BHP has warned the Federal Government's proposed same job, same pay laws would cost the company up to $1.3 billion annually and result in job losses.
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Employment and Workplace Relations Minister Tony Burke, who visited Hunter mine sites last week to discuss the forthcoming legislation, questioned the credibility of the company's claims.
In its submission, BHP said that it supported the government's objective to protect low-paid and vulnerable workers from exploitation. However, it was concerned that the policy in its current form would have serious impacts on operations, jobs and regional training programs. This, in turn, would impact Australia's competitiveness and productivity.
"BHP estimates the financial impact of the 'same job, same pay' policy to our Australian operations will be up to $1.3 billion (AUD) annually," the company said.
"This would be equivalent to the labour costs associated with about 5,000 full-time employees across BHP's operational workforce if the policy were to be implemented."
The government announced its intention to introduce the legislation, which will ensure casual workers in the black coal industry receive the same long-service leave entitlements as their full time counterparts, in March.
There are 6000 casual employees in the industry who work a compressed fortnightly roster. This means they work longer hours in the first week and shorter hours in the second.
But current weekly counting of their hours reported by employers is denying them equality in their entitlements.
Mining and Energy Union General President Tony Maher said the BHP has resorted to an unfounded fear campaign.
"BHP is right to fear that Same Job Same Pay will lift their wages bill, because they have been exploiting labour hire mineworkers for years," he said.
"BHP has replaced thousands of good, permanent mining jobs with insecure, lower-paid labour hire jobs.
"Along with other big mining companies, they have exploited weak laws allowing them to avoid paying the wages and conditions achieved through genuine enterprise bargaining.
Mr Burke accused BHP of jumping the gun while confirming its wages fears.
"It's unclear how BHP has produced a costing on legislation that has not yet been finalised or written," Mr Burke said in a statement.
"If you close a loophole to stop workers being ripped off, it will result in an increase in the wages budget of any company that was using the loophole. We make no apologies for that.
"The details of this policy are not yet settled. That is the point of the consultation we're doing with BHP and others.
"But as a miner said to me in the Hunter Valley this week: 'How can you have an industry where because of a labour hire loophole, casual workers are paid less than permanent workers who do the same job?'"
A BHP spokesman said the policy would not impact on the closure date of Mt Arthur Coal, which is due to close in 2030, 15 years before schedule.
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Matthew Kelly
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
