Fair Work Commission Declares Ulan Underground Bargaining Intractable MEU Vindicated as Commission Rejects Glencore Claims and Orders a Path Forward

The Mining and Energy Union has welcomed a Fair Work Commission decision declaring bargaining at Glencore’s Ulan Underground mine intractable. The decision confirms workers were right to seek intervention after almost two years of stalled negotiations, two failed votes and no pay rise since March 2023.

Deputy President Roberts issued the declaration on 5 December and ordered a 21 day post declaration negotiating period. The Commission rejected Glencore’s claim that the MEU had “strategically disengaged” from bargaining and found the union had acted in good faith throughout the process. The Commission recognised that workers had endured an unreasonably long period without agreement or wage movement.

“Our members have been bargaining for nearly two years. They have taken protected action, rejected substandard agreements and made every effort to get Glencore back to the table. It is a shame it has had to come to this, but we are glad we have strong workplace laws in this country that can hold powerful multinational companies to account. This decision confirms what workers here have known for a long time. Glencore was not seriously trying to reach a fair deal with us” said Craig Carberry, MEU South Western District Vice President.

The Commission found that:
• The MEU genuinely engaged in bargaining, including after filing the application.
• Claims that the union disengaged for strategic reasons were unfounded.
• Two overwhelming “no” votes showed clear worker opposition to Glencore’s proposals.
• The lack of a pay rise since March 2023 was a significant factor that supported intervention.
• It was not reasonable to excuse the lack of progress by relying on the idea that bargaining in the coal industry generally takes a long time.

In its decision, the Commission stated:

“There is no doubt that the MEU has been engaged in genuine bargaining with Ulan over many months… I do not accept that there has been ‘strategic disengagement’ on the part of the MEU.”

“Workers covered by the 2021 Agreement have not had a pay rise since March 2023… this weighs in favour of a conclusion that it is reasonable to make an intractable bargaining declaration.”

The declaration follows months of industrial action by Ulan Underground workers who have been fighting to close the unfair pay gap with Glencore’s neighbouring Ulan West mine. Employees performing the same work for the same company receive significantly higher rates at Ulan West. Workers at Ulan Underground also rejected Glencore’s attempt to introduce longer maximum shifts, remove crib breaks and impose a bonus structure that undermines both safety and take home pay.

“Our members want a fair deal that brings them into line with Glencore workers next door, protects safety and recognises the cost of living pressures families are under,” Mr Carberry said.

“The Commission’s decision backs in everything workers have been saying. We will use the next 21 days to push for a fair outcome. If Glencore still will not move after all this time, a workplace determination will decide the matter.”

The MEU remains ready to participate in genuine negotiations throughout the 21 day post declaration period, which runs from 5 to 26 December.