HRM220 – Managing Employment Relations – Case Study – Economics Assignment Help

Assignment Task

 

Danger at Acton Mining
Acton Mining Company owns and operates an underground gold mine, the Dardan Mine, in western Queensland, as well as other mining operations throughout Australia. The Acton Mining Company has just purchased the Carapilla Mine from a competitor company. The Carapilla Mine about 500 kms away from Dardan has been closed for six months, considered economically non-viable by the previous owners. Acton’s Managing Director decides that by purchasing the Carapilla Mine, and restructuring and rationalising operations between the two mines, they can make more profit.
As part of the rationalisation and restructuring of the two mines, and to meet its strategy for best practice in mining and its obligations for a safe, productive and diverse workplace, Acton Mining introduces a range of new HR policies to coincide with the reopening of the Carapilla Mine.
The first of the policies relates to the use of fly in- fly out (FIFO) workers. Although some of the miners who previously worked at the Carapilla Mine when it was last operational still live locally in a nearby township and are keen for employment, Acton Mining’s management has decided to use a FIFO operation for the Carapilla Mine. Acton Mining had developed a township around the Dardan Mine when it was first established but has determined that it would be more economical and would fit with current mining practices to recruit their miners broadly and have them fly in as required. They arrange for a recruitment company with expertise in the mining industry to locate suitable workers, organise pre-employment medical screenings for them and prepare them for company inductions.
Zoe Klimmer applies for a position with Acton Mining and is accepted. She lives in Brisbane but is prepared to work under the FIFO system. She will fly from Brisbane to Mount Isa by commercial aircraft and will then be flown on a small chartered flight from Mount Isa to the mine site. She will live in shared motel style accommodation while on site, and will work 12-hour days, 6 days per week for 4 weeks. She will then have 7 days off (inclusive of travel time), with flights back to Brisbane. Zoe, like all the other FIFO workers will alternate work between the Dardan and Carapilla mines. Zoe and her family are prepared to put up with the inconvenience of her working away because the money is good. Zoe is among the first group of miners to work at the Carapilla after it reopens.
Acton Mining’s experience with FIFO workers is going well except for one thing. The mine is in the middle of nowhere, there are few facilities provided, and the workers don’t have access to vehicles to take them to the small town an hour’s drive away. Subsequently the employees start bringing alcohol onto the site in their luggage, and spend their off-work hours drinking. After the Carapilla Mine had been operating for six months, Acton Mining announced another new policy – mandatory daily drug and alcohol testing, with a zero-tolerance attitude. Anyone with drugs or alcohol in their system will be instantly dismissed. All workers are to provide urine samples at the start of each shift – (the company has set up a high-quality laboratory on site to analyse the samples and give quick results).
Management stated that the new policy was a health and safety procedure to ensure that the work performance and overall safety was not affected by drugs or alcohol. Zoe had flown in from Brisbane the previous evening, and turned up for her shift at 4am. Zoe (and her workmates) were then advised of the new policy and urine samples were taken. Zoe had had three beers on the flight to Mount Isa the previous night. Her urine tested positive to extremely low levels of alcohol, but because of the zero-tolerance policy she was called into the office several hours later and summarily dismissed.

You may assume:
The CFMEU (Construction, Forestry, Mining and Electrical Union) has coverage of all workers at both mine sites
A collective agreement between Acton and the CFMEU has been approved by the Fair Work Commission and covers all miners.
Queensland legislation covers the sites for WHS and equity/discrimination issues – you may use the general WHS legislation rather than that covering mining for simplicity
The Fair Work Act (2009) covers the sites for employment relations issues and conditions
Zoe Klimmer earns $150,000 and has worked on a FIFO basis for 6 months.
 

YOUR TASK
Zoe Klimmer has been instantly (summarily) dismissed because her urine sample has tested positive to alcohol. She believes she has been unfairly dismissed. Explore her situation. Determine whether Acton Mining was correct in summarily dismissing her, or is she able to take an action for unfair or unlawful dismissal.
Use precedent cases to make an argument, both for and against the factors of her situation, and come to a decision that you believe a court would make in considering this issue. Also consider the issue of penalties should she win such a case.
To do this you should:
Discuss unfair/unlawful dismissal by defining them and explaining their elements and characteristics.
Redundancy, contrast them
Provide an argument/justification (as a court would do) to reach a final determination as to whether Zoe is entitled to a remedy for unfair/unlawful dismissal. This final argument/justification should include precedent cases and evidence, from the current case, both for and against your position. Ensure that when using precedent cases you explain how/why the case applies (or distinguishes itself) from the circumstances of this case – don’t leave it up to the reader to try to interpret what you mean.
Recommendations
Cultural diversity discussion (include an overt discussion on cultural/ inclusion/ diversity issues citing specific legislation)