The Fair Work Commission has granted a Same Job Same Pay order at BHP's Mt Arthur coal mine near Muswellbrook in the NSW Hunter Valley, set to deliver about $10 million in annual pay rises for hundreds of labour hire miners.
It is the first Same Job Same Pay (Regulated Labour Hire Arrangement) order issued at a BHP site. BHP is currently fighting MEU applications for Same Job Same Pay at their Queensland coal mines.
MEU Northern Mining and NSW Energy President Robin Williams said the order issued Friday afternoon was historic, signalling real change in the mining industry.
"This is a magnificent outcome, ending the labour hire rort at the Hunter Valley's biggest coal mine," said Mr Williams. "It is an important win against BHP, who were a driving force in developing the unfair, two-tiered employment system that spread like a cancer through the coal industry.
"After years of ripping off labour hire workers, the law has finally caught up with BHP."
The Fair Work Commission's order covers labour hire mineworkers employed through Programmed (Skilled Workforce Solutions) at Mt Arthur and takes effect from Friday 7 March. At the time of the MEU's application in September, there were about 270 Programmed mineworkers, which has reduced to about 230 as workers have been transferred to direct employment. BHP has announced it will directly employ a further 200 of the labour hire workers.
"Programmed workers have been earning about $40,000 a year less than directly employed workers employed under the Mt Arthur Enterprise Agreement," said Mr Williams. "Once other entitlements are taken into account through direct employment, the pay increases will be worth an additional $1000 a week for affected workers.
"That's a massive $10 million a year that will go to Hunter workers, their families and the community.
"The laws are working as intended by ending big mining company wage-cutting strategies and driving direct employment."
Mr Williams said the whole workforce at Mt Arthur would be celebrating the order; and it would give hope to thousands of other labour hire workers with Same Job Same Pay applications currently before the Fair Work Commission.
