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Union power grab in the Pilbara would damage WA’s economy

A potential power grab by unions in the Pilbara should be alarming to all Western Australians and would pose a serious threat to Western Australia’s economic stability.

Radical changes to collective bargaining laws will allow unions to force mining companies to negotiate with them, regardless of whether workers support the union position.

Three unions have forced BHP to negotiate on pay and conditions and have indicated they will force similar negotiations with other Pilbara miners.

The laws were part of a suite of changes that came into effect last year, after being passed by the Federal Government with little consultation.

CCIWA Chief Executive Chris Rodwell said the move is clearly 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 said.

“The last thing WA and our nation needs is industrial chaos on our mining sites, allowing unions to effectively hold our economy to ransom.

“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.

“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.”

Mr Rodwell said sweeping industrial relations reforms had 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 said.

“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 nation-wide.

“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.”

Mr Rodwell said any power grab by unions in the Pilbara would send 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,” Mr Rodwell said.

“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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