Fair Work allows mining workers to opt out of collective union agreement

Fair Work Australia will allow workers in a Queensland coal mine to opt out of a collective union agreement and into individual contracts, after the industrial umpire ruled that the company’s undertakings met the ‘better off overall’ test within the Fair Work Act.

In a ruling handed down this week, senior president Jonathan Hamberger said the undertakings were “not likely to cause financial detriment to any employee covered by the agreement, nor result in substantial changes to the agreement”.

“I am satisfied that these undertakings meet my concerns with regard to the better off overall test,” Hamberger said, adding that FWA had sought the views of bargaining representatives.

The undertakings from Newlands Coal Pty Ltd state that an employee who elects to opt out of the Newlands Coal Surface Operations Agreement 2010 will be paid the same base salary and roster allowance as provided under the agreement.

“These rates are significantly in excess of those contained in the Black Coal Mining award,” the undertakings state.

The company also promised that prospective employees would not have their employment made conditional on agreeing to ‘opt out’ of the agreement.

“Employees will be given a free choice as to whether or not they wish to be covered by the agreement,” it says.

The agreement will operate from February 1 this year, and expire on January 30, 2014.

The ruling follows a split decision on the case last month.

Middletons Workplace Relations & Safety partner Bryan Belling says although the case is unremarkable in the sense that it’s well-reasoned, it highlights the philosophical tensions between tories and the labour movement.

Questioned whether the practice would likely be modelled by other companies, Belling says an “ideologically driven employer” might facilitate the “opting out” of workers to get up the nose of revelant trade unions – even when the individual contracts are near identical to the collective agreement.

The ruling has been welcomed by the Australian Mines and Metals Association but criticised by the Construction Forestry Mining and Energy Union, The Australian reports.