McDermott Industries (Australia) Pty Ltd is contracted by Esso Aust. Resources Pty Ltd as a key contractor on the Kipper Tuna Turrum Project in Bass Strait. It also supplies a barge, DB30, the main support and construction vessel for the project. Brunel Technical Services Pty Ltd (Brunel) supplies the trade labour to McDermott Industries, including riggers, scaffolders, crane operators and others. Trades labour employees are eligible to be members of the Australian Workers Union (except for electricians, mechanics and welders)
On 25 March 2011 Fair Work Australia (FWA) made orders directing the AWU, delegates and employees to stop industrial action. Despite the order, industrial action occurred for 5 days.
On 11 April 2011, Brunel sought orders from FWA against the Australian Workers Union (AWU), its officers, employees, agents and delegates to stop further industrial action on the Kipper Tuna and Turrum Project. The ABCC used its powers under s72 of the BCII Act to appear before FWA in support of this application.
Employees are covered by the relevant enterprise agreement, the Brunel Technical Services Pty Ltd Kipper Tuna and Turrum Project Agreement 2010 which has a nominal expiry date of 30 June 2012. The industrial action is unprotected because it has been organised or engaged in before the nominal expiry date of the current agreement.
It is alleged that delays caused by industrial action have cost approximately $1.5m per day.
On 15 April 2011, Commissioner Blair granted the order under s418, ruling that industrial action must not occur for the life of the Brunel Technical Services Pty Ltd Kipper Tuna and Turrum Project Agreement 2010. The nominal expiry date of the Project Agreement is 30 June 2012.
Commissioner Blair noted that industrial action had occurred multiple times in the short lifespan of the project, the AWU had ignored interim orders to stop industrial action on two occasions, the AWU had ignored undertakings to abide by dispute resolution procedures, and industrial action is highly probable on the site.