The Sydney Morning Herald
http://www.smh.com.au/news/9905/13/text/national13.html

Industrial verdict a blow to Rio Tinto

Date: 13/05/99

By HELEN TRINCA

In a blow to the attempt by the mining company Rio Tinto to bypass the
Australian Industrial Relations Commission, the commission will finally
intervene to force a settlement in the long-running dispute in the Hunter
valley coalfields.

The decision clearing the way for the commission to arbitrate after two
years of industrial warfare at the Hunter Valley Number 1 mine is also a
setback to the Federal Government's moves to sideline the commission in
industrial disputes.

Rio Tinto's struggle to negotiate outside the commission has been seen as a
major element of the Government's efforts to deregulate the labour market,
and the decision boosts the power of unions to call for old-style
arbitration on the grounds of protecting public welfare or the national
economy.

Workers at the mine have consistently rejected the firm's attempts to
introduce changes via a collective agreement, voting down five separate
offers since April 1997 and battling for a return to arbitration since last
November. Despite the impasse, the company pursued retrenchments on merit,
dismissing 115 men last year to cut the workforce to 208.

The Construction Forestry Mining and Energy Union said last night that the
mine had "made a motza" last year and that the "full range of wages and
conditions" was now up for grabs. The general president of the mining and
energy division, Mr Tony Maher, said: "Rio Tinto is rolling in dough and it
will be very interesting to see what the commission does."

However, the general manager at the mine, Mr Allan Davies, warned that pay
rises would be delayed by the return to arbitration, with the union's
demands for restrictive work practices coming under the commission's full
glare. "The losers in this drawn-out process have been the employees," he
said. "They have been misled by their union into waiting for more than two
years for a pay rise."

The saga over commission intervention began in November 1997 when, after an
eight-week strike, Justice Alan Boulton ordered an end to the bargaining
period to force a settlement.

This was a shock to the Federal Government and the company, which wanted
direct negotiations with workers under new workplace relations laws. Rio
Tinto appealed and a full bench of the commission quashed the order. The
union retaliated and won an appeal last November to the Federal Court,
which ordered the same full bench of the commission, headed by the
president, Justice Giudice, to rehear the case.

Yesterday, the full bench ruled Justice Boulton's 1997 decision must stand
and that arbitration should go ahead in July. The judgment has impact
beyond Rio Tinto because it makes clear a full bench of the commission has
limited room to move in reviewing any order to intervene.

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