Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd
Citation: [2014] FCA 1431
At a glance
- Employees affected
- 2500
What happened
BHP Coal Pty Ltd operated five coal mines in Queensland with approximately 2,500 permanent employees under an enterprise agreement that included a consultation clause. Due to economic conditions and falling coal prices, BHP Coal decided by 23 September 2014 that a business restructure was necessary and that there was a surplus of permanent employees that could not be addressed through natural attrition. The union sought orders to require proper consultation before redundancies were implemented.
What was decided
The court found there was a serious question to be tried as to whether BHP Coal failed to comply with clause 32 of the enterprise agreement requiring consultation about the possibility and management of redundancies. However, the court refused the application for interlocutory injunction, finding the balance of convenience did not favour preventing the redundancy process. The employer could pursue the redundancy process while the substantive claim was heard.
What it means for employers
Enterprise agreements imposing consultation obligations for redundancy require genuine consultation before implementation. However, courts are reluctant to grant interlocutory injunctions preventing redundancy decisions, particularly where the employer is facing genuine business difficulties.
What it means for employees
Employees covered by enterprise agreements have consultation rights before redundancy, but these are difficult to enforce through interlocutory relief. Substantive claims for breach of consultation obligations may succeed but damages may be the remedy rather than prevention of redundancy.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections