BHP ordered to compensate workers in pay dispute
The Federal Court has ordered BHP (ASX: BHP) to pay about $84,000 to 85 workers for unlawfully requiring them to work over holidays without providing a reasonable right of refusal.
The workers, employed by BHP’s operations services labour hire arm at its Daunia coal mine in Queensland, were subjected to a random selection process that required them to work the Christmas holidays in 2019 without consultation.
The random selection process used by BHP was considered a fundamental procedural violation of the Fair Work Act Section 114 which provides employees with a right to refuse public holiday work on reasonable grounds.
The Federal Court fined the miner $15,000 on top of the compensation payout.
The Mining and Energy Union (MEU) filed the court case on behalf of the workers, but the case was dismissed by Federal Court Justice Darryl Rangiah in February 2022.
The union appealed the dismissal and was successful in March 2023. A hearing was held in April this year with Justice Rangiah delivering his verdict on Tuesday.
The workers have been compensated between $800 and $2400 each.
MEU Queensland president Mitch Hughes says the financial compensation for workers was an important recognition of their poor treatment by BHP Operations Services.
“These workers were directed to work public holidays with no consultation or agreement,” he said.
“Their names were drawn out of a hat. Some had to find babysitters for children on Christmas Day or missed parents’ and relatives’ last Christmas celebrations.
“While these amounts are small change to BHP, the bigger principle here is that Australian workers can raise reasonable grounds to refuse to work on public holidays.”
This landmark decision establishes crucial precedent regarding Australian mine workers’ rights during holidays, particularly focusing on the fundamental right to refuse public holiday work on reasonable grounds.
“This judgment is a message to all employers in the coal industry and beyond that they must comply with Australian workplace law and community expectations. They can request workers to work public holidays — they can’t compel or command them to and workers can refuse on reasonable grounds,” Mr Hughes said.
“Mining companies traditionally respected the right of workers to spend time with friends and family at important times of the year like Christmas, but this respect has been eroded by the pressure of 24-hour production.”
BHP has also been found to breach the Black Coal Mining Industry Award in relation to public holidays and shift length. BHP has appealed the award judgment, with that matter currently before the Federal Court.