February 17, 2014
The Federal Court today dismissed an application by four unions that threatened to stall the restarting of the two mothballed generating units at Tarong Power Station.
The CEPU, AMWU, QSIU and CFMEU had sought an urgent interlocutory injunction to prohibit Stanwell from taking any further steps to “increase capacity at the Tarong Power Station by requiring additional work from the employees there and the employment of additional contractors until it has complied with Clauses 2.11 of the Tarong Power Station Enterprise Agreement 2012”.
(The Electrical Trades Union – ETU – is a division of the CEPU.)
The unions claimed Stanwell had failed to consult with them, as required under the Enterprise Agreement, over the withdrawal from service of the Swanbank East Power Station, and the decision to re-start the Tarong units.
They sought orders requiring Stanwell to consult with them and employees and asked for the imposition of penalties against Stanwell to be paid to the unions.
The unions also sought to stop Stanwell from moving on the Tarong project until March 7.
In its submission, Stanwell said there would be no “significant effect” on workers at Tarong which would trigger the consultation obligations required by Clause 2.11.
And the corporation claimed there would be significant costs caused through any delay.
Stanwell Acting Executive General Manager (Energy Trading and Commercial Strategy) Tanya Mills gave evidence that the two-week delay sought by the unions would result in financial costs of Stanwell of between $1.2 and $1.8 million.
In her decision, handed down in Brisbane today, Justice Joan Collier said the reactivation of Units 2 and 4 at Tarong would result in some change at Tarong, but not a “major” change as defined in Clause 2.11.
She said Site Manager Dennis Franklin had given “strong and credible” evidence that because of the restructuring of jobs at Tarong, the plans for Units 2 and 4 would not have a significant effect on employees.
In contrast, Justice Collier said the affidavits filed by the unions were “weak and speculative” and “in the nature of assertions rather than evidence”.
Stanwell’s Chief Executive Officer, Richard Van Breda, said he was pleased with the decision.
“We made a business decision to return the Tarong units to service,” Mr Van Breda said.
“Today’s judgment is welcome. We take our obligations to our people seriously and this decision allows us to continue the work to return the units to service which is good for our people and for the South Burnett region,” he said.
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