January 30, 2017
The CFMEU has pledged to fight “a shocking” decision by the Fair Work Commission last Friday that could cost tens of thousands of coal industry employees hundreds of millions in lost earnings.
CFMEU National President Tony Maher said on Monday the Full Bench Commission ruling caps coal industry employees’ redundancy entitlements at a maximum 15-years of service.
“It would take hundreds of millions of dollars out of the pockets of coal mine employees to fatten the bottom lines of some of the most profitable and powerful mining companies in the world”.
Up to now, redundancy pay for coal industry employees has been calculated at two weeks pay for every year of service if they are retrenched.
There was no cap on this entitlement and it has been the industry norm for decades.
But now, once an employee reaches 15-years of service they can no long accumulate any further redundancy benefits.
For employees with more than 15-years employment, their existing benefits are frozen and they can no longer accumulate redundancy pay.
Mr Maher described the decision as “appalling”.
“There is no rationale given by the Full Bench for this far reaching decision. It is a straight grab from employees’ pockets to the bank balances of the mining companies.
“It is a decision that not only deprives employees of fair benefits at a time of retrenchments, but will impact significantly on many regional economies where these mine employees and their families live and spend their money. It is an absolute disgrace.”
Mr Maher said that the decision applies to all employees throughout Australia covered by the coal industry award, not just CFMEU members.
“It will cost employees throughout Australia hundreds of millions in lost earnings and for what? To swell the bloated coffers of mainly foreign multinational companies that ship the vast majority of their profits overseas.”
Mr Maher said the CFMEU is meeting with its lawyers to consider an appeal against the Full Bench decision.
The CFMEU’s Central Executive will be considering further additional responses at its meeting.
