Perth, WA – A post on the Offshore Alliance’s Facebook page has reignited controversy over one of the most damaging legal missteps in the history of WA offshore construction workers’ entitlements — a case that, nearly a decade later, still impacts thousands of workers who lost their right to accrue Long Service Leave (LSL).
The social media commentary, widely criticised for being heavy on spin and light on substance, comes from the same individual at the centre of the 2016 debacle: Doug Heath, then a CFMEU official, now the top dog of the Offshore Alliance and editor in’ chief of the OA’s Facebook page.
The 2016 Case That Cost Workers Their LSL
The origins of this industrial tragedy date back to 2014, when Sapura Clough (now Sapura Energy) deployed the SapuraKencana Constructor off the WA coast. Attempting to register with MyLeave — the statutory authority managing portable long service leave entitlements under the Construction Industry Portable Long Service Leave Act 1985 (CIPLSL Act) — Sapura was rejected on the grounds that its workers were deemed to be “working on a ship,” a classification not covered under the Act.
At the time, numerous offshore companies, including Brunel, Skilled Offshore, and McDermotts, had active MyLeave accounts and were contributing to their workers’ entitlements. The anomaly in the legislation — that permitted coverage for work on non-propelled barges but excluded propelled vessels — had gone untested in court, allowing workers to accrue LSL.
That changed when Heath, working for the CFMEU, pushed to challenge the interpretation in the WA Industrial Relations Commission (WAIRC), despite receiving strong legal advice from the AMWU not to proceed. A Queen’s Counsel opinion commissioned by the AMWU warned that running and losing such a case would endanger all offshore construction workers’ LSL across WA.
The advice was ignored.
The case, Thompson v Construction Industry Long Service Leave Payments Board, was run and ultimately lost in February 2016, setting a precedent that resulted in all WA offshore construction workers losing their accrued LSL. Payments ceased, and employers began clawing back contributions already made. Allseas alone reportedly received a $1 million refund for contributions related to Gorgon and Wheatstone projects — a devastating blow to workers who lost their days of service.
The Aftermath: Years of Lobbying and Legislative Paralysis
Following the decision, the AMWU, CFMEU, ETU and other unions began lobbying both the then-Liberal Barnett Government and, later, the McGowan-led Labor Government for changes to the CIPLSL Act. Under Minister Bill Johnston, traction improved, and a full review was commissioned, led by KPMG, to modernise the Act and correct long-standing flaws.
Unions have since made extensive submissions to address issues including the outdated definitions within the Act and the challenges faced by FIFO and offshore workers in accruing LSL under rosters designed for onshore metro-based construction.
The KPMG review has been completed and delivered to the State Government. The industry now awaits the public release of its recommendations, with hopes high that legislative amendments will correct what unions say was a completely avoidable catastrophe.
MyLeave’s Role and the Misinformation Campaign
Despite ongoing posts from the Offshore Alliance targeting the MyLeave board and its governance, the reality is that the board has no legislative authority. Its function is administrative — to manage the CIPLSL Act as legislated and oversee the $610 million fund, of which $447 million is owed to workers.
The board includes equal representation from unions and employers, as well as an independent chair appointed by government. Worker representatives include Steve McCartney (AMWU), Chris Prast (CFMEU), and Kari Pnacek (Unions WA). Allegations or suggestions that the board could have or should have reversed the outcome of the 2016 case are simply false.
Truth vs. Spin
The AMWU has expressed concern that instead of taking responsibility for the decisions that led to the loss of offshore workers’ entitlements, Heath continues to push a narrative that omits key facts and attempts to redirect blame.
“There’s been no mention of the disastrous decision to run the case, or the backroom deals historically done by the AWU — including the one earlier this year with Atlas, which set the floor for offshore decommissioning,” one source said. “It’s either shameless deflection or deliberate misinformation — but either way, workers deserve the truth.”
Looking Forward
The Unions that made submissions to the MyLeave review remain confident that the forthcoming legislative amendments — based on years of union lobbying and the KPMG review — will restore fairness and entitlements for WA’s offshore construction workers.
“Once the recommendations are released and the CIPLSL Act is amended, we’ll finally be able to undo the damage of a case that should never have been run. Facts and truth will always win over spin and bullshit in the end.”