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Labor’s Union Ties and Cover-ups

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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. 

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$1 Billion Exploitation of Workers Backed by Labor

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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. 

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Fair Work Ombudsman Denies Responsibility for Enterprise Agreement Validity

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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. 

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No Progress on Wage Theft

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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. 

Senator Watt: Sure. 

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Exposed: 48 Million Reasons to Screw Over Workers

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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. 

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Government to Investigate Biggest Wage Theft in the Coal Sector

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.

Read more here: Australia’s biggest underpayment case may uncover a few surprises | The Australian

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.

Motion

Fair-Work-Amendment-Bill-2024_RobertsDownload
/1 Comment/by

The Decade-Long Scam Robbing Some of Our Miners

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By Robert Gottliebsen | The Australian

Before being elected to the Senate, Malcolm Roberts was a coal miner, following in the tradition of Australia’s sixth Prime Minister Joseph Cook.

Some five years ago, a small group of coal miners came to Roberts telling him they believed they were not being paid correctly — but they couldn’t work out what was wrong.

At the time, Roberts had no idea he was on the edge of uncovering what he calls a “scam” which has the potential to be Australia’s largest ever wage underpayment scheme.

Read more of the article here: Robert Gottliebsen: Miners underpaid by strange legislative loophole | The Australian

See all material on this issue

Casual Coal Wage Theft

Related Parliamentary Speeches

Labor are Not the Party of the Workers
Exposing the Permanent-Casual Rort
/2 Comments/by

Coal Mining Wage Rip-Off report

Senator for Queensland, Pauline Hanson’s One Nation Party c/ AUSPIC

This report details extensive calculations that demonstrate casual coal miners across the Central Queensland and New South Wales Hunter Valley districts are being ripped off on average $30,000 a year of potential earnings under enterprise agreements negotiated by the union.

This report was summarised in a speech to the Senate here.

Coal-Miners-Wage-Theft-V1-6-February

Download/Print: COAL MINERS WAGE THEFT (malcolmrobertsqld.com.au)

Calculation workbook: Award Calculations.xlsx

Enterprise Agreements

Chandler Macleod Queensland Black Coal Mining Agreement 2020

Corestaff NSW Black Coal Enterprise Agreement 2018

FES Coal Pty Ltd Greenfield Agreement 2018

Tesa Group – Enterprise Agreement 2022

Workpac Coal Mining Agreement 2019

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Labor are Not the Party of the Workers

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Today the Labor government will vote AGAINST my amendment that would award back pay to casual miners who had more than $30,000 a year stolen from them under union negotiated agreements.

Nothing in Labor’s bill will compensate these ripped off casual workers and now they will vote down my amendment that would pay them back.

So much for Labor being the party of the workers.

This amendment was voted down by Labor and the major parties

Transcript (click here)

Casual miners—so-called casual miners—working in Central Queensland and the Hunter Valley are each owed an average, due to wage theft, back pay of around $33,000 per year for every year of service. If you’re a casual, you are likely owed $33,000 per year that you have worked. My amendment aims to get these miners their back pay. Before getting to that, I note that the Senate has yet again been hijacked with a guillotine this afternoon, when almost half the Senate want more debate. This is a grotesque abuse of power. It’s a grotesque abuse of democracy. It’s a grotesque abuse of process in this Senate—the people’s Senate. These are serious guillotines. We know that sometimes guillotines are arranged, and that’s fine, with the consent of just about everyone. Regarding serious guillotines, where there’s a genuine disagreement between Labor and the LNP and a need for more debate, here are the figures: in the 45th Parliament, there were two; in the 46th Parliament, there were 24; and, in the 47th Parliament, under Labor, the Greens, Teals and the coalition, we’re halfway through and there have been 39 already. Almost all guillotines involve a Labor-Greens-Teal-Senator Pocock coalition. This morning we have Senator Thorpe and Senator Pocock amending significant industrial relations legislation affecting many employees, small businesses and employers around the country. Yet we have limited time to assess and almost no time to debate.

Minister, last night in my second reading speech, I explained, in great detail, what I believe is the largest systemic wage theft in Australia. It’s explained in the independent report that One Nation commissioned. I foreshadowed an amendment to pay casuals working in the black coal mining industry. It’s been tabled. Casual coalminers are being ripped off to the tune of around $33,000 each and every year.

Labor’s bill would put more power with union bosses. After what I unveiled last night, that’s putting the fox in charge of henhouse. The CFMMEU, the Construction Forestry, Maritime, Mining and Energy Union, enabled and supported wage theft from casual coalminers. The CFMMEU negotiated and endorsed enterprise agreements that pay casual coalminers less per hour than the award combined with a 25 per cent casual loading. Some enterprise agreements in the coal sector paid and still pay paid casual workers less than a full-time worker receives per hour under the award. Ignore the loading; it is less than the award. That’s a casual being paid less than a full-time worker. How? CFMEU union bosses negotiated and approved this wage theft. Minister, union bosses negotiated and approved these agreements that pay casuals less than full-time workers, yet your bill places more power with those union bosses, who failed to protect workers and who betrayed workers— union bosses who enabled theft from mineworkers. The Fair Work Commission failed. They failed to properly assess these agreements and let them sail through. They approved them. When I asked the Fair Work Commission at Senate estimates to provide me with a copy of the better off overall test, the BOOT, that they had conducted for just one of these agreements, they could not hand over a single document or spreadsheet—not one. This is a wage theft resulting from a cosy collusion between the labour hire companies, including the world’s largest labour hire company, which is owned by a Japanese parent company; union bosses who betrayed workers; and the Fair Work Commission. All three are culpable.

My amendment on sheet 2339 will trigger a review of those coal enterprise agreements to ensure they meet all relevant entitlements. It would ensure any underpaid casual coalminers are compensated for the wage theft they have suffered and would pay them the $33,000 each per annum that they’re entitled to. This cost would be apportioned between the offending labour hire company—the employer—the union and the Commonwealth, through the Fair Work Commission, for their culpability in the wage theft. Senators who vote for Labor’s legislation without voting for my amendment are endorsing massive wage theft—Australia’s largest ever wage theft. Legislation must not just attempt to fix it for the future; it must right the wage theft and get the back pay.

Minister, why doesn’t the government support my amendments on sheet 2339 to pay back entitlements for casual coalminers that have had wages stolen from them—$33,000, on average, per year?

Senator WATT (Minister for Agriculture, Fisheries and Forestry and Minister for Emergency Management): Senator Roberts, thanks for providing a copy of this amendment to me before the debate started. The government does not support your proposed amendment. We consider that the bill as it stands, which we’re introducing here, provides a considered and balanced framework for defining casual employment and supporting casual employees to convert to permanent employment. The government has consulted with a wide range of stakeholders to reach a position that addresses both employees’ and employers’ needs. The government’s reforms that were passed last year also give labour hire employees the right to seek orders from the Fair Work Commission that provide entitlements to the same pay under a host business’s enterprise agreement. Casual labour hire employees in the black-coal-mining industry can also seek these orders. So, Senator Roberts, the bill as we are presenting it already addresses the needs that casual workers, whether they be miners or others, undoubtedly have. The reforms that we made in our amendments last year, around the labour hire loophole, were also designed to address the rights of casual coalminers in particular. Senator Roberts, I’ve obviously been in a number of estimates hearings where you’ve raised these issues. It is my observation that you have been given answers to these questions by officials on a number of occasions. You haven’t accepted those answers, and you continue to ask the same questions. It’s your right to do so, but I think it’s pretty clear that whatever answer you’re provided with won’t satisfy you. It’s your right to continue campaigning on this issue, but I would remind you, Senator Roberts, that last year, when we did introduce changes to benefit labour hire casual employees to ensure that they are paid at least the same as the permanent workers they work alongside, it was unfortunate and surprising that you voted against that change. I would have thought that, if you were as committed to the rights of casual coalminers as you say you are, you would have voted with the government for those reforms that we implemented last year. I was surprised that, after a number of years of you campaigning on this issue, you voted with the coalition against the interests of those labour hire casual coalminers who you say you represent.

Senator ROBERTS: Minister, let’s have the full truth. We voted against that because it didn’t address the core issue. There is no casual permanent rort loophole at all other than the one I’ve just discussed. The simple solution is that the Fair Work Act needs to be enforced. Your bill covers the future. Your previous bill covers the future. It shuts the door to backpay of these miners who are owed, on average, $33,000 per year for the breach of the Fair Work Act. Way you covering up union bosses’ culpability? That is what you are doing. That’s what Minister Burke is doing. Minister Burke has received two letters from me on this issue. We get a polite, ‘Nothing to see here; move on.’ I’ve written letters. Miners have been in touch through personal meetings and provided solid, written evidence to the department’s senior advisers. Nothing has happened. With the minister’s office’s senior advisers, nothing has happened. With the Fair Work Commission, nothing has happened. The Fair Work Ombudsman used a fraudulent document to deny any case for the miners, despite the miners having five documents, including court hearing transcripts, that say their documents are correct. Why you continuing to cover this up against miners in the Hunter Valley and Central Queensland? Why are you continuing to cover it up? Is it because union bosses in the CFMEU are culpable because they have engineered this? Is it because union bosses in the CFMEU are the ones who started labour hire in the coalmining industry? Is it because they were actually employers and they had some commercial agreements that we’ve got wind of? Minister, these people are entitled to their back pay. That’s what I want, and that’s what this amendment covers. It covers their back pay. We don’t want this bill to go through and simply bury the issue. That’s what Minister Burke is doing. Why are you covering up for union bosses? Is it because they funnel millions of dollars into Labor Party campaign coffers? Why are you not doing this after almost five years of me bringing this to your attention?

Senator WATT: As Senator Roberts has just made clear, he has been raising these issues for five years. The questions have been answered for five years, and I don’t propose to add to any of them, but again I point out that Senator Roberts and Senator Hanson did have an opportunity late last year to vote with the government to ensure that the rights of labour hire workers in coalmines were protected. Unfortunately, Senator Roberts decided to vote with the coalition.

Senator ROBERTS: I will repeat myself. We are not voting for legislation that covers up, endorses and prevents miners from getting their back pay. When this Labor government stops covering up for CFMEU bosses who’ve done dodgy deals, stops covering up for the Fair Work Commission and the Fair Work Ombudsman, which are not doing their job; and stops covering up for labour hire companies—we will not vote for
legislation that prevents miners getting their back pay and covers it up.

See all the material on this issue

Casual Coal Wage Theft

News Article and Related Parliamentary Speech

The Decade-Long Scam Robbing Some of Our Miners
Exposing the Permanent-Casual Rort
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Exposing the Permanent-Casual Rort

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I detailed one of the most outrageous wage thefts in the country last night in the Senate. Despite having all of this information, the Labor party continues to cover it up, voting down my amendment that would give back-pay to victims.

Casual coal mine workers are being individually underpaid up to $33,000 per year under union-negotiated deals. Minister Tony Burke is aware of this yet he does nothing about it.

The so-called ‘Loopholes’ Bill will only protect the union bosses at the Construction, Forestry and Maritime Employees Union (CFMEU) and give them more power. It will protect labour-hire companies including the big, foreign-owned ones, and it will protect the government’s Fair Work Commission who is failing Australian workers.

The only loopholes I see are the ones protecting big business and the government and there’s nothing ‘fair’ about it.

Labor has abandoned the workers. One Nation will not stop fighting for ripped off casual coal miners to receive what they’re owed.

Transcript (click here)

As a servant to the people of Queensland and Australia, I rise to speak on the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023. In doing that, I will illustrate why this bill is a sham that does not protect workers like the name implies.

Nothing in this bill will fix the absolute scandal that One Nation has uncovered. The Labor government is giving more power to union bosses, which is putting the fox in charge of the henhouse. As I will explain, union bosses are the ones that have been ripping off workers, and the government regulator, the Fair Work Commission, has endorsed it. I challenge anyone to explain to me in detail how the closing loopholes No. 2 bill will fix the cases I’m about to explain.

An independent report details the largest wage theft scandal Australia has ever seen. Coalmine workers have each had tens of thousands of dollars stolen from them every year. Labour hire companies, union bosses and governments have been covering it up for a decade or more. The culprits are labour hire companies supplying casual workers to some Central Queensland and Hunter Valley coalmines. The CFMEU—the Construction, Forestry, Mining and Energy Union—enabled and supported the wage theft. The Fair Work Commission signed off and endorsed the enterprise agreements, enabling the wage theft.

One Nation commissioned an independent analysis which shows that hardworking, casual coalminers are each being shafted on 2023 pay rates by an average of around $33,000 every year. This is systemic wage theft resulting from collusion between labour hire companies—including major foreign multinationals—the CFMEU and the Fair Work Commission. My grave and disturbing allegations are based on solid facts and hard data.

A quirk in the Black Coal Mining Industry Award makes this scam possible. Under that award it’s illegal for mine employers to have casual employees. Yet, if casuals were legal, everyone in Australia knows that the employer would have to pay casuals 25 per cent more than the award full-time rate, as a 25 per cent casual loading for loss of basic entitlements like leave, sick leave and others. While the award prohibits casuals, labour hire companies—with the CFMEU—created enterprise agreements to employ casuals without any loading. The CFMEU negotiated, approved or sought to become a party to these agreements.

The closing loopholes No. 2 bill claims that all of these problems in industrial relations can be solved if we get the union bosses more involved and give them more power. What is the use of giving the CFMEU bosses more power when they negotiated and approved agreements that have ripped off casual workers for more than a decade? The Fair Work Commission should be policing and rejecting these agreements, yet it approved them. The rates under the agreements were less than the award with a 25 per cent loading. This means that the enterprise agreements are paying much less than what should be paid under the award if it allowed casuals. Some casuals were paid even less than the full-time award through technical legal trickery. All parties claim these agreements are legal, yet everyone knows a casual gets a 25 per cent loading on the hourly rate of a full-time worker. Paying them any less is wage theft. It appears that, once the Fair Work Commission approves an enterprise agreement that pays less than what should be paid under the award, the underpayment then becomes legal.

Yet One Nation is awake. All Australians deserve honest pay for an honest day’s work. We have spent nearly five years investigating wage theft. Nothing in this bill will fix up the absolute scandal One Nation has uncovered. Tonight I launch our major report detailing the extent of the wage theft scam. In 2019, after the CFMEU brushed off many years of casual coalminers’ complaints, the miners brought their underpayment complaints to us in One Nation. We took action. I’ve been holding the Fair Work Commission accountable for nearly five years. We asked the Fair Work Commission to provide their copy of the better-off-overall test—the BOOT—they’ve done on relevant enterprise agreements. The BOOT is supposed to be a safety net that rejects underpaying agreements and protects workers from underpayment. Yet the commission handed us no documents. There are no spreadsheets, no tables comparing conditions and benefits and no real assurance that they’d properly weighed it up. The response was along the lines of, ‘Trust us; it passes.’

The CFMEU has been signing off on dodgy agreements for more than a decade, and the Fair Work Commission is either asleep at the wheel or complicit. Either way, both enable or are responsible for massive wage theft. Last year we raised this issue with the Fair Work Ombudsman and with Minister Burke and his department. Responses from all three have been like that of the Fair Work Commission. ‘Trust us,’ they say, yet they provide no hard evidence.

One Nation then commissioned independent research, with the results in the report. The first part presents the facts of coalmining casual work patterns. It marries those patterns against what the award would require if casual employment were possible under the award. The second part exposes how this scam has been allowed to continue in breach of proper, commonsense application of the law. The report details that coalminers are required to work any time, 24 hours a day, seven days a week, close to a 44-hour week—Saturdays, Sundays, public holidays, days and nights. It’s long, hard work that can be dangerous. The report shows that, according to the award, for example, a full-time mine worker doing 12-hour shifts will earn about $120,849 per year or $53.84 an hour. Taking what a full-time mine worker should earn under the award and adding a casual loading, a casual mine worker doing the same hours should earn $151,061 a year, or a flat rate of $66.40 an hour, regardless of hours worked.

The independent analysis One Nation commissioned looked in detail at mine workers’ hourly rates under the five most common enterprise agreements covering casuals in coalmining. We found that none of the enterprise agreements were paying casual workers anywhere near the $66.40 an hour they should be receiving. Some were even paying casuals less than the hourly rate a full-time worker gets under the award. The fact that a casual worker could be paid less than the hourly rate of a full-time worker under some of the agreements should have set of alarm bells at the Fair Work Commission. Every single enterprise agreement—all five—has the CFMEU’s fingerprints on it, and the Fair Work Commission signed off every single agreement.

The research assessed five of the major enterprise agreements in consultation with independent analysis, lawyers and coalminers. Let’s go through them. The CoreStaff NSW Black Coal Enterprise Agreement 2018 pays casual mine workers $56.16 an hour, much less than the $66.40 a casual should be paid. The CFMEU is recognised under the agreement. The Fair Work Commission approved the agreement. The underpayment of each casual coalminer each year is $22,623. For FES, in Rockhampton, at a hearing of the inquiry into Labor’s closing loopholes bill we received evidence that the FES agreement 2018 pays casual employee Dwayne Arnold $54 an hour, well short of the $66.40 a casual should be paid. This agreement was made with the CFMEU. The Fair Work Commission signed off on the agreement. The underpayment of each casual coalminer each year is $27,563.

The WorkPac Coal Mining Agreement 2019 provides four different pay rates for a casual mine worker: between $42.99 and $51.38 an hour, depending on the day—all less than the hourly rate of a permanent worker. Calculations use the highest weekend rate even though this is more than what an average mine worker will get. It’s far short of the $66.40 that should be paid. The CFMEU negotiated and approved the agreement. The Fair Work Commission signed it. The yearly underpayment for a casual coalminer is $33,555. The Chandler Macleod agreement in 2020 pays a casual $48.85 an hour, far below the $66.40 that should be paid and less than the hourly rate of a permanent worker on the award. The CFMEU was a bargaining representative for the 2015 agreement, supported its approval and is a party to the 2020 agreement. The Fair Work Commission approved the agreement. The yearly underpayment per mine worker is $39,341.

Let’s go to the TESA group. The agreement in 2022 pays a casual $48.28 an hour, far below the $66.40 that should be paid and less than the hourly rate of a permanent worker on the award. The CFMEU is a party to the agreement. The Fair Work Commission approved it. The yearly underpayment per worker is $40,645. That’s almost $41,000 per year underpaid. Across these agreements a casual mineworker loses on average almost $33,000 every year compared to what they should be paid on the standard casual loading on the award rate.

One Nation challenges each of the parties in this scam. To the labour hire companies, the CFMEU union bosses and the Fair Work Commission, One Nation says: prove to us that our report is wrong. Don’t give us the excuse of the legal construct that you have created to enable and endorse the wage theft. Prove to us that the payments to the coal workers is higher than would be paid if the award allowed casual workers. Prove to us casuals are paid a loading. You will fail. Casuals are not paid a casual loading. It’s wage theft. It’s masterful wage theft. It’s hideous wage theft.

There are potentially tens of thousands of victim mineworkers in the history of dodgy agreements we can track over a decade. The total wage theft is massive. The failure of the Fair Work Commission and the Fair Work Ombudsman is shocking institutional failure. The fact they covered it up after we informed them is a disgraceful failure. It calls into question the entire structure, promise and integrity of the system in Australia that is supposed to protect Australian workers from underpayment, from wage theft.

Nothing in this bill will fix the absolute scandal One Nation has uncovered. Minister Burke’s bill aims to hide those responsible. Failure of the CFMEU bosses is even more obvious. We have a signed letter from the Hunter Valley CFMEU and labour hire company Chandler Macleod. In that letter, the CFMEU promises to never take action against Chandler Macleod for any breaches of worker entitlements. Our report details that the CFMEU has had commercial business dealings in the coal sector for decades. The CFMEU pretends to be a union. In fact, it is one of the employers, the bosses. It started labour hire casuals in the Hunter. It employed labour hire casuals. It started it. This theft must stop. CFMEU union bosses must be held to account for failing to represent workers, for betraying workers. The Fair Work Commission must be held to account for failing to stop dodgy enterprise agreements.

My amendment that I will be moving in the committee of the whole will ensure that those workers underpaid in the black coal industry will receive their fair pay entitlements in full. It adds transparency missing from the Fair Work Act and will ensure that the Fair Work Commission does its job, while the overprescriptive provisions of the Fair Work Act hide or ignore basic protections for workers. The Fair Work Commission has previously admitted that the Fair Work Act does not provide sufficient oversight of the Fair Work Commission when it fails to do its job.

One thrust of Minister Burke’s appalling bill is to cover up and bury Australia’s largest ever wage theft. Thousands of coalminers have each been underpaid on average around $33,000 per year because their union bosses did a shady deal with their employer. I have detailed proof of this. My amendment will put an end to these dodgy deals and enterprise agreements that pay much less than the award and it will ensure workers are reimbursed their stolen wages. Nothing in the closing loopholes No. 2 bill will hold the unions or the Fair Work Commission to account. Instead, Anthony Albanese’s solution is to give union bosses even more power with no accountability and no scrutiny. With what I have detailed in this speech, it’s obvious that that would be simply putting the fox in charge of the henhouse.

The changes contained in the so-called closing loopholes No. 2 bill will be far-reaching and have devastating impacts on the way almost every operation in Australia is forced to do business. We have had countless meetings with unions, small businesses, employees, workers, industry associations, law groups and more. The overarching message that all of them could agree with me on was that the Fair Work Act is simply too complicated for any worker or business to understand. The act is already a bulky 1,341 pages. It’s a sledgehammer that’s killing our economy. It’s so big it has to be split into three volumes so they can print it. It started 15 years ago as just a 652-page act. In the last five years alone, the Fair Work Act has increased by over 300 pages. What hope has someone who runs a bakery? What hope has an individual worker? The only ones who can keep up with all of the legislation changes and the complicated legal sections and find the loopholes are big corporations and big union bosses. They make the loopholes. I call them the industrial relations club. It includes big corporations, industrial relations consultants, lawyers and big union bosses.

Big corporations love a complex Fair Work Act because it stops small businesses who can’t figure out all the red tape from competing with them. Industrial relations lawyers love it because it keeps them in a job. Union bosses love it because it forces them into the conversation, whether the employees want them there or not. That’s why you hear so much support for this bill from the big money players. Genuine small-business owners who are too busy trying to run small operations and to pay their staff don’t have time to write parliamentary submissions or understand some amendments that may come into law. If this bill is passed, the 1,341-page Fair Work Act won’t get smaller and easier to understand. It will make the act longer, more complex, more prescriptive—the opposite of everything we need to fix industrial relations in this country. As a servant to the people of Queensland and Australia, I know only One Nation will fight to make sure workers receive their entitlements, and my amendment will do exactly that. We don’t need a so-called loopholes bill; we need enforcement of the award.

See all related material

Casual Coal Wage Theft

Related Parliamentary Speech and News Article

Labor are Not the Party of the Workers
The Decade-Long Scam Robbing Some of Our Miners
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