BHP is escalating an appeal against a landmark Fair Work Commission ruling to the High Court, claiming the precedent that has been set will “drag” down productivity across the mining industry.
Unions leveraged the Albanese Government’s ‘same job, same pay’ legislation to secure a victory from the national workplace umpire in July.
The FWC ruled that contractors at coal mines in Queensland run by a BHP-Mitsubishi partnership should be paid the same rates and entitlements as salaried employees.
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This BHP-Mitsubishi joint venture essentially contracts operational work out to subsidiaries controlled by BHP.
“In contrast to traditional contracting, the FWC found there was little difference in the ‘substance’ of the BHP operational service arrangements and those involving labour hire firms WorkPac and Chandler MacLeod,” Australian Resources and Energy Employer Association chief executive Steve Knott said of the ruling last year.
The FWC’s ruling puts BHP on the hook for an extra $66 million in wage rises per year spread across more than 2000 workers at three of its Queensland coal mines.
BHP was dealt another blow last month when the Federal Court upheld the decision, rejecting the miner’s appeal.
The Big Australian is now taking its grievances to the High Court — Australia’s final court of appeal.
The FWC’s ruling represents a “drag on productivity at a time when government, businesses and policy makers are all calling for improved productivity”, according to BHP.
“We maintain that Operations Services is, and always has been, a mining services provider and should therefore be exempt from same job, same pay orders.
“Given what is at stake, we are obliged to seek further review of the Fair Work Commission’s decision.
“In this, we acknowledge the decisions handed down by the Fair Work Commission and Full Federal Commission and Full Federal Court and will continue to comply with the orders.”
