BHP Billiton attacks ruling on union visits at Queensland mine

Industrial laws threaten to undermine BHP operations during its ‘toughest market conditions’ in a decade.

Opening of Caval Ridge coal mine at Moranbah. Picture: Liam Kidston

The nation’s industrial laws are threatening to undermine BHP Billiton’s operations during the “toughest market conditions” in a decade, the mining giant has claimed, after a Fair Work ­Commission decision it says highlights the critical need for workplace relations reform.

BHP’s head of coal, Mike Henry, yesterday blasted a “productivity-disabling imbalance” in the Fair Work Act after the ­industrial umpire upheld a mining union official’s right-of-entry at the group’s Caval Ridge mine in Queensland’s Bowen Basin.

In the decision — which the FWC’s full bench said “has significant precedent value for the future exercises of right-of-entry powers at this workplace, other operations in the coal industry and at many other Australian workplaces” — Construction Forestry Mining and Energy Union officials won the right to meet workers at an ­onsite location 2.4km from the meal-break room where employees and union officials are required to meet by law.

It has infuriated BHP, as union representatives will be able to meet workers in the cabin of “draglines” equipment. “If ­allowed to stand, this decision would unnecessarily reduce the productivity and economics of our operations as it disrupts the operations of our draglines, which at 2500 tonnes are the largest, most expensive equipment we have in our operations,” Mr Henry said, adding that BHP Billiton was poised to appeal to the Federal Court.

“The decision of the FWC highlights the productivity-disabling imbalance in the current Fair Work Act right-of-entry provisions and the need for reform.

“This decision is even more ­disappointing in the face of the toughest market conditions for the industry in well over a decade.

“The division was very focused on lifting the productivity of our operations in order to assure their ongoing commercial viability.”

BHP offered an alternative ­location for meetings but the CFMEU pressed its claim in the FWC and won the right to meet in the dragline cabin.

Industry and resources peak groups have argued against the 2013 changes to the act which ­enshrined unions’ right to meet workers in meal-break rooms.

BHP called for the government to reform the laws in its response to the Productivity Commission’s workplace relations inquiry. The government has quietly begun holding roundtable meetings which it flagged when unveiling the commission’s report in ­December.

Employment Minister Michaelia Cash is holding a round table on workforce participation at the Department of Employment in Canberra today, after consultation focusing on workforce participation in Canberra yesterday. The agenda for the discussions do not include consultation on penalty rates, which the government has closed the book on pending the Fair Work Commission’s review.