Backing in workers at Liberty Bell Bay

GFG Alliance’s financial woes have unfortunately hit the Liberty Bell Bay manganese smelter in Tasmania. AWU members have endured months of uncertainty following the administration of Whyalla, and in May, Liberty advised that the site would enter limited operations from the 16th of June for four weeks until 13 July. Management blame the shutdown on a shortage in ore supply from the Northern Territory, a volatile market, the US tariffs, and ongoing issues in securing finance at the site.

The AWU Tasmanian Branch, alongside the AMWU, MEU and CEPU, have worked together to support members through the process. Unions have asked how the company intended to manage the “limited operations period” and steps the company is taking to resume normal production.

It’s critical that normal production resumes soon, to ensure the ongoing future of the operations. We’ve actively lobbied governments for appropriate support, and discussions between the company and the Federal and State Government and State Business Enterprises are occurring. However, the process in securing ore supply is complex, with the company now forecasting that ore from the NT is not anticipated to arrive until mid-to-late August, due to the delay in finalising commercial discussions. This date also depends on whether an agreement can be reached between the ore supplier, Liberty, and financers.

In addition to lobbying for assistance, the unions have focused on how the company intended to manage the “limited operations period”, more commonly known as a shutdown. The company advised that it would require employees to use Annual leave accruals to cover the period and that employees with insufficient leave would be allowed to go in to a “negative balance”. We questioned the legal basis of this approach, and sought a commitment that should the “limited operations” period extend beyond 13 July, then the company will manage that period as it has in the past, without requiring employees to use accrued leave or go into negative balances. The company subsequently said it was relying upon “Shut Down” provisions within the Annual Leave clause in the EA and were not prepared to confirm how it would manage a shutdown beyond 13 July. The unions did not believe this was reasonable in the circumstances, and went to the Fair Work Commission.

We argued the EA clause is being used unreasonably, as the closed period could be extended. Following proceedings in the Fair Work Commission, the company agreed and have advised employees they’ll be returning to work on the 14th of July, provided finances have been secured. They will provide weekly updates on the status of the limited operations, including financing, and will confirm once terms are reached on financing of the ore, and also when working capital financing arrangements are agreed.

The smelter is a significant part of Tasmania’s industrial landscape, a key local employer, and an important component in Australia’s domestic metals manufacturing sector. And for the unions, it’s a lifeline for hundreds of members and their families. No worker deserves to be left wondering when they can come back to their jobs, when work will start up, and what their future will look like.

That’s why we’ve pursued transparency on current supply chain issues, a clear plan to secure ore to continue operations, and the management of the shutdown. State and Federal governments also need to step up and do their part to ensure ongoing operations at Liberty – whether that’s facilitating negotiations, establishing local procurement policies to lock in ongoing demand for Liberty’s product, or broader industry assistance. We will keep fighting for our members!