3 days ago
BHP ordered to pay workers an average $30,000 more after defeat in landmark labour hire ruling
Mining giant BHP has been defeated in a landmark test of the federal government's "same job, same pay" laws and ordered to pay 2,200 of its Central Queensland coal miners an average of $30,000 more.
Labour hire workers at BHP's Saraji, Peak Downs and Goonyella Riverside mines will now receive the same wages as their directly employed peers.
It is the largest ruling relating to the coal mining sector since the Albanese government's "same job, same pay" laws came into effect last year.
The laws require labour hires to be offered the same pay and conditions as full-time employees when doing the same work.
If applied to all labour hires across its mines, the ruling could cost BHP around $1.3 billion a year, according to the Australian Resources and Energy Employer Association (AREEA).
The Mining and Energy Union made the application to the Fair Work Commission and BHP had argued for an exemption on the grounds that the workers were providing a service, not labour, but its case was unsuccessful.
That service contractor exemption was added to the labour hire laws in negotiations with AREEA in 2023, and the association has renewed calls for further amendments following this case.
The mining union's Queensland president, Mitch Hughes, said the ruling was a significant win for coal workers and marked a "nail in the coffin for BHP's sham labour hire model".
"If you are doing the same job as the person beside you, you deserve the same pay," he said.
"What we'd like to see is the likes of BHP and mining companies turn these jobs into permanent jobs."
BHP has been contacted for comment but has previously warned such a ruling could put thousands of jobs at risk.
The decision marks the seventeenth successful application for the union.
