Labour Hire Scams and Union Corruption

Senator ROBERTS: Thank you, Mr Furlong and your team, for being here again. My first set of questions relates to my recent Senate second reading amendment to a recent Fair Work Act amendment bill. The Senate amendment required the government to conduct an investigation into massive wage theft in the coal mining industry. I’ll read the relevant portions: ‘Clause B—the Senate requires the government to investigate claims that casual miners working under enterprise agreements in the black coal mining industry are and have been underpaid. Clause C—if underpayments are found to have occurred, facilitate the reimbursement of the underpayments’. In regard to this, which is Australia’s largest wage theft case, totalling possibly over $1 billion and involving thefts of up to $40,000 per year per miner for many years and stealing from more than 5,000 miners, we believe, are you aware of the Senate’s second reading amendment requiring the minister to investigate the wage theft?  

Mr Furlong: Senator, I can’t speak to the veracity of the claims that you’ve just made there.  

Senator ROBERTS: That’s not my question.  

Mr Furlong: What I can say is that I am broadly aware of what you’re referring to.  

Senator ROBERTS: Thank you. Has there been any discussion between the minister and the Fair Work Commission or any Fair Work Commission officials?  

Mr Furlong: No, nor would it be appropriate.  

Senator ROBERTS: Between the department and the Fair Work Commission or any Fair Work Commission officials?  

Mr Furlong: Not that I’m aware of, Senator.  

Senator ROBERTS: Has the department received from the Fair Work Commission or made to the Fair Work Commission any instructions on this matter?  

Mr Furlong: No, nor would it be appropriate for us to instruct the department on anything.  

Senator ROBERTS: Has Minister Burke or the Department of Employment and Workplace Relations discussed with you or Fair Work Commission officials the nature of the investigation the Senate required him to make into the wage theft case involving central Queensland and Hunter Valley miners?  

Mr Furlong: No, Senator.  

Senator ROBERTS: Have any of his staff raised it with you?  

Mr Furlong: I might have to take that on notice. There may have been conversations at the officer level, but I’m certainly not aware of any. I haven’t participated in any.  

Senator ROBERTS: Thank you. Do you expect any role in the investigation?  

Mr Furlong: As we’ve traversed at estimates previously, the role of the general manager, my role, is to assist the president in sharing the functions that the Fair Work Commission perform in an efficient way, essentially. Will there be a role—I can’t envision that there would be a role there for the commission, no.  

Senator ROBERTS: Not for anyone from the Fair Work Commission?  

Mr Furlong: Well, it’s hard to talk in the abstract on this. In terms of the context, the letter that I sent to you from 11 January contained a significant amount of information about the operations and the functions of the Fair Work Commission that relate to the making and the approval of the enterprise agreements, including the application of the better off overall test, the approval of agreements, the process and the legislative checklist that we’ve discussed a number of times. The letter was four pages, but there were 28 pages of attachments that I provided to you to hopefully assist with your understanding of the legislative regime and the role of the Fair Work Commission in relation to this issue.  

Senator ROBERTS: Thank you. Minister, yesterday evening you seemed uninterested in the investigation of workers’ wage theft—the biggest in Australia.  

Senator Watt: That is a completely unfair characterisation of what I said. I’ve actually got—part of my career has been spent assisting workers to recoup underpayments. I invite you to have a look at my record on those issues. What I was pointing out was that you have raised pretty much the same issues over and over again at estimates hearings over a number of years.  

Senator ROBERTS: Yes, and we’ll see why. It’s sad that you have not understood why I’ve continued to raise that. Obviously, my communication needs to improve with you, Minister Watt. Here’s a second chance. What would you expect for a fair and independent investigation? What would the process look like?  

Senator Watt: You asked me the same question yesterday, and I said a fair and independent investigation is obviously one that is fair and independent. I’m not trying to be a smart alec in saying that, but we respect the independence of the Fair Work Commission. We’re trying to redress the imbalance in the Fair Work Commission that existed under the former government when they only appointed employer representatives. We’re trying to make it a more even-handed organisation that does have both employer and employee representatives on it. It’s established as an independent organisation and it should be able to operate independently.  

Senator ROBERTS: Having said that the Fair Work Commission should operate independently and given Mr Furlong’s responses, what would you think a fair and independent investigation would look like?  

Senator Watt: I can’t add anything to what I said today and yesterday.  

Senator ROBERTS: Mr Furlong, are you aware that the CFMEU, or MEU or whatever it’s called today, has applied, apparently, under the Fair Work Act same job, same pay provisions for a new enterprise agreement covering a few hundred miners at just two mines?  

Mr Furlong: Yes, I’m aware.  

Senator ROBERTS: Thank you. CFMEU/MEU notices in central Queensland and Hunter Valley mines have even used my figures for the amount of underpay per miner per year—up to $40,000. This vindicates my work over the last five years—work that the CFMEU/MEU had, in fact, denied and continues to deny, doesn’t it? Their notices are saying that miners are being short-changed $40,000. They’re making that submission.  

Senator Watt: I’m happy to—  

Senator ROBERTS: My question is to Mr Furlong initially.  

Mr Furlong: My initial response to that is that it’s challenging for me to conflate different circumstances in very different cases.  

Senator ROBERTS: Minister, perhaps you could answer that.  

Senator Watt: What I was going to say is that the Mining and Energy Union has a long and proud history of fighting for mining workers’ underpayments. They were absolutely pivotal to the changes to the law that this government made that you voted against that were about closing loopholes in the labour hire sector which were particularly being abused against mining workers. That has resulted already in at least one case that I’m aware of where those workers have now had their pay rates raised by tens of thousands of dollars. So, yes, the Mining and Energy Union does have a long history of raising these issues. I’ve campaigned with them on it myself, and I think other Labor senators have as well. We’ve now changed the law, and that’s addressing the issue.  

Senator ROBERTS: Thank you, Minister. I remind you that I used to be a coalface miner for several years in the Hunter Valley, central Queensland and North Queensland. I also was a very proud member the Miners Federation, because it looked after mine workers extremely well. Minister, do you know that the CFMEU, now the MEU, in its application for improving two enterprise agreements, does not seek back pay? Can you explain why they don’t seek back pay?  

Senator Watt: I’m not a representative of that union, so I can’t explain why they included some things and not others in their claim. You’d have to ask the union.  

Senator ROBERTS: Would it be possible that the CFMEU/MEU is aware of its support for the previous wage theft and that’s why it’s afraid to raise back pay?  

Senator Watt: Well, I’ve already—we had a bit of a chat yesterday about conspiracy theories, Senator ROBERTS. Again, I can’t tell you why a union makes a particular claim and not others. What I do know is that the application that the MEU made involving the Mount Pleasant mine in the Hunter Valley through the Fair Work Commission has resulted in significant wage rises for those workers.  

Senator ROBERTS: But they’re not seeking back pay. Minister, your use of labels is a refuge that’s commonly used by the ignorant, the dishonest, the incompetent or the fearful. When you use a label, it shows everyone that you haven’t got the data or the logic or the argument to refute me. So thank you very much for using a label. I’m very happy for you to use a label.  

Senator Watt: You’re entitled to have full confidence in your argument, Senator ROBERTS.  

Senator ROBERTS: Minister and Mr Furlong, are you aware that the Independent Workers’ Union of Australia has lodged three claims for back pay with the Fair Work Ombudsman?  

Mr Furlong: I’m not aware of that, but you have—  

Senator ROBERTS: Minister?  

Senator Watt: Fair Work Ombudsman or commission?  

Senator ROBERTS: Fair Work Ombudsman.  

Senator Watt: I’m not aware of that, but they’re entitled to do whatever they want.  

Senator ROBERTS: Many miners have joined with the Independent Workers’ Union of Australia in the process of lodging claims with the Fair Work Ombudsman. Are you aware that’s happening?  

Senator Watt: No, but people have got a right to join whatever organisation they want. I might just clarify. My understanding actually is that the Mount Pleasant case in the Hunter Valley is ongoing, but agreements have been reached between mining contractors and workers to lift pay on the basis of the laws that were introduced.  

Senator ROBERTS: It’s only taken me five years. That’s great to see.  

Senator Watt: Well, if you want to take credit for a Labor government law that you voted against, you’re welcome to do so.  

Senator ROBERTS: You were so embarrassed, Minister—  

Senator Watt: But the record shows that you voted against those laws.  

Senator ROBERTS: Minister, speaking of conflicts, are you unavoidably conflicted on this matter because of the many millions of dollars from the CFMEU paid to your Labor party?  

Senator Watt: No.  

Senator ROBERTS: Minister, does the $48 million from Abelshore, a 100 per cent owned Glencore subsidiary that went from—does the $48 million from Abelshore to the CFMEU in two recent years further conflict you and your party?  

Senator Watt: No. I told you I wasn’t even aware of that yesterday.  

Senator ROBERTS: Does it still conflict you, even though you’re not personally aware of it?  

Senator Watt: I have no idea what you’re talking about—it’s a bit hard to be conflicted when it’s something that you don’t even know about.  

Senator ROBERTS: Let’s continue then. On whom can workers rely, Minister?  

Senator Watt: A Labor government which has fixed the laws and delivered secure jobs and better pay.  

Senator ROBERTS: Well, they can’t rely on large, entrenched unions in monopoly positions, meaning their union bosses have no accountability to members. We’ve seen the CFMEU, MEU, SDA in recent years, HSU and Craig Thomson—they did deals stealing workers’ wages and cutting workers’ wages. This is the unions themselves—the powerful unions.  

Senator Watt: I think it’s well understood that you’re not a big fan of unions and that you’ve voted against every piece of legislation we’ve ever tried to introduce to lift workers’ wages and provide unions with the ability to negotiate on behalf of their members. It’s okay in a democracy to be anti-union. You’re antiunion. I’m not. The Labor government supports the role of unions in negotiating workers’ pay, but you don’t have to agree with us.  

Senator ROBERTS: Minister, it’s poor form to mischaracterise someone and misrepresent someone. I have strongly supported unions—  

Senator Watt: You just rattled off—  

Senator ROBERTS: or honest unions, because I think it’s the worker’s right to be involved—  

Senator Watt: Well, everyone can have a look at your voting record, Senator ROBERTS, and see how supportive you’ve been of the unions.  

Senator ROBERTS: We’ll proceed with that. Can workers rely upon employers such as some of the labour hire firms?  

Senator Watt: I don’t think you can generalise, but I think there have been many examples where labour hire firms have exploited their workforce and have been assisted in that by host employers. That’s why we changed the laws to overcome the loophole that labour hire firms and host employers were using to cut people’s pay. Again, Senator ROBERTS, you voted against us.  

Senator ROBERTS: And we’ve discussed why. Can they rely upon Chandler Macleod, which is a subsidiary of Recruit Holdings and has contracts for supplying casual workers to your government?  

Senator Watt: I’m not going to comment on individual companies, Senator ROBERTS. I don’t know enough about the individual company’s record to comment on them.  

Senator ROBERTS: Can workers rely upon the Fair Work Commission that approved the illegal enterprise agreements?  

Senator Watt: I think workers can rely on the Fair Work Commission to be an independent organisation, now that we are restoring some balance to it, and that it will operate within the law.  

Senator ROBERTS: Thank you. 

Senator ROBERTS: Minister, I’ve been going through the list of entities or groups of entities that workers can possibly turn to. So far we haven’t found one that they can turn to. What about government? Can workers rely on government?  

Senator Watt: Is that a general proposition?  

Senator ROBERTS: I’m looking for people who can support workers.  

Senator Watt: Senator ROBERTS, you’d have a lot more credibility on this if you had ever voted with the government for any of the changes we’ve made to protect workers. We passed some legislation recently. It was in the name of the bill: it was called the secure jobs, better pay bill. Have a guess what it was about: secure jobs and better pay. Have a guess how you voted: you voted no. We give you opportunities to vote for workers. We are protecting workers and you keep voting against it. You keep voting with the coalition.  

Senator ROBERTS: Did you know, Minister, that miners tell me that, in their research on the Hunter Valley and central Queensland wage theft, that, when Mr Bill Shorten was workplace relations minister in Julia Gillard’s government, he made the key step that unlocked and enabled the abuse of casual workers? Did you know that?  

Senator Watt: I did not know that some mining workers somewhere said that about Bill Shorten when he was a minister more than 10 years ago. No, I did not know that.  

Senator ROBERTS: Despite the Black Coal Mining Industry Award not allowing casual coal mine workers on production, Mr Shorten apparently changed the coal long service leave regulations to allow casual coal miners to receive long service leave accruals. Were you aware of that?  

Senator Watt: No, I wasn’t in the parliament.  

Senator ROBERTS: That opened the door for the CFMEU and labour hire companies to fabricate the permanent casual rort. That’s why, five years ago, I started holding Coal LSL, the Fair Work Commission and Fair Work Ombudsman accountable. Do you understand now why I started with the Coal LSL agency?  

Senator Watt: I’m sure there would be different views on that. That’s obviously your view. It’s a view you’ve pursued relentlessly in estimates committees over many years.  

Senator ROBERTS: Thank you for the compliment.  

Senator Watt: The government has done a lot of work in the meantime to assist coal mining workers, all of which you voted against, unfortunately.  

Senator ROBERTS: Minister, as a result of my work, mine workers watched as the LNP, in my opinion, avoided the core of the issue, but it did do a review of the coal long service leave provisions that may one day lead to improved governance within the Coal LSL. Are you aware of what the LNP did there?  

Senator Watt: No.  

Senator ROBERTS: Mine workers continued watching in recent years as your government—in the last two years—under Minister Burke, did its best to cover up the permanent casual rort with amendments to the Fair Work Act. Some workers think that was done to protect the CFMEU and its role in the permanent casual rort. Your government has done its best to hide this issue despite support I’ve received from senators, such as Senator Sheldon and Senator Sterle. Why should workers rely on governments—on Labor governments in particular?  

Senator Watt: Because we pass legislation called things like secure jobs and better pay that result in—  

Senator ROBERTS: Called things like?  

Senator Watt: Secure jobs and better pay.  

Senator ROBERTS: What about state governments?  

Senator Watt: We’re not going to get into state governments in a federal estimates hearing, are we— seriously.  

Senator ROBERTS: The Palaszczuk Miles state government—this is very important for accountability of unions, Minister, because I’m a very strong supporter of accountable unions. Indeed, the Palaszczuk Miles government is banning competitors to the Queensland Nurses and Midwives’ Union, such as the Nurses Professional Association of Queensland. It’s banning competitors such as the Teachers’ Professional Association of Queensland which competes with the Queensland Teachers’ Union. They’re banning or trying to ban the Red Union, apparently, in attempts to protect the Queensland nurses union and Queensland Teachers’ Union donations to the Labor Party. Are you aware that’s what’s going on in Queensland? We have legitimate unions being banned by a state Labor government.  

Senator Watt: I’m aware of the issue in broad terms, but you’ve got a—the last I heard was that you had a One Nation member of the state parliament. It sounds like a very good issue for him to raise in State estimates, and we can deal with federal estimates and federal issues here.  

Senator ROBERTS: We are dealing with this issue. The Red Unions and the new Independent Workers Union of Australia charge around half. In fact, for the Independent Workers’ Union of Australia that’s vying for members with the Mining and Energy Union in the Hunter and central Queensland, 43 per cent of the Labor affiliated union fees—because these unions—the Red Union and the Independent Workers’ Union of Australia— refuse to hand members’ money to political parties. Are you aware of that, Minister? Their fees are less than half.  

Senator Watt: I’m certainly aware that there are a number of LNP-backed groups that masquerade as unions and that have been created with a view to undermining the legitimate unions that have been fighting for workers in Queensland for a long time. I know there’s a very strong link between—  

Senator ROBERTS: Where were they when the mandates came in and teachers and nurses lost their jobs?  

Senator Watt: If we’re going to get into COVID mandates, there’s a whole other committee that you’ve been dealing with that issue in for years.  

Senator ROBERTS: And we’ll continue to. Despite the Queensland legislation, are you aware that the Red Unions continue to grow rapidly among nursing and teaching professionals, with a membership now of over 20,000 strong, expanding into New Zealand and into small business, and now it’s expanding into coal mining? Are you aware of that?  

Senator Watt: No.  

Senator ROBERTS: Let’s turn to another group that’s supposed to—the Enlighten group—and some of its members may be enlightened—that’s supposed to protect workers. That’s the business owner. Mr Simon Turner, who’s a mine worker, has informed me of the following. The company that owned and operated the mine he was employed at directed him to not report a serious safety incident in which he was critically injured. That’s a statutory breach. They failed to report the accident. That’s a statutory breach. They made him come to work while injured. They sacked him while injured. They falsely changed his onsite digital record. They failed to provide correct workers compensation—a statutory breach of state law. They failed to take the correct coal miners insurance policy—a statutory breach. They failed to provide accident pay—a statutory breach. And so on it goes. They failed to comply with the New South Wales mines health and safety act and New South Wales health and safety act. That company is BHP—the world’s largest mining company. Workers cannot rely on globalist corporations, Minister, especially corporations from globalist labour hire companies that do deals with the CFMEU and the Mining and Energy Union. Where can workers turn?  

Senator Watt: I think we’ve all known for a number of years now, Senator ROBERTS, that you’ve got a close relationship with Mr Turner. He’s obviously taken his complaint to you. He’s obviously very unhappy with the union that he is or was a member of. I don’t know the circumstances of that. It’s pretty pointless for me to speculate.  

Senator ROBERTS: That leaves one avenue left to protect workers: comprehensive industrial relations reform to simplify industrial relations law so that workers and small businesses can see their entitlements, protections, rights and responsibilities—not buried in 1,800 pages of complex law. Why won’t Labor give workers choice?  

Senator Watt: About what?  

Senator ROBERTS: You’re protecting entrenched unions that are abusing the industrial relations system because they’re members of the IR club. You’re protecting corporate employers. You’re protecting labour hire companies. Why won’t you give workers the choice to become members of the union that they choose?  

Senator Watt: I don’t agree with any of the propositions you just put.  

Senator ROBERTS: Thank you