Alcoa industrial action: Fair Work Commission votes to terminate AWU agreement

AWU workers were on strike from Alcoa for 52 days - the best photos captured by Gareth McKnight, Caitlyn Rintoul and Nathan Hondros here.

The Fair Work Commission has voted to terminate an Enterprise Bargaining Agreement (EBA) for Alcoa of Australia workers from January 7, after the mining giant started the process with the regulatory body in September.

Alcoa initially disputed the EBA put forward by the company’s Australian Workers’ Union (AWU) employees claiming the conditions would place their ability to “run the business with flexibility and in the most efficient and productive way” in jeopardy.

The union and company have been in long-term negotiations over a new EBA, with Alcoa seeking to update terms they have labelled ‘outdated’ and the AWU hoping to ensure job security.

The EBA has been a contentious issue, which had seen the company and union locked in failed negotiations for more than 18 months.

The agreement of the AWU came after about 1600 members undertook industrial action for 53 days, ending on September 28.

In their deliberation, the Fair Work Commission has heard from both Alcoa and the AWU, with the formal process to dragging out for a number of months.

It is a great disappointment for the union and our members that a highly profitable company like Alcoa can make unilateral decisions to terminate workers' rights.
- AWU WA secretary Mike Zoetbrood

AWU WA secretary Mike Zoetbrood said the news had created disappointment among Alcoa workers.

"It is a great disappointment for the union and our members that a highly profitable company like Alcoa can make unilateral decisions to terminate workers' rights," he said.

"It is also a further demonstration that the industrial relations rules really are broken."

AWU state president and Kwinana site convener Andy Hacking questioned the Fair Work Commission's timing in handing down the decision.

"We are not overly surprised but it is very disappointing," he said.

"We will take a break over Christmas to spend time with our families before formulating some strategies and starting more discussions with Alcoa."

We appreciate this has been a difficult time for everyone at our operations and want this matter resolved as quickly as possible for the sake of all parties, most importantly our employees and their families.
- Alcoa spokeswoman

An Alcoa spokeswoman said the company had voluntarily committed to maintain their current rates of pay, allowances, leave and superannuation provisions for six months.

“This commitment will protect employees from financial impact while a new EBA is established,” she told the Mandurah Mail.

“We appreciate this has been a difficult time for everyone at our operations and want this matter resolved as quickly as possible for the sake of all parties, most importantly our employees and their families.

“We will put a proposed EBA to an employee vote in the new year.

“We look forward to finalising a new agreement and refocussing our efforts on strengthening our business so that we can continue to provide secure, well-paid jobs now and for future generations.”

I am satisfied that it is not contrary to the public interest to terminate the Agreement and it is appropriate to do so.
- Fair Work Commission deputy president Abbey Beaumont.

Fair Work Commission deputy president Abbey Beaumont heard evidence from representatives on both sides, before making her decision.

"In having regard to the requirements of the Act, the evidence before me and the submissions made on behalf of parties, I am satisfied that it is not contrary to the public interest to terminate the agreement and it is appropriate to do so," her determination read.

"I have considered circumstances at length in arriving at a decision, and am satisfied that it is appropriate to terminate the agreement, taking into account, and balancing all the circumstances."

Alcoa’s AWU members will be covered by the Aluminium Industry Award, the National Employment Standards, contracts of employment and Alcoa’s policies following January 7, 2019.

The Fair Work Commission’s decision puts pressure on the AWU to agree a new EBA, with the prospect of significantly diminished worker conditions if a new agreement is not found within six months.

To read the full decision by the Fair Work Commission visit their website or click here.

Have an opinion on the situation? Share your thoughts with our team via editor.mandurahmail@fairfaxmedia.com.au.

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