Unvaccinated submarine workers at a South Australian shipbuilding yard could be sacked after the Fair Work Commission found the company's vaccine mandate was legal.
The Australian Workers' Union (AWU) and Australian Manufacturing Workers' Union (AMWU) took the Australian Submarine Corporation (ASC) to the Fair Work Commission, arguing their COVID-19 vaccine mandate was illegal.
The unions submitted to the commission that the mandate was not "a reasonably proportionate response to current risks created by COVID-19".
They also stated that ASC failed to adequately consult its workers about the policy.
But ASC told the commission the policy was "logical", "fair" and "balanced" as it allowed unvaccinated staff at its Osborne facility to provide a medical exemption.
It stated that unvaccinated workers could create risks to its client, the Royal Australian Navy, which required its crew to be double-vaccinated.
The company submitted to the commission that its mandate was reasonable following the opening of state borders and the current risk of transmission in workplaces.
Fair Work Commission deputy Peter Anderson agreed, saying the mandate was "logical" as it dealt with the management of a real and present risk to health and safety.
He also found ASC implemented its consultation plan in November 2021 ahead of the official announcement to staff.
"ASC had a predisposed view in favour of the decision it had made but was willing to, and did, consider views which questioned the need for the vaccination mandate."
Mr Anderson also recommended that ASC review its vaccination policy in 12 months as the risk continued to change.
"A reduction in risk may, at some future time, tip the balance such that a policy requiring mandatory vaccination may no longer be proportionate and reasonable," he said.
"Conversely, if new variants of COVID-19 emerge or if increased rates of transmission or morbidity occur, then continuing or more stringent policy settings may be justified."
The commission ordered that ASC not act on non-compliance with its vaccine mandate until it had resolved the fair work dispute, which was handed down yesterday.