Industrial Relations Commission New South Wales Medium Neutral Citation: Request under section 146B by Unions NSW and Newcastle Trades Hall Council for the assistance of the Industrial Relations Commission of NSW re construction of the Gas Storage Facility at Tomago by CBI Gas [2015] NSWIRComm 18 Hearing dates: 30 June 2015 Decision date: 24 July 2015 Jurisdiction: Industrial Relations Commission Before: Harrison DP Decision: Matter concluded Catchwords: Major Infrastructure Construction Project - Civil, Mechanical and Electrical Works Project Agreement - Section 146B of Industrial Relations Act 1996 - Consultation provisions applied - Completed ahead of schedule and under budget - No lost time due to industrial disputes - Excellent safety outcomes and up-skilling of workforce Legislation Cited: Industrial Relations Act 1996 Category: Principal judgment Parties: Unions NSW Newcastle Trades Hall Council CBI Representation: Mr P McPherson Unions NSW, Newcastle Trades Hall Council Mr A Ashtiani CBI File Number(s): IRC1031 of 2012 JUDGMENT 1. These proceedings concern the construction of a gas storage facility by CBI Constructions Pty Ltd for AGL at Lot 5, Old Punt Road, Tomago. 2. The proceedings arose pursuant to a request by Unions NSW and Newcastle Trades Hall Council in accordance with section 146B of the Industrial Relations Act 1996 (the Act). 3. Pre-construction briefing took place on 23 October 2012 in which the parties outlined the scope of works, the project, schedule and industrial policies to apply. 4. The work was regulated by the CBI Constructors Pty Ltd Newcastle Project Union Greenfields Agreement 2012 (AE49772 PR525276) (the Project Agreement) which was approved by Fair Work Australia, as it then was, on 19 June 2012. 5. The Project Agreement established comprehensive rates of pay and conditions of employment; and at Part 6 clause 28 provides a dispute resolution procedure which invoked s146B of the Act in nominating the Industrial Relations Commission of New South Wales as the body to resolve industrial disputes in accordance with the procedures set out in the Project Agreement. The Project 1. The Project involved the construction of a 300,000 tonne gas storage tank with an inbound stream to purify and liquefy gas for storage and an outbound delivery system for distribution to market. 2. Site inspections took place on 6 May 2013; 27 November 2013; 7 May 2014; 11 November 2014 with a close out conference on 13 June 2015. 3. The total project was in excess of $300 million with the central construction element comprising $250 million. 4. The Project covered a 950 day construction phase with a peak workforce of 300; was officially completed on 17 June 2015, ahead of schedule and under budget. There was a total of 1,088,639 man hours worked with no lost time due to industrial disputes. There were 32 first aid treatments, and only five medical treatment injuries which occurred early in the Project, none after March 2014 and 72 recorded near misses. The site workforce included 153 direct employees of CBU, 76 supervisors and staff, plus 285 employees of subcontractors. 5. The Company applied its core value health, safety and environmental policies on the Project, provided to employees in detail in the form of a personal handbook. 6. The Company applied a rigorous drug and alcohol policy, testing 2,852 people for alcohol with no positive tests returned; and 245 for drugs with four positive tests returned. 7. There were a total of 2,129 inductions undertaken; 17,391 hours applied to training and inductions; and 233 VOC's (Verification of Competency), with the collateral advantage of up-skilling the workforce. 8. The Project afforded three trades assistants the opportunity to take up mature aged apprenticeships and have continued their employment on other projects. 9. Mr McPherson reported that the first meeting with the company took place in February 2012 to develop the Project Agreement approved in June 2012. 10. Mr McPherson conducted eleven monthly communication meetings during the course of the Project, in addition to the five site inspections undertaken by the Commission. 11. Union Officials attending the site communication meetings and site inspections were Mr P McPherson Industrial Officer/Assistant Secretary, Unions NSW and Newcastle Trades Hall Council; Mr T Callinan, Branch President, The Australian Workers' Union, New South Wales, Mr D Wallace, Organiser, Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch. Company officers attending to communications and site inspections were Mr A Ashtiani, Project Manager CBI, Mr B Wyatt, Employment Relations Manager and Ms K Beauchamp, Project Recruiter; Mr J Kelly, Employment Relations Manager, Daracon and Mr T Bowen, Human Resources Manager, Daracon. 12. Issues arising during the course of the Project were resolved by communication and discussion without disruption, including an issue of recognition of long service leave for certain classifications which was ultimately resolved co-operatively by the parties with a mutually satisfactory outcome. 13. The Project involved some unique construction techniques; in particular the lifting of 450 tonne dome 40 metres to form the roof of the tank by low pressure compressed air and the installation of environmental protection measures to deal with the low liquid gas temperatures. 14. All of the parties involved in the Project deserve recognition and congratulations for their mature and responsible approach to delivering an important element of industrial infrastructure which will provide security of gas supply to the region. ********** DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 24 July 2015