Mackay mining businesses weigh in on Same Job Same Pay

As resource giants and powerful unions exchange fire in the brewing war over Same Job Same Pay laws, small and medium businesses that service the Bowen Basin are beginning to speak out.

Same Job, Same Pay would not eliminate casual work contracts in the sector, but would seek to end apparent discrepancies in pay between labour-hire workers and direct-hire workers, or employees hired directly by a mining firm.

Central Queensland’s big miners and unions have marked out their trenches in the brewing battle over the federal Labor government’s proposed Same Job Same Pay measure, but the impact of the industrial relations change will go far beyond behemoths like BHP and the CFMEU.

For Mackay contractor Andrew Hegerty, the legislation could help his business stabilise its employment base.

“I don’t agree with the different classifications of labour,” he said.

“I also don’t agree and never have agreed with the casualisation of the workforce.”

Mr Hegerty runs the Paget-based TEAM Group, a mining services business that counts Bowen Basin giants Glencore, BHP and Anglo American as clients.

He said he struggled to find employees who wanted to take up permanent positions.

It is expected Industrial Relations Minister Tony Burke will introduce Same Job Same Pay legislation in the Spring. Picture: Martin Ollman

“I’ve seen it in employees themselves, only wanting casual roles because they think there is more money there, because they get their casual loading,” he said.

“Even when you offer them full time employment.

“It’s a risk to business.”

Though casuals, or employees without paid leave entitlements, can make more money than permanents, or employees with paid leave entitlements, through casual loading rates, ABS data shows that is not the case in Australia’s mining sector.

Permanent miners earned a median wage of $2500 a week in 2022 while casuals earned $2171.

Same Job Same Pay would not eliminate casual work contracts in the sector, but would seek to end apparent discrepancies in pay between labour-hire workers and direct-hire workers, or employees hired directly by a mining firm.

The CFMEU sometimes conflates casual labour with labour-hire, though labour hire workers can also work on permanent contracts with paid leave entitlements.

BHP chief executive officer Mike Henry has warned Same Job Same Pay could damage investment and jobs in Queensland. Photo: Aaron Francis / BHP

The government’s consultation paper on Same Job Same Pay states: “Labour-hire workers should be paid at least the same as directly engaged employees doing the same work.”

BHP says the measure could cost jobs by adding $1.3bn each year to its wages bill.

CFMEU general president Tony Maher says it will crack down on lower-paid labour-hire jobs in the sector.

One Mackay mining services company, which wished to remain anonymous, said it had prepared for the likely shift in work arrangements.

“We are well ahead of the game, we have known that this has been coming for a long time,” the spokesman said.

“We only provide permanent contracts, we don’t have any casuals here.

“We are not really affected by this.”

It is expected the government will introduce the changes to parliament in the Spring.

Originally published as Mackay mining businesses weigh in on Same Job Same Pay