Industrial Relations Support for AECOM on the CSBP AN3 Expansion Project
The Project
AECOM is a global infrastructure consulting firm providing professional technical and management services across sectors including resources, transportation, facilities, environment, energy, water and government.
AECOM was appointed by CSBP Limited as the Project Management Consultant (PMC) for the AN3 Expansion Project at CSBP’s Kwinana operations in Western Australia.
A subsidiary of Wesfarmers, CSBP is a major Australian manufacturer and supplier of chemicals and fertilisers to the mining, industrial and agricultural sectors.
The AN3 Expansion Project represented the third phase of expansion of CSBP’s existing ammonium nitrate production facilities. The project involved the addition of a third train for the production of liquid ammonium nitrate, known as NAAN3, together with a brownfield expansion and upgrade of the existing prilling plant facilities.
The broader scope of works included early works, expansion of the nitric acid plant, development of the additional ammonium nitrate plant, upgrades to the existing PP2 prilling plant and additional Outside Battery Limits (OSBL) works.
As Project Management Consultant, AECOM was responsible for managing the overall delivery of the works, including the construction contracts associated with the expansion. This included one major EPC contract for NAAN3 alongside multiple construction contracts supporting the PP2 and OSBL works.
With more than 1.5 million construction man-hours involved, multiple contractors operating across the project and work being undertaken within an existing industrial facility, effective management of employee and industrial relations was an important component of project delivery.
In March 2012, AECOM engaged the Fuse HR team to provide specialist Industrial Relations support and advice for the project.
The requirement extended beyond responding to individual workplace issues. AECOM needed an overarching approach that would establish clear employee and industrial relations expectations, provide appropriate governance and enable emerging IR matters to be effectively managed throughout construction.
The Fuse Approach
Our initial focus was to establish a structured Employee Relations and Industrial Relations framework appropriate for AECOM’s responsibilities as Project Management Consultant.
We developed the draft Employee Relations and Industrial Relations Management Plan (ERMP) for the CSBP AN3 Project, incorporating the project’s overarching industrial relations strategy.
The ERMP provided AECOM with a framework for approaching employee and industrial relations across the project and supported greater consistency in how workforce-related matters could be considered and managed.
This was particularly important given the project delivery model.
With a major EPC contract operating alongside multiple construction contracts, the project brought together different contractors, workforces and employment arrangements. Establishing a coordinated approach to industrial relations helped AECOM maintain oversight of issues that had the potential to affect individual contractors or the wider project.
To support this, our team also established and coordinated the Project Industrial Relations Management Committee.
The committee created a formal mechanism for industrial relations matters to be considered at a project level. It provided a forum through which relevant issues could be identified, discussed and managed, supporting communication and coordination across the project environment.
This governance structure helped shift industrial relations management from a reactive response to individual issues toward a more proactive and coordinated project-wide approach.
Our involvement continued throughout the construction period.
From March 2012 to October 2013, we provided AECOM with ongoing industrial relations support and advice as required, allowing the Project Management Consultant to draw on specialist expertise as circumstances developed.
This combination of planning, governance and ongoing advisory support meant industrial relations was not treated as a standalone compliance activity. Instead, it formed part of the broader management framework supporting delivery of the project.
Our support included:
- development of the Employee Relations and Industrial Relations Management Plan;
- development of the overarching project industrial relations strategy;
- establishment of an appropriate IR governance framework;
- establishment and coordination of the Industrial Relations Management Committee; and
- ongoing industrial relations advice and support to the AECOM Project Management Consultant team.
Importantly, the approach recognised AECOM’s position as PMC.
Rather than managing industrial relations in isolation, our role was to help AECOM establish the structures, processes and specialist support required to maintain visibility across a complex construction environment involving multiple contracting parties.
The Outcome
The employee and industrial relations framework developed for the AN3 Expansion Project provided AECOM with a structured approach for managing workforce and industrial relations considerations throughout construction.
By establishing the ERMP early, supported by an Industrial Relations Management Committee and access to ongoing specialist advice, AECOM was able to maintain a coordinated approach to industrial relations across a project involving more than 1.5 million construction man-hours.
The engagement continued from March 2012 until October 2013, supporting AECOM through a significant period of project delivery.
The value of this approach was subsequently recognised by AECOM Project Manager Brian Retinger, who described the professional Industrial Relations and Employee Relations planning, guidance and ongoing assistance provided by the team as:
“A key enabler to the PMC in the successful completion of the CSBP AN3 Project.”
The project demonstrates the importance of establishing industrial relations strategy and governance early on complex construction projects, particularly where multiple contractors and workforce arrangements need to operate within a broader project management framework.
For project owners, EPC contractors and Project Management Consultants, effective industrial relations management is not simply about responding when an issue occurs.
Clear planning, appropriate governance and access to experienced advice can help project teams identify and manage workforce risks earlier, coordinate approaches across contractors and maintain greater oversight throughout construction.
Build IR into Your Project Strategy
Major construction and resources projects bring together contractors, workforces and industrial arrangements that can create significant complexity if they are not effectively coordinated.
Fuse HR works with project owners, EPC contractors and Project Management Consultants to establish practical Industrial Relations strategies, management plans and governance frameworks that support projects from early planning through to delivery.
