Union to pursue legal action against resource companies for FIFOs

The Fair Work Commission has ruled in favour of an application by the Electrical Trade Union (ETU), who will now pursue legal action against major resource companies for millions of dollars in unpaid termination payments for fly-in fly-out (FIFO) workers.

The ETU launched the case on behalf of 150 FIFO workers retrenched by Kentz Australia, the principal electrical contractor on the $34 billion Inpex Ichthys LNG project in the Northern Territory.

The union said the workers were made redundant on the final day of their four-week shift, just prior to them commencing one week of recreation leave, and had their termination payout reduced by counting the unpaid rostered leave as part of their notice period. The ETU argued it was unlawful for the company to have the notice period run concurrently with rest and recreation leave.

The FWC agreed with the union and ordered Kentz Australia to pay more than $1 million to the workers.

ETU National Legal Officer Michael Wright said the case sets a significant precedent for other FIFO workers who had been terminated in similar circumstances in the NT, Western Australia and Queensland, including on the major Gorgon, Curtis Island and Roy Hill projects.

“This victory won’t just see these 150 electricians receive additional payment, it opens the door for thousands of other FIFO workers who have been denied notice pay in breach of minimum conditions on major resource projects across Australia,” Wright said.

“This decision by the FWC has put resource companies and their contractors on notice that they cannot use the unique vulnerabilities of a FIFO workforce to attack basic employment rights.”

He said the ETU has launched a review and has already identified over 3000 FIFO workers that have been denied more than $10 million of entitlements in the same way.

“We expect that many more claims from people in similar circumstances from around Australia will follow,” Wright added.