The Guardian 6 February, 2008

Union solidarity & good leadership



Peter Kennedy

On Friday February 8, 500 union members employed at BHP-Billion’s Mount Arthur coal mine in the Upper Hunter Valley, NSW will meet at the Muswellbrook Workers’ Club to vote on the latest offer from the company in respect to their new enterprise agreement (EA). Prior to the old agreement expiring on November 26, 2007, BHP and the union’s elected representatives had met on 30 occasions before finalising the new draft. The entire workforce will be voting on the new EA at a four-hour paid stoppage, reluctantly agreed to by mine management.


It has been a long and tough process, including heated negotiations, four paid report back meetings and countless pre-shift meetings. The new agreement will cover all the areas of the mine site, the mining department, workshop and coal washery, with special attention given to mining trainees.

However, the proposed agreement makes no mention of the considerable number of casual employees at the mine let alone recommending any pay increases for these workers.

The largest union on site is the Construction, Forestry, Mining and Energy Union (CFMEU) with close on 400 members there. They were represented by their lodge President Jeff Drayton and five other elected members, and Northern Districts CFMEU organiser Peter Jordan. The Electrical Trades Union (ETU) and the Manufacturing Workers’ Union (AMWU) also had representatives in the negotiations.

The negotiations were tough, at times quite heated, as the unions stood firm and refused to give ground. Workers can be thankful for the unions’ persistence in holding back BHP-Billiton’s regressive demands.

The most significant addition to the new EA is that Mount Arthur mine employees STILL RETAIN JOB SENIORITY. This was a hotly contested issue by the BHP team who wanted remove this provision. It was defended strongly by the union side and to their credit was retained. Mount Arthur mine is the only black coal mine in the BHP chain where seniority is recognised.

Other important gains for members include:

Pay increases of 5 percent for each of the three years of the new EA. Workers at the mine will finish the last year of the new EA on $29.35 per hour. This new rate contains considerable "catch-up" for Mount Arthur employees with other mines in the Hunter Valley.

Increases in the weekly coal production bonus and monthly top-up bonus: Year 1 an increase of $15 in both bonuses; Year 2 increases of $10 and $15 respectively; and Year 3 further $10 and $15 increases.

Changes to Salary Sacrifice arrangements to allow for mine employees to have part or all of their wages paid into the scheme along with their coal bonus and monthly coal top-up bonus. Salary sacrifice available for a laptop computer and a car.

Sick leave paid "as if at work" for a period of absence beyond 10 consecutive rostered days for those on seven-day rosters. The old EA paid sick leave at 10 hours, now it will be at 12.67 hours per day.

Long service, annual leave and jury service paid "as if at work" for all employees at 12.67 hours daily, instead of for 10 hours.

Accident pay paid "as if at work" for the first eight weeks, then normal "compo" rates to apply.

Tool allowance for trades people increased to $1560 per year, a significant increase.

Maternity leave included for the first time, the first six weeks as paid leave.

Death benefit increased to $30,000 from the current $20,000.

In addition, the company has "generously" agreed to pay all Mt Arthur employees $1000 to compensate for the loss in additional wages that would have been earned during the change-over from the existing EA to the new EA.

The unions were successful in having deleted from BHP’s claim the right for the company to evoke a stand down clause for mine employees who cannot be gainfully employed because of major breakdown, such as a shovel failure or excavator failure, wet weather etc.

They also put a stop to giving BHP the right to arbitrarily change workers’ rosters and shift lengths and times, and the consequential changes in take home pay, etc

All of the above was obtained by good old union pressure and good leadership from the elected representatives at Mount Arthur.

Congratulations to all who worked hard to achieve all of the above.

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