News

The escalating industrial action by NSW Coal train drivers is threatening to cause long-term damage to coal producers and the NSW economy.

The Rail Tram & Bus Union (RTBU) has already given notices of protected industrial action:

• An overtime ban for 72 hours commencing midday on 21 February
• A 48 hour strike commencing at 12 midday on Tuesday, 25 February

Today the RTBU again refused to call off a 48 hour strike by Aurizon traincrew in the Hunter Valley coal business and rejected Aurizon’s plea to return to the bargaining table.

Aurizon has also sought the assistance of the independent umpire, the Fair Work Commission on three occasions in an effort to resolve the bargaining impasse.

Last week Aurizon advised the RTBU that if the 48 hour strike action happened then Aurizon would consider a lockout of the same duration which is one of the few employer responses available under the Fair Work Act.

Consequent to today’s strike action, Aurizon has advised the union and employees that a workplace lockout will come into effect from midday Thursday 27 February to 4am Saturday 1 March 2014.

Aurizon has not taken this decision lightly but we are compelled to find a speedy resolution to this impasse. While the union favours industrial action over returning to the bargaining table, Aurizon has few options to resolve this matter quickly and effectively.

We cannot tolerate a rolling campaign of indefinite, unpredictable stoppages that are designed by the union to cause on-going disruption to our business and our customers’ business. That is not in anyone’s interests.

Local coal producers need Aurizon to be a reliable and efficient supplier day after day, week after week and not have the threat of industrial action constantly hanging over them. The Australian coal industry is operating in a very challenging global market and Aurizon cannot accept long-term impacts through disruptive and protracted industrial action.

There’s a generous deal on offer including 4 % per year over three years. It also includes a reduction in working hours without a reduction in pay; increases in long service leave; increased overtime rates and better rostering arrangements.

The value of package is very comparable and competitive with other train drivers in NSW. If this agreement had been put in place Aurizon drivers would be receiving up to $121,000 per year by 2016.

The union’s counter-proposal includes a 25% increase to the wage package and a range of restrictive work practices.

Aurizon simply cannot accept that type of impost, in this economic environment, where Australia’s wage growth is averaging 2.5%.*

Aurizon has been communicating with customers and working with them to understand how we minimise the impact on their business.

Background facts:

The Aurizon proposal included:

• increases in long service leave
• a 12% wage increase over three years
• a $2000 one-off cash payment upon approval of the agreement. (withdrawn because of the strike action)
• The Interail Australia (Coal Operations – NSW) Agreement 2010 covers approximately 200 employees in New South Wales at the depots in Newcastle and Duralie.
• Total annual remuneration for a Level 4 train driver under the proposed agreement would rise to $121,000 in July 2016.
• Since commencing bargaining in May 2013, some 23 days of meetings have been held between Aurizon management and RTBU representatives.
• Since commencing coal operations in the Hunter Valley in 2005, Aurizon has also invested $385 million in new generation locomotives and wagons to serve its customers.
• Aurizon has recently announced commencement of a $150 million investment in a new train support facility at Hexham to support its continued growth in the Hunter Valley.
• In 2012/3, Aurizon hauled 37.9 million tonnes of coal in the Hunter Valley, representing a marketshare of more than 25%.

*Australian Bureau of Statistics Dec Qtr 2012 to December Qtr 2013