The Fair Work Ombudsman (FWO) has received a Ministerial directive to investigate wage theft allegations affecting coal miners in the Hunter region. Upon inquiring about the investigation’s status, Mr Steve Ronson, the Executive Director of the FWO shared that there are currently 18 cases under investigation, involving 25 workers and 17 employers, with 2 self-reports also being considered. All complaints are being thoroughly investigated, and the process includes holding meetings with various stakeholders.
A dedicated email address has been established for individuals to contact the FWO regarding these issues. So far, meetings have been held with Coal LSL, the Mining Energy Union, and the Independent Workers Union of Australia. Mr Ronson mentioned that the amounts to be calculated have not yet been assessed, with some claims dating back around 10 years. It’s been estimated that the total claim could potentially reach up to $1.3 billion. He also expressed his willingness to accept a submission from One Nation, which has been advocating for this investigation since 2019, marking it as the largest wage theft claim in Australia.
Interestingly, there has been no liaison with the Fair Work Commission, although other entities are welcome to submit material. Early findings from the investigation may emerge by mid this year, but the final report is expected by mid-2026. Status reports might be discussed through the estimates process. Mr Ronson clarified that while underpayments can be investigated beyond the 6-year period under the Statute of Limitations, enforcement is limited to this timeframe. He committed to securing any identified underpayments through the investigation.
Stay tuned for more updates as this significant investigation progresses.
Transcript
Senator ROBERTS: Thank you for attending, everyone. First of all, I understand the Fair Work Ombudsman has received a ministerial directive to investigate underpayments of casual black coal miners working under enterprise agreements; is that correct?
Ms Booth: We have been asked to conduct that investigation. On the last occasion, you’ll recall, Mr Ronson gave you a thorough rundown. Since that time our enforcement board has approved an investigation plan. I will turn to Mr Campbell to give you any further updates.
Senator ROBERTS: Before he does so, would it be possible to get a copy of the ministerial directive, please?
Ms Booth: I’m not sure I would describe it as a ministerial directive, although others might be more aware of the protocol in these matters. I believe it was a letter.
Senator ROBERTS: Can I have a copy?
Ms Booth: I see no reason why you shouldn’t. I’ll hand over to Mr Campbell and Mr Ronson to give you more details.
Mr Campbell: Is there a particular aspect of our inquiries that you’re interested in, or are you looking for a general update?
Senator ROBERTS: I’d specifically like, please, an overview of the status of the Fair Work Ombudsman’s activities, and could you in particular describe the process the Fair Work Ombudsman is using to conduct its investigations.
Mr Campbell: I’ll ask Mr Ronson to assist.
Mr Ronson: I can give you an update on the status of the investigation. The Fair Work Ombudsman is currently investigating 18 black coal mining industry matters that involve 25 workers and 17 different employing entities. We’ve also received two self-reports from the sector. All the requests for assistance that we’ve received are being investigated, and as part of our project plan we’re meeting with a whole range of stakeholders. We’ve begun meeting with them to talk about the investigation, to enhance and increase awareness and to encourage those in the sector to come forward. We have a dedicated email address to receive any allegations or information from any member of the sector or the community. So far, we’ve had some very constructive and positive meetings. We’ve had two meetings with the Coal Mining Industry (Long Service Leave Funding) Corporation, we’ve met with the Mining and Energy Union, we’ve met with the Independent Workers Union of Australia, and we’ve got a whole range of other stakeholder meetings lined up in the next couple of weeks.
Senator ROBERTS: Thank you. I assume that there’s a dedicated process that casual coalminers can now use to lodge complaints about underpayment with the Fair Work Ombudsman?
Mr Ronson: That’s correct. There’s a dedicated email address we’ve set up for the whole project so that anyone in the sector or anyone with information relating to the sector can feel confident that they can go straight through to contacting us through that email, or they can give us a call—whichever way they want to make contact with us. Of course, there’s still the anonymous report function as well, which is available to all members of the community.
Senator ROBERTS: You mentioned the Independent Workers Union of Australia. I take it that some of the submissions, or complaints, have been lodged through that and some of the others have been individually lodged, for individual work.
Mr Ronson: That’s right. Probably two-thirds have come through the agency of the Independent Workers Union of Australia and the other third are just individual workers in the sector who have requests for assistance that we’re looking at.
Senator ROBERTS: Thank you. I must say that I appreciate your succinct and direct answers. Can the Fair Work Ombudsman provide the range of possible underpayment amounts currently being looked at by the Fair Work Ombudsman?
Mr Ronson: It’s hard to assess at the moment what potential underpayments, if any, exist. Some of the allegations date back at least 10 or 11 years. There are some individuals who’ve worked in the sector for many years. If the allegations are upheld and if the evidence is obtained, there could be significant underpayments owing to certain workers. But at this stage it’s too early. We’ve requested a series of documents, a lot of information from various companies, that will assist us to begin, if you like, the assessment of these particular claims.
Senator ROBERTS: How many employers—not only mine owners but the labour hire firms—are subject to investigation so far? How many?
Mr Ronson: All up, it’s 17.
Senator ROBERTS: You mentioned that—okay. Will the Fair Work Ombudsman advertise to coalminers in the black coal mining sector, encouraging them to lodge and apply to the Fair Work Ombudsman in relation to underpayments they believe they may have been subject to?
Mr Ronson: By ‘advertise’, do you mean increasing awareness, as in media statements?
Senator ROBERTS: Yes: letting them know you’re open for business and you’re aware that this is an issue.
Mr Ronson: Yes, that’s definitely an option available and one we’re considering. There are some other ideas that we have as well about enhancing awareness. For example, there’s nothing to prevent us writing to all labour hire providers and employing entities in the sector. This is one of the suggestions that has been put to us and one we’re currently considering.
Senator ROBERTS: Would that be a wise move in terms of trying to get to the miners? Some of these labour hire firms—some—have been deliberately suppressing this?
Mr Ronson: That’s right—good point. In terms of former workers, that’s a different sort of ‘audience’, if you like. That’s one we’re turning our minds to in thinking about how we ensure people who either are in the industry now or were formerly in the industry are aware of this investigation. The second point I was making, yes, was in relation to employers. That’s something we’ve done in the past. We’ve written, for example, to the ASX Top 100 companies and encouraged them to review their status, and if they self-identify they can self-report any potential noncompliance.
Senator ROBERTS: My understanding is that some of the miners are not aware of it, but it’s a major issue, because we estimate that about 5,000 miners at least have been the subject of Australia’s largest wage theft case, and it’ll cost, ultimately, around $1.3 billion—they’re rough estimates. So I think these people need to be told that there’s an option for them to seek justice and repayment.
Mr Ronson: Yes. As I say, it’s something we’re definitely turning our minds to, and we’re considering what’s the best way to get the word out, if you like.
Senator ROBERTS: Okay. Let’s hope you can get that out fairly soon. The Fair Work Ombudsman would be aware that One Nation has pushed for investigation into this issue and that One Nation released a detailed report in February 2024. Is the Fair Work Ombudsman taking submissions on how the alleged underpayments have occurred, and would the Fair Work Ombudsman accept One Nation’s report as a submission? We can provide data, companies involved, amounts, enterprise agreements and underpayment.
Mr Ronson: Yes, sure. We welcome all and any information and any submissions.
Senator ROBERTS: So we would make submissions in the same way anyone else would?
Mr Ronson: Yes.
Senator ROBERTS: Thank you. Would One Nation be involved in any follow-up discussions on the nature of the issue and its resolution?
Mr Ronson: Yes, if there is information that’s material and actionable, by all means, we’ll be in contact.
Senator ROBERTS: As I understand it, the Mining and Energy Union, which is what’s left in the coalmining sector after the CFMEU and the Mining and Energy Union split, are not seeking back pay. They seem to be hiding it because they were involved in agreeing to the enterprise agreements and signing off on enterprise agreements that were paying much less than the award. Is the Fair Work Ombudsman inviting submissions from other organisations and individuals? If so, who specifically has been approached?
Mr Ronson: To date, as I said before, we’ve met with the Coal Mining Industry (Long Service Leave Funding) Corporation, and we’re asking that agency to provide us with any relevant information. We’ve met with the Mining and Energy Union; we’ve extended the same invitation. We’ve met with the Independent Workers Union of Australia. As you know, they’re actively involved, and they’re assisting our investigation. We also intend to meet with the Queensland Labour Hire Licensing Compliance Unit; RCSA, the Recruitment, Consulting and Staffing Association, which is responsible for labour hire; the Minerals Council of Australia, with which we have meetings lined up; and safe work bodies in New South Wales and Queensland.
Senator ROBERTS: Will you be covering more than the wage theft case and the specific amounts of the wage theft? In other words, will you be covering loss of other entitlements, protections and safeguards?
Mr Ronson: Our jurisdiction only extends to entitlements or conditions that are actionable or have been created under the Fair Work Act and the regulations, so it’s only what is within our remit.
Senator ROBERTS: Thank you. Is the Fair Work Ombudsman consulting with the Fair Work Commission on the issue?
Mr Ronson: Not to date. There’s been no need at this stage. I’m confident that we said at our last hearing that we don’t have the power or the capability to question any approvals of any agreements that have been made in the past. Others can take that issue up.
Senator ROBERTS: Who are the others who can do that?
Mr Ronson: Parties to an agreement.
Senator ROBERTS: Okay. So only the Mining and Energy Union; its predecessor, the CFMEU; and employers, such as mining companies?
Mr Ronson: I’ll defer to the chief counsel as to who in particular can question agreements.
Ms Volzke: I think Mr Ronson has given a reasonable list. I would just say more broadly that one of the issues that I raised at the last estimates is just to remember that we still have that statutory timeframe of six years that applies under the Fair Work Act as well. Obviously, that won’t preclude us from investigating, but it’s important that the miners that we’re looking at also bear that in mind.
Senator ROBERTS: Yes, I’m pleased to say that it wouldn’t preclude you investigating. It may, at the moment, preclude addressing the issues that are raised in the investigation, but it would not preclude the investigation. The premise for my next question is as follows: the black coal award does not allow for casuals. Enterprise agreements were made, and some are still current, but the agreement’s pay rates are demonstrably less than what should be paid under the award if the award allowed for casuals. To an ordinary person, paying casuals less than the award casualised rate—that’s a full-time rate plus 25 per cent—is plainly wrong. That’s the pub test, as people say. And yet the Fair Work Commission endorsed the enterprise agreements. I assume the Fair Work Ombudsman must somehow determine which instrument prevails, being either enterprise agreements that pay less than the casualised award rate or an award rate that incorporates a casualised 25 per cent add-on to a full-time rate. Does the Fair Work Ombudsman have an idea as to how this may be resolved?
Mr Ronson: That’s the $64 question, if I can confirm it. I think, as with previous evidence we’ve provided, there remains uncertainty regarding the legal consequences of the Black Coal Mining Award’s lack of provision for employees in these roles as it hasn’t been authoritatively determined by a court. So it remains an open question.
Senator ROBERTS: Will the Fair Work Ombudsman be issuing a report or reports on its findings of the investigation? If so, what would be the anticipated timeline for such reports? I think the minister made some comment as to [inaudible].
Mr Ronson: At this stage we’re more than happy to provide status updates in this forum as we go along, but we’re hoping that we’d have early preliminary findings towards the middle of this year or just after the middle of this year. I think I said last time, and I think it’s still the case, it could be at least until mid-2026 before we’re in a position to provide a final report. But we will keep this committee posted.
Senator ROBERTS: Would you be in a position to provide interim reports as the investigation progresses?
Mr Ronson: It’s probably easier if we provide status reports, like I have today. The thing about how long an investigation takes is it all depends—
Senator ROBERTS: It depends on the [inaudible] and what you find. I get it. Would any reports you provide be public and unredacted, except of course for retaining confidentiality of workers allegedly underpaid?
Mr Ronson: I see no reason why it wouldn’t be. A report that we provide would be as fulsome and comprehensive as we could publish.
Senator ROBERTS: We’re not expecting names of individuals to be disclosed.
Mr Ronson: No.
Senator ROBERTS: We would expect them to be redacted. Would the reports indicate the employers involved, the organisations involved, the employers and organisations under investigation and any findings that the Fair Work Ombudsman has in relation to the specific employers?
CHAIR: Just before you answer that question, Senator Roberts we’re running an hour and a bit late. I don’t want to cut off your questions, but if there are some that can be on notice that would be helpful. Otherwise, I will come back to you.
Senator ROBERTS: Thank you, Chair. The way Mr Ronson is answering the questions directly, it won’t be long at all. I’ve only got a few more to go. And I have to move on too.
CHAIR: No worries.
Senator ROBERTS: Mr Ronson?
Mr Ronson: The best way of answering your question is: it’s the long held practice of the Fair Work Ombudsman to provide reports of all its major investigations. We’ve published all of them and they’re available on our website. It is our practice and it would be our expectation to do so again.
Senator ROBERTS: Thank you. If the Fair Work Ombudsman were to conclude that underpayments had occurred, and based on the Fair Work Ombudsman’s past experiences, does the Fair Work Ombudsman have ideas of scenarios for compensation for any worker underpayments?
Mr Ronson: Well, we have ideas. As to whether they’re actionable or realisable, that will be determined in due course.
Senator ROBERTS: Yes. This is something Ms Volzke raised. What is the effect of the statute of limitations and how would that apply to someone lodging a complaint today? Can they still lodge it?
Mr Ronson: Yes. As the chief counsel answered, it doesn’t preclude our investigations. The provision in the act only relates to enforceability in the event of proceedings, but there’s no reason why we can’t go back historically and look at historic underpayments and, if the allegations are upheld and there is an entitlement owing, to seek to secure that underpayment.
Senator ROBERTS: Is the Fair Work Ombudsman investigating beyond the statute of limitations to ascertain full amounts possibly underpaid?
Mr Ronson: Yes.
Senator ROBERTS: Thank you very much. Chair, I want to express my appreciation for Mr Ronson being direct. It enabled me to get through my questions. I also want to communicate to the secretariat that I’ll be on the road, so I won’t be able to ask the Fair Work Commission questions in the hearings, but I will put them on notice. And it’s the same with the coal long service leave.
CHAIR: Thank you, Senator Roberts.
Leave a Reply
Want to join the discussion?Feel free to contribute!
Using your first name