Grower saved millions after union deal

A mushroom grower saved millions of dollars in insurance premiums on its new enterprise bargaining agreement (EBA) after paying a union $4000 a month for training.

Chiquita Mushrooms human resources manager Joe Agostino said the company saved $3.5 million a year on its WorkCover premiums after signing an EBA in 2004 that reduced the likelihood of workplace injuries.

He said the Australian Workers Union was paid $4000 a month for six months in 2003/04.

Mr Agostino said it was meant for union training, and did not facilitate a favourable EBA.

"I think it was maintaining a good relationship, but I don't think the $4000 had an impact on that EBA," Mr Agostino told the trade union royal commission on Thursday.

He said the previous EBAs had encouraged workers to work long hours, leading to injuries.

"Our WorkCover premiums were in excess of $4 million per year and we were losing close to 10,000 hours per year," Mr Agostino said.

Mr Agostino said he had a general discussion with then-secretary of the union Bill Shorten about the previous EBA, which the company said was hurting workers.

"I think he said words to the effect of 'oh we'll see what we can do about that', and I'd heard it all before, you know," Mr Agostino said.

The conversation was limited to discussion about the number of contractors on site and the EBA, he said.

Mr Agostino said the company was targeted by WorkCover as it was one of the 100 worst performing employers in terms of workplace injuries.

He said the 2004 EBA allowed the company more flexibility and removed incentives on workers to move more boxes, reducing their chances of injury.