Fair Work Commission case accusing BHP of underpaying labour hire workers begins in Brisbane
Dec 20 2024
ABC News
In short:
The Mining and Energy Union is accusing BHP of underpaying labour hire workers.
BHP says the hires do not have the same work conditions as full-time staff.
What's next?
The hearings will continue.
Fair Work Commission hearings as part of a landmark case against an Australian mining giant have begun in Brisbane, in what will be a key test of the Albanese government's Same Job, Same Pay laws.
The application by the Mining and Energy Union (MEU) seeks to boost the pay of 1,600 BHP labour hire workers across three Queensland mines.
It claims those workers — at Peak Downs, Saraji and Goonyella Riverside mines — are being paid anywhere from $10,000 to $49,000 less than permanent employees to do the exact same job.
The outcome is set to determine whether labour hire mineworkers, including those employed by BHP's in-house labour hire subsidiary Operations Services (OS), are eligible for Same Job, Same Pay.
The laws, which came into effect last year, were designed to close labour hire loopholes, requiring employees from labour hire firms be offered the same pay and conditions as full-time employees if they do the same work.
BHP claims OS workers are performing services, not labour.
BHP has fought the application in the Fair Work Commission, stating those employed under its OS model are service contractors, not labour hires.
In its submission to the Commission, the company said employees under its OS models were more than "mere labour supply," and the work was more "specialist or expert in nature".
"Payment under those agreements is tied to a range of performance metrics, not labour hours," the submission said.
But the union said this argument "has no legs".
Speaking outside of the hearing on Monday, the Mining and Energy Union's general secretary, Grahame Kelly said the loophole had to be closed.
"BHP's going to turn up here, and they're going to try all this smoke and mirrors, they're going to try and convince the Australian people that they're hard done by. They're not," he said.
"We call on BHP to pay up now."
MEU General Secretary Grahame Kelly with ACTU Secretary Sally McManus outside court.
BHP case 'untenable', union lawyer says
In his opening statement, the MEU's barrister, Philip Boncardo said BHP had exploited the labour hire loophole.
"The evidence in this matter will demonstrate that this case is an exemplar of the mischief which [the legislation] was intended to address," he said.
"The notion that the work performed by the OS employees at each of the mines is for the provision of a service rather than labour is exposed by the evidence as untenable."
Industrial relations changes
Barristers for BHP are expected to give their opening statements later this week.
In a statement, a BHP spokesperson said, "Operations Services has created more than 4,000 permanent, high-paid jobs, with access to training and development, job security and the opportunity to grow".
"With more than 200,000 job applications, it's clear the Operation Services employee proposition is compelling and competitive."
The hearings will continue.
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