Article by Daniel Newell courtesy of the West Australian.
Mining giant Rio Tinto has join BHP in savaging the Federal Government’s proposed shake-up of Australia’s industrial relations laws, describing the controversial “Same Job, Same Pay” legislation as an “over-reach”.
Labor’s proposals aim to end the overuse of labour hire firms to undercut enterprise bargaining agreements and criminalise wage theft.
But Rio warned the Same Job, Same Pay provisions would extend beyond labour hire workers and apply to “countless businesses” across the country.
“This includes services contractors who have played a significant role in boosting productivity in the mining industry,” it said in a submission to a senate inquiry on the Closing the Loopholes Bill, released on Tuesday.
“Not only does such application risk undermining arrangements agreed to between employees and employers in those businesses, but, for mining, it threatens productive models of service delivery that are central to attracting investment in Australia.”
Rio conceded it had been the beneficiary of “stable” investment in Australia’s mining project in recent decades. but that had been contingent on a “relatively reliable employment system”. It warned the full impact of the industrial law changes could be felt for decades to come.
It submissions also echoed fears from other business leaders that the shake-up could “anchor” productivity to record lows, keep a lid on wages, exacerbate the cost-of-living crisis and undermine Australia’s competitiveness at a “critical” stage the energy transition, with the country seen as a key player in the global supply of minerals necessary for the decarbonisation of global economies.
“Our experience is that arrangements tailored for individual business help drive productivity growth,” Rio said.
“This model has delivered for our people, our business, and the country, through the creation of jobs, strong and sustained wage growth for our people over time, and the payment of royalties.”