Minerals Council of Australia issues plea over Labor's same job, same pay laws after union wins $66m case against BHP

Sky News AU

17 hours ago

Labor's "same job, same pay" laws have come into question after a judge ruled against BHP and will force the mining giant to compensate thousands of underpaid workers $66m.
The Fair Work Commission on Monday ruled against BHP's claim that 2200 workers under the company's subsidiary, Operation Services, were exempt service contractors under the Albanese government's labour hire laws.
Monday's decision covers workers at Saraji, Peak Downs and Goonyella Riverside Mines in Queensland's Bowen Basin and means BHP will have to pay the contractors the same as direct hires.
The Mining and Energy Union, which praised the ruling as a 'nail in the coffin for BHP's sham labour hire model', estimated the decision will deliver annual pay rises of $30,000 to the impacted workers, totalling about $66m.
It met backlash from the Minerals Council of Australia (MCA) which said it was 'deeply concerned by the precedent' the ruling created.
'This is an incredibly disappointing decision that will directly threaten thousands of specialised contractors who play a vital role in mining operations across the country,' MCA's chief executive Tania Constable said.
She warned businesses covered by Labor's industrial relations laws risk being drawn into 'complex and costly legal proceedings'.
The Albanese government passed legislation in 2023 requiring labour hires to be offered the same pay and conditions as full-time workers doing the same work.
While companies like Qantas, which previously hired workers from a litany of subsidiaries and offered varying pay packages, accepted Labor's laws and agreed to union demands, BHP pushed back.
It argued the labourers under BHP's Operation Services worked across administration, training and supervised workers so they counted as service contractors.
Ms Constable said the ruling showed Labor's legislation 'goes well beyond its original promise to target only the 'limited circumstances' where 'labour hire' is used to deliberately undercut wages'.
'It is vital that the government adopt a balanced and economically responsible approach aimed at ensuring Australia has a modern and adaptable workplace system that supports competitiveness, attracts investment, drives sustainable wage growth and contributes to national prosperity,' she said.
'Given this precedent goes beyond its own stated intentions and assurances, it is now incumbent on the government to find a legislative fix to address the 'unintended consequence' of all service contractors being captured.'
Sally McManus, the secretary of the Australian Council of Trade Unions, lauded the ruling as 'justice for workers' and decried BHP's challenge as 'un-Australian'.
'Whether it's Qantas or BHP, Australian unions are determined to stop big business interests using loopholes to pay workers less by outsourcing labour,' Ms McManus said.
'This decision will have a flow-on effect throughout the mining industry and well beyond that, as employers realise that using labour hire rorts to undercut wages is no longer lawful.'
BHP said it is examining the decision and will comply with orders made by the FWC.
'Clearly, this will have implications for our business,' a BHP spokesman said.
The ruling marks the sixth successful "same job, same pay" application in Queensland, and seventeenth nationally to deliver more than $100m in annual pay rises, according to the Mining and Energy Union.