threat to cancel Sydney’s New Year’s Eve – both parties were poised to sign a deal last Thursday.

Commuters on a train at Parramatta station endure another day of chaos on Sydney’s rail network.Credit: Dylan Coker

But a $4500 bonus payment introduced into the enterprise agreement by the former Coalition government in 2022 proved to be a last-minute stumbling block. The money was agreed to as a “one-off” in lieu of backpay, and the government insists it won’t pay it. But the unions say its inclusion in the agreement means it can’t be taken out without negotiation.

What happens next?

The government is placing much of its hope on Wednesday’s hearing before the full bench of the Fair Work Commission.

If it wins, the rail unions would be forced to end their industrial action. But there’s no guarantee they will.

Indeed, the former government made multiple unsuccessful attempts to do just that in 2022. It also would not end the dispute. It took the former government almost two years to strike a deal, and it ended with an agreement to pay that $4500 bonus.

Part of the problem for Minns is rail unions operate under the federal industrial system which is a different beast to NSW and makes it harder to employers to force unions into arbitration. It’s part of the reason why strike action by nurses, for example, is so much rarer.

He made that point on Tuesday, saying disputes with the rail unions had been a “perennial issue” in the state.

Minns insists he has contingency plans if the government loses on Wednesday. One option may be to ask Albanese to use its power to end the industrial chaos.

RTBU NSW Branch Secretary, Toby Warnes, second from right, leaves the Fair Work Commission office in Sydney, Australia. Credit: Dylan Coker

Under section 431 of the Fair Work Act, federal Workplace Relations Minister Murray Watt has the power to terminate industrial action if it threatens to cause “significant damage” to the economy. The power has not been invoked before, and could be appealed.

In 2022, then-minister Tony Burke declined to make a similar intervention when the Perrottet government requested he step in during an equally bitter dispute with the rail unions.

The Commonwealth may also be reluctant to act so close to an election. On Tuesday, Albanese dismissed the situation as “a state dispute”.

Key players

As the dispute has dragged on, Minns has become more forceful in his criticisms of the rail unions.

On Tuesday, he said he was drawing a line. The government had “tried repeatedly” to strike a deal with the unions, but, he said, “they’ve basically taken the proverbial”. He “clearly, self-evidently” did not trust them to agree to a deal, he said.

On the other side of the dispute is Toby Warnes, the secretary of the Rail, Tram and Bus Union. Warnes has proven to be a difficult negotiator. Despite copping intense criticism from many sections of the media and the public, he has refused to be cowed and has instead ramped up the volume of the dispute. That may be because its what his members demand.

Watt may not want a role in this fight, but if the Minns government loses in court on Wednesday, he may not have a choice.

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