4 yearly review of modern awards – Accident pay – Transitional provisions

In the Fair Work Commission, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) challenged a decision by the Minister for Employment to reduce the period of accident pay under the Black Coal Mining Industry Award 2010. The Minister had reduced the period of accident pay from 52 weeks to 26 weeks during the four-yearly review of modern awards. The CFMEU argued that this reduction was unlawful and sought to have the decision overturned. The Commission was required to determine whether the Minister's decision to reduce the period of accident pay was lawful and whether the transitional provisions in the Award were valid.

The Commission considered the legal framework governing the review of modern awards and the process for varying awards. The Commission noted that the Minister had the power to vary awards during the four-yearly review, but that any variation must be lawful and not exceed the Minister's authority. The Commission also considered the transitional provisions in the Award, which provided for a reduction in accident pay benefits during the period of the Award. The Commission held that the Minister's decision to reduce the period of accident pay was lawful and that the transitional provisions in the Award were valid. The Commission found that the reduction in accident pay benefits was necessary to ensure that the Award remained competitive and that the coal mining industry remained viable.

The Commission concluded that the Minister's decision to reduce the period of accident pay was lawful and that the transitional provisions in the Award were valid. The Commission dismissed the CFMEU's claim and affirmed the Minister's decision. The Commission noted that the reduction in accident pay benefits was necessary to ensure that the Award remained competitive and that the coal mining industry remained viable. The Commission also noted that the transitional provisions in the Award provided for a gradual reduction in accident pay benefits over time, which allowed employers and employees to adjust to the changes. The Commission held that the reduction in accident pay benefits did not amount to an unlawful deprivation of property and did not breach any relevant human rights instruments. The Commission also held that the transitional provisions in the Award were necessary to ensure that the Award remained effective and that the coal mining industry remained viable. The Commission ordered that the Black Coal Mining Industry Award 2010 be varied so that the period of accident pay is 52 weeks, effective from 1 July 2021.