BlueScope Steel (AIS) Pty Ltd v Australian Workers' Union, the

BlueScope Steel (AIS) Pty Ltd applied to the Fair Work Commission for permission to alter the "Coke Guide" (Coke Agreement) which governs work arrangements in the Cokemaking Department at its Port Kembla steelworks. The Australian Workers' Union (AWU) opposed the application, arguing that the proposed changes were not safe, efficient, legal or fair. The dispute centred on the proposed abolition of a 15-minute overtime payment to employees as part of the "hot seat changeover" at shift change times. The changeover was intended to maintain production schedules and facilitate information sharing between shifts.

The legal issues before the Commission were whether the proposed change met the criteria of being safe, efficient, legal and fair, as set out in the BlueScope Steel Port Kembla Steelworks Agreement 2015. The AWU bore the burden of proving that the change did not meet these criteria. The Commission found that the change would not compromise safety, was likely to be efficient, and would be legal if BlueScope adhered to the terms of the existing Agreement. However, the fairness of the change depended on whether the existing 15-minute payment was a reasonable estimate of the actual time required for a proper changeover.

After examining evidence from both sides, the Commission concluded that the 15-minute payment was excessive for most employees, as many did not actually perform a hot seat changeover. However, for machine operators and gas processing operators, the payment was considered justified as they did perform a proper changeover. The Commission directed the parties to confer and reach an agreement on how to implement the decision, either by retaining the payment for some employees or reducing it across the board. If an agreement was not reached within 14 days, the Commission would make a final determination.

The Commission's decision focused on the need to eliminate inefficiencies in BlueScope's cost structure to ensure commercial viability, while also recognising the legitimate entitlements of employees who performed a proper hot seat changeover. The decision balanced BlueScope's commercial interests with the need to treat employees fairly.