The High Court has dismissed an appeal from BHP, a major mining company, regarding a Same Job Same Pay mandate affecting three coal mines in Central Queensland.
This order, which has been in effect since last year, impacts over 2,000 mine employees, some of whom are seeing salary increases exceeding $30,000.
The Mining and Energy Union has announced plans to seek similar wage orders at additional mining locations in New South Wales and Queensland.
In its ruling, the High Court of Australia declined BHP’s request to challenge a previous decision that mandated equal pay for labor hire workers employed by Operations Services (OS) at the Goonyella Riverside, Saraji, and Peak Downs mines, operated by BHP Mitsubishi Alliance (BMA) in the Bowen Basin.
The Fair Work Commission had initially determined that workers hired through OS, a BHP subsidiary, should receive pay equivalent to that of their directly employed colleagues, a ruling that was upheld by the Federal Court.
BMA has indicated that it has already compensated the more than 2,000 affected OS mineworkers with increased wages while the legal proceedings were ongoing.
The Mining and Energy Union estimated that this ruling would result in pay increases ranging from $20,000 to $30,000 for the impacted workers.
According to a decision released on Thursday, the High Court found that BHP’s appeal of the Federal Court ruling lacked “sufficient prospects of success” and therefore denied “special leave” for the case to proceed.
Stephen Smyth, the union’s general vice-president, stated that this decision signifies the conclusion of BHP’s opposition to the Same Job Same Pay framework. “BHP was the last to resist,” he noted. “These workers have been performing the same duties alongside full-time employees on identical shifts.”
Smyth acknowledged the uniqueness of the OS arrangement in Queensland but highlighted that the High Court’s ruling could influence similar situations in other mines across New South Wales and Queensland. “This will facilitate the process for us and our members at various mine sites to pursue additional applications,” he added.
The Australian Resources and Energy Association has previously estimated that the implications of this ruling could cost BHP around $1.3 billion annually.
BHP has been approached for comments regarding the ruling. In earlier communications, a company spokesperson expressed concern that other contracting firms might also be subject to Same Job Same Pay mandates, perceiving this as a potential hindrance to productivity.
Historically, BHP has maintained that OS operates as a “mining services provider,” which should exempt it from the Same Job Same Pay orders.
