Industrial Relations Commission New South Wales Medium Neutral Citation: Unions NSW and the Newcastle Trades Hall Council request the assistance of the Industrial Relations Commission of NSW in relation to the Thiess Sedgman Joint Venture Boggabri Mine - Coal Handling and Processing Plant Project [2015] NSWIRComm 21 Hearing dates: 30 June 2015 Decision date: 21 August 2015 Before: Harrison DP Decision: Project Completion Catchwords: Coal mine construction project – Greenfields Project Agreement – Cooperative industrial relations – Project completed within schedule. Significant increase in export capacity of Regional, State and National importance Legislation Cited: Industrial Relations Act 1996 Category: Principal judgment Parties: Unions NSW Thiess Sedgman Representation: Mr P McPherson Unions NSW Newcastle Trades Hall Council Mr J Maniord Project Manager TSJV File Number(s): IRC 855 of 2013 STATEMENT 1. This matter concerns the construction of specified facilities at the Boggabri Coal Mine, north of Gunnedah, NSW, by Thiess Sedgman Joint Venture (TSJV). 2. The proceedings commenced with a pre-project conference on 10 December 2013 at the Commission's Newcastle premises. Those in attendance on behalf of TSJV were Ms E Morson, Senior Workplace Relations Adviser, AiGroup, with Mr J Maniord, Project Manager, A Byrne, Human Resources Advisor and T O'Dell, Human Resource Manager. Mr P McPherson appeared on behalf of Unions NSW and Newcastle Trades Hall Council (NTHC). Mr T Callinan appeared on behalf of The Australian Workers' Union. 3. The particular work was identified as an expansion of the coal handling plant to 6.9 million tonnes per annum, including a 1,500 tonne per hour bypass crushing system, 500 tonnes per hour coal preparation plant, 400 kt product stockpile and a 5,000 tonnes per hour reclaim and train loading facility. 4. Work was scheduled to commence on 16 September 2013 and conclude on 22 May 2015. 5. Employment on the Project was covered by the Thiess Sedgman Joint Venture Boggabri Mine Coal Handling and Processing Plant Project Union Collective Greenfields Agreement 2013 (the Agreement) AE405746 PR545424. 6. The parties first met to commence negotiation of the Agreement on 1 February 2012. 7. The Agreement was the product of 9 separate meetings between TSJV, Unions NSW, and unions identified as The Australian Workers' Union (AWU); the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU); the Construction, Forestry, Mining and Energy Union (NSW Branch) (CFMEU); the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union – Electrical, Energy and Services Division, NSW Branch (ETU); the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union – Plumbing Division, NSW Branch (CEPU); and the Transport Workers' Union of Australia Branch (TWU). 8. The Agreement was signed during October and November 2013 and subsequently approved by Fair Work Australia, as it then was, on 17 December 2013. 9. The Agreement is comprehensive in setting wages and conditions of employment and includes provisions for individual flexibility arrangements; continuous improvement; a Project Code of Conduct, Work Rules and Fair Treatment System; site safety matters; project communication and consultation; and a disputes settlement procedure. 10. Pursuant to the Project Communication and Consultation Process, Mr McPherson of Unions NSW/NTHC and officials of the respondent unions maintained ongoing dialogue with management and employees. Eleven monthly site communication meetings were held in accordance with the Agreement. 11. The Commission undertook site inspections and conference proceedings in May and November 2014 and a close-out conference on 30 June 2015. 12. Those in attendance at the site inspection of 6 May 2014 were Mr McPherson; Mr D Wallace for the AMWU; Mr A Wardrope for the ETU: Mr J Maniord, Project Manager, A Byrne, Human Resources Advisor, and Mr J Morgan, Trades Assistant. In attendance at the site inspection of 5 November 2014 were Mr P McPherson; Mr J Maniord; A Byrne; and M Young, Construction manager. 13. A comprehensive report was provided by TSJV for the close-out conference, complementing the report of Mr McPherson. Site Safety 1. The parties cooperated in the application of site safety standards identified at the Project overview conference. 2. A fatal accident tragically occurred. This event is subject to a number of investigations and an enquiry which remain ongoing at the completion of works. Project Performance 1. The final value of the Project was $189 million, $3 million or 0.16 per cent in excess of estimates made in 2012. Commissioning and integration was completed on 28 May 2015, a little over one month past the planned date of 30 April 2015, but within the time frame of 18 months planned for the Project. 2. Employment peaked at 225 in July/August 2014, while total hours worked were 474,390, being 71,078 hours less than expected. 3. There were a number of industrial issues dealt with on site with no lost time. A substantial portion of the workforce was fly in – fly out or drive in – drive out, giving rise to logistical and accommodation issues which were successfully managed by cooperation between the parties. 4. A change in roster arrangements from 21/7 to 10/4 was contentious due to a reduction in earnings on a 10/4 in favour of a better work/life balance and positive effect on fatigue management. 5. The final report identified the following issues: 6. Project Total Safety Performance * 76 Safety Incidents * 30 Plant damage * 27 Safety (first aid, 2 MTI, 1 LTI) * 19 Environmental * D&A – 18 BAC over 0.000 * Report Only – 45 * Hazards reported – 71 * Near Misses – 39 * Community Complaints – 2 * TSJV Key Factors of Success for Project * Workplace had good safety culture and performance * Project TRIFT overall of 4.9 * Unfortunately a fatality occurred in May 2014 * TSJV was able to minimise impacts to client's production of coal * Minor impacts to community (2 complaints in 18 months) * Managed fatigue, no incidents attributable to fatigue * Open communication with all stakeholders, relationship with Peter McPherson worked well * Good workforce engagement, not many issues (camp food), demobilisation process executed well * Lesson Learned * 10/4 roster while not popular with everyone, worked well and had minimal fatigue over life of job * Combine roster versus rolling resulted in better productivity and better job morale for workforce * Equivalent pays across subbies and workforce minimised issues * Despite good safety performance, significant incidents and injury can still occur * Separation of workforce in multiple locations (client driven) not ideal, but was managed * Monthly BBQ, and safety awards worked well, * Good, open and honest communication by construction manager was the key to overall job performance with workforce. 1. The Project was successfully completed, adding important export capacity of Regional, State, and National benefit. 2. These proceedings are so concluded. ********** 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: 21 August 2015