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Thousands of mine workers will be sacked due to Fair Work changes

Coal mine

A high number of resources employees will be terminated if workplace changes are approved.

The nation’s new “same job same pay” rules could prompt mining companies to replace existing staff with a lot more external workers.

The Minerals Council of Australia (MCA) recently warned the Fair Work Amendment Bill would cause mass redundancies.

“[Forcing labour hire companies out will bring an] immediate loss of tens of thousands of jobs,” MCA said in a Department of Employment and Workplace Relations submission according to News Limited.

Proponents could find ways to introduce other contractors, resulting in fewer direct positions.

“[There will be] further outsourcing and, ultimately, less secure and less well-paid jobs,” MCA said.

There is also potential for weaker project finance, reducing the number of new mine developments across the nation.

“The Bill will have a direct impact on investment decisions – there will be less new investment in Australian projects,” the submission said.

“Companies will weigh up the marginal benefits of a new project in Australia, compared to an equivalent investment elsewhere.”

Meanwhile, Fair Work Ombudsman Sandra Parker recently began examining BHP’s alleged underpayment of 170,000 public holiday leave days to 28,500 current and former staff.

“Our concern is how can there be an oversight and a mistake that runs for 13 years without there being negligence and neglect on the part of the company,” she said according to the Australian Broadcasting Corporation.

The contractual “error with the employment entity” also impacted up to 3420 OZ Minerals team members who will soon become BHP employees.

They are based at the following newly acquired BHP operations:

  • Prominent Hill, 650km northwest of Adelaide
  • Carrapateena, 160km north of Port Augusta
  • West Musgrave, 500km west of Uluru
  • Carajás East and West, Brazil
  • Gurupi Province, Brazil.

The multinational promised to contact those affected “as soon as possible”, establish both a telephone hotline and website, and provide updates during its full year results announcement in August 2023.

“We are sorry to all current and former employees impacted by these errors. This is not good enough and falls short of the standards we expect at BHP. We are working to rectify and remediate these issues, with interest, as quickly as possible,” BHP Australia president Geraldine Slattery earlier said.

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  • Just as long as mining companies are not permitted to introduce Thier own ‘in-house’ labour hire organisations like BHP has done with BHP-OS (operational services) These full-time positions are for the parent company but still under a different arrangement to the employees working under an Enterprise Agreement, directly with the parent company. There are still discrepancies between the EA positions and the OS positions and the OS positions are contractually obligated to comply with work requirements not imposed on EA positions, such as relocating their place of work and/or residence if operational needs require it.

    The true test is what legally defined rights and benefits the in-house labour hire employees have with regards to dispute resolution and court orders.

    It’s a step in the right direction though as even if the articles subject matter is little more than PR, it will serve to raise awareness of the issue and the many discriminatory practices still affecting many/most mining operations to some degree or another, as well as hopefully some new ones being permitted to enter the picture during recent times.