The Fair Work Commission has today backed Same Job Same Pay at three BHP coal mines in Central Queensland in the biggest win so far under new labour hire laws.
The landmark decision will lift pay for over 2000 workers and is a nail in the coffin for BHP's sham labour hire model, the Mining and Energy Union said.
The decision means the Commission will make orders covering labour hire workers employed by WorkPac, Chandler Macleod and BHP's in-house labour hire subsidiary Operations Services at Saraji, Peak Downs and Goonyella Riverside Mines.
MEU Queensland President Mitch Hughes said that once made, the regulated labour hire arrangement orders would deliver annual pay rises in the order of $30,000 for about 2200 workers, while the decision has broader ramifications for the coal industry.
"BHP has fought our Same Job Same Pay applications tooth and nail, trying to protect the wage-cutting employment model it pioneered," said Mr Hughes.
"This decision reaffirms that BHP's approach of using labour hire to undercut bargained wages is no longer lawful and it's time to pay up.
"The community has spoken and the courts have spoken; BHP can no longer use outsourcing and dodgy corporate structure to cut pay."
Allan, an Operations Services worker, said he was relieved to finally have recognition that he is performing the same work as direct employees.
"My crew performs the same work, on the same equipment, under the same policies as my directly employed workmates, but are paid far less. I hope today's decision ends this dodgy practice for good."
Today's decision is the MEU's sixth successful Same Job Same Pay application in Queensland, and seventeenth nationally – delivering over $100 million in annual pay rises.
With ten MEU Same Job Same Pay applications remaining before the Fair Work Commission; MEU General Secretary Grahame Kelly urged employers to cease time-wasting legal interference that is delaying long-awaited pay rises.
"This is a great result following a long campaign by MEU members; and I thank everyone involved in delivering this outcome.
"There are still thousands of workers across the coal industry waiting for Same Job Same Pay decisions that are being held up by employers' delaying tactics.
"This clear decision by the Full Bench of the Fair Work Commission should send a message not just to BHP but to the whole industry that the time for ripping off labour hire workers is over."
