Labor’s contentious industrial relations legislation could ricochet through WA’s entire mining supply chain, the State’s peak industry group has warned.
The Federal Government’s second tranche of workplace reforms was dealt with a fresh blow last week after the Senate voted to push back the inquiry into the bill until February next year.
Business groups and resource sector lobbyists have already expressed concerns the planned changes — including “same job, same pay” rules for labour hire — could have a multi-billion dollar impact on mining companies that use labour hire for legitimate operational reasons, like commodity swings.
Chamber of Commerce and Industry WA chief executive Chris Rodwell said the Bill’s impacts would be felt right across the mining supply chain.
“All Australians know that the success of WA’s mining industry underpins the success of our entire national economy,” he said.
Mr Rodwell added it was less obvious how crucial mining was to WA small and medium-sized business, which supplied equipment and services to operations in sectors like manufacturing and transport.
“Most of these employers don’t rely on labour hire yet they will suffer under this ill-advised reform — and that will cost jobs,” he said.
Chris Comley, managing director of Welshpool-based equipment supplier Oreflow Australia, said his business relied heavily on the labour hire industry to carry out site works for its clients in the mining sector.
“(Mining companies) might not spend as much money on their maintenance and looking after their plants if they have to pay more money,” he said.
“If the mining companies start spending less money, then that flows on to companies like us and it could cause a bit of a slowdown.”
Mr Comley said he was also concerned about the changes aimed at creating a pathway for casuals to become permanent. As an example, Mr Comley said his son often works for the business when he wasn’t at university.
“I don’t want to be offering him a full-time job because he doesn’t want a full-time job,” he said.
“Companies like us don’t necessarily want to be forced into offering people a full-time position when the casual arrangement works for us and our employees.”
Industrial Relations Minister Tony Burke last week said the delay would push back pay increases for workers in mining and aviation.
But Mr Rodwell said CCIWA was also concerned the Bill would allow the Federal Government to expand the scope of the “same job, same pay” provisions without needing Parliament’s approval.
“Businesses will need to sleep with one eye open if these laws pass Parliament, because any assurances given about who will be impacted could change with the stroke of a pen,” he said.
“Australia needs to be positioning itself as the most attractive place in the world to do business if we’re going to capitalise on the green energy revolution, with critical minerals like lithium.
“These changes are ticking off a wish-list from the union bosses. They’re completely out of step with the real-life operational needs of a modern economy.”
The CCIWA welcomed last week’s decision to delay a vote on the bill until 2024. It urged the Senate committee examining the proposed changes to hold hearings in WA.