BHP is set to align wages for more than 2200 of its central Queensland labour hire workers after a Fair Work Commission (FWC) decision under the Federal Government’s ‘Same job, same pay’ legislation.
The Same job, same pay legislation, which came into effect in 2024, is designed to ensure labour hire workers receive the same pay and conditions when performing the same roles as permanent employees.
Coinciding with the Same job, same pay bill is the ‘Closing loopholes’ bill, which criminalises wage theft, sets minimum standards for workers in the gig economy, closed the forced permanent casual worker loophole and the labour hire loophole.
Under a new ruling from FWC, workers at BHP’s Saraji, Peak Downs and Goonyella Riverside coal mines will receive wage adjustments averaging $30,000, bringing them in line with their directly employed counterparts.
This could total an estimated $1.3 billion annually for BHP, according to the Australian Resources and Energy Employer Association.
However, the ruling has sparked concern from broader industry stakeholders such as the Minerals Council of Australia (MCA).
“The Minerals Council of Australia is deeply concerned by the precedent created by the Fair Work Commission’s decision today to capture BHP operations services under the (Federal) Government’s same job same pay laws,” MCA chief executive officer Tania Constable said.
“These businesses exist to provide a specialised service, not just workers, and should never have been covered by these laws.
“It is vital that the government adopt a balanced and economically responsible approach aimed at ensuring Australia has a modern and adaptable workplace system.”
BHP previously raised concerns about the job reforms in March 2023.
“It feels very much like an old solution to a very different environment,” BHP Australia president Geraldine Slattery told the Australian Financial Review business summit.
“Pegging all work to the same high-water mark in terms of pay breaks, the link between cost of labour and productivity. It also removes flexibility on both sides both for the employer and employee.
“People want to have choice in how they work and how they are rewarded, so we are quite concerned about it.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
