A Fair Work Commission decision forcing miner BHP to reclassify more than 2,000 workers at three Queensland coal mines at an estimated cost of $66 million puts at risk thousands of specialised contractors across the country, says CCIWA.
The ruling, handed down on July 7, found that the workers at three of BHP’s Queensland coal mines should be classified as labour hire rather than service contractors under the Federal Government’s ‘same job, same pay’ laws. 
The Mining and Energy Union applied for the regulated labour hire arrangement orders under section 306E of the Fair Work Act 2009 for employees of several entities employed at the Goonyella Riverside mine, Peak Downs mine and Saraji mine located in Central Queensland.
The Australian Council of Trade Unions has claimed that the FWC decision impacted around 2,200 mine workers who would receive an average $30,000 more per year.
CCIWA Acting CEO Aaron Morey said the ruling confirmed the concern of businesses across Australia, that the service contractor exemption existed in name only.
“The precedent this decision sets now puts at risk thousands of specialised contractors across the country,” he said.
The entities affected by the decision, which worked as third-party contractors for BHP, included OS ACPM Pty Ltd (OS Maintenance) and OS MCAP Pty Ltd (OS Production); WorkPac Pty Ltd and WorkPac Mining Pty Ltd (WorkPac); and Ready Workforce Pty Ltd (a Division of Chandler Macleod Pty Ltd and Chandler Macleod Group Limited (Chandler Macleod).
BHP told The West Australian the decision will “have implications for our business”.
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“Operations services, as a mining services provider, is delivering compelling job opportunities and career pathways for 3700 people, and productivity-enabling value for BHP,” a spokesman said.
“We note the FWC ruling, and we are studying the decision and will comply with any orders made. Clearly this will have implications for our business.”
Services ‘not just labour’
Morey said the businesses provide specialised services beyond simply the provision of labour.
“Despite the Government’s promise to carve them out of its IR changes, this decision ropes them into laws which threaten their operations and the critical work they do across the economy,” he said.
“Service contractors caught up in this decision are spread across the economy. These operators are involved in the construction of renewable energy projects, setting up new critical mineral mining operations, as well as delivering more gas to power Australia’s domestic manufacturing.”
Morey argued that without these crucial services, many of the Federal Government’s commitments, such as net zero emissions, the reinvigoration of Australia’s manufacturing sector, and the expansion of critical minerals processing, were now all at risk.
“The Government must now urgently produce a legislative fix to address the significant risk this decision has placed on our economy,” he said.
If you require any assistance on union or other related matters, contact CCIWA’s Construction and Mining Services team via [email protected].
Do you need advice about legal contracts or commercial agreements? Get in touch with an employment lawyer at Business Law WA on 08 9365 7746 or via [email protected].
