Our priority is to continually lift standards for workers – on pay, safety, conditions and respect at work. But every gain is contested. As soon as rules change, companies look for new ways to cut labour costs and the fight for fairness begins again.
That reality is now playing out at Glencore’s Mangoola operation where workers are opposing a proposed enterprise agreement that would allow different, lower pay rates for the same job. This follows a Same Job Same Pay decision at Mangoola that lifted labour hire wages to match those of permanent employees. If lower tiers are introduced, contractor pay could drop immediately, because the protected rate is tied to the enterprise agreement. The result would be a new two-tier system that undermines the intent of the reform.
This dispute shows that lifting standards and closing loopholes is never a one-off victory. Same Job Same Pay has delivered substantial pay rises across mining and reduced incentives to outsource work simply to drive down wages. Employers are now responding by reshaping agreements instead, seeking to preserve access to cheaper labour through different mechanisms.
It’s also playing out repeatedly in the Queensland coalfields, particularly at BHP sites, where the so called Big Australian continues to push the legal boundaries on the treatment of workers. The MEU’s legal victories against BHP show these efforts sometimes place the company on the wrong side of the law, including findings on public holiday payments and unfair dismissals. But legal action alone has not been enough. We have also had to fight to change the law itself to bring BHP’s employment practices into line with community expectations of a fair go, especially through Same Job Same Pay.
Maintaining fair pay and conditions requires constant vigilance. Winning improvements through bargaining, industrial action or legislative change is only the first step. Ensuring those gains hold up in practice takes ongoing effort, as employers test boundaries and look for ways to claw back costs. That is exactly where the industry sits right now with Same Job Same Pay.
In our submission to the independent review of the Federal Government’s Closing Loopholes legislation, the union detailed how the laws are operating and how companies are already probing their limits. Orders secured through union applications have generated major annual pay increases for labour hire workers, including more than $140 million a year from MEU applications alone. Those increases flow directly into mining communities, supporting local businesses, services and families.
At the same time, we identified significant risks. The broad “service contractor” exemption allows work that is effectively labour hire to be repackaged as a service and excluded from the law. That exemption is what BHP is relying on in its attempt to unwind Same Job Same Pay for Operations Services workers.
Other risks include corporate structuring that shifts work to associated entities, and the misuse of trainee classifications to undercut site rates – something we already know is happening. Without tightening the framework, these gaps could undermine the fundamental principle that workers doing the same job should receive the same pay.
Delays in the legal process also remain a serious problem. The union has argued that orders should apply from the date an application is lodged, so that even if legal cases drag on, they would be backpaid until the date of application if it is successful. Without this reform, companies have a clear incentive to contest claims even when the outcome is all but certain, knowing they are saving money each week, and workers will lose income while the process plays out.
Fairness is not only about wages. Labour hire workers typically face reduced job security, limited training and career pathways, and poorer access to facilities and entitlements onsite. Genuine equality requires equal treatment across all conditions, not just base pay. Otherwise, the same two-tier workforce that drove down standards across the industry remains in place.
Beyond Same Job Same Pay, the MEU is also pushing to strengthen the National Employment Standards that form the safety net for all workers. Current standards assume a traditional weekday job and do not reflect the realities of mining work, particularly for shift workers, FIFO and DIDO workers and their families. Long swings, rotating rosters and extended time away from home place unique pressures on workers and households. Stronger minimum rights around leave, job security and consultation are needed to keep the safety net relevant.
Improving conditions in mining is not delivered by a single reform or agreement. It is a continuous campaign of negotiation, legislation and enforcement. Without sustained pressure, hard-won standards can erode just as quickly as they were achieved. Progress depends on workers staying organised, informed and ready to defend the gains that previous generations fought to secure.
Grahame Kelly
General President, Mining & Energy Union
