Mining and Energy Union launches same job, same pay fight for 1700 labour hire workers at BHP coal mines

BHP could be hit with orders to lift the pay packets of 1700 labour hire workers at three of its Queensland coal mines as the Mining and Energy Union pursues the Big Australian under new Same Job, Same Pay laws. The MEU on Wednesday said it had filed 10 applications with the Fair Work Commission for regulated labour hire arrangement orders covering workers at the Peak Downs, Saraji and Goonyella Riverside open cut mines in the Bowen Basin. About 1500 production workers are directly employed across the three mines under the BMA Enterprise Agreement. The labour hire workers are employed through WorkPac, Chandler Macleod and BHP subsidiary Operations Services. If the union’s action is successful, workers could take home an extra $10,000 to $40,000 a year — depending on skills, rosters and current remuneration including bonus payments. A BHP spokesman confirmed the miner had received the FWC applications. “Our focus remains on building productive and equitable workplaces that provide opportunity and reward high-performance, as well as supporting Australia competitiveness,” he said. BHP was a vocal opponent of the Albanese Government’s controversial industrial relations reforms which aimed to ensure that labour hire workers are paid the same as directly employed staff doing the same work. But the miner repeatedly argued it cost to its operations of about $1.3 billion and overall would make Australia’s mining sector less attractive and would stymie investment. BHP said in September that $1.3b would equate to about 5000 jobs lost, and then in October said the cost would top its initial $1.3b estimate. Unions have previously claimed BHP’s Operation Services arm in WA and Queensland is the company using internal labour hire to offer lower wages and undercut existing bargaining agreements. MEU Queensland president Mitch Hughes said BHP was the biggest player in Australia’s coal industry and the labour hire “rort” needed to stop. “BHP has driven the casual labour hire model that has spread like a cancer throughout coal mining, driving down wages and job security across the industry,” Mr Hughes said. “Today’s applications are a major step towards stamping out this model and closing the loopholes that have allowed BHP to avoid paying fair rates in site enterprise agreements. “BHP must accept that using labour hire purely to cut pay is out of step with community standards and is now out of step with the law.” Mr Hughes hinted the applications would not be the last to target BHP’s Queensland coal mines, which it operates under a joint venture partnership with Mitsubishi. The MEU scored its first major “same job, same pay” win last month when mining contractor Thiess agreed to directly employ 27 Hunter Valley labour hire coal miners. Each of the labour hire coal miners would receive a pay rises of at least $30,000 a year. The MEU withdrew the FWC application after Thiess backed down and agreed to directly employ the Programmed workers. Other mining giants including Rio Tinto, Hancock Prospecting and Lynas Rare Earths have voiced their opposition to the industrial relations reforms. BHP’s Australian president Geraldine Slattery said last year the laws would create complexity and uncertainty with no lift in productivity.