Mining industry labels new ‘Same Job, Same Pay’ IR proposal as “dangerous”

The Minerals Council of Australia (MCA) has joined leading miners such as BHP (ASX: BHP) and other industry bodies to slam the Federal Government’s proposed ‘Same Job, Same Pay’ industrial relations proposal.

MCA chief executive officer, Tania Constable, said ‘Same Job, Same Pay’ gives no credence to the experience, hard work and dedication mine workers have displayed across the country.

“How is it fair that someone with six-months’ experience can demand the same pay as someone with six-years’ experience?”

‘Same Job, Same Pay’ undermines experience

“Our workplaces should be about fairness, reward for effort, and experience. Not a blanket approach that fails to understand that all workplaces are unique and worker ambition and values, varied. Employees should expect to be paid on their experience, skills and qualifications,” Ms Constable said.

Describing the new IR policy as “dangerous”, the MCA boss says ‘Same Job, Same Pay’ has the potential to deter investment and lose jobs and hamper Australia’s leading position as a supplier to the clean energy “boom”.

In a joint statement, the Australian Chamber of Commerce and Industry, Australian Petroleum Production & Exploration Association (APPEA), Business Council of Australia, Council of Small Business Organisations Australia, Master Builders Australia, the MCA,  National Farmers Federation and Recruitment, Consulting & Staffing Association, all said ‘Same Job, Same Pay’ is a misnomer.

Gender pay gap miss

For a start, they argued that the IR proposal will not lead to equal pay for men and women as it had been suggested in some circles.

APPEA chief executive officer, Samantha McCulloch, agreed that the proposal does not speak of fairness and justice.

“It means by law, employers will have to pay workers with little knowledge or experience exactly the same as workers 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.”

Ms McCulloch said the local oil and gas industry promotes fair and equitable pay and working conditions that reward effort and experience across the diverse career opportunities available in the sector.

“The industry is working tirelessly to provide Australian households and industry with reliable, essential energy but needs an industrial relations framework that supports operational flexibility and improved productivity to ensure competitive and affordable gas supply that is needed for Australia’s cleaner energy future.”

BHP raised initial concerns

BHP recently estimated that ‘Same Job, Same Pay’ could potentially add $1.3 billion to its wage payments.

The mining giant suggested the impact on its Australian operations may add to the labour cost of approximately 5000 full-time employees across its operational workforce.

However, Australia Workplace Relations Minister, Tony Burke, hit back by suggesting the proposed IR reform are the answer to a potential “loophole” impacting lower paid labour by hire firms.

He said the new IR reform proposals must be open for debate and that he had personal evidence of its detrimental effect on miners.

According to the Minister, he was recently approached by a miner when on site in the Hunter Valley who claimed that casual workers on the mine site were being paid less than permanent workers per hours.

“We all think of a casual loading, the casuals there were being paid less than the permanent workers because the labour hire loopholes being used.”

The Minister declared that companies are deliberately using labour hire firms that exploit casual workers, undermine job security and undercut wages.