Governments have the power to stop Sydney train strike

Governments are looking at rarely used powers to stop a planned 24 hour train strike in Sydney.

Liberal Member for Reid Craig Laundy. Picture: AAP.

Federal Workplace Minister Craig Laundy and NSW Industrial Relations Minister Dominic Perrottet have the power to stop a planned 24-hour Sydney train strike if they decide the action would substantially harm the economy.

In a rarely used section of the Fair Work Act, the federal minister can provide a written declaration to terminate protected industrial action for a proposed enterprise agreement if he is satisfied it would “cause significant damage to the Australian economy or an important part of it”.

Mr Laundy can also terminate industrial action if he thinks it would endanger people’s lives, safety, health or welfare. The NSW government, through Mr Perrottet, also has the power to apply to the Fair Work Commission to terminate industrial action under a similar provision.

The Australian understands the federal government believes the dispute is a matter for the NSW government but is monitoring the situation closely. The NSW Business Chamber estimates a one-day strike would cost the state $100 million and damage Sydney’s global reputation.

NSW Premier Gladys Berejiklian yesterday appeared to open the way to pay rises above 2.5 per cent a year for Sydney’s train drivers as talks continued on stopping the threatened January 29 strike.

Ms Berejiklian told 2GB radio that in her time as transport minister, the drivers had been given 3.1 per cent a year based on savings they were able to demonstrate. Train drivers are demanding 6 per cent a year, but the government does sometimes grant increases above the 2.5 per cent cap if “productivity gains” can be shown.

Five-hour talks involving the secretary of Unions NSW, Mark Morey, the head of the transport department, Rodd Staples, and rail union bosses yesterday failed to achieve an outcome.

Mr Morey said there was some progress and meetings would continue all next week if necessary.

The unions chief is set to meet NSW Transport Minister Andrew Constance before resuming talks with train bosses on Monday.

“We made some progress on a number of things,” Mr Morey said.

“We’re trying to make progress around rostering particularly ... to provide a safe and reliable system. Then we’re going to be looking at money at the end.”

University of Technology Sydney industrial law expert Eugene Schofield-Georgeson said section 431 of the Fair Work Act empowered the federal minister to intervene in the impending strike action but questioned whether such a decision would be democratic or in the public interest.

“The fallout from the gov­ernment’s perspective is one to two or possibly three days of stoppages or shutdowns,” Dr Schofield-­Georgeson said. “As far as the federal government is concerned, that would not be worth their involvement in this dispute in the knowledge that industrial relations is such a powder keg based on its 2006 experience with the WorkChoices legislation.”

Ms Berejiklian supported Mr Constance yesterday, saying that as a former transport minister: “I have a lot of experience in this area ... the negotiations were as robust as they are now. The end objective should be to avoid industrial ­action on January 29. None of us wants to see that happen.”

Dr Schofield-Georgeson said federal intervention would be open to challenge but noted in the past 40 years of industrial relations in Australia, the court had generally looked favourably on the intervention of government in these kinds of disputes.

Mr Laundy was on leave and could not be contacted for ­comment.

Additional reporting: Emily Ritchie