South Coast Labour Council secretary Arthur Rorris has refuted suggestions the truck ban it slapped on the Port Kembla Coal Terminal may be illegal.
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On Thursday, the labour council placed a ban on trucking movements at the terminal after a man lost his leg in an accident at the site.
The condition of the 49-year-old man, who lives in Orange, has worsened to critical but stable.
It has been suggested the labour council ban is a secondary boycott, which is illegal under national Competition and Consumer Act.
A secondary boycott is when a union group in dispute with a company persuades a separate party to cease doing business with that company.
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"There are times when you've got to set the rules aside and this is one of them," Mr Rorris said.
However, he later said the truck drivers - who had agreed not to enter the coal terminal until investigations were complete - were within their rights to do so.
"I have no view on legality other than to say that there are health and safety laws in this country and under these health and safety laws and regulations that these representatives are acting," Mr Rorris said.
"They are fully within the law."
Mr Rorris also said no drivers would be sacked for refusing to take coal to the terminal.
"No one will be fired, as far as we're concerned, for protecting their safety on the job - if what they're doing is ensuring a safe workplace," he said.
"That is our position and we maintain they are fully acting within their rights."
Mr Rorris said it was the truck drivers' impression that the area where the accident occurred had "markedly and significantly deteriorated" while the workers have been locked out.
Meanwhile, as many as four separate investigations into the accident are under way.
These include one carried out by SafeWork NSW, the CFMEU and Energy Union and the Transport Workers Union.
PKCT was contacted for comment.