THE president of BHP Billiton Iron Ore has warned Western Australia’s resource sector to do its homework on labour relations as the upcoming Federal election brings the possibility of a change in government before the end of the year.
THE president of BHP Billiton Iron Ore has warned Western Australia’s resource sector to do its homework on labour relations as the upcoming Federal election brings the possibility of a change in government before the end of the year.
This compounds several changes to WA’s labour and industrial framework proposed by the State Government, with bodies such as the Chamber of Commerce and Industry educating local businesses about the new workplace environment.
At State level, WA businesses are facing changes to the Workers’ Compensation system and Occupational Safety and Health, as well as a new code of practice to set limits on working hours.
While the CCI has been critical of most aspects of the changes, the WA Government says most unions are generally supportive.
Speaking at the opening of the Chamber of Minerals and Energy’s WA employee relations profile last week, BHPB’s Graeme Hunt told industry representatives they faced significant challenges on the employee relations front, particularly if there was a change of government at the Federal level.
One of the industry’s greatest concerns is the abolition of Australian Workplace Agreements, which Federal Labor has promised to do if elected.
Labor argues that AWAs are a way of getting around State Awards.
Mr Hunt said recent discussions with Labor’s employee relations spokesman indicated there was not much chance of this policy being varied, and it was possible a Labor government could go further than just the abolition of AWAs.
Mr Hunt said almost 80 per cent of the WA resource sector was now covered by AWAs, after the WA Government abolished State agreements last year.
“A couple of years ago that wasn’t the case, until the loss of State agreements,” he said.
“If AWAs go, that would leave a significant vacuum.
“That creates a challenge to all organisations if there is change in government.
“The entire sector should be doing its homework on that now and if you are not doing that then I think you should be.”
Other human resource issues raised at the launch included employee attraction and retention, skills shortages, growing industry earnings and safety.
The Chamber of Minerals and Energy event also heralded the launch of the Minerals Institute, a new body being formed to raise awareness of mineral education in WA and provide a link between industry and educational providers.
The institute, to be headed up by CEO Claire Thomas, will be joint-funded by the WA government and the industry.
Ms Thomas said one of the biggest employee issues the industry faced was location.
She said a recent survey of 400 people revealed that 67 per cent choose not to enter the industry due to the location of the employment on offer.
CME Tim Shanahan said labour relations would be a key issue for the mining industry.
“The existence of an industrial relations regime that preserves the ability to introduce individual workplace agreements, which provides operational flexibility to companies and rewarding pay and conditions to employees, has been an industry strength for some time,” Mr Shanahan said.
“Now industry seeks a sound regulatory environment that will allow industry to operate with flexibility and offer employees rewarding pay and conditions.”
The launch of the employee relations profile followed the recent death of a worker at BHPB’s Nelson Point operations at Port Hedland.
Mr Hunt said it was a warning to the industry.
“No matter how safe we think we are getting we keep getting these tragic reminders,” he said.
But the Australian Manufacturing Workers’ Union was critical of the death, saying it could have been avoided if warnings were heeded and that the AMWU had been prevented from entering the particular site.
The union passed a resolution demanding an independent audit be carried out into the safety policies, processes and procedures currently being implemented.
AMWU State secretary Jock Ferguson said a culture of production before safety had developed and, as result, shortcuts were being taken to accommodate the tonnages required to meet contracts.
