Caltex May Start Drug Testing at Sydney Oil Refinery Next Year

By Ben Sharples

Oct. 21 (Bloomberg) -- Caltex Australia Ltd. may start random drug and alcohol testing of employees next year at its Kurnell oil refinery in Sydney, the country’s second largest, after a ruling by the national workplace relations tribunal.

Fair Work Australia, an independent body that has the power to resolve workplace disputes, said Caltex can begin testing from Feb. 1, subject to safeguards, a ruling on the tribunal’s Web site shows. This includes counseling and a series of warnings to staff that fail a test, the ruling shows.

“Random testing currently applies to any safety critical role in Caltex’s terminals and aviation, and to members of the Caltex leadership team, including the CEO,” Georgie Wells, a Sydney-based spokeswoman for the refiner, said in an e-mailed response to questions today. Sampling will cover all staff, including contractors, regardless of their position, Wells said.

The tests are potentially discriminatory and can be “an invasion of privacy and civil liberties,” according to evidence presented to the tribunal on behalf of the Australian Workers Union and the Australian Institute of Marine and Power Engineers, which argued against random sampling, the ruling showed.

Andrew Casey, spokesman for the Australian Workers Union, wasn’t immediately available for comment.

Kurnell, in southern Sydney, has the capacity to process 135,000 barrels of crude a day, according to a Sept. 21 presentation. The plant produces petrol, diesel and jet fuels, the Caltex Web site shows.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net