I inquired with the Department of Employment and Workplace Relations (DEWR) about the breach of Section 83 of the Constitution mentioned in their Annual Report regarding improper payments received by Coal LSL. This issue was not noted in the Coal LSL Annual Report for 2022-2023.
DEWR identified the breach in April 2023. It was discovered that several entities had paid levies to Coal LSL that should not have been paid. The funds were then paid to DEWR and deposited into consolidated revenue, where they were subsequently pooled and returned to Coal LSL from that revenue.
DEWR acted diligently to identify the error, highlighting the loose manner in which Coal LSL manages other people’s money.
Transcript
Senator ROBERTS: Thank you all for being here today. Here we go again. My questions are very short. They involve Coal LSL or your interaction with Coal LSL. Is it true that the Coal LSL annual report for 2022-23 states that no compliance issues were reported to the minister?
Senator Watt: I know Coal LSL will be appearing later tonight. I’ll just check whether we’re in a position to answer those questions now, or whether we might need to deal with them later.
Mr Manning: We’re just waiting for one of our colleagues to come from the waiting room downstairs. I don’t know the answer in relation to the annual report and any qualifications completely, but as I understand it there were none in relation to section 83 of the Constitution.
Senator ROBERTS: Thank you. I’d now like to take you to page 101 of the Department of Employment and Workplace Relations Annual Report 2022-23, which says: Coal LSL has identified it may have mistakenly received levy payments from entities that do not meet the definition of ’employer’ for the purposes of the Coal Mining Industry (Long Service Leave) Administration Act 1992. If so, payment of amounts equivalent to the levy by the department to Coal LSL in relation to those entities would likely have been made in contravention of s 83 of the Constitution.
Mr Manning: Yes, and that was the point I was getting to. Because of the way the money is collected under that scheme, a levy that’s collected is done by Coal LSL acting as an agent of the Commonwealth—because only the Commonwealth can levy taxation—and then goes into consolidated revenue. Then the same amounts go back out to allow Coal LSL, no longer acting as agent of the Commonwealth, to pay money for the purposes for which it exists. In the circumstances of section 83, it would technically be the Commonwealth, as represented by the Department of Employment and Workplace Relations, who, if there is a breach, has committed that breach. That’s why it’s in our annual report.
Senator ROBERTS: I guess I’m concerned because—what you’ve said in your report is accurate, I presume: Coal LSL has identified it may have mistakenly received levy payments from entities that do not meet the definition of ’employer’ … So they shouldn’t have taken that money.
Mr Manning: My understanding is there is a small number of employers who are not national system employers from whom the levy shouldn’t have been collected.
Senator ROBERTS: The report says: Coal LSL has assured the department that it is conducting further investigations to confirm how many entities may have incorrectly paid levy and quantify any corresponding amounts that have been paid by the Commonwealth without a valid appropriation. It looks like the money has been collected from individual entities by Coal LSL, sent to you and then it has gone back as a lump sum. Is it true that you have confirmed that the information relating to Coal LSL in your annual report is correct?
Mr Manning: That’s our understanding. I might just ask my colleagues, who have now been able to join us, if they have anything to add to that. As I understand it, the issues are still being worked through between the department and Coal LSL.
Mr Kerr: What my colleague Mr Manning has said is correct. Our understanding is that Coal LSL may have mistakenly received levy payments from employers who do not meet the definition of ’employer’ under the scheme. Mr Manning has correctly described the money flows—essentially, the amounts collected by Coal LSL flow in and out of the consolidated revenue fund in the department. That’s the standard approach for taxation revenues that all go in to CRF. As a result, that’s led to a section 83 breach that we have disclosed in our annual report. So all of that’s correct.
Senator ROBERTS: I find Mr Manning is usually pretty correct.
Mr Kerr: Indeed.
Mr Manning: Thank you; I’m always appreciative of the confirmation that I’ve got it right.
Senator ROBERTS: You weren’t even nervous while he was saying it. You weren’t waiting on the edge of your seat. How did the department become aware of these serious issues when it was not identified in Coal LSL’s annual report?
Mr Kerr: I believe we became aware of it in the context of considering some legislative amendments to the scheme.
Senator ROBERTS: When was the breach first detected?
Mr Kerr: I believe it was in April 2023.
Senator ROBERTS: Who identified the likely breach of section 83 of the Constitution? Was it Coal LSL or DEWR?
Mr Kerr: No, it was the department.
Senator ROBERTS: What is the outcome so far of the investigation into this matter?
Mr Kerr: The department has been working with Coal LSL to seek to clarify the scope of the problem. I understand that Coal LSL has undertaken some assurance activities to review the current active registered employers to identify affected entities, which is not an entirely straightforward endeavour.
Senator ROBERTS: Nothing much is straightforward in Coal LSL.
Mr Kerr: Indeed. As part of that review, Coal LSL has updated its records and introduced some new procedures to mitigate the risk of new ineligible employers being onboarded, and probably Coal LSL is best placed to speak to that later.
Senator ROBERTS: We will be tonight.
Mr Kerr: From the department’s point of view, we’re working closely with Coal LSL and other relevant Commonwealth agencies to try and clarify the scope of the issue and settle a way forward to resolve it.
Senator ROBERTS: So you’re still clarifying the scope.
Mr Kerr: That’s correct.
Senator ROBERTS: How was it detected? You said it was while doing some legislative enhancements.
Mr Kerr: Yes. The department was considering some potential legislative amendments to the scheme.
Senator ROBERTS: To the Coal LSL legislation?
Mr Kerr: Yes, correct.
Senator ROBERTS: In what year?
Mr Kerr: In 2023. In the course of that, we were considering the operation of the scheme and uncovered this issue.
Senator ROBERTS: Thank you for your diligence. What checks and balances does the department have in place to confirm that the payroll levy taxes collected are true and correct?
Mr Kerr: The department has obtained legal advice in relation to this matter, but to a large degree we rely on the information provided by Coal LSL with respect to the amounts of levy collected. As we are required to do under section 36 of the Coal Administration Act, the Commonwealth role here is really to withdraw amounts equivalent to the levy collected by Coal LSL out of CRF and pay it back to them, with the effect being that the amount collected ultimately ends up in the Coal LSL fund. So, from the department’s point of view, we rely quite heavily on the information provided by Coal LSL about those amounts.
Senator ROBERTS: What is DEWR doing to remedy this breach? I know you said that you rely a lot on Coal LSL; I understand that.
Mr Kerr: The consequences of a section 83 breach are dealt with in some guidance put out by the Department of Finance. Essentially, what an entity is required to do if concerned that an appropriation may have been spent in breach of section 83 is to conduct an appropriate risk assessment which may include legal advice, which we have done, and also to undertake a section 83 breach disclosure, which we’ve also done in the annual report that you just referred to.
Senator ROBERTS: There’s not much you can do in regard to prevent it happening again.
Mr Kerr: I think I’d say that we’re working closely with Coal LSL and other Commonwealth agencies, including the Department of Finance, to confirm which employers and employees have been affected and the options for addressing these.
Senator ROBERTS: Minister, I’m asking for an opinion now. Was this disaster another example of Coal LSL’s incompetent best or an indication of the loose way that Coal LSL uses other people’s entitlements, and that has not started since Labor came into office; that’s preceding Labor coming into office. I’m heartened by what Mr Manning and Mr Kerr said.
Senator Watt: Technically, we can’t give opinions but—
Senator ROBERTS: Ministers can. That’s why I asked the minister.
Senator Watt: Me, have opinions? Look, we support the work of the Coal LSL agency. Obviously, the department is taking you through a range of issues that are being considered and we’re supportive of that work as well.
Senator ROBERTS: It seems DEWR has done its due diligence and done the job. I’m very concerned because—Coal LSL, at its core—the key issue we exposed in 2019. It took a long time for the government to say, ‘Okay, we finally agree with you.’ It took a lot of things to come out and I’m not sure it’s been fixed yet. Thank you, Chair.
Anthony Albanese and his Labor government have lost the people’s trust and support. Labor is tied to the CFMEU because of the union’s massive donations. They are also hiding the largest wage theft in Australia’s history, especially among miners in Central Queensland and the Hunter Valley, who are owed significant back pay.
Recent actions by Labor, such as the late submission of bills, suggest a cover-up to avoid scrutiny. Unions like the CFMEU have lost their way, evident during the COVID-19 lockdowns when members rebelled against their union’s lack of care. Labor abolished the ABCC despite criminal issues within the unions. Labor’s relationship with the CFMEU is a problem and is driven by donations.
As a former union member, I value true unions like the Miners Federation. Today, many union bosses prioritise personal gain, neglecting their members, as seen with the CFMEU and Mining and Energy Union. Workers are forced into monopolistic unions without choice, but alternatives like Queensland’s Red Union exist. Protecting union monopolies will further their demise and lower wages. Choice is crucial.
Look at this: Chandler Macleod Group, part of Recruit Holdings, the world’s largest labour hire company, works with the CFMEU and Mining and Energy Union in Hunter and Central Queensland. The federal government spends billions on labour hire – and the Fair Work Commission has approved these questionable arrangements. BHP, with union help, forced workers from permanent jobs to lower-paying Tesla labour hire, then to Chandler Macleod with another big pay cut.
We need open scrutiny and an inquiry, not just window dressing. The Bill should go to committee, or at least be heard on Friday. We want to amend the Bill to enable challenges to the Minister’s regulations. We are committed to seeing criminal charges laid against union crooks, reinstating the watchdog and pushing for comprehensive industrial relations reform.
Transcript
Trust has been lost. Anthony Albanese and his Labor government have lost the people’s trust, lost the people’s confidence, lost the people’s support. Labor supports the CFMEU because the CFMEU gives it massive donations—millions and millions of cash for election campaigns. Labor is wedded to the CFMEU. Labor is dependent on the CFMEU.
Labor is hiding the biggest wage theft in Australia’s history. Five years I’ve spent exposing the scam. We have an excellent independent report, Coal miners wage theft, done in February this year. It vindicates what I’ve been pushing for five years. Some miners in Central Queensland and the Hunter Valley are owed $41,000 per annum in wage theft. The Independent Workers Union, a new, fair-dinkum union operating in Central Queensland and the Hunter Valley, has lodged complaints for many miners because the CFMEU and the Mining and Energy Union have not bothered to do so. They won’t go after the back pay of the wage theft.
I’m aware of a complaint lodged just recently, in the last couple of days, to the Fair Work Ombudsman by the Independent Workers Union, seeking, for one person alone, $211,000 in back pay—$211,000 in wage theft that this Labor government condones and hides. The CFMEU drove the theft of wages from Central Queensland and Hunter miners. The workers’ former protectors in the CFMEU are now their exploiters. They’re hurting workers. I wonder: will Labor’s administrator allocate the CFMEU funds to make good the miners’ wages? For one person it’s $211,000; there are over 5,000 miners losing up to or around $41,000 per year of service.
Labor MPs are complicit because there has been a protection racket for their mates in the CFMEU. Labor MPs in the Hunter denied and then ignored my claims—my claims put to them in writing. I hand-delivered, to Dan Repacholi’s office here in parliament, my letter to him explaining this. Not a peep! Instead, we got lies from Mr Repacholi in the Hunter, and similar from Joel Fitzgibbon. Minister Watt in the Senate has denigrated, ridiculed and dismissed more than 5,000 miners’ legal improvement entitlements. And I have been proven correct.
Let’s return to Monday and Minister Gallagher’s word, ‘urgent’. ‘This is urgent,’ she said, as to the administrator for the CFMEU. I add two words: ‘cover up’. It’s a cover-up. Minister Gallagher says Labor’s administrator is ‘urgent’, yet Minister Watt dropped this bill on us late on Monday night. What gives? Do you expect us to believe that it was drafted on Sunday—that they did an all-nighter in the department on Sunday with lots of coffee? Why did Labor drop it on us without giving it to us earlier? Is it to avoid scrutiny? Yes—I can see some senators agreeing. When did the Greens and the teal Senator Pocock get copies? We’ve had instances in the past where they have got copies of new bills two weeks before we have and they’ve been dropped on us at the last minute.
Then Senator Gallagher sought exemption from the normal bills process. Speaking of exemption, Senator Gallagher said, ‘The Albanese government says it’s a clear path.’ Yet the bill is littered with the word ‘may’. It’s a very unclear bill. It needs the word ‘will’. Secondly, she said, ‘The people of Australia are expecting a clear response.’ With an unclear bill? I echo Senator O’Sullivan’s call for a hearing. Then Senator Gallagher said, ‘We will give you a firm view at the end of the week.’ You will only get a firm view with a hearing. We need a firm view and scrutiny of this legislation. We need ‘may’ to be replaced by ‘will’ quite often. We need an opportunity for bipartisan input.
I’m a former member of three unions. I know genuine unions are necessary. The genuine union movement has a long and proud history, going back to Wales and the lodge system in the Miners Federation, which I was a proud member and participant of. Yet today so many union bosses have forgot their workers and members. Why? Today workers’ protections are enshrined in law—as they should be—including safety, wages, conditions, security, retirement, health and many other provisions. Now the union bosses erode and steal these for personal gain, as the CFMEU and the Mining and Energy Union have done in Central Queensland and the Hunter. Personal gain and power, that’s what it’s about now, not looking after members. Why? Because they’re an untouchable monopoly. Workers need choice. Workers don’t have choice. They must join the union in their industry. That’s it. There’s no choice. The Red Union in Queensland and around Australia and in New Zealand is giving workers choice.
Thirdly, the Fair Work Commission and the Fair Work Ombudsman have failed to protect miners and workers. The Fair Work Commission has overseen and approved the theft of wages from casual coalminers in the Hunter Valley. As a boy, I lived in Central Queensland and the Hunter coalfields. My dad was in coalmining. I graduated with a mining engineers degree, an honours degree, and then decided I’d better go and learn something, so I worked at the coalface.
I came across Bill Chapman, the legendary president of the Northern District Miners Federation. He was a wonderful man. I sided with him in an open-air meeting when I worked at Westfalen’s No. 2 mine when I worked on the night shift there. My dad was complimented, highly, by Bill Chapman at my father’s retirement. My dad and Bill used to argue a lot, but they respected each other, because Bill was genuinely concerned about workers. I knew Mattie Best before he died. I worked with him. I played football with him. He was my football coach in Central Queensland when I played rugby league. He was a genuine union delegate who had respect from workers and management and fellow union bosses. He called out safety issues when they were abused.
I am proud to support real unions that work in workers’ interests. I worked as a mine manager with the CFMEU union bosses. We developed a landmark award that I instigated, and I instigated many previously undreamt-of provisions because they were to the benefit of the workers and productivity. I worked with the union.
The rank and file in the CFMEU in Victoria during the COVID mismanagement erupted in a mutiny against vaccine mandates and lockdowns. The members realised their union bosses did not care, and they revolted. Labor then abolished the Australian Building and Construction Commission. Senator Watt said, ‘Australians expected parliament to deal with criminal allegations inside the recalcitrant union promptly.’ How, looking at this vague bill? Where is the trust? It’s been smashed. Labor supports the CFMEU because of donations; Labor is wedded to the CFMEU because it’s dependent on donations.
Yesterday we heard Senator Pocock, a teal senator, say: ‘We need to be cleaning up the union.’ Has he forgotten that he supported the abolition of the ABCC? The CFMEU has assisted in theft from miners, as I’ve explained. They’re now exploiting miners. The Labor Party has been complicit. Both Joel Fitzgibbon and Dan Repacholi reportedly get campaign donations from the CFMEU. Then we get Labor’s fabrication.
The ACTING DEPUTY PRESIDENT (Senator Allman-Payne): Minister McAllister?
Senator McAllister: I wonder if Senator Roberts could be asked to refer to people by their proper titles.
The ACTING DEPUTY PRESIDENT: Thank you, Senator.
Senator ROBERTS: Labor fabricated an imaginary loophole, which the miners in Central Queensland and the Hunter Valley told me was a fabrication, and I worked out it is. Then they pretended to close the loophole with their closing loopholes bill. All it needed was enforcement of the Fair Work Act and the Black Coal Mining Industry Award. Minister Watt and Minister Burke, his predecessor, and Mr Fitzgibbon and Mr Repacholi are complicit in this way theft, the largest in Australia. Labor enabled casuals—
The ACTING DEPUTY PRESIDENT: Senator, please resume your seat. Minister?
Senator McAllister: Senator Roberts is reflecting very directly on a range of people, including ministers who represent the government in this chamber, and he should withdraw.
The ACTING DEPUTY PRESIDENT: It would assist the chamber. You were certainly straying into impugning members of the parliament.
Senator ROBERTS: To assist the chamber, and for that reason, I will withdraw. But Labor enabled casuals in coalmining. The Black Coal Mining Industry Award prohibited casuals on production; it still does. Labor, under Prime Minister Gillard, changed the coal long service leave provisions legislation to include casuals. I’m told that Anthony Albanese read the bill into parliament early in 2011. That’s what enabled this wage theft.
The ACTING DEPUTY PRESIDENT: Senator—
Senator ROBERTS: Sorry—Mr Albanese, the Prime Minister.
The ACTING DEPUTY PRESIDENT: This is happening reasonably regularly throughout your contribution. Could you please make sure that you refer to everyone to whom you are referring using their correct titles.
Senator ROBERTS: Certainly. Labor has forgotten workers. It’s actually helping union bosses—union bosses from the CFMEU—to exploit workers. Minister Watt knows of the wage theft, because he advised us of the Mining and Energy Union’s application for a new enterprise agreement. We advised him the application confirms our work. And yet there has been no Mining and Energy Union application for back pay. Why? Because when they were part of the CFMEU they deliberately conjured up illegal enterprise agreements. We’ve had no word from Minister Watt regarding the investigation into wage theft that the Senate required thanks to my amendment to a bill earlier this year. We do not believe that Minister Watt is fit to oversee the CFMEU administrator. It’s a furphy.
Look at the other unions, the health and safety unions, stealing from the lowest-paid workers in Australia, and SDA union bosses corrupt. The Fair Work Act covers union bosses’ greed, theft and abuse. Look at Craig Thomson. We’re tired of the cover-ups.
Let’s get on to the root cause. It was publicly revealed in the Australian Financial Review on 12 April this year. Their journalist David Marin-Guzman wrote an article headlined ‘CFMEU push to take control of the Labor Party’. I quote:
John Setka is planning to use the militant construction union’s hundreds of delegates and members to boost the CFMEU’s influence on internal Labor politics in the Victorian and federal parliaments.
Another quote:
Such a large membership drive could give the CFMEU significant control over Labor preselections and party conferences, which elect the party executive and vote on policy—
even the Premier in Victoria. That’s what’s going on here; it’s a power play.
Then we see Labor Premier Steven Miles in Queensland accused of silencing the Crime and Corruption Commission. Mark Le Grand, who spent 10 years as chief investigator at the then Criminal Justice Commission in the wake of the 1989 Fitzgerald inquiry, told the Australian there would have been no point in having the royal commission if Fitzgerald could not report on its investigation. Labor want to shut down the reporting. I could go on with more quotes.
We then have Robert Gottliebsen telling us of the dire predicament of Australia’s productivity decline. Falling productivity—yeah, that’s the key to wage rises! The CFMEU is guilty of destroying productivity. When productivity falls it kills industry, kills the future and kills jobs. Add that to the energy prices, the industrial relations policies, the inflation, the productivity decline. It’s killing the economy, killing national security and killing the standard of living.
This is about more than just the CFMEU administrator; this is about trust. We see in Queensland that the Labor Party and the union movement are not two separate entities; they are one entity. Minister Grace Grace, when she lost her seat and Campbell Newman took over a decade ago, went straight into a job at $180,000 a year at the Queensland Teachers Union. Then, when Labor got back into power, she slid straight back into working directly with the Labor Party. The whole time she worked with the Labor Party. We’ve seen the Labor government in Queensland outlaw the Red Union because it’s competition for the Queensland Teachers Union and the Queensland nurses union. There’s a monopoly in industrial relations and no accountability. Then we have provisions. I draw people’s attention to provisions such as to 323B in the new act, clause 1, clause 2, which I do not have time to go into at the moment. These are things we are focusing on. Section 323C clause 2, section 323D clause 1—so loose, so vague, so open. We need accountability. We need competition amongst unions with better service to members. We need higher sustained wages now and into the future, because an industry that is healthy will pay higher wages. That is a proven fact.
Protecting union monopolies will continue union demise and lead to lower wages. Choice is essential. Look at the players in this: Chandler McLeod Group, part of Recruit Holdings, the world’s largest labour hire company working with the CFMEU and the Mining and Energy Union in the Hunter and Central Queensland. Federal government itself uses billions of dollars of labour hire. The Fair Work Commission has approved these awards. BHP forced people to change from being BHP people with permanent employment to Tesla labour hire with a big pay cut, thanks to the union, and then forced to go to Chandler Macleod with another big pay cut.
We need open scrutiny, we need a hearing, not window-dressing. It needs to be sent to committee, or at least get a hearing on Friday. We are thinking of an amendment requesting the administrator investigate coalmining wage theft as per one union report and organise for the CFMEU finances to cover that—but it is not part of the bill, so we won’t be doing that. We want to amend the bill to allow disallowance of the minister’s regulations. We want to see criminal charges. We want to see the watchdog brought back and comprehensive reform to industrial relations.
https://img.youtube.com/vi/W5nkdBi2kaw/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-08-29 16:10:032024-08-29 16:10:09Labor’s Union Ties and Cover-ups
The CFMEU has stolen over a billion dollars in Australia’s largest wage theft case, exploiting the very workers it was meant to protect. CFMEU union bosses colluded in this theft, as confirmed by an independent report I commissioned called Coalminers’ Wage Theft. An analysis of five enterprise agreements in Central Queensland and the Hunter Valley shows wage theft ranging from $21,000 to $41,000 per person, per year.
The Independent Workers Union of Australia has lodged multiple complaints with the Fair Work Ombudsman, including one for $211,000 owed to a single worker. Despite the Mining and Energy Union splitting from the CFMEU, it has recently applied to negotiate a new enterprise agreement, but won’t seek back pay for miners, as they know this would expose them. The Independent Workers Union now represents miners in Central Queensland and the Hunter Valley, charging union dues less than half of the Mining and Energy Union because they don’t donate millions to the Labor Party. The same is true for other sectors, like teaching and nursing, where new unions have much lower dues. We must end monopoly unions and introduce competition, which will allow members to hold unions accountable.
Labor Ministers, departments and agencies are colluding to enable wage theft, especially in the Hunter Valley electorate, where Labor MPs are complicit. Despite a Senate investigation being ordered months ago, nothing has happened — Labor is turning a blind eye, likely because they rely on millions in donations from the CFMEU. Minister Watt’s push for “no disallowance” is about maintaining control, with the party entangled in a power struggle with the CFMEU.
The CFMEU, tied to criminal bikie gangs, shows no concern for its members’ health, wages, or retirement. Union bosses, sitting on agency boards meant to protect workers, are either stealing from members or allowing it to happen. The conflicts of interest, particularly with CFMEU members holding positions on superannuation boards, are enormous. Labor won’t fix this, and their collusion with the CFMEU puts them above the law.
Transcript
The CFMEU stole more than a billion dollars from members it was supposedly protecting in Australia’s largest ever case of wage theft. The key to this theft was CFMEU union bosses appointed as directors to oversight agencies supposedly protecting workers. They colluded and enabled that theft from their own members. This is verified. The figures are verified in an independent report that I commissioned called Coalminers’ Wage Theft, printed earlier in the year.
We have seen an analysis of five enterprise agreements in Central Queensland and the Hunter Valley with the wage theft varying from $41,000 per person, per year to $21,000 per person, per year. The Independent Workers Union of Australia, now getting members in the mining sector in the Hunter Valley and Central Queensland, has just lodged a number of complaints with the Fair Work Ombudsman. One of the complaints is for $211,000 in money owed due to wage theft for one person.
The CFMEU drove that theft of wages, so what we can see is the former protector of miners has been their exploiter, with collusion of the regulator, the Fair Work Commission. It’s been verified independently because the Mining and Energy Union, which split off from the CFMEU—it couldn’t handle the CFMEU—and which looks after miners recently applied to the Fair Work Commission to negotiate a new enterprise agreement. The uptick in wages has been around $50,000. It’s been verified they’ve been underpaid. What has not happened is that same union, the Mining and Energy Union, which used to be part of the CFMEU, will not go back and seek back pay, because they know that will expose them. There is no back pay. They will let these miners lose $211,000. They will let these miners lose $41,000 per person, per year.
So now we have the Independent Workers’ Union of Australia making inroads in the mining industry in the coalmines of Central Queensland and the Hunter Valley. Their union dues are less than half of the Mining and Energy Union. Why? That’s because they don’t pay millions of dollars in donations to the Labor Party. It is the same with the Queensland Teachers’ Union. The new Red Union’s dues are less than half of the Queensland Teachers Union. It is the same with the nursing union, where the dues of the new Red Union and the Nurses’ Professional Association of Queensland are less than half of the Queensland Nursing Union. What we need to do in the union side of things is end monopoly unions and make sure unions have competition. That will fix it. Members can scrutinise when there is competition.
Let’s move to what I said earlier in my opening statement. The directors in the coalmining agencies that oversaw this theft from coalminers, the directors of Coal Mines Insurance, ignored the plight of miners. We even know of miners who failed to get their Coal Mines Insurance that they were entitled to, scrimping and saving and sleeping on their parents’ garage floor in the Hunter Valley. That’s what the CFMEU directors have done. They turned a blind eye to their duty to look after miners.
Coal Mines Insurance is a statutory agency with the CFMEU providing half the directors. AUSCOAL Superannuation, another one supposed to look after super, has provided admin services to coal long service leave, another government entity. So AUSCOAL Superannuation, which has directors from the CFMEU, provided the administrative services for coal long service leave and that enabled the hiding of the wage theft, because the CFMEU directors were 50 per cent of Coal Mines Insurance, AUSCOAL Superannuation and Coal Services, which looks after basic things like health checks, medical checks. AUSCOAL, by the way, has been renamed Mine Wealth + Wellbeing—that’s a cute little phrase!—and now Mine Super. These directors have prevented many of the benefits that they should have been overseeing going to miners. They stole the rights and entitlements of their own members.
By the way, the Labor Party under Julia Gillard changed the coal long service leave legislation in 2011 to enable the use of casuals, because casuals are not allowed in the black coalmining industry award. They wouldn’t have been able to get their super. So the Labor Party, to enable this scam, changed the coal long service leave legislation in 2011. The next thing: we can’t rely upon the normal back stop, which is the Labor ministers, departments and agencies. I’ve just explained how the agencies are colluding, the departments are colluding and the Labor ministers are colluding. This wage theft would not have occurred without the deliberate collusion of Labor Party MPs in the Hunter electorate, who just hid this atrocious theft. The Senate ordered an investigation a couple of months ago into this. Two ministers since then, Minister Burke and Minister Watt—they’ve done nothing. They had not even reported back to the Senate—they’ve done nothing. That’s the Labor Party. So much for looking after the workers!
I wonder if it’s because the Labor Party relies on millions of dollars of donations from the CFMEU? Would that be the answer? Would it?
Senator Hanson:Yes.
The Labor Party is wedded to donations from the CFMEU, the crooked CFMEU. Minister Watt, in section 323B(2) of his legislation, to which we have an amendment, wants an absence of a disallowable regulation. He wants no disallowance, so that he can control the whole show. Then we see the Labor Party also being tainted by John Setka. In a report in the Australian Financial Review, on 12 April this year, David Marin-Guzman, a journalist with the Australian Financial Review, said that ‘the core issue here is that John Setka stood up and said he will take over the Labor Party and move members of the CFMEU into branches and then preselect various candidates, and also the Premier’. That’s what we see going on here—the Labor Party in a massive cover-up and massive wrestle with the CFMEU. By the way—I think Senator Hanson mentioned it—the size of the funds in question is just short, $1 billion short, of $100 billion in funds. That is twice the Australian defence budget. That’s more money than Belgium makes in a year. And we want to take it away from parliamentary scrutiny? Like hell. That’s why we need this reference to the committee.
Then we see more tainting, with the CFMEU being connected with bikie gangs, criminal bikie gangs. Then we see Senator Hanson’s terms of reference. I must commend Senator Hanson for introducing this motion. The first term of reference that I want to highlight—I’ll read it for the reference committee:
… the broader impact of public allegations of misconduct within the CFMEU on the governance and trust management practices of industry superannuation funds …
That’s basic. These people have shown that they don’t care about their members—their members’ lives, their members’ health, their members’ workers compensation, their workers’ livelihoods, their workers’ wages or their workers’ retirement. They don’t care. They bypassed the retirement provisions. The next one I want to read out is term of reference (a):
… the implications of CFMEU members holding board positions on these superannuation funds, and the potential conflicts of interest that may arise …
The potential conflicts of interest are enormous. We can’t rely on the Labor Party to clean it up, nor on departments and agencies from the Labor government. We see them tightly knit together. The second of Senator Hanson’s six terms of reference is:
the adequacy of the independent expert review mandated by the Australian Prudential Regulation Authority (APRA) in relation to trustees’ compliance with their duty to act in the best financial interests of beneficiaries of the funds;
This is absolutely essential. The CFMEU union bosses who are directors of agencies—statutory bodies charged with the responsibility to protect members—are stealing from the members or enabling their agencies to steal from members. This lot are above the law. Senator Hanson read out the note from the person from Cross River Rail who is not a member of the CFMEU. They are ‘intimidated’, ‘frightened’ and ‘scared to work’—in our country, they are scared to work. We have now a proven record of the CFMEU stealing from members and workers. Wouldn’t it be going on in the $100 billion of super funds they manage? I support the referral of this matter to committee, to protect members so that they can retire with security and dignity.
I enquired about the number of requests for assistance that had been sent to the Fair Work Ombudsman (FWO) and was informed that none had been received during that week, attributing this to potential delays in processing. They mentioned that their preferred method for addressing issues is via phone calls and stated they wouldn’t be establishing any new methods for submitting materials that exceed the current 1000 character limit.
Furthermore, the FWO made it clear that they wouldn’t be accepting responsibility for the validity of any enterprise agreement approved by the Fair Work Commission.
Transcript
Senator ROBERTS: Thank you for appearing again.
Ms Booth: Senator.
Senator ROBERTS: How many complaints has your office received about stolen wages from coalminers working for labour hire companies?
Ms Booth: We may or may not be able to give you that information right now, but I cannot. My staff may be able to assist. Ms Volzke, do you have those numbers?
Ms Volzke: I don’t have the exact number. The requests for assistance are low, but you know that we have had a number of formal investigations in relation to black coal mining employees.
Senator ROBERTS: Ms Volzke, three requests for the Fair Work Ombudsman to investigate worker underpayment under the Black Coal Mining Industry Award were sent to your office recently.
Ms Booth: We could ask Mr Scully if he has that information, as he’s the responsible person.
Mr Scully: As for your first question, the information I have before me is that, with respect to disputes received from employees or participants in the coalmining industry, in the 2022-23 financial year there were nine; in this current financial year to the end of March there were six.
Senator ROBERTS: Does that include the recent ones I have learned about?
Mr Scully: Of the recent ones you are referring to, one was in October 2021, another was in April 2022 and another in June 2023. I understand that they would be included in those numbers.
Senator ROBERTS: I have learned of three others that were submitted. The Independent Workers’ Union of Australia submitted, I am told, via email address, three requests for the Fair Work Ombudsman to investigate worker underpayment under the Black Coal Mining Industry Award, each of the three on behalf of an underpaid coalminer. That was in the last week.
Ms Booth: We wouldn’t that have data available yet because it wouldn’t have reached the status of an investigation; they would have to be triaged first. So that will be for another Senate estimates.
Ms Volzke: Senator, in relation to those most recent complaints, would I be able to ask about the date and time of the underpayments? Are we talking about historical, older underpayments?
Senator ROBERTS: It varies. Some are over extended years. I can give you some information. The miners whose assessments have been completed have given approval for their data to be shared, with individual names withheld. I can give you their Fair Work Ombudsman reference numbers. One is coalminer Fair Work Ombudsman reference No. 3389142, years assessed 2013-18, and amount underpaid $121,000. That is for one man or maybe a woman; I know that there are women involved. Another is coalminer Fair Work Ombudsman reference No. 3380088, years assessed 2013-21, and underpayment assessed at $104,000. A further one is coalminer Fair Work Ombudsman reference No. 3380122; five years are listed, but he or she is still doing assessments for another three years, and the total there, so far, is $54,000, but it’s expected to top out at $85,000. These are not small amounts of money. My understanding is that many more miners are now applying for the Independent Workers Union of Australia to lodge complaints or, I think you call them, requests for investigation.
Ms Booth: Requests for assistance.
Ms Volzke: Senator, in relation to those matters, again, they traverse a period of time when we had the SAJER legislation passed, which was under the previous coalition government, and the Rossato decision; they sit over the top. Now we have the most recent legislation, and I think Minister Watt referred to one of those ‘same job same pay’ orders already having been made. All those matters that you raise still raise those core issues that we spoke about previously, when you and I met, I think, towards the beginning of last year, about the consequences of the black coal mining award not providing for casual employment. The statutory definition changes to casual employment that had retrospective effect—
Senator ROBERTS: Have you seen their request for investigation?
Ms Volzke: No. That’s just by the dates that you’ve given me; that’s all. Absolutely, we’ll look at those, but I’m saying that they traverse that same time period.
Mr Scully: Senator, we call it a request for assistance and, as you’ve indicated, if they’ve come in recently, they will not have got to me or Mr Ronson, who is also with us today. We will find where they are in our system and the circumstances regarding the requests for assistance.
Senator ROBERTS: Why are complainants limited to only 1,000 characters in their request for assistance or request for investigation—that’s about 130 words—in making a complaint about unfair work practices, including wage theft in the coalmining industry; why are they limited?
Ms Booth: I would imagine that is in order to have both a website that’s capable of being properly hosted and information capable of being absorbed. The full extent of information that’s provided to the Fair Work Ombudsman is not contained in those characters. That’s a commencement process and, thereafter, individuals who have made those communications with us would be spoken to.
Senator ROBERTS: Why does the Fair Work Ombudsman refuse to accept complaints that are more detailed than those that can fit within a 1,000-character limit?
Ms Booth: The area of technology is in Mr Campbell‘s purview. This will be entirely a technological matter, I’m thinking. Mr Campbell, are you able to say anything about the number of characters in our communications form?
Mr Campbell: I’m going to have to guess a little bit in my answer and I don’t like to do that in this forum. It depends on the channel through which the people you speak of have sought to engage with us. In certain channels we do have limited fields for the collection of information from customers. Normally, that goes to complaints through our anonymous inquiry facility. But through ‘my account’, where we would normally access most of our requests for assistance, there would be the ability to capture more information, and that’s normally because the person has given us all their information that we’ve sought and they’re seeking to provide us with further information to assist us in making an assessment of their RFA, or request for assistance. I’m not quite sure that they’re limited from writing more than the characters that you’ve said.
Senator ROBERTS: My understanding is that they tried to make an application but couldn’t get beyond the bureaucratic brick wall of that 1,000-character limit, which is roughly 130 words. Why was there no email address on your website, other than one that the submitters are told relates to freedom of information requests? When they couldn’t get their material under the 130-word limit, they then looked for an email, and the only one they could find they used, and were told that it relates to freedom of information requests.
Ms Booth: Most of our requests for assistance come through a telephone contact. Of course, our 13-13-94 number gives no limit to the amount of information that can be conveyed, so that option perhaps in this case was not one that was undertaken by those people.
Senator ROBERTS: These are pretty intelligent people. I’m surprised that they did not see it.
Mr Campbell: I don’t know. I don’t want to speak to that, because I’d be making a judgement about their intelligence, and I can’t do that from here. But our request for assistance online lodgement capability seeks to authenticate the person who’s contacting us, so we know who they are and who we’re dealing with, and information about their circumstances, and that would include seeking them to detail their concerns to us. It’s not my recollection that’s limited. I’m happy to go and have a look because it would seem at odds with how we’re trying to collect information in the authenticated space. As I offered at the start, there is a facility for people to provide us with anonymous information about a workplace or circumstance, and that might have a limited character overlay on top of it, which might be where they’ve started, as compared to seeking to raise with us a request for assistance using online lodgement.
Senator ROBERTS: With, say, a document with 20, 30 or 40 pages of evidence—these people have a lot of evidence—even just taking a small slice of it, they were wondering initially how they would get that past that bureaucratic brick wall.
Mr Campbell: I don’t think there is a bureaucratic brick wall.
Senator ROBERTS: That’s what they tell me.
Mr Campbell: Perhaps I could take it on notice and confirm it for you.
Senator ROBERTS: Okay.
Ms Booth: As Fair Work Ombudsman, could I reassure the committee that there is no bureaucratic brick wall. If anything, the channels of communication into the Fair Work Ombudsman that I’ve observed, since I have been Fair Work Ombudsman, are many and varied, and there is no constraint on the amount of information that can be provided.
Senator ROBERTS: So you would refute any suggestion that the Fair Work Ombudsman is trying to make it impossible for workers to provide evidence?
Ms Booth: Absolutely, I would refute that.
Senator ROBERTS: Could we have a list, on notice, from Mr Campbell?
Mr Campbell: I’ll take that on notice and come back—
Senator ROBERTS: Yes, a list of all the optional ways of getting through and maybe some assessment of whether it’s easy to identify those options; that is, whether it would be easy to find, for someone who lands on your website?
Mr Campbell: Absolutely.
Senator ROBERTS: How should workers submit a complaint? How do workers communicate with you, and how do workers get through that 1,000-character limit? What are the options?
Ms Booth: Make a phone call. Ring 131394 and speak for as long as you like to a Fair Work adviser.
Senator ROBERTS: From there, you would say, ‘Send us the evidence’?
Mr Campbell: It would be allocated to an officer for assessment and determination about what further assistance we might be able to add or offer. If the circumstance, as depicted to us, warrants an intervention by an inspector, for example, it might be allocated to an inspector, who would then consider it, and they might seek further particulars from the customer or the complainant, depending on the circumstances.
Senator ROBERTS: Would the Fair Work Ombudsman consider creating an email account where complainants, regarding wage theft, can lodge their complaints in full, with all documentation required to prove their complaint?
Mr Campbell: No.
Senator ROBERTS: Why not?
Mr Campbell: Because it’s an inefficient way to deal with disputes from customers.
Senator ROBERTS: Why is it inefficient?
Mr Campbell: Because they are unauthenticated contacts from a customer. Anyone can create an email address. We seek to create a picture of the customer so that we can determine how we can best assess them: understand award coverage, understand which sections of the Fair Work Act might be triggered by their circumstances, make a determination on their level or ability to self-resolve their workplace dispute and find out whether they’re still employed, the business that they work for and the customer details. We have a portal which is used daily and regularly, and very successfully, by thousands of individuals every year. It is consistent with every other regulator in the Commonwealth and probably at the state level, in terms of how they deal with volume complaints from their ‘regulator’ community.
Senator ROBERTS: Is the Fair Work Ombudsman aware that the Senate has directed Minister Burke to investigate the multimillion-dollar wage theft—we estimate it to be over $1 billion in total—conducted against labour hire coalminers, where their 25 per cent casual loading was not paid and an average of more than $30,000 person per year was not paid?
Ms Booth: I am aware that a resolution of that nature was passed in the Senate, yes.
Senator ROBERTS: Are you aware that some miners have been underpaid $40,000 a year, person, for up to a decade?
Ms Booth: I have no comment on that.
Senator ROBERTS: The number of miners, we believe, is around 5,000 or more?
Ms Booth: No comment on that.
Senator ROBERTS: More than $1 billion in wages stolen, it’s estimated?
Ms Booth: Again, no comment.
Senator ROBERTS: Including an Australian subsidiary of the world’s largest labour hire company, Japan’s Recruit Holdings?
Ms Booth: These are matters that you’re asserting; I have no ability to verify them here, so I will not comment on them.
Senator ROBERTS: On behalf of some of the world’s largest multinational global mining companies?
Ms Booth: As indicated.
Senator ROBERTS: In collusion with the CFMEU, which enabled theft by illegal enterprise agreements, which the Fair Work Commission approved?
Ms Booth: Again, no comment.
Senator ROBERTS: Is the Fair Work Ombudsman aware that the CFMEU Mining and Energy Union has recently admitted publicly, in circulars, that wage theft has occurred?
Ms Booth: I’m not aware of those alleged admissions in circulars, no.
Senator ROBERTS: They denied it for many years, when I was raising these issues. Now they’re admitting it publicly, in email newsletter form. They’re basically admitting it, and vindicating me in what I’ve been saying for five years, including the amounts owed. Why has the CFMEU Mining and Energy Union not applied for backpay?
Ms Booth: I can’t read the mind of the CFMEU.
Senator ROBERTS: Has it applied to the Fair Work Ombudsman for a ruling?
Ms Booth: A ruling?
Senator ROBERTS: An investigation. Has it made a complaint to the Fair Work Ombudsman about underpayment?
Ms Booth: Not that I’m aware of. Mr Scully, as you previously heard, is responsible for that area.
Senator ROBERTS: It seems not; I would conclude not. That means they certainly haven’t applied for backpay. Perhaps mine workers are now joining the Independent Workers Union of Australia in Central Queensland and the Hunter Valley because they’re finding that they can make applications for backpay.
Ms Booth: Again, I have no knowledge of that.
Senator ROBERTS: Will the Fair Work Ombudsman, along with the Fair Work Commission, accept some responsibility for the massive stolen wage bill, an issue that I’ve been raising for almost five years?
Ms Volzke: We’re aware that the motion has been made and we understand that, in the evidence that was given yesterday, the department is considering their advice to the minister on that, and we will await that as well.
Senator ROBERTS: I’ve been dismayed—I won’t raise the names—that, on a number of occasions, the Fair Work Ombudsman has relied in Senate estimates hearings on documents that I have argued and documented as being fraudulent, as has Simon Turner, and I showed those documents to be fraudulent. Are you aware of that, Ms Booth?
Ms Booth: I’m aware of your assertions,
Senator ROBERTS. My observation is that the Fair Work Ombudsman assesses a request for assistance comparing workers’ actual payments received with their lawful entitlements under their work instruments. That is our obligation and that is what we do.
Ms Volzke: We provided a formal letter in relation to one of those complainants, under a letterhead dated 23 July 2023, about those allegations of fraudulent evidence.
Senator ROBERTS: My understanding of that letter is that it ignores documented evidence and decisions from other federal government agencies saying that the document that the Fair Work Ombudsman officers relied upon was not correct and was fraudulent; is that the same letter?
Ms Volzke: It is. It is, I think, about a six-page response, so I would consider it to be very thorough. The outcome of our investigation into that is included in that letter.
Senator ROBERTS: I don’t agree that something is thorough or accurate just because it’s lengthy.
Ms Volzke: I would say that, in relation to the investigations that we have undertaken into a couple of individuals, which I’m sure you’re well aware of, I feel very confident that the Fair Work Ombudsman has undertaken an extremely comprehensive investigation in relation to all of those matters. I feel very confident in the outcomes. In terms of what the law is and what the legal outcome is, I feel very confident in those outcomes.
Senator ROBERTS: Could we have a copy of that letter dated 23 July 2023, please? That doesn’t have to be right here and now, but could we have that on notice.
Ms Volzke: Yes, of course.
Senator ROBERTS: Will the Fair Work Ombudsman continue to deny that the miners have been the victims of a massive fraud that labour hire companies have perpetrated?
Ms Volzke: Again, as the regulator, it’s our role to apply the law as it currently stands, including when an agreement has been approved as passing the BOOT by the Fair Work Commission. We apply that agreement. That’s exactly what we’ve done in relation to those investigations where there has been an agreement that has applied.
Senator ROBERTS: What about if the enterprise agreement is illegal?
Ms Volzke: I don’t think we should speculate around hypotheticals. We know of various cases, and I think in previous estimates we’ve spoken about them: the Warren case, One Key and another more recent one. The reality is that the legal effect of the Black Coal Mining Industry Award not providing for casual employment in operational roles has not been comprehensively argued or subject to submissions by any party, so there has not been an authoritative determination on that issue.
Ms Booth: I think it really is very important to understand the distinction between the role of the Fair Work Ombudsman and the role of the Fair Work Commission. Whatever we would like it to be is not in our purview; we look at what is, in terms of the law. We look at the law as it stands and not at how the law came into being or what it ought to be in the future.
Senator ROBERTS: That’s fine. We’re seeing what seems to me to be—and I’ve been advised that this is correct—criminal involvement of some CFMEU or Mining and Energy Union bosses who facilitate, enable and approve the wage theft through illegal enterprise agreements. I’ve asked Mr Campbell for the process that people can follow for various ways of applying. Could you also advise me of any ways that the Fair Work Ombudsman could consider to make the process easier. Maybe think about the perspective of someone making a complaint or a request, including what they would confront when they log on to your website and how that process could be made easier.
Mr Campbell: I’ve taken the questions on notice and I’ve undertaken to get you the information. I don’t want to open up the dialogue again; I’ve said yes, so I will do it.
I asked officials from the Department of Employment and Workplace Relations (DEWR) if they were aware of the second reading amendment, which requires the government to investigate wage theft in the Hunter Valley. This issue could potentially involve up to $1 billion, impacting around 5,000 miners with losses estimated at $40,000 per person per year.
The officials confirmed their awareness but were unable to specify when the minister had been informed or if any plans or discussions had been initiated to advance the investigation.
Transcript
Senator ROBERTS: My first set of questions relates to a recent Senate second reading motion to a Fair Work Act bill. The motion requires the government to conduct an investigation into massive wage theft occurring in the coalmining industry. I will read the motion. The part that is relevant states:
but the Senate:
(b) requires the Government to investigate claims that casual miners working under enterprise agreements in the black coal mining industry are, and have been, underpaid; and
(c) if underpayments are found to have occurred, facilitate the reimbursement of the underpayments;
Ms Yanchenko: Thanks. We’re certainly aware of that motion.
Senator ROBERTS: This is Australia’s largest wage theft case, totalling possibly over $1 billion and involving thefts of up to $40,000 per year per miner, stealing from 5,000 or more coalminers. When was the Senate’s second reading amendment to your government’s latest Fair Work Act amendment bill conveyed to the minister?
Mr Manning: I am not sure, in the sense that we wouldn’t necessarily have conveyed it to the minister.
Ms Yanchenko: We were watching along in real time.
Senator ROBERTS: Did you convey that to the minister?
Ms Yanchenko: I didn’t personally, no.
Senator ROBERTS: Is it possible to find out when the minister—
Mr Manning: When he first became aware of it?
Senator ROBERTS: Yes.
Mr Manning: We will have to take that on notice.
Senator ROBERTS: That is fine. I don’t expect you to know everything; most things, but not everything. I take it then that no discussions have been held between the minister and the department?
Mr Manning: We are still thinking through our advice to the minister; so, no, not yet.
Senator ROBERTS: Has the department received or made any instructions?
Mr Manning: We haven’t yet given advice or a submission to the minister about the motion. We are still working through it.
Senator ROBERTS: So you haven’t made any instructions to him or given him any advice?
Mr Manning: Not as yet.
Senator ROBERTS: Has Minister Burke discussed with you the nature of the investigation the Senate required him to make into wage theft involving Central Queensland and Hunter Valley miners?
Mr Manning: No, not yet.
Senator ROBERTS: Have any of your staff raised it with you?
Ms Wettinger: At this stage we haven’t discussed the matter with any of the minister’s staff, no.
Senator ROBERTS: Who do you expect will have a role in the investigation?
Mr Manning: It is too early to say. There is a long history to the matter—
Senator ROBERTS: A very long history.
Mr Manning: So that’s what we are considering in terms of getting ready for those discussions and that advice to the minister.
Senator ROBERTS: Minister, what would you expect of a fair and independent investigation?
Senator Watt: That it be fair and independent.
Senator ROBERTS: What would characterise a fair and independent investigation?
Senator Watt: I think everyone understands what those concepts mean. I know you have an interest in the conditions of coalminers. Have you caught up on the good news about the first decision or agreement resulting from our ‘Closing Loopholes’ laws?
Senator ROBERTS: I am aware that there is an agreement in application.
Senator Watt: I think there might even be a couple, actually.
Senator ROBERTS: I am aware of two.
Senator Watt: It is good news that we are seeing coalminers receive what they are entitled to as a result of our legislation. I don’t think you voted for that legislation, Senator.
Senator ROBERTS: We’ll hear more about that. I have already told you why publicly, Senator Watt.
Senator Watt: It is delivering more money to coalminers.
Senator ROBERTS: I’ll have more to ask you about that tomorrow, with glee.
Some people ask why the union would screw over workers like they have with casual coal miners. One explanation could be the $48 million in payments flowing from the labour hire company to the union.
During this Senate Estimate session, I raised concerns about the complexity of donation laws and transparency issues, citing that the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) received significant money from Abelshore, a subsidiary of coal company Glencore, where the union also donates to the Labor Party. Despite $48 million being transferred, the original source, Glencore, is not visible in the Labor Party’s declarations.
Mr Rogers admitted he had not reviewed the specific return in question but said that it was the Australian Electoral Commission’s (AEC) role to ensure that current legislation is adhered to. Further, Mr Rogers noted that if there are issues with transparency or adherence to the law, it is the responsibility of Parliament to amend the legislation, not the AEC. He agreed to review the details once they were provided to him.
Transcript
Senator ROBERTS: Maybe you could elaborate on some of the issues faced with getting a clear picture when it comes to donation law, a really complex situation. The returns for the Construction, Forestry and Maritime Employees Union for 2022 and 2023 show they donated huge sums to the Labor Party. The CFMMEU has received more than $39 million from a company called Abelshore, which is a wholly-owned subsidiary of coal company Glencore. In 2021-22 they donated $9 million, so over two years they donated $48 million donated by Glencoreowned companies to the CFMMEU, to the Labor Party. So you have tens of millions, $48 million as I said, flying from a coal company through a subsidiary, through a union to the Labor Party but the coal company does not show up in the returns to the Labor Party. Can you explain the difficulties in finding out where the money was originally coming from on the returns that are lodged?
Mr Rogers: First of all, I have not seen that particular return, so I would have to take it on notice and have a look but I am not aware that any of that breaches the existing legislation. Our role is to adhere to the legislation, promote the legislation, ensure that agencies are adhering to that. As you know, the whole funding and disclosure issue is the most complex part of the Electoral Act. It is highly technical. As long as those entities are meeting their obligations for transparency under the act, and I have no information that they are not—I would have to look at that specific issue in detail—as long as they are within the legislation, changing that legislation is a matter for parliament rather than the AEC, which I know you are aware of, and it is something we were discussing earlier this evening. I would have to have a look at in detail.
Senator ROBERTS: Yes, we will send you a copy. It is on a register from the CFMMEU, I think I said. That is an awful lot of money to be hidden and it is not deliberately hidden. Perhaps it is inadvertently hidden. I think the intent is deliberate because it seems a bit strange that money is going from a coal company to a mining union to the Labor Party.
https://img.youtube.com/vi/Rx2EAtaD-Ew/hqdefault.jpg360480Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-08-12 18:54:482024-08-12 18:54:53Exposed: 48 Million Reasons to Screw Over Workers
During my questioning of the Fair Work Commission, I highlighted the fact that when Coal LSL included casual coal miners, it opened the door to labour hire scams and in collusion with the corrupt CFMEU, cost individual miners up to $40,000 per year.
Labor is now attempting to stifle competition to remove miners’ choice regarding union membership as the RED Union gains traction by supporting thousands whose union fees have historically funded the Labor Party.
I also detailed a series of breaches by the labour hire company and BHP, leading to a compensation claim by Mr. Simon Turner, which the Minister dismissed.
Transcript | Session 1
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.
Transcript | Session 2
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.
https://img.youtube.com/vi/-oX9ppgSKOM/0.jpg360480Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-06-05 19:22:022024-06-24 16:35:37Labour Hire Scams and Union Corruption
Finally! After 5 plus years of calling out dodgy CFMEU union bosses, Labor and the Fair Work Commission, the Senate has backed my call for an investigation into the biggest wage theft in the coal sector.
The industrial relations community was staggered last week when Australia’s senators voting on a show of voices – no one asked for a formal vote – decided to demand that the government investigate what is potentially the nation’s biggest wage underpayment scandal.
If shown to be correct, the alleged underpayment of New South Wales and Queensland coal miners will involve repayment of more than $100 million.
When I first disclosed this scandal, I called on ALP politicians and other supporters of the CFMEU and Fair Work Commission in the parliament to set aside their links and think of what happened to the coal miners. And that’s exactly what the senators did. Full marks. Now the Senate must make sure the government carries out their instructions in a proper manner.
Some years ago, a small group of coal miners came to me telling him that they believed they were not being paid correctly. I have worked tirelessly to discover that thousands of NSW and Queensland coal miners had worked long hours underground for over a decade as casual labour, but did not receive the 25 per cent “casual” premium workers all over Australia receive.
Thousands of casual miners working in Central Queensland and the Hunter Valley are each owed, on average, around $33,000 per year in back pay, making them victims of Australia’s largest wage theft.
During my discussion with Ms. Booth and Mr. Scully, I inquired about the calculator that people can use to determine if they are being paid correctly under an Agreement or Award. It is crucial for workers to be paid at least the award rate of pay.
Ms. Booth described the calculator as an interactive template designed to cover all the awards.
An analysis of five significant labour hire coal mining enterprise agreements operating in Queensland and the Hunter Valley, all involving the CFMEU, revealed that all five agreements underpaid the award – see below. I also asked Ms. Booth to provide information on how many requests for assistance had been made relating to underpayments by the Chandler Macleod Group regarding the black coal industry.
It’s worth noting that in the Black Coal Mining Industry Award, there are no rates of pay specified for casuals, raising questions about how so-called “casuals” can use the FWO pay calculator.
The Five Agreements that Underpaid the Award
Per Person – Per Year – On Average
The Core Staff Enterprise Agreement 2018
$22,600
The FES Enterprise Agreement 2018
$27,000
The Workpac Enterprise Agreement 2019
$33,500
The Chandler Macleod Agreement 2020
$39,340
The TESA Group agreement 2022
$40,000
Transcript
Senator ROBERTS: Thank you for being here again, Ms Booth and Mr Scully.
Ms Booth: A great pleasure, Senator Roberts.
Senator ROBERTS: I refer to the Fair Work Ombudsman website and the black coal mining industry award that asks ‘Pay and entitlements less than the award?’ The Fair Work Ombudsman’s answer is, and I quote,
Employees must be paid at least award pay rates and entitlements.
There’s another instruction or invitation:
If your pay rates are less than the award, go to Help resolving workplace issues to follow our step by step guide on how you can fix it.
Does the Fair Work Ombudsman have a standard process or template it uses to assess whether an employee is being paid less than the award?
Ms Booth: The Fair Work Ombudsman has a pay calculator that allows anyone—an employee or an employer—to provide information as requested. It calculates the correct award rate. That is the case for all sectors.
Senator ROBERTS: So it doesn’t have a template, but an individual can step his or her way through it?
Ms Booth: I think the pay calculator could be described as a template. But it’s interactive. It’s a series of smart forms that you complete and then you get a response at the end which tells you what the award rate is. For further information on the pay calculator, I could turn to my supporters here. Mr Scully, would you like to talk more about the pay calculator for Senator Roberts?
Mr Scully: We call it PACT, which is pay and conditions tool. It is an online calculator that has hundreds and thousands of pay combinations and calculations that can be provided and is tailored to the particular award and classification and the like that the user keys in. It is a very popular tool. I think last financial year, something like 6.4 million people used it. There were something like 7.1 million pay calculations provided, I think, for the year, so it’s widely used by the community.
Senator ROBERTS: So there’s a template that an individual can attempt to check?
Mr Scully: Correct.
Senator ROBERTS: Is that tailored to cover pay rates subject to the coverage of the black coal mining industry award and the rosters that are used in Central Queensland and Hunter Valley?
Mr Scully: It covers all awards, Senator.
Senator ROBERTS: I know it is a very complex situation involving the 12-hour rosters in the Hunter Valley and Central Queensland.
Mr Scully: I would need to check that. I don’t know that it would go to the rosters. It is more awards and classifications. It goes to weekday rates and weekends and shift penalties and the like.
Senator ROBERTS: It’s a very complex roster. People have difficulty. Would the Fair Work Ombudsman agree to undertake an assessment with regard to the application of coal enterprise agreements and provide the outcomes to me?
Ms Booth: The Fair Work Ombudsman certainly will respond to any employee who has a question. We will provide information.
Senator ROBERTS: Is that current employees or can they be past employees?
Ms Booth: I will ask Mr Scully to answer that question on the basis that the info line is available to anyone. We don’t ask people to verify their employment status. I’m going to say that anyone can ring the info line and ask a question. Would that be right, Mr Scully? You would not have to be an employee to ring the info line and ask a question? We don’t seek to verify people’s employment status?
Mr Scully: That is correct.
Senator ROBERTS: I wasn’t thinking about calling up myself. I was thinking about past people who have left the industry but have been underpaid dramatically.
Ms Booth: So when a call comes, information is given. If that information doesn’t satisfy the caller and the caller still has a dispute that they regard as unresolved, we call it a request for assistance. We identify that and we move it through to an assessment team. That assessment team will speak directly with the employer and the employee and attempt to resolve the matter. I think you also know that it will go forward beyond that through inspector support to our investigator and inspectors to conduct investigations should it not be resolved by the assessment team. That is the pathway.
Senator ROBERTS: Thank you. By the way, a team of workplace lawyers, consultants and coalminers reviewed and analysed five significant labour hire coal mining enterprise agreements and the work roster that are operating in Queensland and the Hunter Valley. The CFMEU and the Mining and Energy Union were involved in, or were a party to or signed off on, all five agreements. The Fair Work Commission approved all five agreements. The enterprise agreements all underpay the award. The core staff agreement, for example, 2018 enterprise agreement yearly underpayment is estimated at $22,600. The FES agreement 2018 yearly underpayment is estimated at $27,500. The WorkPac agreement 2019 yearly underpayment is estimated at $33,500. The Chandler Macleod agreement 2020 yearly underpayment of casuals is estimated at $39,341. The TESA Group agreement 2022 yearly underpayment was estimated at over $40,000. But let’s come back. Between 2012 and the present day, could you please provide the number of requests for assistance made regarding underpayments by the Chandler Macleod group relating specifically to the black coal mining industry award and associated enterprise agreements?
Ms Booth: I think we’d have to take a question like that on notice. We collect information at the info line on a range of demographics. I wouldn’t be sure whether we could go to that degree of disaggregation. I think it is important to reinforce that the Fair Work Ombudsman enforces the law as it exists. As you know, a fair work instrument includes an enterprise agreement that has been approved by the Fair Work Commission. We don’t play a role in interrogating the approvability or otherwise of such an instrument. Once it is in existence, we must take it on its face value.
Senator ROBERTS: Thank you. You can take it on notice. Again, in relation to Chandler Macleod and the black coal mining industry award, how many requests for assistance were closed with the following general determinations—under the award, you can be casual; the 2007 workplace agreement covered your employment; or the insertion of section 15A into the Fair Work Act determines you are a casual? You can take that on notice, too, please.
Ms Booth: It would certainly be a degree of detail that I do not have at my fingertips. Is there anything, Mr Scully, you can say about that?
Mr Scully: I can only advise that from July 2019 to 31 December 2023, we resolved 30 disputes that relate to the coal mining industry. I haven’t got any further details about that. There are 30 over the last 4½ years.
Senator ROBERTS: Thank you, Mr Scully, that’s in coal. This is specifically Chandler Macleod and the black coal mining industry award. You will have to take this on notice too. How many proceeded to the investigation stage? Have any of them not been formally closed? If so, which ones? Thank you, Mr Scully. Thank you, Ms Booth. Thank you, Chair.
https://img.youtube.com/vi/3-XqCQp-264/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-03-06 16:22:452024-03-14 17:14:59Casual Wage Theft and the Fair Work Ombudsman
Thousands of “casual” miners in Central Queensland and the Hunter Valley are each owed an average of $33,000 per year in back pay for every year of service for wage theft.
When inquiring with the Fair Work Commission about applying the Better Off Overall Test (BOOT), I asked if they would expect the pay under an Enterprise Agreement (EA) to at least match that under the relevant Award. Mr. Furlong confirmed that the EA would indeed be compared with the Award. I highlighted that there are workers under EAs who are earning significantly less than the Award, with these EAs being sanctioned by the Fair Work Commission and devised in collaboration between employers and the CFMEU.
I reiterated to Senator Watt that I could not support legislation that goes against the interests of workers and conceals the wrongdoing of unscrupulous unions. Minister Burke is shirking his responsibilities by refusing to deliver justice for thousands of workers ensnared in the casual rort stemming from enterprise agreements crafted in collusion with the CFMEU and labor hire firms, resulting in the largest wage theft in Australian history.
Transcript
Senator ROBERTS: Thank you all for being here. Good to see you again, Mr Furlong. When the Fair Work Commission assesses the application of the better off overall test, the BOOT, to a proposed enterprise agreement, would it be a normal expectation that the pay rate under the enterprise agreement should be clearly equal to or above that of the relevant award?
Mr Furlong: As you are aware, and as we have discussed in previous estimates, the agreement making process involves a statutory decision-holder, a member of the commission, looking at the facts of the matter and then applying a legal test, the better off overall test. There are some other elements that they are required to satisfy. On the basis of that, they make a determination about whether or not the agreement is to be approved or not.
Senator ROBERTS: Would it be a normal expectation that the pay rate under the enterprise agreement should be clearly equal to or above? That is a normal expectation?
Mr Furlong: Yes. The better off overall test—
Senator ROBERTS: Thank you. Are there circumstances in which, when considering the better off overall test, the BOOT, for an enterprise agreement, the Fair Work Commission would not do a comparison against the relevant award?
Mr Furlong: The answer to that question is that there would be an award that they will refer to in terms of the application of the better off overall test. Through that process, they will determine whether or not that agreement as made is better off overall than the underpinning agreement.
Senator ROBERTS: So they would do a comparison against the award?
Mr Furlong: Yes.
Senator ROBERTS: Thank you. If the enterprise agreement pay rate were not equal to or above the relevant award, and instead paid substantially less than the award, what would be the criteria used to justify that the enterprise agreement still passed the better off overall test, the BOOT?
Mr Furlong: It’s not a line-by-line comparison.
Senator ROBERTS: No. What would be the criteria? Broad criteria? Line by line? Whatever you want?
Mr Furlong: It is the better off overall test. The Fair Work Act prescribes what the member must take into consideration in determining whether or not that agreement meets the requirements that have been approved.
Senator ROBERTS: Are pay rates prescribed in there?
Mr Furlong: They will be. The decisions of the members—the independent tribunal members—will outline the reasons for the approval of those agreements, including whether or not they satisfy the better off overall test.
Senator ROBERTS: That is a wonderful point. Thank you so much. Even if the award excluded certain classes of employees from its provisions, would that exclusion create the legal circumstances to pay such excluded classes of employee less under an enterprise agreement than what they would or could earn under the award if the class of employees were not award excluded? Just to be clear, I’m not posing a theoretical question here. I refer to the black coal mining industry award exclusion of casuals as an example. Casuals are not specifically referred to in the black coal mining industry award.
Mr Furlong: I understand that. As we have discussed in previous estimates, the fact that there are no casual coalminers under the black coal mining award doesn’t preclude an enterprise agreement being made.
Senator ROBERTS: I understand that. I am talking about the pay. If an award excluded certain classes of employees in the coal industry—casuals—from its provisions, would that exclusion create the legal circumstances to pay such excluded classes of employee less under an enterprise agreement than what they would or could earn under the award if the class of employees were included in the award?
Mr Furlong: Senator, I have tried as hard as I can to be helpful in terms of the second part—
Senator ROBERTS: You are being helpful.
Mr Furlong: that we have provided. My role as the general manager is to provide administrative support to the president on the efficient running of the tribunal, in essence. The matters that you are going to now traverse instances or occurrences that may end up before tribunal members for their determination. I can’t answer that question.
Senator ROBERTS: Okay. That’s fine. Thank you. Minister, what would be the attitude of the government where workers working under enterprise agreements were paid less than the award even though the workers were doing exactly the same job they would under the award?
Senator Watt: Well, I would want to know more about the circumstances there. In general, the idea behind enterprise bargaining is for people to obtain pay and conditions above the award level.
Senator ROBERTS: Why is Minister Burke shirking his responsibilities and refusing to provide justice for thousands of workers caught in the permanent casual rort that is the result of enterprise agreements agreed between the CFMEU, now known as the Mining and Energy Union, with some labour hire firms, all with the Fair Work Commission’s approval? When will Minister Burke address this, the largest wage theft in Australian history?
Senator Watt: Well, as we’ve discussed many times, Senator Roberts, Minister Burke is not avoiding that. In fact, Minister Burke has led the government’s efforts to address and fix the permanent casual rort, including through the legislation that we passed only last week. I actually don’t remember how you voted in that legislation.
Senator ROBERTS: I voted against it because it would not address the issue that I am talking about right here. It buries the issue and buries the culpability of the unions.
Senator Watt: I thought you probably voted against that legislation last week, because One Nation has pretty consistently voted against the legislation that has been designed for workers.
Senator ROBERTS: We vote against it, as I explained, because it doesn’t address the issue. It buries the issue.
Senator Watt: Just as you voted against the closing loopholes bill last year, which is all about trying to put labour hire workers on an even footing with other workers.
Senator ROBERTS: Not true, Minister.
Senator Watt: Well, One Nation has consistently voted against these things.
Senator ROBERTS: You are consistently avoiding the issue of thousands of casual coalminers in the Hunter Valley and Central Queensland, our own state. I want that addressed.
Senator Watt: I’m not. We’re not. We’ve gone over this ad nauseam.
Senator ROBERTS: To make a point here concerning the validity of an enterprise agreement that removes the minimum statutory protections of any award, I quote the following paragraph from the full bench Federal Court decision in One Key Workforce Pty Limited v Construction, Forestry, Mining and Energy Union, decided in 2018. I go to paragraph 227. This is from the court decision:
It is uncontentious that, where a statute requires an administrative decision-maker to reach a state of satisfaction about a matter, the opinion as to the state of satisfaction must be reached by a rational, reasonable and logical process.
I will go to paragraph 204. I quote:
It is an error of law to fail to have regard to relevant material in a way that affects the exercise of power. An administrative decision-maker who makes such an error exceeds his or her authority and acts without jurisdiction.
I’m going to read—
CHAIR: If we keep to the time line, I am giving you a heads-up.
Senator ROBERTS: I’m nearly done. I have two questions and I will read some material. We had a team of workplace lawyers—I emphasise the plural—consultants and coalminers review and analyse five significant labour hire coal mining enterprise agreements and their work roster, which is complicated. The CFMEU, now the Mining and Energy Union, was involved in, was a party to or signed off on all five agreements. The Fair Work Commission approved all five agreements. The enterprise agreements all underpay the award dramatically. Specifically, in the core staff enterprise agreement 2018, the yearly underpayment for casuals working under that award is estimated at $22,623. It is wage theft. The FES agreement in 2018 has yearly underpayment estimated at $27,563 of wage theft for casual workers. The WorkPac agreement in 2019 showed yearly underpayment for casuals estimated at $33,555. Wage theft. The Chandler Macleod agreement 2020 has yearly underpayment estimated at $39,341. Wage theft. The Tesla group agreement 2022 yearly underpayment is estimated at $40,645. Wage theft. The Fair Work Commission has ruled that at least five black coal mining industry enterprise agreements exceeded their authority. Minister, what avenues will Minister Burke and your government take to restore basic entitlements lost under agreements that the CFMEU, the Mining and Energy Union, signed with various employers and that the Fair Work Commission approved?
Senator Watt: Well, Senator Roberts, I have personally sat through probably at least half a dozen estimates committee hearings where you have raised these issues repeatedly. Various officials have answered these questions repeatedly. The matters have been investigated, as I understand it, and dealt with. I understand that you are not satisfied with those answers, but I can’t add to what we’ve said about these things before.
Senator ROBERTS: Does it bother you that I have explained that the Fair Work Ombudsman has used a fraudulent document that has been deemed fraudulent by the Australian Taxation Office as evidenced against five others? It is solid evidence, including a court hearing.
Senator Watt: If that were true, of course I would be bothered by it.
Senator ROBERTS: You would be. Okay.
Senator Watt: But I’m not sure that is true.
Senator ROBERTS: Okay. This is my last question. Why has the process that the Fair Work Commission has adopted since 2010 in approving coal industry enterprise agreements that remove the minimum statutory protections of the black coal mining industry award clearly devoid of any form of rationality, reasonableness or logic?
Senator Watt: What was the beginning of that question?
Senator ROBERTS: Why is the process that the Fair Work Commission has adopted since 2010 in approving coal industry enterprise agreements that remove the minimum statutory protections of the black coal mining industry award—its entitlements, pay rates, the wage theft that I’ve just illustrated—clearly devoid of any form of rationality, reasonableness or logic, as the Federal Court requires?
Senator Watt: That is obviously your opinion, Senator Roberts. I know that it is a strongly held opinion. I don’t think that opinion is shared more broadly.
