Federal Court intervenes in Fair Work Commission arbitration over unpaid wages dispute

The dispute involves unpaid wages for workers unable to work due to locked entry points

Federal Court intervenes in Fair Work Commission arbitration over unpaid wages dispute

The Federal Court stopped arbitration proceedings before the Fair Work Commission over a dispute concerning unpaid wages for workers unable to perform their duties due to locked ingress points.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) initiated arbitration against UGL Rail Services in the Fair Work Commission. The union argued that the UGL workers were prevented from working due to chains and padlocks placed by third parties at the worksite entrances. UGL workers were required to access their workplaces within the Cross River Rail worksites but found all entry points locked on April 30 and May 1.

Despite being informed by UGL management that the worksites were open, the workers did not enter and subsequently did not work on May 2 and 3 either. The CEPU contended there was no legal basis for non-payment of wages since its members did not apply for leave without pay.

UGL argued that the workers' failure to attend work constituted unprotected industrial action under the Fair Work Act.  The CEPU asserted that the workers attempted to attend work but were physically prevented by the chains and padlocks. They argued that such circumstances do not meet the definition of industrial action under the Fair Work Act.

The Federal Court found serious questions to be tried, particularly whether the workers engaged in unprotected industrial action and whether UGL was required to pay wages for the relevant days. Given its jurisdictional limitations, the court also considered whether the Fair Work Commission could appropriately arbitrate the dispute.

The court emphasized the potential for conflicting decisions between the Fair Work Commission and the Federal Court, highlighting the importance of judicial oversight in matters involving civil penalty provisions.

Accordingly, the court ordered an injunction to halt the arbitration before the Fair Work Commission, remitting the matter to the National Operations Registry for urgent allocation to a docket judge.