Backdate same job same pay orders, union boss urges

Mitch Hughes wants law changes to allow same job same pay orders to be backdated to deter employers dragging out union claims,

A union leader wants law changes to deter employers dragging out same job, same pay claims

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Queensland mining union boss Mitch Hughes has called for same job, same pay orders to be backdated to deter employers dragging out union claims, under federal law changes that would expose resistant companies to higher wage bills.

The call follows the Fair Work Commission rejecting BHP’s challenge to the Mining and Energy Union’s claim and delivering average pay rises of $30,000 to 2200 mine workers in central Queensland.

The MEU lodged the claim with the commission in June last year and, since the landmark ruling, employer groups have called for amendments in favour of mining companies.

But Mr Hughes said any amendments by the government should favour workers.

“If there are to be further amendments, we would say as a union that we need to go stronger again, not the other direction that the employer groups would like to take us,” he told The Australian.

“We’ve seen … that the minute we put an application in for orders at whichever site, that the employer groups will get involved, and try and delay the hearings, and the process … as long as they can.

“One of the amendments I would like to see is that there’s a backdated component. So if the union was to make an application today, and the union was successful in the application, then it should be backdated to the date the union made the application. That’s what I’d like to see in terms of the law being stronger.”

Mr Hughes’ comments are not the official MEU position.

He said he would have discussions “within the structure of our union” about the proposal before any decision was made to press the claim.

Workplace Relations Minister Amanda Rishworth declined to comment on Mr Hughes’ call. It is understood the government would favour the backdating issue to be resolved by the commission.

ACTU secretary Sally McManus said mining companies “no longer being able to use cheap and disposable labour is good for productivity”.

The Australian Resources and Energy Employer Association said amendments were needed to ensure union applications were targeted at workplaces where there was evidence labour hire was being used to undermine, undercut or avoid the payment of enterprise agreement wages.

AREEA chief executive Steve Knott said the commission decision reflected its view the BHP arrangements did not satisfy the service contractor exemption, and the legislation prevented orders covering genuine service contracting arrangements.

“This exemption will apply to any service business – from specialist mining contractors to cleaning and catering companies – where they demonstrate they supervise their own employees, control their performance of work, supply them with equipment, and other factors,” Mr Knott said.

Workplace law expert Andrew Stewart said the BHP arrangement had been targeted in the legislation and the intention of the law was in line with the distinction made by Mr Knott.

“I think the view AREEA is putting forward is a perfectly sound argument to make, but we still don’t know where the commission, in a more difficult case, will draw that line,” Professor Stewart said.

The Minerals Council of Australia called for amendments to the laws to include a clearly expressed exemption for service contractors.