The Guardian July 28, 2004


Win for collective bargaining

BHP's Pilbara union-busting campaign has been dealt a body 
blow with big wage increases bringing 400 union members onto 
equal terms with workmates who signed AWAs, the federal 
government's individual contracts.

ACTU organiser Will Tracey called the second arbitrated award 
settlement "huge", revealing it had eliminated the $10,000 to 
$20,000-a-year differentials BHP had used to try to convert the 
whole Pilbara workforce onto individual agreements.

The settlement, handed down by the three-man WA Industrial 
Relations Commission full bench, followed the mining giant's 
refusal to negotiate with unions. It provided union members with 
12 percent increases, and flowed on all other benefits applying 
to non-unionists.

Mr Tracey said that the decision brought wage increases for 
unionised iron ore workers to 32 percent since July 2002. Over 
that time, their super entitlements have risen from eight percent 
of earnings to 15.75 percent.

Perhaps, more importantly, the Commission signalled its 
frustration with BHP's continuing resistance to collective 
bargaining.

It left the expiry date open, suggesting it could further 
increase award rates if BHP ups the ante by bouncing up the 
earnings of AWA employees, and expressed "concerns" over the 
prospect of award workers receiving inferior treatment.

"The bench has formally recognised the concept of equal pay for 
equal work", Mr Tracey noted. "It has flowed on all benefits, 
equalised pay rates and called on the company to return to the 
bargaining table.

"Effectively, it means that BHP's strategy to break the unions 
has failed.

"We call on the Big Australian to start behaving like an 
Australian and accept the umpire's decision. That would mean 
sitting down and negotiating a collective agreement with workers' 
representatives."

The federal government saw mineral developments in the Pilbara as 
an opportunity to advance its non-union agenda. BHP picked up the 
ball in 1999 and offered massive differentials in wages and 
conditions to anyone who would walk away from the unions and sign 
an AWA.

Unions bled members until the ACTU dispatched its representative 
to the region to co-ordinate fightback activities by the unions 
in the industry, the AMWU, AWU, CEPU, CFMEU and TWU.

Membership stabilised at about 40 percent two years ago, and has 
grown slightly since.

Last week the five Pilbara unions agreed to further formalise 
their alliance by combining resources as the Pilbara Mineworkers 
Union (PMU).

Mr Tracey said the Commission determination had been the first 
"big victory" for the PMU, coming one day after its 
establishment.

He said formal recognition for the PMU showed state and federal 
unions were prepared to listen to the voices of Pilbara members.

"Joining together is our way of building our union and regaining 
our strength on the job", he said. "It is an endorsement of our 
campaigning to date and proof that unions are hearing local 
workers on the best way forward for this region."

BHP Billiton sought to play down the significance of the united 
front, last week. An unnamed spokesman told the media the PMU 
would have little impact. 

"We are just bemused by it", he said.

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