Request by Unions NSW and the Newcastle Trades Hall Council for the assistance of the Industrial Relations Commission of New South Wales re Ulan West Stage 2 Construction Project [2014] NSWIRComm 61

Industrial Relations Commission New South Wales Medium Neutral Citation: Request by Unions NSW and the Newcastle Trades Hall Council for the assistance of the Industrial Relations Commission of New South Wales re Ulan West Stage 2 Construction Project [2014] NSWIRComm 61 Hearing dates: 4 December 2014 Decision date: 11 December 2014 Jurisdiction: Industrial Relations Commission Before: Harrison DP Decision: Matter concluded Catchwords: Coal Mine Construction Project - completed on schedule and on budget. Co-operative site relations. No lost time due to industrial disputes, good safety and productivity outcomes from communication pursuant to terms of the Project Agreement. Legislation Cited: Fair Work Act 2009 The Industrial Relations Act 1996 Category: Principal judgment Parties: Unions NSW Newcastle Trades Hall Council Downer EDI Engineering Representation: Mr P McPherson, Unions NSW Mr P Chircop, Operations Manager, Downer File Number(s): IRC 795 of 2013

STATEMENT 1The notification in this matter arose pursuant to a request by Unions NSW and Newcastle Trades Hall Council (NTHC) for the assistance of the Commission during the construction of the Surface Coal Clearance System at Ulan West Coal Mine by Downer Power ("the Project"). 2Industrial regulation on the site was in accordance with the Downer EDI Engineering Ulan West Coal Mine Construction Project Union Collective Greenfield Agreement 2013 (AE405112 PR544039) ("the Agreement"). Clause 30, Settlement of Disputes nominates the Industrial Relations Commission of New South Wales as the dispute resolution provider in exercise of functions and process for Project communication and consultation. 3Pursuant to the Agreement the parties sought the assistance of the Commission in the form of site inspections and conferences on a periodic basis through the life of the Project. 4The matter first came before the Commission on 21 October 2013. 5Mr P McPherson appeared on behalf of Unions NSW and Newcastle Trades Hall Council. Mr Paul Chircop, Operations Manager, appeared on behalf of Downer with Mr M Foran. 6The parties provided an initial overview of the Project which, in its entirety, involved the construction of a new longwall underground coal mine and associated surface infrastructure at Ulan, near Mudgee, in the inner western region of New South Wales, commissioned by XStrata/Glencore Mining. 7The scope of work undertaken by Downer covered by the Agreement was to the order of $60 million. 8The parties outlined the Project background, Downer Scope of Work, Construction Strategy, Project location, Project Specific Capability, the Industrial Agreement, Downer Company Profile, Organisational Structure, and the Zero Harm Policy applied by Downer NSW to this and other Projects. 9Discussion of the Construction Strategy included Downer's plan to self-execute the majority of work, local labour opportunities, the provision of housing rather than payment of living away from home allowances recently affected by the application of Fringe Benefits Tax, and the mix of rosters, being 11 days on 3 days off or 6 days on 1 day off, predominantly for local employees. 10A site inspection and conference took place on 16 April 2014. In attendance were Mr McPherson on behalf of Unions NSW and Newcastle Trades Hall Council; Mr P Harris on behalf of Construction, Forestry, Mining and Energy Union (NSW Branch), Mr M Wilson, employee of Downer, and Electrical Trades Union of Australia, NSW Branch delegate on the site; and Mr M Cross, employee of Downer, and Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch delegate on the site. Mr Chircop appeared on behalf of Downer with Mr J Petrevski, Human Resources Co-ordinator. 11On 4 December 2014 the parties attended the Commission to give a final report on the conclusion of the Project. 12Mr P McPherson continued his appearance on behalf of Unions NSW and Newcastle Trades Hall Council with Mr Wilson and Mr Cross. Mr Paul Chircop, Operations Manager, continued his appearance on behalf of Downer. 13The overall Project statistics reported are: Hours worked 360,715 Lost Time Injury 0 Medical Treatment Injury 1 Restricted Work Injury 0 Environmental Incidents (Significant) 0 Inductions 440 First Aid Injuries 4 Environmental + Community Incidents (minor) 6 Take 5's 76,096 Work Place Inspections 877 Total Recordable Injury Frequency Rate 2.77 14The medical treatment injury occurred when a person driving a 4WD bus caught his finger while stepping down from the bus and required two stitches in the finger. 15The number of inductions, Take 5 safety reviews and workplace inspections are testimony to diligent application of good practice in implementation of the Agreement throughout the Project. 16Workplace inspections were carried out by management, supervisors, safety representatives and clients on a random basis. 17The workforce peaked at 202 (including indirect). 18Timeframes were met; shut downs were all incident free and ran to schedule. Mr Chircop reported that conveyors were running at design capacity and Downer have been invited to tender for work for this client in Queensland, based on the outcomes of this Project. 19 Mr McPherson conducted nine monthly meetings during the course of the Project, noting that 50 employees attended the last meeting on 9 September, 2014. 20Mr McPherson noted that the layout of the site presented challenges in transport and access to tools and equipment, putting that lessons were learned for the future; he commended the delegates, employees and site management for their ability to work together to deal with those matters. 21Mr McPherson noted that there had been no lost time due to industrial disputes. 22Mr McPherson extended appreciation to Mr Wilson and Mr Cross, who he described as key delegates on the Project, for the manner in which they resolved problems and dealt with issues during the Project and between monthly meetings, which he put made a significant contribution to site stability to the benefit of all concerned. 23Mr Wilson gave an example of site challenges and co-operation, putting that a deposit of asbestos in the form of a buried, redundant pipe was discovered on site. This resulted in a request that all employees be given training in the identification and handling of this material. 24Further more extensive lengths of buried asbestos pipe of some 400 meters in length was subsequently discovered and, as a result of the training, employees were immediately able to identify it. 25Mr Chircop put that in the first instance asbestos had been declared by the client in a small area, but was ultimately revealed to be more extensive than available information indicated. . 26Mr Cross was appreciative of the role of the Commission, Mr Chircop and the Management team, and particularly Mr McPherson for his frequent attendance at site. Mr Cross outlined a problem encountered with sewer overflow, putting that Management were on site immediately and took action to offset the effects by introducing more portable toilets, providing transport to move workers around the site to other facilities, and extending the meal break by 15 minutes to allow adequate time to attend facilities. These measures resulted in the workforce being prepared to stay on site and continue working. 27Mr McPherson also commended Mr Cross and Mr Wilson in respect to a power supply failure which was dealt with in co-operation with management in a manner which allowed work to continue. 28Mr Cross commended the communication and co-operation on the Project, putting that issues were dealt with on site as they arose without waiting for monthly communication meetings. 29Mr Cross put that the attitude and openness of management encouraged the workforce to become part of the solution. 30Accommodation of employees rather than payment of a living away from home allowance was identified at the outset as an innovation of the Project. 31Downer leased 65 houses in the Ulan/Mudgee area for the duration of the Project. 32There was a unanimous view that the efforts of Mr Justin Petrevski, the on-site Human Resources representative who held responsibility for liaison between Downer, estate agents, home owners, and employees residing in the rental properties, were vital to success. 33Mr Petrevski maintained a register of accommodation issues and acted quickly and efficiently to deal with them to the satisfaction of employees, enhancing safety and productivity outcomes and good relations between the Project and the local communities. 34The parties reported that the Project was operationally complete in September 2014 and demobilisation complete in October 2014. 35Employees have largely been deployed to other projects. 36The site Agreement and the active application of the consultative provisions provided the foundation for a successful project. 37Matter No IRC 795 of 2013 is so concluded.