Bluescope Steel Limited - Springhill and Crm Employees Award 2006 and Bluescope Steel (Ais) Limited - Port Kembla Steel Works Employees Award 2006 [2006] NSWIRComm 3 (30 March 2006)

Last Updated: 30 March 2006

NEW SOUTH WALES INDUSTRIAL RELATIONS COMMISSION

CITATION : Bluescope Steel Limited - Springhill And CRM Employees Award 2006 And Bluescope Steel (AIS) Limited - Port Kembla Steel Works Employees Award 2006 [2006] NSWIRComm 3

FILE NUMBER(S): IRC 6748 and 6749

HEARING DATE(S): 13/01/2006

DECISION DATE: 03/02/2006

PARTIES:

APPLICANTS

BlueScope Steel Limited

BlueScope Steel (AIS) Limited

RESPONDENTS

Australian Workers Union, New South Wales

Automotive Food Metals Engineering Printing and Kindred Industries Union, New South Wales Branch

Electrical Trades Union, New South Wales Branch

Construction, Forestry, Mining & Energy Union (New South Wales Branch)

JUDGMENT OF: Walton J Vice-President

LEGAL REPRESENTATIVES

APPLICANTS

Mr A Morris, Solicitor

Blake Dawson Waldron

Lawyers

RESPONDENTS

The Australian Workers Union, New South Wales Branch

Mr A Gillespie

The Automotive, Foods, Metals, Printing & Kindred Industries Union, New South Wales Branch

Mr Hattenfels

The Electrical Trades Union of Australia, New South Wales Branch

Mr Thornton

CASES CITED: Re Notification under s 167 by Minister for Industrial Relations of a dispute between BHP Billiton and Australian Workers Union and others re proposed strike action [2002] NSWIRComm 378

Re Bluescope Steel (AIS) Pty Ltd - Port Kembla Steelworks Employees Award 2004 and Other Matters (2004) 137 IR 363

LEGISLATION CITED: Industrial Relations Act 1996

JUDGMENT:

- 4 -

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

CORAM: WALTON J, Vice-President

3 February 2006

Matter No IRC 6748 of 2005

BLUESCOPE STEEL LIMITED - SPRINGHILL AND CRM EMPLOYEES AWARD 2006

Application by BlueScope Steel Limited for a new enterprise award.

Matter No IRC 6749 of 2005

BLUESCOPE STEEL (AIS) LIMITED - PORT KEMBLA STEELWORKS EMPLOYEES AWARD 2006

Application by BlueScope Steel (AIS) Limited for a new enterprise award.

REASONS FOR DECISION

[2006] NSWIRComm 3

1 On 21 December 2005 BlueScope Steel Limited filed an application in matter number IRC 6748 of 2005 for a new award (to be called BlueScope Steel Limited - Springhill and CRM Employees Award 2006) to rescind the BlueScope Steel Limited Springhill and CRM Employees Award 2004. The respondents to the application were the Australian Workers Union, New South Wales ("AWU"); Automotive Food Metals Engineering Printing and Kindred Industries Union, New South Wales Branch ("AFMEPKI"); and the Electrical Trades Union, New South Wales Branch ("ETU").

2 On the same day, Bluescope Steel (AIS) Limited filed application in matter number IRC 6749 of 2005 for a new award (to be called BlueScope Steel (AIS) Limited - Port Kembla Steelworks Employees Award 2006) to rescind the BlueScope Steel (AIS) Pty Ltd Port Kembla Steelworks Employees Award 2004. The respondents to the application were the same, save for the Construction, Forestry, Mining & Energy Union (New South Wales Branch) ("CFMEU").

3 Matter numbers IRC 6748 and 6749 of 2005 were joined at the hearing on 13 January 2006 and leave was granted to amend the applications. On that day, the Commission was satisfied that, in accordance with the requirements of the Industrial Relations Act 1996 and the Wage Fixing Principles, and as a matter appropriate for the exercise of the Commission's discretion in relation to the making of awards, that the proposed awards should be made. The Commission ordered the recision of the Springhill CRM Employees Award 2004 and the Port Kembla Steelworks Employees Award 2004 and made the BlueScope Steel Limited - Springhill and CRM Employees Award 2006 and BlueScope Steel (AIS) Limited - Port Kembla Steelworks Employees Award 2006 in accordance with the applications (as amended at the hearing) to operate on and from 28 February 2006 and remain in force until 27 January 2009. This decision supplements the short reasons given on that day.

4 The parties came before the Commission following a lengthy industrial history. At the time the BHP Steel (AIS) Pty Ltd - Port Kembla Steelworks Employees Award 2000 and the BHP Steel (JLA Pty Limited - Spring Hill and CRM Works) Employees Award 2001 were due to expire, the parties engaged in highly contested enterprise bargaining accompanied by industrial action. Following the Commission's intervention, which resulted in the Recommendation given on 13 May 2002 in Re Notification under s 167 by Minister for Industrial Relations of a dispute between BHP Billiton and Australian Workers Union and others re proposed strike action [2002] NSWIRComm 378, the BHP Steel Port Kembla Operations Enterprise Agreement 2002 was made. During the next round of enterprise bargaining, the matter was again the subject of conciliation and arbitration processes before the Commission. This involvement resulted in the making of the Bluescope Steel (Regulation of Disturbance to Production and Supply) Interim Award 2004. Then, following an orderly process of dispute resolution managed by the Commission, and the final adjudication of three outstanding matters by the Commission, the BlueScope Steel (AIS) Pty Ltd - Port Kembla Steelworks Employees Award 2004 and the BlueScope Steel Pty Ltd - Springhill and CRM Employees Award 2004 were made in Re Bluescope Steel (AIS) Pty Ltd - Port Kembla Steelworks Employees Award 2004 and Other Matters (2004) 137 IR 363. Those awards maintained the essential dispute resolution components of the 2002 agreement and enhanced certain terms and conditions.

5 It is no surprise that, notwithstanding impending changes to the industrial landscape, BlueScope Steel Limited - with the consent of the union parties - applied to continue (in effect) the operation of the 2004 Awards, given the extent to which they have produced real benefits for both the steelworks business and its employees. The combined effect of the Commission's general dispute resolution powers and award-making powers under the Industrial Relations Act 1996 (and the consequent powers granted to the Commission by the provisions of the awards themselves) has been threefold. First, there has been a dramatic reduction in the incidence of industrial stoppages, particularly industrial action resulting in a loss of production or product. Indeed, the industrial conflict which the Commission was required to manage during earlier enterprise bargaining periods has not been evident during the current transitional discussions. Secondly, the applicants' business has progressed well, no doubt benefiting from the stable industrial relations engendered by the Awards. Thirdly, there have been significant gains for employees. Where difficulties have arisen, the parties have taken full advantage of the dispute resolution procedures established in the awards. Occasionally, where a party has contended that there has been a departure from the requirements of the awards (or from orders made by the Commission under the Act), the broad range of the Commission's powers have been utilised to maintain adherence to the letter and spirit of the awards.

6 In the circumstances, the applications are entirely consistent with the objects of the Act and of considerable industrial merit. The Commission has no hesitation in approving the applications.

7 The Commission confirms the making of the BlueScope Steel Limited - Springhill and CRM Employees Award 2006 and the BlueScope Steel (AIS) Limited - Port Kembla Steelworks Employees Award 2006 in terms of the amended applications.

LAST UPDATED: 03/02/2006