Request by Unions NSW and Newcastle Trades Hall for the assistance of the Industrial Relations Commission of NSW re Downer Maules Creek Construction Project [2015] NSWIRComm 25

Industrial Relations Commission New South Wales Medium Neutral Citation: Request by Unions NSW and Newcastle Trades Hall for the assistance of the Industrial Relations Commission of NSW re Downer Maules Creek Construction Project [2015] NSWIRComm 25 Hearing dates: 21 August 2015 Decision date: 18 September 2015 Before: Harrison DP Decision: Concluded Catchwords: Coal mining expansion project – Greenfields Project Agreement – Cooperative industrial relations – Project completed within schedule. Legislation Cited: Industrial Relations Act 1996 Fair Work Act 2009 Category: Principal judgment Parties: Unions NSW Newcastle Trades Hall Council Downer EDI Limited Representation: Mr P McPherson Unions NSW/Newcastle Trades Hall Council

Mr P Chircop Downer EDI Limited File Number(s): IRC 224 of 2014

STATEMENT 1. This matter commenced by request from Unions NSW and Newcastle Trades Hall Council (NTHC) for the assistance of the Industrial Relations Commission of New South Wales pursuant to s146B of the Industrial Relations Act 1996. 2. The proceedings concerned the construction of a coal washery and expansion of a coal handling facility at the Maules Creek Coal Mine, north of Boggabri in north west NSW by Downer EDI Limited (Downer). 3. The work was regulated by the Downer EDI Engineering Maules Creek Coal Mine Construction Project Union Collective Greenfield Agreement 2014 AE409052 PR553050 (the Greenfields Agreement), approved by the Fair Work Commission pursuant to s.185 of the Fair Work Act 2009. 4. The Greenfields Agreement is a comprehensive industrial instrument providing wages and conditions of employment and including provisions for site communications, productivity improvements, and dispute resolution. It was negotiated over five separate meetings between 11 March 2014 to 27 May 2014 involving the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU), Construction, Forestry, Mining and Energy Union (Construction and General Division) (NSW Branch) (CFMEU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU); the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union – Plumbing Division, NSW Divisional Branch (CEPU), the Australian Workers' Union (AWU), and Transport Workers' Union (TWU) led by Unions NSW and NTHC. 5. A pre-construction conference took place on 14 April 2014, the same month in which the contract was awarded to Downer. 6. The project had been in planning for some time and for a variety of reasons within the client there was delay and retender, a consequence of which was the need to recover and restore many client supplied items from storage in the Boggabri area. 7. The project, valued at $330 million, was the key element in an overall $800 million expansion of mining operations. 8. Site work valued at approximately $120 million put in place assorted coal handling and stockpiling, quality control and train loading necessary to connect the mining operation, in both quality, quantity and logistic reliability, to the export market. 9. There were eleven monthly construction meetings on site and two site visits by this Commission, in November 2014 and March 2015. A close out conference was conducted on 21 August 2015 attended by Mr P McPherson on behalf of Unions NSW and NTHC with Mr M Wilson, CEPU delegate and Mr D Brown, AMWU delegate; and Mr P Chircop on behalf of Downer. 10. Mr Chircop provided a project overview of the following milestones: • Contract award April 2014 • Site Establishment June 2014 • Commencement of Civil Concrete Works June 2014 • Commencement of CPP and CHP Structural, 15 July 2014 Mechanical & Process (SMP) • Commencement of 22Kv Switchyard Civil Works 2 September 2014 • Completion of Civil Works January 2014 • Stage 1 Construction Completion December 2014 • Stage 2 Construction Completion April 2015 • Commissioning May 2015 • Operations Completion July 2015 • Project Completion September 2015