CBH resumes lockout of Kwinana union employees, installs alternative workforce amid looming harvest

WA’s grain-exporting giant has resumed a lockout of union employees at Kwinana and installed an “alternative workforce” after a breakdown in enterprise bargaining negotiations. The lockout resumption at Kwinana Grain Terminal follows the end of an extended cooling-off period recommended by the Fair Work Commissioner, who mediated the latest round of negotiations. CBH, the Maritime Union of Australia, and the Electrical Trade Union have been slugging it out over a pay increase since March, with wharfies resorting to a week-long strike after their pay was docked by 90 per cent following industrial action that began on August 24. CBH chief people officer Jacky Connolly said the decision to reinstate the lockout after the end of the cooling-off period was made with “careful deliberation”. “CBH as been bargaining in good faith with the unions and bargaining representatives for the past seven months spanning 24 bargaining meetings,” she said. Amid the battle between the unions and the grain exporter looms a bumper harvest — forecast at 23.68 million tonnes worth between $8 billion and $10b — WA’s third-largest crop on record. The lockout for all employees covered by the proposed agreement resumed at 5.30am on Wednesday. Ms Connolly said it would continue indefinitely. More than 130 workers have been affected by the drawn out negotiations with CBH, which MUA WA branch secretary Will Tracey said also threatens the “timely handling” of a record harvest. “A number of issues remain in dispute, but the union was working in good faith to resolve these differences through negotiation,” he said. “This has been completely undermined by the company’s latest lockout and their brazenly deceitful and combative behaviour overnight.” A Japanese unionist group, Zenkoku-Kowan — or National Federation of Dockworkers’ Unions of Japan — has also weighed in on the dispute between CBH and the trade unions, expressing support for the wharfies; “an injury to one is an injury to all”. In the open letter from Hajime Tekeuchi, Zenkoku-Kowan president, vowed to report the lockout at Kwinana to the International Transport Workers’ Federation, shipowners, cargo handlers, and all ITF affiliates and the ITF Inspectorate in Japan. “Most concerning is the news that scab labour is being used on or in connection with the Ken Ann, and will be sailing to Hakata, Japan,” Mr Tekeuchi said. “Japanese dockworkers will never allow scab workers and those who hire them to be rewarded for attacking collective bargaining rights and undermining the employment relationship in such an aggressive anti-union way.” CBH did not comment on the letter directly, instead stating its focus lies on the beginning of harvest — with 55 tonne of barley delivered to the co-operative’s Chadwick site near Esperance on October 12. “There is a bargaining agreement scheduled for this Wednesday (October 15), and we had offered to meet earlier with the unions and bargaining representatives,” Ms Connolly said. “We look forward to progressing discussions for a fair and sustainable deal that works for all parties.” A spokeswoman for the WA State Government said it was aware of the negotiations between CBH and the union employees, but did not answer whether there was any concern on potential impacts of the grain trade with Japan. “The State Government is aware of the dispute and received a copy of the open letter when it was circulated,” she said. “This is a matter for CBH. We encourage all parties to negotiate in good faith.” Negotiations between the grain exporter and trade union employees have been ongoing for more than a month, with the last two facilitated by the Fair Work Commission. An offer by CBH that included an increase to the headline wage offer was made to the unions on October 3. The Countryman understands all but three employees voted down CBH’s latest offer. “We recognise that reinstating the lockout is a significant decision, but in light of, and in response to, ongoing industrial action taken by the workforce, it ensures operations can safely continue,” Ms Connolly said. “While the business impacts of the industrial action have been minimised to date, with harvest around the corner we have had no option but to put in place an alternative workforce.” Ms Connolly said CBH was committed to securing a viable agreement with MUA and ETU member employees. “We understand the impact that this situation has on our employees, their families, and the broader community,” she said. “Our priority is to get a fair and sustainable deal done that works for all parties.”