The Minerals Council of Australia is deeply concerned by the precedent created by the Fair Work Commission's decision today to capture BHP Operations Services under the government's Same Job Same Pay laws.
This is an incredibly disappointing decision that will directly threaten thousands of specialised contractors who play a vital role in mining operations across the country.
Unlike labour hire, these businesses exist to provide a specialised service, not just workers, and should never have been covered by these laws.
These businesses now face the risk of being drawn into complex and costly legal proceedings, creating instability in employment arrangements that have long supported operational flexibility, efficiency, and mining productivity.
The Commission's ruling confirms what the MCA has long argued; that the government's legislation goes well beyond its original promise to target only the 'limited circumstances' where 'labour hire' is used to deliberately undercut wages.
Today's decision also confirms that instead of a 'straight exclusion' for service contractors, almost any service contractor could be captured by the legislation unless they can litigate their way out.
Australia's mining industry directly and indirectly supports more than 1.25 million jobs. Service contractors contribute essential expertise across a wide range of tasks - from underground development and maintenance to logistics and catering.
It is vital that the government adopt a balanced and economically responsible approach aimed at ensuring Australia has a modern and adaptable workplace system that supports competitiveness, attracts investment, drives sustainable wage growth and contributes to national prosperity.
Given this precedent goes beyond its own stated intentions and assurances, it is now incumbent on the government to find a legislative fix to address the "unintended consequence" of all service contractors being captured.
