AWU Victoria Secures Major Victory for Workers in Classification Dispute

The Australian Workers’ Union has won a significant victory for maintenance workers at the Geelong Refinery, after the Fair Work Commission ruled against UGL’s attempt to downgrade workers’ classifications and freeze their wages.

In a decision handed down by Deputy President Colman on October 31, the Commission determined that UGL cannot reclassify workers to lower positions or halt their wage increases, even if a recent skills review suggested some workers didn’t meet all competency requirements for their current level.

This victory stops wage cuts through the back door,” said Victorian Branch Secretary Ronnie Hayden. “When workers voted for this agreement, they were promised the classification review would recognise their skills with better pay. UGL’s attempt to instead use it for downgrades and wage freezes was cynical and wrong. The Commission’s decisive ruling protects workers from having their classifications and wages cut through creative interpretations of agreements.”

The dispute arose following a classification review at UGL’s Geelong Refinery maintenance operations. When promoting the Enterprise Agreement to workers, UGL had described the review as a “key benefit” that would likely result in “further increases as skills are recognised.”

However, after completing the review, UGL attempted to:

– Reclassify some workers to lower classifications

– Freeze affected workers’ pay rates until lower classification wages caught up through annual increases

Deputy President Colman’s decision was unequivocal: ‘The question is whether the Agreement allows UGL, when implementing the classification review, to reclassify employees to lower classifications and freeze their pay … The answer to that question is that the Agreement does not permit UGL to do either of these things.’

The Commission emphasised that if workers have skill gaps, the appropriate response is additional training, not demotion or wage freezes. This aligns with the Agreement’s focus on developing “trained, skilled and competent employees.”

The decision ensures that:

– Workers maintain their current classifications and professional status

– All scheduled wage increases will continue as normal

– Any skill gaps will be addressed through training rather than penalties

– Workers are protected from potential career impacts of downgrading

This victory highlights the importance of union representation in protecting workers’ rights and ensuring fair interpretation of workplace agreements. The decision sets a significant precedent for how classification reviews should be conducted and implemented across the industry.

“This outcome demonstrates why it’s crucial for workers to have strong union representation,” said Patrick Wood, AWU Victoria Chief of Staff and Organiser of UGL AWU Members ” When companies try to interpret agreements in ways that disadvantage workers, we’re here to fight for our members’ rights and ensure promised benefits remain exactly that, benefits.”