Media Statement 15 December 2023

Orica in breach of portable long service leave laws.

On 5 December 2023, Justice Perram of the Federal Court determined that shotfirers, who work at open cut black coal mines for Orica Australia Pty Ltd, are eligible employees under the Coal Mining Industry (Long Service Leave) Administration Act 1992 (Administration Act), as the Coal Mining Industry (Long Service Leave Funding) Corporation asserted.  

Justice Perram found that the exclusion for shotfirers in the Black Coal Mining Industry Award did not apply to the assessment of eligibility for long service leave entitlements under the Administration Act for shotfirers. Justice Perram found that Orica’s shotfirers, and other personnel involved in the activity of shotfiring, were directly involved in the process of extracting coal at open cut black coal mines and the performance of their duties was directly connected with the day-to-day operation of a black coal mine.  

Coal LSL’s Chief Regulatory Officer, Sharife Rahmani said that Justice Perram’s reasons for decision provide important guidance regarding the determination of employee eligibility for the Coal LSL scheme and the performance of our functions.   

“The Court’s ruling confirms our interpretation of the eligibility criteria under our legislation for employees of companies, such as Orica, which provide shotfiring services at open cut black coal mines across Australia.”   

“It will also provide guidance to industry regarding the interpretation of our legislation. Following the determination, we will continue to work with companies who employ eligible workers at black coal mines across the nation to ensure they meet their obligations under the legislation. The ramifications of non-compliance are becoming increasingly apparent,” Mr Rahmani said. 

Background 

• Justice Perram delivered his judgment on 5 December 2023. The full judgment is available here. 

The Coal Mining Industry (Long Service Leave Funding) Corporation (Coal LSL) is the custodian and regulator of the long service leave scheme. The Commonwealth scheme was established in 1949 for employees within Australia’s black coal mining industry. It constitutes a unique national long service leave arrangement for the black coal mining industry whereby an eligible employee accrues long service leave based on their service in that industry, rather than service with a particular employer.