Win for contractors: Chandler loses appeal over redundancy pay


Chandler Macleod has lost its appeal against a legal win by our union determining that it must pay redundancy pay to former employees at the Hunter Valley’s Mount Arthur coal mine.

The Fair Work Commission rejected Chandler’s attempt to overturn a previous decision that it owed redundancy pay to permanent employees who lost their jobs when Chandler lost its Mt Arthur contract to Programmed last year. As a result of unsuccessfully tendering for the contract, Chandler terminated the employment of its employees working at the mine, by way of redundancy.

Most Chandler employees successfully obtained employment with Programmed; however, the Fair Work Commission dismissed an application by Chandler that they should not have to pay out redundancy pay. In the original decision, the Commission has determined that employees gained employment with Programmed through their own efforts and eligible permanent employees should be paid redundancy entitlements according to the National Employment Standards. In dismissing Chandler’s appeal, the Commission reinforced this decision.

Northern Mining and NSW Energy District President Robin Williams said the decision was a great win for contractors in the industry.
“Working together through the union is the only way coal mineworkers can successfully take on their employer and win, whether they work for a mine operator or labour hire company.

“Chandler must now take heed of these two clear decisions by the Fair Work Commission and pay its former employees what they are owed.”


Back to issue: October 2022