The fallout of the Federal Government’s overhaul of workplace laws is playing out in the Pilbara, posing a major threat to WA’s economy.
Three unions have forced BHP and other mining companies to negotiate based on the recently-enacted intractable bargaining laws.
Under the new laws, unions can force employers to negotiate with them, regardless of whether workers support their position or not.
The Fair Work Commission (FWC) can also now intervene in a deadlocked dispute between a union and an employer, however the industrial umpire cannot make any orders that are less favourable than the existing agreement terms and conditions.
CCIWA CEO Chris Rodwell believes the unions’ moves are designed to increase union influence and membership in the Pilbara.
“This push by the union risks dragging us back to the bad old days of the 1980s where unions wielded significant power in the Pilbara and caused major disruption,” he says.
Rodwell says industrial chaos on WA mine sites allows unions to “effectively hold our economy to ransom” and could spark a wave of unionisation.
“WA’s mining workforce enjoys excellent pay and conditions, which they have harmoniously negotiated directly with employers with great success for more than a decade,” he says.
“The vast majority of workers in the Pilbara are not union members. It demonstrates how these new workplace laws can be manipulated to support union recruitment drives.”
Increasing union influence ‘concerning’
Rodwell says sweeping industrial relations reforms have emboldened unions across Australia.
“We’ve said all along the changes that passed Parliament last year were effectively ticking off a union wish-list, and this is yet another example of that,” he says.
“This is particularly concerning when you consider the fact that union membership is at a historical low at around 10% of the private sector workforce nationwide.
“The shocking allegations of criminal conduct by the CFMEU have acted as a sobering reminder to Australians about the risks of giving a union significant and unchecked power in an industry.”
Economy and investment at risk
Rodwell says any power grab by unions in the Pilbara sends a worrying message to investors.
“The prospect of increased union control in WA’s mining industry would risk damaging our State’s attractiveness as a place to invest,” Rodwell says.
“WA has a wealth of opportunities when it comes to the energy transition, whether in critical minerals, hydrogen or renewables, but we can’t get these projects going without investment.
“A potentially hostile industrial relations system, along with the prospect of more onerous project approvals, would risk spooking investors and jeopardising those opportunities.”
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