A cargo of wheat loads at CBH’s Kwinana terminal. Photo: CBH Group

CBH GROUP employees at the Kwinana Grain Terminal have been locked out in the latest move around stalled enterprise-agreement negotiations.

The lockout has taken place during the September 1-15 maintenance period for Western Australia’s biggest grain export terminal, and will affect 130 workers.

It comes amid planned rolling 24-hour stoppages by 24 plant maintenance workers, members of the Maritime Union of Australia and the Electrical Trades Union,

CBH chief people officer Jacky Connolly said the lockout came into effect from 5.30am on Monday, and would “remain in place until further notice”.

“We acknowledge this is a significant step, particularly for those directly affected,” Ms Connolly said.

Grain Central understands this is the first lockout at a CBH facility since the 1980s.

“The decision follows five weeks of ongoing industrial action, including notification from the unions on 25 August regarding 24-hour rolling stoppages scheduled from 1-6 September, as well as additional notices of protected industrial action as recently as 29 August.”

MUA WA branch secretary Will Tracey said locking employees out of the site with less than 10 hours’ notice was an unconscionable move.

Mr Tracey also criticised CBH for its treatment of union members during the previous industrial action, which included partial work bans and shorter work stoppages.

He said CBH told staff they would receive just 9pc of their daily pay if they refused to carry out isolations, a task that normally makes up less than 10pc of their work.

“This is an extremely aggressive act of provocation by CBH, especially coming on the back of stripping 91pc of maintenance workers’ income when they perform bans representing less than 10pc of the work they do on any normal day,” Mr Tracey said.

“Locking out the entire workforce of 130 workers off the back of 24 maintenance workers refusing to work when their pay has been cut by over 90pc represents the worst of corporate bastardry.”

Maintenance to proceed

The terminal’s maintenance window is the only one before the winter-crop harvest and export program ramps up from November.

Ms Connolly said CBH had taken steps to ensure operations and maintenance could continue as scheduled.

“CBH has put in place measures to maintain safe and reliable operations and to ensure critical maintenance, including the annual shutdown, can proceed as planned.

“While the business impacts of the industrial action have been minimised to date, the ongoing industrial action has negatively impacted the co-operative and created an environment of uncertainty in relation to ongoing operations at [KGT].

“We respect employees’ rights to take protected industrial action.

“However, we must also ensure that our operations can continue safely and sustainably for the benefit of Western Australian agriculture and the broader community.”

Grain Central understands that CBH typically employs specialty contractors, alongside permanent employees, to undertake maintenance duties during shutdowns.

Contracted employs are still allowed access to the site during the lockout.

However, Grain Central understands there has been some anger from contractors due to receiving no notice of the lockout taking place.

There are reports some contractors are ceasing or threatening to cease undertaking the maintenance work during the lockout period.

Negotiations ongoing

The parties are due to meet today to continue EBA negotiations.

The unions and CBH appear no closer to reaching an agreement, with the company offering an annual wage rise of 2.5pc, while the workers are seeking a 6pc per year bump.

This comes amid a wider gap between what each side is willing to offer and accept across a range of other entitlements.

Mr Tracey said the unions’ requests were modest considering Australia was suffering from a cost-of-living crisis.

“The workers at CBH have gone above and beyond to support the farming communities in getting their grain out to our export partners and this is how they’re treated in response to a modest wage increase request and a refusal to work basically for free.”

Ms Connolly said the company had been negotiating in good faith with the unions since March.

“CBH is committed to continued dialogue and fair negotiation to resolve this matter and ensure the ongoing strength of our operations and the Western Australian grain industry.

“We understand the impact that this situation has on our employees, their families, and the broader community.

“Our priority remains to reach a reasonable and sustainable agreement as soon as possible.”

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