Bosses win relief from coal industry long service debts
Labor will offer relief to employers facing millions of dollars in debts from a leave pay scheme, waiving 20 per cent of outstanding amounts and giving companies six years to backpay.
Labor will offer relief to employers impacted by millions of dollars in debts associated with the coalmining long service leave scheme, waiving 20 per cent of outstanding amounts and giving companies six years to backpay leave entitlements in instalments.
Workplace Relations Minister Amanda Rishworth will introduce a bill into federal parliament on Wednesday that aims to assist companies exposed to significant costs while ensuring black coalmining workers receive full entitlements, some dating back 15 years.
Employers welcomed the bill, having expressed concern many businesses were facing hardship and potential insolvency if they had been required to pay the historical debts straight away.
The coalmining portable long service scheme is funded by a levy on employers and ensures workers keep their entitlements even if they change employers.
But many workers have missed out because employers were unaware that award changes in 2010 meant their employees were covered by the scheme.
Following a Federal Court decision last year, employers feared organisations that provided maintenance and other services to coalmining companies would be exposed to large debts, including some companies facing bills running into millions of dollars.
While the government is proposing employers would have to meet only 80 per cent of their debt, the funds required to ensure workers receive 100 per cent of their entitlements will be drawn from the scheme’s existing reserves, and not be an additional cost on taxpayers.
As well as a partial debt waiver and the six-year repayment timeframe, employers can opt in to voluntary payment arrangements with a two-month window once the bill’s provisions commence operation.
Ms Rishworth said the proposed legislation would ensure workers received what they were owed while employers were supported to meet their obligations in a sustainable way.
Workers in regions including the Hunter Valley, Illawarra, central Queensland, Mackay and the Whitsundays are expected to benefit from the changes.
“Portable long service leave is critical for industries like coalmining where workers often move between employers,” she said. “These changes strengthen the Coal LSL Scheme and make sure entitlements follow workers throughout their careers.”
Australian Industry Group chief executive Innes Willox said the bill was very welcome, given the hardship faced by employers if they were required to repay the debts immediately. He said a large number of jobs had been at risk if the issue had not been addressed.
“Many employers that provide services to coalmining companies have been unexpectedly faced with very significant historical levy debts due to the notorious uncertainty that has existed regarding the coverage of the LSL Scheme, particularly businesses that provide maintenance services on coalmining sites,” he said.
“We recognise the bill needed to strike a balance between the interests of all parties. This balance was achieved following the government’s lengthy consultation process, in which AIGroup was heavily involved.”
Ms Rishworth said the government had worked closely with industry, unions and stakeholders to design a practical response to complex legacy issues.
“This legislation reflects that collaboration and our commitment to fairness for both employees and employers,” she said.
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