Alcoa has moved to terminate the Enterprise Bargaining Agreement of striking Australian Workers’ Union employees, with the Fair Work Commission process starting on Monday.
About 1600 AWU members have been on indefinite strike for the last six weeks, with the workers starting industrial action in a bid to ensure their job security and keep the current conditions in their contracts.
Over the last 18 months negotiations between Alcoa and the AWU have failed to thrash out a new EBA agreeable to both parties.
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The Fair Work Commission heard from both Alcoa and the AWU on Monday, with the formal process to drag out for another couple of days.
After this, the body will deliberate what it has heard and make a determination.
An Alcoa spokeswoman said the company had participated in two mediated negotiation processes with the AWU but failed to reach an agreement.
“Alcoa's termination case is about our ability to run the business with flexibility and in the most efficient and productive way, free of outdated restrictions,” she said.
“We need to be able to operate the business according to operating and market conditions, without unreasonable restrictions.
“It may take some weeks for the Commission to make a determination during which time the current EBA will continue to apply.
“The nominal term of the current AWU EBA expired in March 2017. The Commission and Federal Court have recognised terminating an EBA can assist in reaching a new agreement.
“If the Commission decides to terminate the current AWU EBA employees’ current rates of pay, allowances, leave accrual value, superannuation and redundancy (capped at 52 weeks) will be protected by a series of undertakings Alcoa has filed with its application.
“Other terms of employment will be covered by the Aluminium Industry Award, the National Employment Standards, contracts of employment and Alcoa’s policies.”
Hundreds of disgruntled workers were in attendance outside the Commission’s St Georges Terrace building in Perth on Monday and AWU national lawyer Stephen Crawford led the union’s submission.
AWU state president and Kwinana site convener Andy Hacking said he felt the first day went well but he was realistic over the union’s chances of a favourable outcome.
“We are not overly optimistic that we are going to win but we realise that this is huge,” he said.
“When Alcoa’s own words are that they don’t want to put people on the award, why are they in there filing for the termination?
“There were a few significant points of difference, which in my view would lead the Commission to think there is still a lot of opportunity to go in bargaining, rather than terminating the agreement.”