A dramatic escalation in wages in the offshore oil and gas sector is contributing to increased uncertainty across other parts of the nation's resource industries according to the Australian Mines and Metals Association.
AMMA chief executive Steve Knott, said in the past twelve months pay and allowances for offshore oil and gas workers had increased by more than 39 per cent due to unions irresponsibly jacking up wage claims under the new Fair Work laws.
"What is perhaps even more disturbing is the fact such increases are merely the tip of the iceberg as far as some of the unions officials involved are concerned." Mr Knott said.
"In addition to packages where workers are now receiving well over $250,000 - and in some cases for working 60 days less per year - unions are now claiming workers should be paid for time not worked, as well as the introduction of new allowances,"
"You don't have to be Einstein to work out such increases have a flow on effect in to other parts of the economy in terms of increased costs and hardship for average Australians. Yet it would appear senior figures within the union movement appear to be prepared to act only in the short-term and have lost perspective of the bigger picture." Mr Knott said.
"The inability of employers in the resource and construction sector to obtain a registered Greenfield agreement under the Fair Work Act without first obtaining a union agreement is a growing problem being evidenced in other areas of our sector industry as well,"
"When some of the largest companies in the world are having difficulty in getting their critically important projects up and off the ground, you have to ask yourself what sort of damage this is doing to our international reputation and further, what chance do smaller operators have?" he said.
Mr Knott said AMMA has been raising the concerns of resource industry employers from across the entire sector about the problems associated with the Fair Work agreement making laws with the Federal Government for some time now.
"It is clear the laws are fundamentally flawed and require urgent attention,"
"The Fair Work laws have removed an employer's ability to make Greenfield agreements for start-up resources and construction projects without union involvement. AMMA members are reporting that unsustainable wage demands are the price to pay for union consent. These demands have the potential to jeopardise major projects and drive resources companies away from Australia." he said.
