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Workplace reforms will mean risky business for mining industry, says Dutton

The mining industry will be put at risk if the government is allowed to pass its workplace reforms, Opposition Leader Peter Dutton says.

Sep 06, 2023, updated Sep 06, 2023
Ore excavation at the Rio Tinto West Angelas iron ore mine in the Pilbara region of West Australia Wednesday, July 9, 2014.  (AAP Image/Alan Porritt)

Ore excavation at the Rio Tinto West Angelas iron ore mine in the Pilbara region of West Australia Wednesday, July 9, 2014. (AAP Image/Alan Porritt)

 

The proposed changes, introduced to parliament on Monday, are aimed at ending exploitative practices like companies using labour hire workers to undercut the rate of pay agreed for employees.

The reforms also seek to criminalise wage theft, bolster protections for gig workers, create a pathway for casuals to become permanent, and end discrimination against survivors of domestic violence.

But the Liberal leader has indicated the coalition will oppose the proposals due in part to the consequences they could have on the mining industry.

The sector contributes almost 14 per cent of GDP and employs 250,000 people, with exports set to earn $460 billion this year.

Mr Dutton will tell the Minerals Council of Australia (MCA) on Wednesday the reforms will “unwind thousands of successful workplace-level arrangements that have enabled business to grow and employees to receive higher wages.”

Employers would be denied the choice to use labour hire workers and contractors, preventing companies from expanding and appropriately managing their operations.

“If these businesses go bust then there’s less workers and service providers in the system, more pressure on supply chains, and consequently, fewer mining projects commencing,” he will say.

“The Albanese government’s industrial relations reforms should be of great concern to the mining sector.

“The coalition will stand against them.”

Workplace Relations Minister Tony Burke has specifically targeted the aviation and mining industry for underpaying workers using the labour hire loophole despite recording significant revenue.

“You look at the profits in mining and aviation at the moment, I think you’d run a pretty tough argument to say that they couldn’t afford to pay their workers a bit more,” he told Nine’s Today Show.

“In these industries we’ve got this weird situation at the moment where labour hire is paid less. We’ve got to fix it.”

CEO of the MCA Tania Constable has made her apprehensions about the bill clear, calling its measures “an act of national economic self-harm”.

She claimed it does not close any loopholes and would instead “catch every business in Australia that employs staff” and “increase the cost of everything for everyone”.

“This is not just an attack on efficiency, this is an attack on Australian values of reward for effort and better pay for better work.”

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