The Fair Work Commission's decision to compel three NSW coal mining companies into multi-employer bargaining represents an alarming shift in Australia's industrial relations landscape that will have broad ramifications for the Australian economy.
Forcing Whitehaven Coal, Peabody Energy, and Ulan Coal Mines into a joint bargaining process, the ruling sets a dangerous precedent that heightens the risk of widespread industrial action and the disruption of key industries and delivers yet another hit to investor confidence and job security.
This decision, set in train by the Albanese Government's reckless changes to workplace law, will reduce the mining industry's competitiveness at a time when the Australian economy needs it to be strong and productive, especially given the current global economic headwinds.
This is not just a setback for the employers involved; it threatens to destabilise Australia's entire industrial relations framework. By granting the union APESMA's application to force the employers into 'bargaining', the Commission has paved the way for protected industrial action that could shut down all three mines as well as force compulsory arbitration if no agreement is reached.
This could result in the Fair Work Commission stripping these companies of their right to negotiate with their own workers, and forcing them into one-size fits all, industry-wide terms that would undermine their operations. This would represent a fundamental reversal of four decades of policy change away from industry-wide wage fixing to enterprise bargaining, a principle that, until now, had enjoyed bipartisan support.
The implications extend far beyond these four companies. The Albanese Government's changes allow for additional employers to be forced into this multi-employer bargaining framework against their will, potentially dragging entire industries into a system that could cripple their ability to operate effectively and competitively.
This exposes the sector to industry-wide strikes in what would be an unmitigated disaster for the Australian economy and jobs.
Of particular concern is the ripple effect such a decision could have on the broader economy, with unions now empowered to rope together businesses in other major industries, including manufacturing, retail, supermarkets, and banking, merely because they operate in the same industries, despite clear differences.
The Albanese Government's handling of this issue has been nothing short of alarming. Prior to the 2022 election, it promised that multi-employer bargaining would not be part of its policy platform, with the then Opposition stating: 'It's not part of our policy.'
The former minister Tony Burke also assured businesses, particularly those on the east coast with enterprise agreements, that they would be excluded from this regime.
These assurances have proven hollow, and the government has blatantly reneged on its commitments.
This FWC decision could destroy enterprise-level bargaining in Australia, creating uncertainty for many businesses and jobs. The effects of this decision will be widespread.
The government had claimed an outcome like this would not happen, but it is exactly what its legislation has now delivered.
