BUSINESS is asking why the federal government has gone missing in action as emboldened unions extend industrial relations action across the state’s north-west in a series of costly moves being noted by investment and commodity markets.
Australian Mines and Metals Association chief executive Steve Knott blasted the failure of Deputy Prime Minister Julia Gillard to take action to stop the crippling and unjustified industrial action taken by Pilbara maritime and gas construction workers.
Mr Knott said AMMA had repeatedly asked Ms Gillard to take action before Christmas, including a formal request for ministerial intervention on December 18.
“She sat on her hands and we’ve had $20 million worth of damage occur, let alone having our international IR reputation trashed, over the last month,” he said.
Mr Knott said the federal government’s changes to industrial relations laws had created an opportunity for militant unions to try to regain a foothold in WA’s resources sector after 20 years of industrial stability.
If left unchecked, it was only a matter of time before that began to flow through to investment in major resources developments, he said.
“People are watching how things unfold in the North West with a close eye,” Mr Knott told WA Business News.
“You are talking about investment decisions worth tens of billions of dollars that need to be made, and IR is ... critical to whether they invest their money in Australia.”
The latest issue is a strike at Woodside’s Pluto project construction site where unions, notably the Australian Manufacturing Workers Union, have complained about the process of allocating temporary accommodation known as ‘motelling’.
The practice is widespread across the industry, and Woodside says the resulting 25 per cent increase in accommodation capacity is vital.
On Friday, an estimated 1,000 Pluto workers walked off the job after being threatened with eviction from the accommodation at Gap Ridge by Woodside and contractor Foster Wheeler Worley.
A second strike this week went ahead despite the previous action being ruled unlawful by Fair Work Australia.
Meanwhile, the Maritime Workers Union’s campaign for huge pay rise for seamen working in the oil and gas industry is estimated to be costing the sector more than $1 million a day.
Chamber of Commerce and Industry WA workplace relations policy manager, Marcia Kuhne, believes unions have become a lot more confident under the Labor government’s changes, which grant them more power to enter workplaces and represent workers in collective bargaining.
