What is Coal LSL Hiding?

Simon Turner, a coal miner from the Hunter Valley, suffered a workplace injury and has missed out on his entitlements, including long service leave, for 9 years. I have consistently questioned Coal Long Service Leave (LSL) at previous Senate Estimates and did so again in October.

The CEO of Coal LSL, Ms Darlene Perks’ responses to my questions were clearly not co-operative and were defensive.

Transcript

Senator ROBERTS: Thank you for appearing tonight. You have the last gig, as usual!

Senator Watt: We’re saving the best for last!

Senator ROBERTS: At estimates on 30 May this year, right here, I asked Ms Perks for the contracts between Coal LSL and AUSCOAL for the years 1993 through to 2017. I was eventually provided with only three
unredacted contracts for the years commencing 1 July 2006, 1 July 2008 and 1 July 2012. That’s only three out of the 25 documents. Why were the rest not provided?

Ms Perks: The three contracts that have been provided were the documents that we have been able to access from the archives. The contracts were for more than a one-year term, so I don’t think it’s fair to say that 25 were missing. But it is fair to say that the three we have provided are the three that we have been able to access from the archives.

Senator ROBERTS: That’s all?

Ms Perks: They are the three that we have been able to access.

Senator ROBERTS: You could only access those three?

Ms Perks: That’s correct.

Senator ROBERTS: Wow! Is there any other place that you can look—any other source?

Ms Perks: We’ve exhausted our resources.

Senator ROBERTS: Okay, I place on record your noncompliance with the original request and your reason is now on record as well. Why did Coal LSL pass on the administrative responsibilities of Coal LSL to AUSCOAL?

Ms Perks: I can’t comment on a decision of the board back in that period of time.

Senator ROBERTS: Do you meet with the board? Or did you meet with the board at that time? When the board met, were you in attendance?

Ms Perks: Senator, you’re talking about a period which was before my employment. I think this was part of the discussion—

Senator ROBERTS: That’s true. Did the responsibilities that the board of Coal LSL passed on to AUSCOAL include collecting long service leave levies from employers?

Ms Perks: The contracts that have been shared with you certainly included the collection of levies as one of the responsibilities included in the outsourced administration contract.

Senator ROBERTS: When did that first happen, and over which years? Right from the start of the contract, was it?

Ms Perks: My recollection is that AUSCOAL, as a service company, were contracted by the entity from 1993.

Senator ROBERTS: Right from the start. It was reported in annual reports that over those years Coal LSL had no employees—is that true?

Ms Perks: That was my answer at the previous estimates.

Senator ROBERTS: Yes. So you were employed by AUSCOAL during those years?

Ms Perks: I answered that question at previous hearings, and the answer doesn’t change.

Senator ROBERTS: Did you cease working for Coal LSL—I don’t think we’ve asked this question before—when employed by AUSCOAL? I’m guessing that would be yes.

Ms Perks: Coal LSL only started employing employees from 2017. Again, that was the information I provided in the previous hearing.

Senator ROBERTS: Do you know why AUSCOAL ceased providing services to Coal LSL?

Ms Perks: Sorry, AUSCOAL providing services to Coal LSL? Is that your question?

Senator ROBERTS: Yes. Why did they go to Coal LSL doing its own work?

Ms Perks: That was a decision by the board of Coal LSL at the time, to insource the operations.

Senator ROBERTS: You weren’t necessarily on the board, but you were present as general manager then?

Ms Perks: I was not part of the board discussions.

Senator ROBERTS: So you weren’t sitting in on the board meetings?

Ms Perks: Not when the decision was made.

Senator ROBERTS: So you were then re-employed by Coal LSL?

Ms Perks: Coal LSL ran a national search for the role of CEO. I applied, I was successful through that process and I was appointed into the role of CEO.

Senator ROBERTS: AUSCOAL was part-owned—50 per cent—by the CFMMEU. When was that changed from the original statutory—

Ms Perks: I can’t comment on the shareholding structure.

Senator ROBERTS: It was before your time?

Ms Perks: I can’t comment.

Senator ROBERTS: Just thinking about it now, my recollection is it was quite a while ago. Do you know if AUSCOAL collected the levy and made a profit from holding the accumulated funds under a government
scheme?

Ms Perks: I can’t comment on AUSCOAL’s profit and loss. I didn’t have visibility of it. It wasn’t part of my role.

Senator ROBERTS: The CFMMEU is one of the owners of AUSCOAL. It has a 50 per cent share?

Ms Perks: It’s not part of my role to be concerned with the shareholding of AUSCOAL.

Senator ROBERTS: Do you know, though?

Ms Perks: I am not going to comment on that.

Senator Watt: Senator Roberts, I think the question—

Senator ROBERTS: Okay. I have seen Ms Perk’s reluctance to answer.

Senator Watt: That’s not fair. She is here, as all other witnesses are, to answer questions about the activities of the organisation she is representing, not provide information about shareholdings in companies external to the organisation.

Senator ROBERTS: I was going to ask which entities made a profit from this arrangement based on moneys paid by the coal companies, but it’s outside your purview. Minister Watt, I don’t know if you would know the
answer to this, but it is not a question for Ms Perks. Is it true that 2011 legislation under the auspices of Bill shorten enabled casuals to be covered by Coal LSL arrangements? They actually changed the Coal LSL
legislation, I understand, even though casuals are not covered under the black coal award.

Senator Watt: I don’t know the answer to that. That is talking about events from four or five Prime Ministers ago.

Senator ROBERTS: That’s correct, but it’s affecting miners right now. Prior to that, there was no way that someone who was a casual could be on Coal LSL.

Senator Watt: I don’t know the answer to that question.

Senator ROBERTS: Bill Shorten’s legislation, I understand—I was hoping for confirmation—opened the door for that.

Ms Perks: The change of legislation in 2011 did change the eligibility rules under the scheme, and the eligibility rules that are still current under section 4 of the admin act talk about the duties of the employee. That is
the explanation I’ve provided in several hearings—that the eligibility rules do not refer to the employment relationships and industrial relations of the employee. So, yes, they were the changes in 2011 that were
implemented as part of the administration act amendment.

Senator ROBERTS: Thank you.