Shell Geelong dispute:
Wages victory but question over "protected action"

by Rohan Gowland

Contract workers who have been on strike and picketing the Shell oil 
refinery in Geelong, Victoria, for the past three weeks, have won their 
demands for a wage increase and improved conditions. During the dispute the 
company went to extraordinary legal lengths to stop any action by the 
union.

The dispute has serious implications for other strike struggles in the 
future in relation to the issue of "protected action" — action for which 
employers cannot sue for damages, during periods of enterprise bargaining.

Shell and the contract company Danum United had refused to recognise the 
strike as "protected action" and would not accept the notices of "protected 
action" sent to them by the three unions involved, the Australian Workers' 
Union (AWU), the Australian Manufacturing Workers' Union (AMWU) and the 
Construction, Forestry, Mining and Energy Union (CFMEU).

The unions then sought to take the matter to the Federal Court to have the 
picket officially recognised as protected action and to stop the companies 
from taking out injunctions against the picket.

In an extraordinary move, Shell and Danum then went to the Victorian 
Supreme Court which issued an order against the union proceeding with the 
matter at the Federal Court or any other court.

Justice Beach of the Supreme Court said the concept of "protected action" 
was "nonsense". Shell and Danum then proceeded with efforts to bust up the 
picket line by force. On August 16 and 17, mounted police used batons, 
hitting workers who disobeyed police orders to allow trucks through the 
picket line.

The Supreme Court order meant that the unions were not allowed to picket, 
so top officials kept away from the picket and delegates resigned on the 
spot from the union (they are believed to have now re-joined since the 
dispute has been won).

AWU organiser Robert Nichols told The Guardian that it was a very 
"bitter" dispute which has implications for the whole trade union movement 
about the right to strike.

Mr Nichols said that although the wage claim has been won, the unions will 
go ahead with their appeal against the Supreme Court decision on "protected 
action".

Mr Nichols said it was a very unusual situation, because normally the 
Supreme Court deals with criminal matters and the Federal Court deals with 
industrial disputes. It is also unusual for a state court to override a 
federal court.

Another thing that could be behind the Supreme Court's take over of the 
dispute is the push for strike action to be treated as criminal activity.

Shell's actions are an indication of what could lie ahead if Reith's second 
wave legislation is passed. The legislation specifically allows employers 
to opt for state Supreme Courts instead of the Federal Court when Section 
127 of the Act (Commission orders to cease or not take industrial action) 
are breached.

This would be a very dangerous development for the union movement. The 
unions' appeals will be heard this week.

Wage rise

The strike was a result of the Danum contract workers' discontent with 
being paid considerably less than Shell's permanent workers. Their demand 
for a five percent increase would not fully have breached the gap, but 
Danum offered only 1.5 per cent and both Danum and Shell refused to 
negotiate further.

In the settlement of the dispute, the workers won a four percent increase 
and an increase in superannuation and other improvements to conditions.

The workers returned to work last Thursday morning.