Union Praises BHP's Shift Towards Fair Employment Practices
On 1st May, BHP received approval from the Fair Work Commission to directly employ nearly 140 Operations Services workers at Olympic Dam in South Australia. The Mining and Energy Union (MEU) has welcomed this decision as a positive step towards fair employment practices.
Ending BHP’s controversial Operations Services labour hire model at Olympic Dam marks a significant change. Criticised for bypassing established site agreements and reducing employment standards, this model faced scrutiny. Mitch Hughes, President of the Queensland branch of MEU, expressed the union’s readiness to support BHP in implementing similar changes in Queensland. He stated, “For as long as Operations Services has existed, we’ve been saying: directly employ the workers doing the job.”
Criticism of the Labour Hire Model
Creating pay disparities and employment complexities, BHP’s Operations Services model faced widespread criticism. Recently, the company admitted these issues when applying to the Fair Work Commission, citing disharmony caused by having workers on different agreements.
Describing the model as “a disgraceful wage theft model from day one,” Hughes urged BHP to extend direct employment to Queensland Operations Services workers without hesitation. He added, “If BHP now admits that having workers doing the same job on different wages creates problems, then stop wasting everyone’s time and directly employ Queensland OS workers too.”
Union campaigns, court battles, and Same Job Same Pay orders have pressured BHP to change its employment practices. After the High Court rejected BHP’s appeal against union-led orders, the union is ready to collaborate with BHP provided the company moves quickly in Queensland.
For years, workers have fought for fair pay and employment conditions. As a result, BHP’s decision is seen as a victory. The union emphasises that direct employment should be prioritised across all BHP operations in Australia.
In Queensland, MEU President Mitch Hughes said the union would support BHP finally doing what workers had been calling for from the beginning. He emphasised, “Well, we are more than happy to help get that same application rolling in Queensland.”
BHP’s application comes after years of union campaigns and court battles that exposed the company’s labour hire structure. Hughes concluded, “They never should have created it.”
