Mining Union Lodges 1st Claim Under New ‘Same Job, Same Pay’ Laws

The exterior of Fair Work Commission building in Melbourne, Australia on Feb. 12, 2018. AAP Image/James Ross

The Mining and Energy Union (MEU) has become the first group to lodge a claim under the contentious “Same Job, Same Pay” laws introduced by the Albanese Labor government.

The law means contractors can potentially receive the same pay, bonuses, and benefits, as those employed directly by a business.

On March 13, the MEU applied with the Fair Work Commission (FWC) for over 300 labour-hire workers to be paid an extra $10,000-$20,000 ($US6,600-13,200) per year.

The action is aimed at workers employed by Workpac at Batchfire’s Callide mine at Biloela in central Queensland.

MEU General President Tony Maher says more actions will likely follow.

“Callide has high union membership among Workpac labour hire mineworkers and the strong support of their permanent workmates for a fair go at the site,” he said in a statement. “We intend to have many applications made and approved by the FWC to deliver higher pay.”

About 560 workers are employed at Callide with 40 percent directly employed, and the rest employed through Workpac as labour-hires.

Under the “Same Job, Same Pay” laws, which came into effect after the passing of the Closing Loopholes Bill earlier this year, the FWC has the power to determine whether contractors are eligible for the same pay as regular employees.

This further triggers a “protected rate of pay” order, which means the employer cannot hire labour-hire workers at the site that undercuts agreed enterprise bargaining pay rates.

MEU Queensland District President Mitch Hughes said that labour hire and workers at Callide were excited to be “making history.”

“MEU members have campaigned for many years to change unfair laws that allow mining companies to drive down wages,“ he said. ”We are now doing everything possible to make sure the new laws deliver pay increases to labour-hire workers as intended, starting at Callide Mine.”

Laws Threaten Flexibility in Hiring

The main concern with “Same Job, Same Pay” laws is that it undermines flexibility in hiring, which could, in turn, impact long-term projects and productivity.

Business groups have argued that being able to pay different wages and hire on different conditions, allows employers to compensate workers based on their individual experience and effort.

Last year, they argued that the laws meant employers would have to pay workers “with little knowledge or experience” the same amount as someone “with decades of knowledge and experience.”

“It means by law, you cannot earn better pay by working harder or longer if your colleague does not share your ambition or work ethic.”