RESOURCE

Issue 009 Summer 2014-15

Exploring Gold Fields Breathing new life into WA mine assets

Peabody: HR for the highs and lows of coal

Kicking goals with Aboriginal Maritime

PLUS mining’s community connection and Grange turns pink and blue

2 CONTENTS

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COVER IMAGE 12 16 Gold Fields Australia

EDITOR Tom Reid [email protected]

DEPUTY EDITOR Kylie Sully [email protected]

AMMA CONTACTS 1800 627 771 [email protected] [email protected] 27 30 [email protected] [email protected]

PUBLISHED BY

The Magazine Publishing Company ABN 70 010 660 009 PO Box 406, Nundah Qld 4012 PHONE (07) 3866 0000 FAX (07) 3866 0066 EMAIL [email protected] WEB www.tmpc.com.au

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE CONTENTS 3

REGULARS 10 04 From the Editor 05 Chief Executive’s Message 41 5 minutes with... 54 Events Calendar 56 Business Partner Directory COVER STORY 06 African touch rejuvenates Aussie gold mines

HUMAN RESOURCES 10 Newmont’s tool to tackle absenteeism 12 Peabody re-energises talent solutions

OHS & WELLBEING 15 Grange Resources turns pink and blue 16 FIFO in focus 18 Bristow employees ask R U OK? 19 Defence Force Q&A: Managing absence from home 20 Career hazards of a safety adviser

MEMBER NEWS 22 Community connection 22 TRAINING 24 NRW supervisors earn their stripes 26 West Coast: School program delivers rising star 27 East Coast: Gemma beats the boys to apprentice award 28 VET reform: Skilling for the long haul

DIVERSITY 30 Caterpillar gears up for gender diversity 32 Indigenous skills program launches Sodexo careers 34 BHP’s Tyler an exceptional talent 34 Campaign tackles widening gender pay gap 35 Online tool measures workplace cultural diversity

POLICY 36 Policy at a glance 37 New powers to stop strikes here to stay 38 IR still ranked Australia’s biggest challenge 39 FIFO mental health a priority, inquiry told

MIGRATION 40 Improvements to 457 visa scheme pending 40 Certainty restored in offshore visa challenge

LEADERSHIP 46 42 Kicking goals with Aboriginal Maritime 44 Toro Energy poised for new uranium age

INNOVATION 46 Virtually immersed in safety training 48 3D mapping boosts ore extraction 49 Innovation alliance targets mine productivity

ECONOMY & FINANCE 50 Mining whiz opens family focused money school 51 Resource investment behind higher living standards 52 Export earnings surge with resource production 53 Coastal shipping reforms for a globalised industry

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 4 REGULARS Tom Reid EDITOR From the Editor

AUSTRALIA’S GOLD SECTOR may be facing its fair share of in our industry, OHS explores the experiences of the FIFO challenges, but in Resource People Summer ’14-15 we look at working lifestyle from several different perspectives, each two large gold employers that are improving their productivity providing insight into the growing employee assistance and and their bottom line by encouraging innovation and efficiency support initiatives embraced by the industry. among their workforces. In Training and Development, we learn about the supervisory In our cover story, we learn how change management, people training that is introducing greater skills and confidence in contractor culture and performance have played a major role in the success NRW’s workforce, and hear how AMMA executive director Tara of Gold Fields Ltd, as the South African-based miner consolidates Diamond is assisting in the government’s national vocational its increased Australian portfolio as part of a global restructure. education and training (VET) reforms. Diversity celebrates Caterpillar Our other gold feature is on Newmont, where a new Australia’s ‘gold’ rating in the AWRA Recognised assessment of leave management system has proven once again that small organisational gender diversity capability. improvements in workplace practices and culture often have the In Leadership, we gain access to Australia’s first Indigenous- greatest impacts on operational efficiencies. owned marine services provider. With prominent Aboriginal The Human Resources section takes readers over to the east community leaders and sporting legends such as the AFL’s Dean coast for a special feature on coal miner Peabody. Reminding Rioli steering the ship, Aboriginal Maritime is delivering real us that decisions made today will shape the workforces of training and employment outcomes for Indigenous Australians. tomorrow, Peabody executive Geoff Woodcroft discusses Finally, with 2014 drawing to a close, we felt it was time for a recruitment, skills development and attracting the next Resource People refresh. You may notice some subtle design generation of resource employees. improvements as you read the stories in this ninth edition; all In light of the increased focus on mental health and wellbeing found within our vibrant and evolving resource workplaces. RP

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE Steve Knott AMMA CHIEF EXECUTIVE Chief Executive’s Message

FROM THE TRANSFORMATION undertaken by Gold Fields Ltd of its new Australian gold mines, to the ‘back to basics’ HR practices put in place by Peabody Energy and Newmont, this edition of Resource People offers unique insight into the workforce strategies of Australia’s resource employers as a commercially challenging 2014 draws to a close. While a strong focus is on finding new efficiencies and improving productivity, it is encouraging to read the raft of investments still being made in developing the skilled employees With the G20 meeting of global and resource industry leaders of tomorrow. Management training, leaders taking place in Brisbane in mid- high achieving apprentices and successful schoolkid programs are November, we have seen a renewed all on display within these pages. Diversity and Leadership showcase ongoing initiatives focus on Australia’s competitiveness in and programs to engage with underrepresented talent the global marketplace. demographics in our sector, in particular encouraging more women and Indigenous Australians to take up career opportunities in our industry. With an increased focus on mental health among Australia’s FIFO workforces, this edition also includes a timely feature On the latter issue, there is no doubt Australia’s workplace exploring the benefits and challenges of undertaking this relations laws can and should provide a much more supportive working lifestyle, including from the perspectives of the family framework for economic and employment growth. More broadly, members back at home and an onsite safety and wellbeing the role of government in creating a regulatory environment that manager who undertakes a FIFO roster. supports and encourages industry innovation and investment Recently, AMMA submitted to the West Australian remains absolutely critical. parliamentary inquiry into FIFO mental health that employers To this end, AMMA was very pleased to have recently hosted in our industry have put significant energy and focus into an exclusive Dinner with the Coalition Leadership event where comprehensive FIFO wellbeing initiatives over the past decade 40 executive leaders from an extensive cross section of our and more. However, employers in our sector are also very aware membership engaged directly with Prime Minister Tony Abbott that the range of unique factors associated with FIFO work must and eight senior Australian Government ministers including Julie be acknowledged and managed as part of ‘whole-of-business’ Bishop and Warren Truss. mental health and workplace safety policies and initiatives. This Canberra event provided a unique opportunity for senior All this ensures sustainable employment opportunities are representatives from Australia’s resource industry to hear from created by the resource industry and accessible to all throughout key political decision makers and discuss a raft of important policy the broader community. As we look towards 2015, Australia’s issues impacting their individual enterprises and our wider industry. mining, oil and gas, and allied sector employers continue to Shortly thereafter, AMMA also facilitated a private meeting build a positive legacy that will improve our national wellbeing between Employment Minister Eric Abetz and various leaders for many more years to come. from our industry to discuss the key areas of workplace relations With each edition of Resource People we endeavour to reform that AMMA has consistently advocated in recent years. showcase just a small portion of these efforts. The ongoing support we receive from our members enables AMMA to maintain and expand our representative work across ENGAGING WITH OUR NATIONAL LEADERS critical policy areas impacting all parts of Australia’s resource Resource People also explores how as an industry we can industry. It ensures our industry can grow and remain the deliver a strong return on the billions of dollars of new project cornerstone of our national economic wellbeing. investment into our country in recent years, and reap the By now many of you will have received the AMMA 2014 national benefits of our nation’s new production capacity. Activities Report, distributed to all members along with With the G20 meeting of global leaders taking place in AMMA’s 2015 membership renewal information. Also Brisbane in mid-November, we have seen a renewed focus on available on the AMMA website, the Activities Report outlines Australia’s competitiveness in the global marketplace. the breadth of AMMA’s policy and influence work for all parts At the ‘B20’ precursor event for business leaders, the head of of our diverse membership. the International Monetary Fund Christine Lagarde suggested AMMA looks forward to continuing to advance the interests of infrastructure investment and labour market reform will be critical our members and to actively influencing the government’s policy to meeting the G20’s global growth target of 1.8 per cent. agenda in 2015 and beyond. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 6 COVER STORY

AFRICAN TOUCH REJUVENATES AUSSIE GOLD MINES

It’s been just over 12 months THE VERY DAY Gold Fields was handed the “You need to change the systems as since South African-based keys to the Granny Smith, Darlot and Lawlers quickly as you can, otherwise the workforce Gold Fields took over three gold mines in October 2013, the 800-odd sees the new operator as being no different. underperforming West employees across the three sites were kitted So as soon as we gained access to the Australian gold mines, out in new yellow PPE clothing complete with three mine sites, the first thing we did was significantly increasing its Gold Fields’ distinctive lion’s head logo. change the colour of the PPE and ensure investment portfolio and You might not consider replacing the everyone had Gold Fields clothing from day workforce Down Under. orange Barrick Gold uniforms to be a one. The other priority issue was transferring As the ambitious producer priority when taking over US$270 million all employees across to Gold Fields enacts its plan to turn the worth of mine assets, however such was the employment conditions and contracts. mines into efficient, world- importance of immediate cultural change “Then, during the first week we class assets, Resource within Gold Fields’ newly acquired workforce. started putting technical review teams People explores the change “In my experience, if you don’t move onto the three sites to discuss with management, cultural quickly you lose the opportunity to the management and employees how and community strategies implement cultural change and to make we could improve the operations and behind the takeover. strong improvements early,” explains what they needed to improve. We Richard Weston, Gold Fields Australasian said we’ll give you capital but we want executive vice president. improvements, and that has worked well

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE COVER STORY 7

Granny Smith gold mine by night Underground at Darlot in central WA

across all three mines.” an opportune moment for Gold Fields and a good operating culture, but we felt Gold Fields acquired the three Australian to acquire underperforming assets at a we could operate these three mines more assets, all located within WA’s famous bargain price. As relatively small mines efficiently; certainly we could give them central gold producing region, following an within Barrick’s massive global portfolio, more care and attention. Furthermore, we earlier corporate restructure that saw it split- Weston believes offloading the three mines could exploit synergies with our existing off its conventional underground mines in to Gold Fields made commercial sense. operations in WA, at Agnew and St Ives.” South Africa into a separate company. With “In the first half of 2013, the gold price its South African interests greatly reduced, dropped 30 per cent and any company INTEGRATING GOLD FIELDS’ DNA Australia now represents 43 per cent of selling assets had to change their Like any strong employer in the resource Gold Fields’ global production capacity. expectations as to what they could get,” industry, Gold Fields operates around several The three newer mines join Gold Fields’ Weston says. core company values: safety, responsibility, existing West Australian assets, Agnew “The opportunity arose whereby we honesty, respect, innovation and delivery. and St Ives, to give the company a local could pick up three of Barrick’s assets But what really resonated with the new production capacity of one million ounces for around US$270m, and in my view, employees was an education program per annum. Collectively, the mines employ you couldn’t have built any one of those on Gold Fields’ ‘DNA’. Weston explains about 2,150 people of which a higher- assets for US$270m. So we got what we this is about the company’s strategic than-average 15 per cent are female. consider a very good deal. objectives, commitment to stakeholders, Last year, falling gold prices presented “Barrick has good operating systems and its operating model and structure. »

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 8

Work underway at Agnew, 375km north of Kalgoorlie

» “When we took over the three assets it mines. They were quite amazed at SAFETY AND SUSTAINABILITY was the DNA presentation that went down what can be achieved and at the levels Weston has worked on a number of really well with our new people, because of discipline in safety, equipment resource operations around the globe and, they could understand exactly what Gold performance and maintenance. since returning from his latest four-year Fields was all about,” he says. “That was a unique training program, sabbatical, has implemented a focused “Now, about 12 months on, we’ve but we’re always prepared to make such safety regime at Gold Fields’ worksites. just done a cultural survey of all our investments if we consider it worthwhile. Unsurprisingly, safety culture was a major employees and it is clear that message In this instance the transfer of Australian part of the new mines integration process. was communicated particularly well.” expertise to our South African crews has “Australia is highly regulated in While describing his own leadership proved invaluable. terms of safety legislation, use of PPE style as based on fairness and treating “A team of 26 Australians is also and formal safety processes, but there people well, Weston says Gold Fields also assisting Gold Fields at its South Deep are always improvements that can be has high expectations in the performance, mine in South Africa in implementing made,” Weston says. productivity and efficiency of both its advanced mechanised mining “This year we have introduced a assets and its people. He says the senior methodologies and practices.” complete safety behavioural program personnel the company inherited with the Gold Fields has encouraged the called ‘Vital Behaviours’, with the objective Barrick mines were told cash margin was majority of Barrick’s former staff to to ensure people not only take more care more important than sheer production. remain employed on the projects, of themselves in the work environment, “With the capital we were willing to though general management of two but have a much greater awareness and invest in the mines, and the focus on cash of the three mines has since changed interest in what other people are doing in generation over production levels, we hands. Weston particularly notes that the workplace.” have seen strong improvements across all Stuart Matthews, the new GM of the Another area in which Weston three assets,” Weston says. Granny Smith mine, the largest of the brings an international perspective is “In particular Gold Fields has invested three acquisitions, has experience in in community relations and corporate significantly in near-mine exploration at operating ‘difficult mines’ internationally social responsibility. all its operations to enable the mines to and has implemented a number of Through the Gold Fields Australian build up their resources and reserves and significant changes. Foundation support is provided to extend the lives of these mines. “He has been very instrumental in community projects around Kalgoorlie, “We recently provided some of our changing the workplace culture and Kambalda and more recently Leinster. South African underground colleagues improving operations both underground It also contributes to broader initiatives with an opportunity to experience and in the process plant. This year, such as the Royal Flying Doctor Service operating conditions in our highly Granny Smith is outperforming even our and the Princess Margaret Children’s mechanised underground Australian highest expectations,” Weston says. Hospital. In addition, the foundation takes

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE COVER STORY 9

the industry’s productivity,” he explains. important to recognise that investing in “That’s clearly an issue we are seeing equipment doesn’t give you innovation. It in all sectors of the resource industry, and has to be achieved through your people; something that is still causing great concern you’ve got to use your people to come up for Australia’s global competitiveness.” with the thought processes that will give The potential impact of such issues to you that paradigm shift.” Australia’s wider industry led Weston to As for his medium term plans for Gold recently join the AMMA Board of Directors. Fields’ increased Australian presence, “Through my involvement with AMMA Weston is motivated, if not a little cautious. I hope to make a valuable contribution to “I can’t say at this point if we’ll be addressing these industry-wide issues and producing two million, or even one ensure Australia can better compete for million ounces per annum in five years’ job-creating, international capital,” he says. time,” he says. Where Australia can regain its competitive “However, I can say that we will be a advantage, says Weston, is innovation. sustainable and profitable gold mining Richard Weston “I’ve worked overseas in a lot of company that delivers good returns different countries and Australians are for our shareholders and all other up there with the best miners and can stakeholders, including local communities a keen interest in providing educational innovate well,” he says. and of course our employees. opportunities for young Indigenous “Increased performance won’t come “Gold Fields also strives to be a reputable Australians and currently sponsors 13 from cost-cutting. It is important that we gold producer with highly sustainable talented individuals to undertake tertiary continue to innovate, do new things, use operations that maintain very competitive education in fields as diverse as medicine, new technology and seek paradigm shifts margins. And while we aren’t the biggest law and engineering. in the way we operate. employer in our sector, our goal is always to Weston notes maintaining a healthy “While this does require capital, which be viewed as one of the best employers in relationship with West Australian is tight in the industry at the moment, it’s Australia’s gold industry.” RP communities is much easier than its operations abroad. “I’ve worked in some very sensitive areas, both environmentally and in strong anti-mining communities,” he says. Gold Fields may not be the biggest employer in our “Operating here is nothing like the issues sector, but our goal is always to be viewed as one of we see in Ghana, Peru or South Africa. the best employers in Australia’s gold industry. “Western Australia in general is very accepting as long as you demonstrate you are a good employer, take care of the environment and are socially involved and making a valuable economic contribution to the state.”

LEADERSHIP, PRODUCTIVITY, INNOVATION Weston has worked for Gold Fields since 2010, joining the company after spending four years in the United States as a senior operations executive with Coeur Mining, one of the world’s largest silver producers now based in Chicago. Re-entering Australia’s resource market, he noted greater issues around labour market efficiency, productivity and competitiveness. “When I arrived back in Australia, I quickly realised that in the four-year gap where I’d been in the United States, labour remuneration rates had almost doubled and there was little increase in Women comprise 15% of Gold Fields’ workforce

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 10 HUMAN RESOURCES

NEWMONT’S TOOL to tackle absenteeism As resource employers seek new operational efficiencies to boost productivity and address competitive challenges, the work of Newmont Boddington’s HR team is proving that often the subtle changes – like leave management – can go far.

Newmont is improving workforce efficiencies through a new leave management tool

MULTINATIONAL GOLD PRODUCER open cut gold and copper mine, Crowe says. Newmont may be a global leader in its Boddington, has become one of the “But while it is easier to track FIFO field, but with the resource industry facing largest gold producers in the country with employees’ movements through inflight new competitive pressures, even it is a 704,000 ounce output in 2013. systems, we didn’t have the infrastructure taking stock of its operations to eliminate A mine life expectancy of more in place to be tracking our employees as lost productivity or efficiencies. than 20 years means the company is they drove into site. We were trusting a An immediate focus area is in its people understandably keen to establish a large number of workers that they would policies and procedures – starting with its desired culture and to maximise workforce adhere to their working hours.” drive-in, drive-out remote workforces. outputs for the long haul. Determined to properly start quantifying “Newmont’s concentration on the Crowe explains that as it is located 130 absenteeism, Newmont’s HR team pored utilisation of labour came out of a kilometres southeast of Perth, Boddington is over monthly leave reconciliations, which bigger picture project to assess the full ideally placed to employ a full drive in, drive confirmed some regrettable planned and potential of our site and opportunities out (DIDO) workforce of 1,030 people. unplanned leave trends. to improve efficiencies,” says senior HR While this eliminates many of the human “While we didn’t necessarily have a adviser Linda Crowe. resource challenges associated with FIFO high absenteeism rate, it confirmed our “We realised there were significant practices, she says it does pose other assumptions that leave was not being gains to be made in the way we utilised people management difficulties. accounted for,” Crowe says. our people and, with the Boddington “Having a DIDO workforce, we are “If an operator who is planned to be on mine in particular, through addressing able to integrate a broad range of site is not present, it results in a ‘no-operator issues around leave and absenteeism.” different rosters across the site, which is standby’ which means a truck is laying idle Since pouring first gold in 2009, quite different to our FIFO counterparts because there is nobody to drive it. Newmont’s wholly-owned West Australian and works to our favour in some ways,” “That can cost up to $5,200 per day. www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE HUMAN RESOURCES 11

“This reconciliation process brought per crew. Expecting that supervisor to “That marker remains in place until the about the first step change in absentee keep track of all planned and unplanned employee accounts for the absence and at management and the initial project reduced absences was unrealistic without an any given time, we can print a report and see our leave liability by more than $1 million.” efficient system in place,” Crowe says. if the absence has not been followed up on. Recent research has shown how such With the help of colleagues at “So it puts the onus back on the workplace inefficiencies can end up Newmont’s headquarters in the United individual and deals with live data which damaging overall business performance States, a new electronic ‘leave marker’ helps us to reduce no-operator standbys and competitiveness. tool was created and is now being piloted and avoid other inefficiencies such as In its 2014 report Mining for Efficiency , with four supervisors and their teams. overpayment of wages. PricewaterhouseCoopers found the global Crowe is already seeing improvements “Aside from improving HR practices, I’m mining industry’s open cut equipment in supervisors’ management capabilities. confident the supervisors will be better productivity has declined by 20 per cent “If somebody has not arrived for their equipped to drive cultural change and over the past seven years. In Australia, shift, the supervisor will simply put a flag greater employee engagement. It has the mining equipment runs at lower annual in the leave marker system,” she says. capability to extend to other Newmont outputs than most of its global competitors. sites if required.” PwC found equipment productivity Driving efficiency across everyday was heavily dependent on whether there workplace processes may seem minor were clear and strategic work practices in isolation, but the impact on wider to follow, and this could deliver better productivity improvements in a cost- output improvements than investing in This reconciliation process competitive environment cannot be higher rated pieces of equipment. brought about the first underestimated and will surely help As with most resource employers, step change in absentee determine which resource companies management and leave recording falls remain leaders. largely with Newmont’s onsite supervisors. management and the initial Newmont’s new tool to tackle “At Boddington it is not unusual to have project reduced our leave absenteeism will assist greatly in keeping up to 55 employees to one supervisor liability by over $1 million. the gold producer at the top of its game. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 12 HUMAN RESOURCES

PEABODY RE-ENERGISES talent solutions From the impacts of retiring baby boomers to competing for future talent with the oil and gas sector, Peabody Energy’s head of HR Geoff Woodcroft tells Resource People the coal sector’s workforce and skills challenges remain as complex as ever.

AFTER ALMOST FIVE years as vice Despite this, Peabody expects global MANAGING NEW EXPECTATIONS president of human resources for coal demand to rise by 600 million tons Now the dust has settled on the ‘war for Peabody Energy’s significant Australian by 2016 and is targeting Australian sales talent’, one of the biggest challenges coal operations, Geoff Woodcroft has of a healthy 35 to 37 million tons this for HR teams is managing employee witnessed the highs and lows of coal year – just above the 34.9 million tons expectations formed during times of prices, talent shortages and human sold in 2013. high wages growth and very healthy resources budgets. The challenges facing the coal sector career development budgets. “We had quite a few years of very makes internal skills development as At the height of the skills shortage, prosperous growth and, like many of our critical as ever. Peabody like many other companies, peers, we are now at a very critical point “When you think of the current market was having to offer significant salary in time. Many organisations are facing conditions in respect to the impact on talent, packages, including the buy-out of headwinds that they haven’t experienced it’s a real balancing act because we must bonuses and long-term incentives to before,” Woodcroft says of Australia’s respond to current business imperatives to attract critical talent. mining sector. reduce costs whilst keeping an eye to the “Some people might say that In 2011, the US-headquartered coal coming years. The decisions we make today candidates were the only winners in the giant achieved the strongest financial are going to shape our future, and we need war for talent but that’s really not true results in its 129-year history with $8 billion to get it right,” Woodcroft says. because it has consistently raised their in revenue across its global operations. “Prices may not go back to the dizzy expectations about what companies can Peabody’s metallurgical and thermal coal heights we had, but we will come through offer and how fast their career could projects in Queensland and New South this. And the companies that are making the progress. That has to reach a ceiling Wales accounted for half of those earnings. right decisions now about their talent needs at some point, and some people are Since that defining year, declining coal will be the ones who will be able to quickly finding that to be a difficult concept to prices have impacted revenue growth. take advantage of the next upswing.” accept,” Woodcroft says. “Helping our employees to understand that now it’s really all about business survival, execution and remaining competitive in the current market is a difficult task. Some of them have never experienced a downward trend in the market, and keeping engagement levels high in the current environment is very challenging.”

SKILLS CHALLENGES REMAIN Like its competitors, Peabody experienced a much-welcome decrease in staff attrition rates within its 3000-strong workforce as the coal market eased. This however, also comes with its own challenges. “If increased retention is occurring across the mining industry, it means that highly skilled talent is staying put, so there are still shortages in some critical skills Peabody Energy’s Geoff Woodcroft areas,” Woodcroft says. www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE 13

“For example, we’re talking about the the one above that, then you are not type of roles that are required to allow a meeting the needs of your organisation,” mine to legally operate. If you can’t secure Woodcroft elaborates. the right people for these roles, you are in “There’s also a large pool of really deep trouble. talented women that the industry is not “Our baby boomers are starting to utilising as well as it could be. That’s retire and there’s going to be a huge both a challenge and opportunity for number of people exiting the workforce As an industry, we could companies like Peabody, along with in the next 10-15 years. That’s going to be doing more to promote refining work readiness programs for leave us short of some very critical talent mining careers at a time Indigenous people. and so the issue of skills shortages won’t when labour shortages have “More so than when times are good, be going away.” eased, or perhaps prospects it is our leaders who set the culture of To reduce the impact, succession in the oil and gas sector the organisation, and that can be a real planning, workforce diversity and competitive advantage when attracting leadership development are major focus look more appealing. and retaining talent. Peabody has areas in Peabody’s current and future significantly ramped up its management talent management plan. and leadership development initiatives “Succession planning is critical. If you to ensure our leaders have the skills are not having conversations about how and mindset to navigate our workforce to prepare people for the next level, and through tougher times.” »

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 14 HUMAN RESOURCES

» ATTRACTING FUTURE GENERATIONS now exploring greater opportunities to that means HR must be proactive in Looking beyond Peabody’s immediate maximise its investment in graduates. identifying opportunities to help the needs to the wider picture, Woodcroft While these programs are usually the first business thrive. believes it is now important for industry, to suffer from financial cuts, Peabody is “My team and I are constantly looking government and educators to address balancing short term cost savings with at new ways for the function to meet the future skills needs, adding that constant future talent needs and is committed to its needs of our organisation. That can be media speculation about the industry graduate program. tough, especially in such a challenging could be swaying career choices. “Like many companies we have had market, but I guess it is also what makes “The education system hasn’t really a fairly traditional graduate program, so the job so rewarding,” he says. RP come on board with the need to get the HR team has refreshed our offering to young people thinking about the exciting make it more appealing to the brightest career opportunities in mining,” he notes. young minds,” Woodcroft says. “And as an industry, we could also be “The next generation want visible doing more to promote mining careers at a career paths and flexible arrangements. time when labour shortages have eased, or We have to ensure we meet these perhaps prospects in the oil and gas sector expectations otherwise we just won’t be look more appealing. able to attract the right talent to take “During the Global Financial Crisis we Peabody into the future. saw a reduction in the number of young “Just as we are introducing new people choosing mining degrees, resulting technology into our mining practices, we in a shortfall of qualified mining engineers have to be prepared to apply the same a few years later. The current market focus on innovation into our workplace downturn is likely to have the same impact practices as well.” and this will be a significant problem.” What is certain, according to Taking charge of its own pipeline of Woodcroft, is that the industry is in young talent, Peabody’s HR team is an era of continuous change and

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE OHS & WELLBEING 15

Grange Resources crew raised $9,000 for cancer charities GRANGE RESOURCES turns pink and blue

TASMANIAN MAGNETITE MINER and the positive response from the fight cancer.” Grange Resources has welcomed two very employees on this occasion has been Grange’s ‘Crew B’ raised the most large and very colourful additions to its outstanding,” he says. funding of each employee group – $4,000 Savage River mine site. “The initiative came from our assistant – using a number of creative fundraising The company has painted two trucks – mine superintendent, Adrian Bonde. He methods including live entertainment one pink and one blue – to raise awareness saw an opportunity to inspire his teams provided by a musically gifted crew of both breast and prostate cancer. to support this important cause, and to member in the camp wet-mess, a raffle Aside from turning heads with creative raise awareness of Grange employees’ of items donated by local retailers, and awareness messages like ‘It’s never too health and wellbeing. employee cash donations. late to check your prostate’, the trucks “Raising funds for cancer research and The Grange Resources blue and pink are delivering tangible outcomes for care is fantastic, but (this is) more about trucks were painted by N & P Enterprises local charities. their health awareness, and (prompting with paint donated by Paint-Tech Hobart. Employees raised $9,000 in donations them) to have a check-up. We know that The health awareness messages were between July and August. Cancer early detection gives the best chance to done by Super Signs Australia. RP Council Tasmania has received $7,050 while the remainder was shared between the McGrath Foundation and Prostate Cancer Foundation of Australia. General manager Ben Maynard says Grange Resources is the first mining company in Tasmania to paint trucks for cancer awareness. “Grange Resources regularly supports A truck displays worthwhile funds, including Relay For an important Life, SIDS, and World’s Greatest Shave, health reminder

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 16 OHS & WELLBEING

FIFO IN focus With a FIFO mental health inquiry underway, Resource People looks at the mounting focus on wellbeing support for workers and families alike.

FAREWELLING HER HUSBAND as he “But there are a lot of partners and FAMILY BUSINESS embarks on a critical role as a fly-in, fly-out families that don’t have that insight, so Nicole Ashby has certainly received (FIFO) emergency management professional I think resource companies introducing growing interest from resource employers with a major Pilbara mining operator is the family to what site life is all about is a in the support services of her company something Dani Tamati is used to. great initiative.” FIFO Families. After eight days hard at work she will In August this year, the West Australian Launched in 2010 as a networking and welcome him home for a six-day break, Government announced a parliamentary support group for resource industry families, where he can resume his hands-on role in inquiry to examine mental health among FIFO Families has since expanded to raising their four children. FIFO workers, following some deaths of deliver education programs and seminars to The lifestyle is not without its challenges, FIFO employees over the past 12 months. organisations and residential communities. but for the Tamati family, it works. At the time, chair of the WA “We talk about how to successfully “It took about six months for our family Parliament’s Education and Health navigate a FIFO life, including to get used to the FIFO lifestyle, but now Standing Committee Liberal MP Graham everything from how to communicate we prefer it,” Tamati says. Jacobs indicated the inquiry would take effectively with your loved ones to “When my husband comes home for his a holistic view, looking at initiatives of break, it allows us to really connect. He government, industry and the wider also does the school drop-offs and pick- community, as well as the ‘responsibilities ups and the kids get to spend quality time of employees and employers’. with their dad. During this period, a number of trade “Of course you also miss out on things, unions have stepped up campaigns for but if you plan ahead for family events, it shorter FIFO rosters across a range of puts you in a better place mentally.” new enterprise bargaining agreements for Tamati can relate to her husband’s major projects. working lifestyle because she too once The final report, including findings of worked onsite, embarking on a FIFO any correlation between different rosters roster of 13 weeks on and three weeks off and mental health, won’t be handed down in the resources hospitality sector more until March 2015. However, the industry than two decades ago. is already approaching the review as After meeting her husband and starting an opportunity to improve on existing FIFO Families founder and a family, they resided in the Pilbara for employee wellness programs. director Nicole Ashby 14 years before relocating to Perth in 2010. Tamati now runs recruitment firm The Resources Hub and says the time employees are expected to work away has dramatically reduced. “In general, the longest rosters my candidates are employed on are four to six weeks away,” she says. Well aware of the current debate around FIFO, she believes there are advantages in resource employers opening a greater dialogue with families. “Because of my personal FIFO experience, I know where my husband goes when he leaves for work. Our children also have an understanding The Tamati family with from having lived in a mining some impressive mining community,” she explains. equipment in the Pilbara www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE OHS & WELLBEING 17

putting financial strategies in place DRILLING DOWN THE ISSUES and how to access professional mental FIFO Families provides social support health support,” Ashby says. and education programs to a number of “Employers acknowledge and resource industry organisations including appreciate that there are some Mineral Resources, BGC Contracting, complexities around the FIFO lifestyle AngloGold Ashanti and Shell. and want to make sure their workers have Integrated mining and energy services access to the resources they need. company Ausdrill has offered FIFO “They know that if their workforce Families membership to its mobile feels better about working away, they workforce since 2011. will be safer, more productive and loyal.” About 20 per cent of the employer’s Ashby hopes to one day see mental health people fly in and out of the Pilbara and Ausdrill managing awareness and support for workers and Goldfieds regions, regional Queensland director families become standardised across the and South Australia as well as West Africa. Ron Sayers industry, just like physical safety training. Managing director Ron Sayers sees it The merits of doing so is backed by a as an essential piece of the company’s ‘Ausdrill Way’ which funds immediate, recent joint FIFO Families and Creating employee assistance offerings. short-term financial support for workers Communities survey of 800 West “As a business, we are aware the and their families in a time of crisis.” Australian FIFO workers. FIFO lifestyle can put extra demands on While Ausdrill is taking deliberate steps “We found that family acceptance and families and individuals, and Ausdrill is to support the broad needs of its workforce, availability of family support were seen therefore committed to making sure our Sayers is disappointed by the level of as very important factors for workers to FIFO employees and their families have negative attention FIFO often receives. remain in FIFO arrangements, however appropriate support and information,” “The resources industry is not the only only 2 per cent had been involved in an Sayers says. sector that has people working away in induction of family members into the FIFO “We offer a wide range of benefits something along the FIFO lines, yet it lifestyle,” Ashby explains. to our employees including discounted does seem to get a disproportionate “Greater preparation for FIFO, induction health insurance, gym membership and amount of attention for the issues that and ongoing support for workers and access to a confidential counselling can arise,” he says. families will help promote satisfaction and a service through the Ausdrill Employee “There are plenty of families in areas sense of connection, which will also naturally Assistance Program. such as defence or agriculture that are lead to greater productivity for companies.” “We also have a program called the dealing with similar issues. »

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RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 18 OHS & WELLBEING

» “It’s simply a fact of life for many up early in life. people, particularly in a big country such “But FIFO is a choice and it’s not as ours where many of the jobs happen to for everyone. Each individual needs to be located in remote areas.” figure out what working situation is best for them and their family.” MAKING THE RIGHT CHOICE Kirkup sums it up well when he says Working in middle management for Mount the issue of mental wellbeing across Gibson Iron, Richard Kirkup oversees the all Australian industries is evolving wellbeing of around 50 staff onsite in the and will require ongoing attention and far north Kimberley. He also undertakes a improvements in workplace strategies. FIFO roster of 12 days on, nine days off. “We have come from a time when 20 Like the Tamati family, he enjoys the or 30 years ago the image of the industry FIFO lifestyle for its many benefits but was of a hardcore miner who just got in believes individuals need to carefully and got the job done,” he explains. consider their choice before diving “But there is a new generation of headfirst into the industry. people, a lot of whom are fresh out of “I get the best of both worlds. I live in their trade school or university and come Perth and spend quality time with family into the job without a lot of life skills. and friends, then I get out of the city “I believe that supporting workers and back to work which I enjoy because and their families is becoming more my job challenges me,” Kirkup says. recognised within the industry and the “And of course the money is more awareness we can create about the FIFO worker Richard Kirkup says the fantastic. I know a lot of young people lifestyle – both the benefits and challenges lifestyle gives him the best of both worlds who have been able to set themselves – the better it will be for all.” RP

BRISTOW EMPLOYEES ask R U OK?

THERE IS ONE phrase employees of helicopter confidence to share personal stories with their workmates, transportation company Bristow Group have grown enabling closer relationships within the workforce and accustomed to hearing – R U OK? increasing understanding of the needs of some employees,” Bristow promotes mental health awareness among its says Williams. predominantly male workforce of engineers, pilots and Bristow Group’s Employee Assistance Program has seen an operational staff who work in remote locations and other increase in usage, demonstrating that the message is resonating safety critical environments, with the annual R U OK? Day with the workforce in a positive and practical way. RP every September. The R U OK? organisation encourages Australians to regularly check on the wellbeing of friends, relatives and colleagues. Bristow Group first supported the cause in 2011 by sponsoring the Afield Program which develops resources targeting FIFO and DIDO workers. Bristow human resources manager Keir Williams says the program offers an opportunity to highlight support services available and equip their staff with tools to confidentially engage in conversation with each other. “Raising awareness and breaking down the stigma attached to mental health illnesses has given Bristow staff the Bristow Group employees with the R U OK? Foundation bus

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE OHS & WELLBEING 19

DEFENCE FORCE Q&A: Managing absence from home Preparing serving members and their families for time apart is something the Australian Defence Force considers a major responsibility and critical to its success. Resource People recently sat down with the Defence Community Organisation’s Northern Territory manager Paul Gibbs and family liaison officer Tree Malyan to discover what resource employers with FIFO workforces can learn.

Why does Defence invest in support for How does Defence prepare members serving members and families? and families for time apart? GIBBS: In Defence, we have highly MALYAN: We offer a range of briefings, skilled people who do a range of really programs and services to help Defence complex roles. It is not unusual for people families learn skills to manage their time apart to be away from home for weeks or months and form a support network for each other. at a time, whether that is for training or One of the key resources that we work deployment. In cases of international with Defence members and families to posting, they can even be away from family complete is a Member and Family Care support for a year or two. Plan, which is essentially a comprehensive Managing this comes down to thinking document that will guide them through about what it takes to maintain people’s any situation that may occur. capabilities and work performance. The care plan includes important A crucial component of capacity building information such as wills, medical details is to help families prepare for that separation. and financial planning. But it also covers The role of the Defence Community all the silly inconveniences such as who to Organisation is to contribute to that by call if the washing machine breaks down assisting families to be more resilient. or what the car insurance details are. Defence We also have school-based aids and Community Organisation mentors working with Defence children to NT manager help them during parental absence. Paul Gibbs Underpinning all of this is a 24-hour Defence Family Helpline that is staffed member to be a calming influence and by qualified professionals including social still feel like they are helping their partner workers and psychologists who support even though they are away. families during time apart. Many resource employers offer support What does this offer the Defence programs to their FIFO employees, member while they are away? however, some people won’t seek help GIBBS: Having a completed absence when they need it. Has Defence made a away from home plan really means that deliberate effort to build a culture where the Defence member can go about their there is no shame in seeking support? tasks knowing their families are prepared GIBBS: Yes, and it has taken quite some for anything that may happen at home. time to refine but it is now something MALYAN: It is important for the families that Defence does really well. We’ve got to be resilient and handle a situation the systems in place and we really pay on their own, but if there is a crisis, it is attention to the detail. natural that the person you want to speak MALYAN: We always reiterate to to is your partner. Defence members and families that there So if it is possible for the family to speak is support available and there is no shame Tree Malyan with commander Ben Favell to the serving member and they can talk in seeking that support, especially when at a family event. about the care plan together, it allows the they have been deployed. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 20 OHS & WELLBEING

CAREER HAZARDS of a safety adviser In the 20 years he has spent as a training and safety professional, Paul Brabender has seen it all when it comes to the performance of workplace safety advisers.

WITH EVEN THE most confident of safety advisers falling into common traps of the profession, respected health and safety trainer at SAI Global, Paul Brabender, has some sage advice based on his own experiences.

BE PERSONABLE AND ENGAGING The importance of a capable safety adviser cannot be underestimated, especially on a risk-riddled resource project site, but Brabender explains that unless an effort is made to engage with, and respect the knowledge of employees, it will be an uphill battle. “Nothing isolates a safety adviser more than an inability to engage the workforce. Talking down to people who actually know more about the business than you do creates bad feelings and undermines your credibility,” he says. think outside the square. should feel confident that managers are “It is also less likely that people will “If sound reasoning and impeccable committed to improving health and safety, trust you on those occasions when they logic are inexplicably failing to change otherwise the role is not worth taking. really should.” someone’s safe behaviour, the safety Once in a company, he says advisers have While a safety adviser must always adviser should investigate further to find a responsibility to ‘walk the walk’. be looking for potential problems, out why that is,” Brabender says. “I once witnessed a safety adviser giving positive feedback can help build “It could be a non-compliant manager implore a large group of workers to collaborative relationships in the workplace. instructing a task to be done a certain way report all incidences for investigation. “A switched on safety adviser is also or unrealistic time pressures. Or perhaps The meeting became embarrassing when switched on to the great things that are there is a more safe and efficient way.” three workers asked what had been done happening right in front of them and is not Although it is important to work with about the incidents they had already shy in letting workers know what they are managers and employees, Brabender says reported and subsequently heard nothing already doing successfully,”Brabender says. a good safety adviser will not perform all about,” he notes. “Pay attention to what you are being safety duties on behalf of others. As a final piece of advice, Brabender told, follow up on your commitments “The safety manager who chairs all believes safety professionals who create and work on making your contribution to safety committees, writes all toolbox more work for themselves will inevitably the workplace chock full of preventative talks and completes all the safety fail to build a safe workplace. actions rather than corrective ones.” inspections is probably ensuring their “Think about whether daily administrative long term employment, but this will activities are actually beneficial or if they can BUILD A SAFETY CULTURE not develop a safety culture in the be streamlined,” he says. THAT FITS THE WORKPLACE workplace,” he says. “You will spend less time on corrective One of the biggest mistakes Brabender actions and more time implementing safer sees safety advisers make is not integrating REMEMBER THAT work systems by harnessing those with safety rules with business goals. CREDIBILITY IS EVERYTHING the greatest stake in workplace health and And if that doesn’t work, it’s time to Brabender believes safety advisers safety – the workforce.” RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE

22 MEMBER NEWS

COMMUNITY connection A decade of record investment in Australia’s resource industry has seen projects reach new levels of sophistication. Just as important for resource companies is the continual investment in a social licence to operate through initiatives that meet the needs of local communities. Here, Resource People delivers a snapshot of industry-led programs demonstrating the widespread benefits that flow from a successful resource industry.

ORIGIN SCHOLARSHIPS BOOST COMMUNITY SKILLS MOBIL GRANT ORIGIN ENERGY HAS awarded 25 youths total number of scholarships awarded INSPIRES WHIZ-KIDS from central and south-west Queensland under the program has reached 157, an Origin Community Skills Scholarship representing a funding commitment of MOBIL IS HOPING to inspire a worth up to $13,500 each to complete more than $2.1 million. new generation of engineers and apprenticeships in their local areas. 16-year-old Dylan Wilson from Taroom scientists by injecting more than Origin manages the Community Skills is studying a Certificate III in Automotive $100,000 into local schools and Scholarship program, now in its eighth Body Repair while working at Taroom kindergartens through its 2014 Bright year, on behalf of the $24 billion Australia Motors. Future Grants. Pacific CSG-LNG project. “I live in town during the week to go to 25 schools and kindergartens The successful 2014 candidates hail work and then head back out to my family close to the Mobil Altona Refinery from towns including Biloela, Taroom, property on the weekends, so the scholarship and Mobil Yarraville Terminal have Dalby, Roma and Chinchilla. The will help with travel as well as tools for work,” received a grant of up to $4000 each Wilson says. RP for a variety of maths and science resources and projects. “Scientists and engineers are critical for addressing the challenges of 21 st century life. That’s why we invest in education programs that focus on inspiring kids to pursue careers in science, technology, engineering and mathematics,” says Altona Refinery manager Andrew Warrell. Kindergartens, primary and secondary schools are using the money for a broad range of maths and science resources and projects, from purchasing new technology such as iPads to funding outdoor programs to teach students about sustainability. RP

Scientists and engineers are critical for addressing the challenges of 21st

Origin Scholarship century life. winner Dylan Wilson is studying automotive body repair

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE MEMBER NEWS 23

QGC BRINGS TELEHEALTH TO REGIONS

FAMILIES IN QUEENSLAND’S Western kilometres for specialist appointments in Downs will have better access to specialist Toowoomba or Brisbane. medical care after the expansion of a The expansion to Tara and Wandoan ‘telehealth’ service supported by QGC builds on the establishment of the and The University of Queensland. Health-e-Regions service in Miles, Dalby The services ensure patients visiting and Chinchilla during the past year. In the participating medical centres can next year QGC will invest $516,000, in consult medical practitioners by video- addition to the $1.3 million contributed conference and webcast technology to establish and run the initial, two-year rather than travel hundreds of pilot phase of the project. RP

Fortescue funding helped launch junior cricket in Port Hedland

COMMUNITY PROGRAMS TO GET FORTESCUE FUNDING

LOCAL COMMUNITY ORGANISATIONS within Port Hedland, east Pilbara and the Tom Price are in the running to receive funding of up to $5,000 each through the latest Fortescue QGC has invested Community Support program. in critical health technology for regional Now in its sixth year, the Fortescue communities Community Support program has helped not-for-profit organisations and community groups fund beneficial MMG HELPS CONGO TEACHERS SEE BRIGHTER FUTURE programs, activities and events. It focuses on initiatives that embrace 32 TEACHERS AND school Democratic Republic of Congo (DRC). and support education and training, administrators can thank their To encourage teacher engagement Indigenous engagement, health and improved vision on a partnership and improve learning outcomes, MMG wellness, community safety, community between MMG and the Waza Alliance also worked with the Waza Alliance and involvement, economic development and for Quality Education. local education authorities to conduct environmental responsibility. MMG supported the Waza Alliance teacher training at target schools. Recently, the program provided to conduct vision screenings and The Waza Alliance is a US-based non- much-needed funding to help launch issue free glasses for 61 teachers and government organisation which aims to junior cricket in Port Hedland. Budding administrators at primary schools near improve the lives of children in the DRC cricketers were lucky to learn from its copper mine Kinsevere, located in the through quality education. RP Australian cricketer Shaun Marsh at the Port Hedland Junior Cricket Association’s ‘Have a Try’ night. RP

Now in its sixth year, the Fortescue Community Support program has helped

Teachers near not-for-profit organisations. MMG’s Kinsevere mine receive free vision screening

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 24 TRAINING

NRW SUPERVISORS earn their stripes At either extreme, the proficiency of a supervisor can drive day-to-day productivity or destroy workforce morale. Taking no chances, mining contractor NRW is ensuring all junior supervisors step into the role with the right support and the right skills.

DURING ITS TWO decades on the capacity not only in numbers but also in mining contractors, the consensus from Australian resources scene, mining quality,” says human resources manager NRW leadership is that there are certain contractor NRW has provided many Elardus Rademeyer. principles we have to maintain – we ambitious junior operators and labourers “Although it is a challenging time for cannot stop investing in our people.” ample opportunities to move through the When Rademeyer first assessed the ranks of its 3000-strong national workforce. company’s leadership training processes, One of the big jobs keeping its he fast realised a more structured workforce busy is providing services for approach was needed to maximise NRW Hancock Prospecting’s $10 billion Roy Hill supervisors’ development. iron ore project in the Pilbara. “We’ve had a lot of inexperienced guys Two contracts worth a combined $820 who progressed from operators to leading million for earthworks and concreting hands and then junior supervisory roles in the construction of a railway and without any formal training and we saw processing plant required a peak real inconsistencies in the way they led workforce of over 2,000. and managed our guys onsite,” he says. Behind the scenes, NRW has been steadily “That’s when we approached AMMA building its workforce capabilities with a to help us to tailor a program for our specific focus on entry level supervisors. requirements.” “For us it’s about improving our Elardus Rademeyer Since 2012, AMMA’s Training and

NRW ensures all new supervisors receive industry training

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE 25

Over time we have seen a direct link between the training our junior employees received and tangible morale improvements.

Development consultancy has delivered NRW employee Greg Smith supervises a two-day ‘Supervisor’s Toolkit’ to around a team of people working in maintenance 70 staff at NRW’s Belmont headquarters in and says the training helped him to hone Western Australia and more recently onsite the people-management side of this job. in Middlemount, central Queensland. The “One of the most beneficial parts of the training is incorporated in the broader training was actually the team building NRW Supervisor Development program, exercise,” Smith explains. which is aligned with the Certificate IV in “Professional development is often Frontline Management. something that can be overlooked in “Today’s workplaces pose a range of the big picture, but as people progress challenges that can be overwhelming through an organisation, their technical for new leaders if they don’t have the skills become less relevant in their job knowledge, skills and confidence to while their people skills and emotional deal with them effectively,” says AMMA intelligence become more important to principal employee relations consultant getting the most out of their reports. Peter Robertson, who included some “So it is very important that people workplace relations training in the package. are provided the opportunity to develop “The course teaches NRW’s people these skills.” such principles as time management right Rademeyer is noticing a difference back to the workplace and that’s because through to managing the performance in the way NRW’s supervisors conduct there is a good correlation between what of others, dealing with conflict and even themselves in the workplace since taking they learn in training and the practical decision making. the course, noting a clear return on the application onsite.” “These may seem like basic company’s investment. The next step for NRW in its journey competencies, but putting them into “Over time we have seen a direct of effective and cost-efficient workforce practice with people you work alongside link between the training our junior development is to work with AMMA’s everyday can be very challenging. The employees received and tangible morale Registered Training Organisation in participants were keen to learn and gained improvements,” he says. building the capacity of its internal a great deal of knowledge from the course.” “They are taking the supervisory tools operator trainers. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 26 TRAINING

WEST COAST: SCHOOL PROGRAM delivers rising star Approaching a one-year milestone as a Chevron apprentice, Riley Anderson is testament to the value of school-based education programs.

ANDERSON IS JUST one of many bright Chevron learning and development young minds exposed to opportunities in specialist Tanja Pisaric, says that along the resource industry through Chevron’s with providing Anderson with a greater Powering Careers in Energy (PCiE) understanding of the LNG sector, the program, delivered to a number of West PCiE program increased his understanding Australian high schools. of available careers in the industry and the As a final-year Pinjarra Senior High types of skills required. School student, he completed five units “This enabled Riley to align his of study to gain foundational knowledge ambitions and existing skills to a career he of the industry before becoming could see himself in,” Pisaric explains. the first participant to gain full-time “He learned of the values and employment through the energy giant’s expectations required of those who apprenticeship program. work within Chevron – particularly the Anderson now works as an electrical focus on safety, which assisted him in his instrumentation apprentice on Barrow preparation for his company interview and Island, which sits 60 kilometres off the application process.” northwest coast of Western Australia and Chevron is now focusing on expanding is the site of the liquefied natural gas the program throughout the state in the Chevron and domestic gas joint venture currently hopes of attracting more emerging talent apprentice under construction for the Chevron-led to the industry. Riley Anderson Gorgon project. “I started the trade quite green, not really understanding some of the principles and how things work, but thanks to the training and close mentoring provided by Chevron employees, I’m A new generation of young minds will soon be discovering really starting to retain countless amounts and shaping our world’s energy future, which is why we of knowledge passed down to me,” the choose to invest in quality education and training programs. 18-year-old says. “I have been working closely with some The students of today are tomorrow’s energy leaders tradespeople from Chevron’s WA oil division, some of whom have been working on Barrow Island longer than I’ve been alive. “A new generation of young minds projects, but in saying that I would jump “They are a diverse bunch of men will soon be discovering and shaping at the opportunity to use my trade to and women that know their trade and our world’s energy future, which is why take me around the world,” he says. responsibilities on the island very well. we choose to invest in quality education “If Chevron wanted to send me I have the utmost respect and trust for and training programs. The students of to Thailand, the United States, Latin these people that I work so closely with.” today are tomorrow’s energy leaders,” America, Saudi Arabia, Europe or any of Launched in 2012, the PCiE program Pisaric says. the countries they operate out of, I would has seen more than 300 high school Having now been exposed to some not hesitate to seize an opportunity to students from a dozen West Australian crucial on-the-job experience, Anderson work in and experience different cultures towns including Onslow, Exmouth and hopes his trade backing will further while getting paid to do so.” Kwinana complete the one-year course broaden his horizons. The skills and knowledge Riley gained which is endorsed by the WA School “I would like to end up working throughout the program will no doubt Curriculum and Standards Authority. at either the Wheatstone or Gorgon help as he pursues such ambitions. RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE TRAINING 27

EAST COAST: GEMMA BEATS the boys to apprentice award

GEMMA HARTWIG MAY notably be one excel; I want to be an advocate for women Brian Ostwald says Hartwig is a deserving of a growing number of young women working in this field.” recipient of state award as she consistently drawn to resource industry apprenticeships, Hartwig is completing a Certificate III in meets the company’s expectations. but what really continues to impress her Engineering (Diesel Fitting) while finishing “Gemma has demonstrated a high- employer Ostwald Bros is her technical her final year at Our Lady of the Southern level of commitment towards all her abilities and passion for the trade. Cross College in Dalby and serving as responsibilities,” Ostwald says. The apprentice diesel fitter took out school captain. “She works well independently and the ‘School-based Apprentice of the Year’ After completing her training, the high has displayed great persistence when award at the 2014 Queensland Training achiever hopes to work with the family- problem solving and working through Awards State finals and will compete in the based Ostwald Bros on a remote site. complex tasks.” National Training Awards later this year. The Queensland Training Awards Hartwig was also a recipient of Origin “When I applied for the school-based were first established 50 years ago to Energy’s Community Skills Scholarship apprenticeship with Ostwald Bros it recognise outstanding achievements of this year, winning a $13,500 grant seemed to me that they didn’t think twice individuals and organisations within the provided by Australia Pacific LNG to about me being female,” says Hartwig, vocational education and training sector. help young people learn and earn in who works with the integrated services Hartwig took out the school-based their local communities. company’s mechanical maintenance team. apprenticeship category for the Darling The National Training Awards takes “I enjoy the fact that I’m breaking out Downs and South-West region in August place on 21 November – check out of stereotypical gender roles and tackling before being announced the state Australian Training Awards.gov.au to see something different. winner a month later. how Hartwig places against other star “I’m really happy that I’ve won. I want to Ostwald Bros group plant manager apprentices from around the country. RP

Gemma Hartwig is an apprentice diesel fitter with Ostwald Bros 28 TRAINING

VET REFORM: SKILLING for the long haul As a member of the five-person advisory board leading the Australian Government’s reform of vocational education and training (VET), AMMA executive director Tara Diamond discusses how the skills needs of the resource industry will be represented.

EARLIER THIS YEAR I was invited by overarching reform areas including to efficiently source and transfer Minister for Industry Ian Macfarlane to options to create stability and practicality apprentices and trainees to locations join a five member Vocational Education in regulation, setting an approach to the where they are needed and will gain and Training (VET) Advisory Board that review of VET standards, developing valuable vocational experience. will provide direct feedback to the a plan for international VET, providing For an industry that relies on the government as it embarks on important direction to the development of training mobility of its labour, encouraging and reforms for the national VET sector. packages and advising an approach to facilitating the movement of apprentices The minister declared that the apprenticeship harmonisation. to areas where there are skills demands establishment of the Advisory Board will It is on this last point that I especially should not be stifled by bureaucracy. strengthen links between industry and intend to emphasise as a key priority for the This advisory process also provides the the skills sector. AMMA’s representation Advisory Board and the VET reform process. opportunity to shine a light on the unique as the peak national resource industry AMMA’s engagement with our member needs of emerging sectors. employer group reflects the extensive companies overwhelmingly indicates that The $200 billion natural gas sector is role our industry continues to play in the the trade apprenticeship system is not as driving much of the evolution of skills creation of employment and upskilling effective as it could be. in this country, yet unlike our North opportunities for Australians. This fragmented system sees employers American counterparts that have a long- The resource industry invests more forced to devote valuable resources to established gas industry, Australia is than $1.1 billion annually in the training navigate wages, conditions, registration experiencing persistent shortages in key and skills development of apprentices, and qualification requirements that are occupational groups and skill levels, such trainees, existing employees and those inconsistent from state-to-state. as mid-tier drillers. transferring from other sectors. This makes it incredibly difficult and Individual employers should be However, now we are at a critical sometimes commercially unviable commended for the leading in-house junction. Our industry is making a transition training programs that upskill existing from an unprecedented construction phase employees and draw on other trade to a period of heightened production and groups to ensure their projects are export activities that can fuel our economy adequately skilled. for the long-term. However, we must also ensure a To underpin this activity, our industry’s national VET framework supports the evolving skills demands must effectively availability of trainers and training facilities be met. Our workforces should be nothing for Australians who desire to become short of the most skilled and productive qualified in an in-demand trade that will in the world; demonstrating to the lead to employment outcomes. international investment community that Continued engagement with AMMA Australia is the leading destination for members will remain vital as the projects to be developed and operated by Advisory Board prepares to provide world-class talent. feedback to the Australian Government’s For these reasons, it is essential that the VET Reform Taskforce. resource industry’s priorities are at the The effectiveness of workforce skills forefront of policy development and that development is reflected in the resource the national VET system is truly responsive industry’s success. As the global to the needs of employers, employees environment becomes more competitive, and jobseekers. employers should be thoroughly My fellow Advisory Board members supported by a flexible and competitive Tara Diamond and I are tasked with addressing five national training system. RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE

30 DIVERSITY

CATERPILLAR GEARS UP for gender diversity Being the first to achieve a gold rating in Australia’s only resource industry assessment of gender diversity capability has provided Caterpillar with further motivation to get more women behind the company wheel.

A SUCCESSION OF enormous yellow Australian workplace policies, procedures and platinum indicates the position of an trucks powerfully hauling tonnes of rock, and practices evaluated against a rigorous organisation to leverage gender diversity ore and coal is an iconic image of the model of diversity capability developed by to drive business performance and Australian mining industry. research and consulting body the Centre profitability, attract talent and innovate. Caterpillar, the global company behind for Gender Economics and Innovation, As Australia holds its own unique set of these impressive machines, is the world’s and based on international best practice in talent attraction and retention challenges, leading manufacturer of construction and diversity and inclusion. Latham says it was important for the mining equipment, diesel and natural gas A tiered system of bronze, silver, gold Caterpillar’s local operations to undergo engines, industrial gas turbines and diesel- electric locomotives with 2013 sales and revenues of over $55 billion. The company employs about 115,000 people worldwide. While staying at the top of its game requires innovation in engineering and We found it difficult to recruit female talent to our product development, its latest global autonomous mining trucks area. So our recruitment team pursuit is in gender diversity. reviewed the language used in job advertising to focus on “Caterpillar has been very clear in its strategy that people are the key to everything inclusive skills and attributes and ensure ads were more we do,” says Scott Latham, country manager appealing to women. for Caterpillar’s human services division in Australia and South-East Asia. “We believe that by focusing on increasing diversity in our workplace, we will achieve greater talent attraction, development and retention outcomes than our competitors.” Caterpillar isn’t only now coming out of its cocoon in workforce diversity – the company established its Global Diversity and Inclusion Office 10 years ago. In most countries, it has created Women’s Initiative Networks and regularly undertakes an inclusion survey to identify strengths and disparities across different employee demographics. Feeding from this global vision, it is no surprise that Caterpillar’s 1,400-strong Australian arm achieved the first gold rating in the Australian Women in Resources Alliance (AWRA) ‘Recognised’ assessment of organisational gender diversity capability. Caterpillar Australia Taking part in the first round of AWRA received AWRA Recognised assessments, Caterpillar had its Recognised Gold www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE 31

Caterpillar want more women behind the innovation of its mining equipment

a separate gender diversity analysis to the increased dramatically.” global business. It often takes an objective view to “We wanted to have a recognised identify where problems in an organisation external body review our Australian exist, and Latham says the AWRA diversity programs to provide us with a assessment pointed to some room for diversity ‘health check’ and a road map to improvement at Caterpillar. achieve greater diversity outcomes in this “Communication was one area where country,” Latham says. our leadership team thought we were “Without a real focus on attracting, doing well but the results were not developing and retaining female convincing. We learned that our successes employees we knew we would miss out on should be communicated more widely the large portion of the local talent pool.” and clearly,” he says. AMMA is the facilitator of the AWRA “We have already come a long way in Scott Latham Recognised program and executive addressing this issue. We have several director Tara Diamond says the assessment regular newsletters to better communicate is designed to give resource employers and leadership roles has been below with employees via their preferred avenue. specific recommendations to benefit from published benchmarks,” he says. “Similarly, we ensure that our diversity gender diversity and inclusion. “However, we are starting to achieve and sustainability programs, outcomes “Caterpillar Australia’s gold rating greater levels of female participation and achievements are shared and across three areas shows leadership, across the board and this is the result of celebrated. This can only result in better recognises the barriers to women’s changing the way we have traditionally performance and team engagement.” participation and is working to build an attracted talent. Over the next five years, Caterpillar will organisation that thoroughly supports and “For example we found it difficult focus on further lifting female participation leverages gender diversity,” she says. to recruit female talent to product and across its engineering, product service roles within our autonomous development and leadership roles. CHANGING ITS APPROACH mining trucks area. So our recruitment “We are purposefully and methodically While retention of female employees is not team reviewed the language used in job working through action plans to build on so much a challenge for Caterpillar, Latham advertising to focus on inclusive skills our gold assessment and continue to lead says the attraction of female candidates and attributes and ensure ads were more our industry,” Latham says. has been an issue for some time. appealing to women. “Providing our talented female employees “Traditionally, female candidate “Interaction with female graduates and with the opportunity to participate in the participation in our graduate programs, candidates at careers fairs is also very high projects and programs that develop their as well as specialty engineering and and the percentage of female candidates leadership skills will ensure future diversity product development, and production applying for non-traditional roles has outcomes are protected.” RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 32 DIVERSITY

INDIGENOUS SKILLS PROGRAM launches Sodexo careers The inaugural group of Indigenous jobseekers from Perth’s first hospitality Vocational Education and Training Centre, based on the GenerationOne employment model, has begun training for careers in the West Australian resource sector.

A GROUP OF Aboriginal and Torres Strait countries and, interestingly, 97 per cent of that will support sustainable employment. Islander trainees is on course to complete our employees are hired locally.” “The VTEC trainees started with an all- a nationally accredited Certificate II in In selecting candidates for the program, encompassing pre-employment training Hospitality and move into permanent Sodexo canvassed Aboriginal communities program,” Weston says. Sodexo employment through a new work- and employment centres across Perth. “This includes understanding employer readiness program. Weston was encouraged to find that the expectations, managing money, achieving Delivered by Sodexo’s remote site prospect of a real job at completion of work-life balance and adjusting to the operations in partnership with Indigenous the course was an extremely powerful FIFO life”. advocacy body GenerationOne, motivator for Indigenous trainees. “Very early on we arranged a site visit skills provider Polytechnic West and “Some participants have been out of to Boddington, south of Perth, for the employment services group AtWork work for a period of time and are very keen trainees to get a sense of a real remote Australia, the program is part of the to break the cycle of welfare by upskilling environment. We wanted to prepare them Vocational Education and Training and moving on to gainful employment. as much as possible for the realities of what Centre (VTEC) project established by the That for me is the most powerful part of it would be like to work at a remote site.” Australian Government. the VTEC program,” he says. Now that he’s had a taste for the Participant James Mead saw the “You don’t have to dig any deeper resources hospitality sector, Mead is promise of gaining new skills and for validation of how promising the optimistic about where his training employment upon completion of training participants see this program as opposed could take him. as too good an opportunity to miss. to others which didn’t culminate in real “The training and employment “Sodexo has a wide range of job employment outcomes.” opportunities with Sodexo are helping opportunities on offer and the program Beyond just teaching participants the to get my foot in the door. Having prepares me for employment through job- range of hospitality and customer service knowledge and experience under specific training, as well as communication skills needed to work for Sodexo, the my belt will allow even more work and team-working skills,” Mead says. program also focuses on enhancing life skills opportunities to open,” he says. RP Nationally, $45 million has been committed for the establishment of VTECs to equip 5,000 Indigenous Australians with job-specific skills and employment by July 2015. Perth’s first VTEC will provide guaranteed jobs for up to 200 Indigenous people and Sodexo has promised employment for 10 per cent of this commitment. Sodexo Remote Site chief operating officer Keith Weston says getting involved was a ‘no brainer’ for Sodexo. “We’ve been on a journey with our Indigenous Reconciliation Action Plans for a number of years now and are very committed to a strategic approach around Indigenous engagement,” Weston says. James Mead with Sodexo “Being connected locally is also an employee Alexis Schauer important part of Sodexo’s business. at Polytechnic West’s Bentley campus in Perth We employ 428,000 people across 80 www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE

34 DIVERSITY

BHP’S TYLER AN exceptional talent

THE FIRST FEMALE to be an asset an industry that empowers and builds in president of a BHP Billiton mining project, this way.” Laura Tyler, has won the Exceptional Delivering a keynote address at the Woman in Australian Resources Award at awards, BHP human resources president the inaugural Thiess Women in Resources Mike Fraser spoke of the company’s National Awards. diversity focus. One of her many achievements was “We are addressing the historical introducing the first diversity plan to gender imbalance we have seen in our improve attraction and retention of women industry by having a particular emphasis at the company’s Cannington Mine, which on increasing female representation in key Tyler manages in North-West Queensland. operational roles,” Fraser says. “Nowadays, it’s not unusual to see Due to its targeted diversity strategies, women on our crews, even women leading BHP Billiton has achieved 25 per cent teams running entire sites,” she says. female participation at its Daunia mine “These achievements are real and we and 21 per cent at its Caval Ridge mine Laura Tyler should be really proud to be working in in Queensland. RP

CAMPAIGN TACKLES widening gender pay gap

THE WORKPLACE GENDER Equality Agency (WGEA) is set by awards or industrial agreements, or because they has launched a campaign to raise awareness and pay market rates. understanding of gender pay equity as national data WGEA director Helen Conway says there is a lack of shows the salary gap has widened. awareness of how gender bias can creep into performance According to the Australian Bureau of Statistics (ABS), and pay decisions. the average man working full-time earns 18.2 per cent or “Most leaders genuinely believe they pay people in $283.20 more than the average full-time working woman. their organisation fairly, but without examining their The resource industry is one of seven industries analysed payroll data they simply don’t have the evidence to back by the ABS that has a pay gap above the national average. that up,” Conway says. Men working in mining, oil and gas roles occupations on “Employers who analyse their data tell us they always find average 23.8 per cent more than women. instances of pay gaps that can’t be explained or justified, at New data released by WGEA shows almost three least the first time the analysis is conducted, and so they take quarters of Australian employers haven’t taken steps to corrective action to fix imbalances and develop action plans ensure they pay women and men fairly. 73.7 per cent of to address the root causes.” organisations have never done a gender pay gap analysis, As part of its campaign WGEA launched the website and less than one in five have done a gender pay gap www.inyourhands.org.au where employees can see if their analysis in the past 12 months. organisation has undertaken a gender pay gap analysis Of those organisations that haven’t done a gender pay and offers practical resources to promote and calculate gap analysis, the most common reasons were because pay pay equity. RP

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE DIVERSITY 35

ONLINE TOOL MEASURES workplace cultural diversity

A NEW ONLINE tool has been “The Workplace Cultural Diversity manage the opportunities this presents.” developed to help organisations measure Tool will help businesses improve their Top tier professional services firm themselves against international best performance. It will help businesses in PricewaterhouseCoopers is an early practice in cultural diversity. recruiting and retaining the best talent, adopter of the new online resource, with Diversity Council Australia and and in creating a more welcoming CEO Luke Sayers looking forward to VicHealth teamed up to develop the workplace.” its contribution to PwC’s diversity and tool, which is available on the Australian Diversity Council Australia CEO Lisa inclusion agenda. Human Rights Commission website and Annese says the tool identifies areas for “We recognise the value a culturally focuses on recruitment and retention for improvement in an organisation based on diverse workforce brings – not just for a diverse workplace. international best practice. our people, but for our clients as well. In Race Discrimination Commissioner “The tool rates organisations on their a society as diverse as Australia, having Dr Tim Soutphommasane, says while current cultural diversity and guides them a workforce that reflects that diversity is Australians embrace cultural diversity, through the process of moving to best fundamental,” Sayers says. there is still a long way to go in getting practice, tracking their progress over “We’ve set a target to increase the things right in the workplace. time,” Annese says. number of our partners from an Asian “Managing diversity is about Australian “As Australia becomes more culturally cultural background to 5 per cent by 2016, employers being leaders in a global diverse, it is important that organisations and this tool will be a valuable resource as economy,” Soutphommasane says. have the right resources to effectively we work towards that goal.” RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 36 POLICY

POLICY AT a glance A wrap-up of recent resource industry and employment policy developments by AMMA executive director, policy and public affairs, Scott Barklamb.

FAIR WORK CHANGES: The Fair Work Amendment Bill 2014 has passed through the lower house of parliament and is currently before the Senate. The bill proposes a number of amendments to the Fair Work Act 2009, some of which will take effect immediately upon the bill receiving Royal Assent, with others to come into effect up to six months later. Some of AMMA’s key workplace reform priorities are addressed in this bill, such as changes to union site entry laws and a more balanced and efficient new project (greenfields) agreement making system. GENDER REPORTING: The Australian Scott Barklamb Government has implemented new minimum standards for businesses September means employers’ compulsory the federal government’s focus on reporting on gender diversity targets, superannuation contributions will not rise more competitive and efficient coastal effective from 1 October 2014 for the again until 2021. shipping that will better support resource 2014-15 reporting period. The Superannuation Guarantee Charge employers operating in a fast-moving Designed to boost women’s workforce (SGC) as of 1 July 2014 was set at 9.5 per global marketplace. participation, employers are expected to cent of employee earnings, where it will This quarter, Minister for Infrastructure implement a policy or strategy which meets remain until 2021. On 1 July each year and Regional Development, Warren Truss, one or more of the minimum standards set beginning in 2021, the SGC will rise by 0.5 released his department’s Australia Sea by the Minister for Employer Eric Abetz by per cent, eventually reaching 12 per cent Freight 2012-13, which shows Labor’s way of legislative instrument. by 1 July 2025. changes to Coastal Shipping are costing Visit wgea.gov.au to learn more. Under Labor’s original legislation, jobs in the broader Australian economy CONSTRUCTION CODE: The Victorian compulsory employer contributions were and require urgent redress. Code of Practice for the Building and set to reach 12 per cent by 1 July 2019, COMPETITION POLICY REVIEW: Construction Industry 2014 has taken therefore the recent legislative change AMMA has highlighted the importance effect, retaining the drug and alcohol represents a six-year deferral. of retaining existing prohibitions testing requirements introduced into the RENEWABLE ENERGY TARGET: against secondary boycotts by unions state code and guidelines in July this year, The Warburton Review into Australia’s in a strong submission to the Australian and including a new requirement that Renewable Energy Target (RET) has been Government’s Competition Policy Review. successful tenderers provide the client handed to the government and publicly LEGISLATIVE UPDATES: As the national agency with a project-specific health and released, recommending a number of resource employer group, AMMA is safety management plan that meets the proposed adjustments. committed to keeping members up to client agency’s satisfaction. AMMA particularly welcomes the flagged date on all the latest workplace policy To promote a ‘lawful, fair, efficient, adjustment of the RET to reflect energy developments with its monthly legislative productive and safe’ industry, the Victorian demand growth trends, which would be update service, tailored specifically for Code includes a raft of provisions relating a sound platform for renewable energy your organisational needs. to workplace relations arrangements subsidy if such a policy must be pursued. The Monthly Legislative Update is a and prohibitions on particular courses of However, we note there is also a strong customised service which can cover a vast conduct. The federal building code has argument to scrap the RET altogether and range of policy information to help you not yet passed the Senate. instead allow market-driven investment into ensure compliance. AMMA’s policy experts SUPER INCREASES DEFERRED: The cleaner energy sources to reshape how our can ensure you only receive updates passing of the Minerals Resource Rent Tax nation powers its households and industry. relevant to your organisation. Email Repeal and Other Measures Bill 2014 in COASTAL SHIPPING: AMMA welcomes [email protected] for more info. RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE POLICY 37

NEW POWERS TO STOP strikes here to stay

EXPANDED NEW CAPACITIES for third emptively suspended or terminated. by tug boat operators at Port Hedland. parties to intervene in damaging strikes will For the resource industry, this important “The state government of Western become a mainstay of Australia’s workplace change now allows major project operators Australia may well have an interest relations system, after crossbench senators to potentially intervene in damaging strike in seeking to avoid industrial action including those of the Palmer United Party action taking place along its supply chain. in circumstances where, as has been voted with the government to defeat the Another significant outcome of the suggested – and, indeed, threatened – Greens on the issue. regulation was to enable Western there might be industrial action by about With Labor’s backing, the Greens’ raised Australia, as the only state that has not five dozen highly-paid workers at Port a Senate disallowance motion that would yet conferred its private sector industrial Hedland,” Minister Abetz says. have undone the new powers to seek relief relations powers to the Commonwealth, “Additionally, there are other from forthcoming strikes, implemented by to seek relief from the Fair Work companies involved that, regrettably, have the Australian Government in June. Commission where industrial strike no say in the matter because the head The new regulation enables any action could financially damage the state agreement is with another company. As third party that would be significantly economy or local communities. a result, thousands of workers in Western impacted by forthcoming protected In justifying the government’s change Australia could lose their jobs.” industrial action to have their case heard to this area of Australia’s workplace laws, AMMA believes the outcome is positive for by the Fair Work Commission as part of Minister for Employment Eric Abetz draws employers which have been, or could be, an an application for the strike to be pre- on the example of planned strike action innocent third party to damaging strikes. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 38 POLICY

IR STILL RANKED AUSTRALIA’S biggest challenge The heat has been turned up for workplace reform in Australia after two leading global authorities on business competitiveness and growth singled out labour market inefficiency as the number one challenge facing the nation.

AS THE BUSINESS community encourages the Abbott Government to implement its reform agenda, the World Economic Forum’s (WEF) recent Global Competitiveness Report 2014-15 further illustrates Australia’s declining competitiveness. The WEF’s scale ranks the competitive performance of Australia’s economy 22nd out of 144 nations surveyed, with data pointing at its industrial relations system as the core factor dragging it down. According to the WEF, Australia measures strongly on 11 of the 12 competitive ‘pillars’, with corporate governance, tertiary education, market competition, banking stability and scientific research (innovation) all within the top 10. The nation’s worst performing factors remain flexibility in wage determination (132nd), pay and productivity (125), hiring and firing practises (136) and co-operation in labour-employer relations (109). findings as subjective, the WEF is not increase global growth by 1.8 per cent over Tellingly, the WEF survey shows over alone in its concerns. the next four years – IMF managing director one-in-four business leaders in Australia now Just weeks after the WEF report was Christine Lagarde noted an increased focus rank labour relations as the most problematic released, the chief of the International on labour market reform would be critical to factor to doing business in the country. Monetary Fund (IMF) noted more efficient meeting such a growth target. “Since reaching its best rank (of 15th) labour market regulation was critical to “We hope that there will be more in 2009, Australia has been dropping Australia’s growth prospects. commitments in the areas of infrastructure continuously in the rankings. The In Cairns for the G20 finance ministers and labour… more focus in general country’s performance is remarkably meeting – at which the world’s 20 largest on job-market reforms, and on more consistent across the board… (but) the economics signed a commitment to opportunities delivered by the job main area of concern remains the labour markets, will actually help us with the market,” the WEF report says. double objective of both growth and “Indeed, as part of our executive opinion jobs,” says Lagarde, who was France’s survey, Australian businesses, year after year, trade minister from 2005-2007. have named the restrictive labour regulations With a Productivity Commission- the most problematic factor for doing Australian businesses, year led review into Australia’s workplace business in their country by a wide margin.” after year, have named the system pending, such commentary For the past three years the WEF has restrictive labour regulations continues to reinforce the need for a pointed to workplace relations as the key comprehensive re-think on how Australia’s priority reform area if Australia is to lift its the most problematic factor workplace system could better support competitiveness of the global scale. While for doing business in their the economic, employment and social critics have dismissed the organisation’s country by a wide margin. aspirations of the broader community. RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE POLICY 39

FIFO MENTAL HEALTH a priority, inquiry told

A WEST AUSTRALIAN FIFO inquiry has promoting awareness and embedding fit-for- a number of deaths of employees heard that the mental wellbeing of all purpose, risk-based policies and procedures working under FIFO work arrangements resource workers, including FIFO employees, to protect the safety of their workforces.” in a 12-month period. is a top priority for resource employers. AMMA’s submission also points to Knott says a range of unique factors to In its submission to the Western objective data indicating mental illness FIFO work must be acknowledged and Australia Legislative Assembly – Education and self-harm appears to be no more managed by employers as part of their and Health Standing Committee – Inquiry prevalent in the mining workforce than ‘whole-of-business’ mental health and into mental health impacts of FIFO work other industries. workplace safety policies and initiatives. arrangements, AMMA says resource “While we note from the experiences “AMMA members support employees employers remain acutely aware of the of employers and employees that there through initiatives that include free unique challenges associated with FIFO is no causal link between FIFO work counselling services, mental health and proactively implement a range of practices and mental illness or self-harm, seminars and wellbeing coordinators,” initiatives to protect the mental wellbeing this is an area where we need to remain he says. of their workforce. forever vigilant and continue to improve AMMA is partnering with Beyondblue “One suicide in the resource sector or awareness, communication and support on a resource industry workplace broader community is one too many,” for FIFO workers,” Knott says. mental health awareness campaign with says AMMA chief executive Steve Knott. The Inquiry is examining mental health workshops delivered on site this year and “Resource employers are committed to risks linked to the FIFO lifestyle following throughout 2015. RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 40 MIGRATION

IMPROVEMENTS TO 457 visa scheme pending

THE INDEPENDENT 457 visa Integrity “(However), the integrity review was reducing the market salary rate comparisons Review Panel has handed its final about more than just compliance – it was from $250,000 to the previously report to the Australian Government, about actually looking and talking about longstanding $180,000 per annum. recommending a number of changes to the objectives of the scheme and ensuring Through its Industry Innovation remove cumbersome and unnecessary the scheme was delivering on those and Competitiveness Agenda report, bureaucracy from Australia’s critical skilled objectives,” she says. released in October, the Australian migration programs. Based on the evidence of more than Government has already outlined its Earlier in the year, the government 190 submissions, the Review Panel made intentions to implement these three appointed an expert panel to review the a number of important recommendations recommendations, however indications temporary skilled migration program, to allow the scheme to better support the are that it will not support the Review specifically to determine the level of international skills needs of employers Panel’s recommendation to remove non-compliance by sponsors, evaluate its while also upholding the scheme’s cumbersome labour market testing regulatory framework and report on the integrity as being both economically (LMT) measures. scope for deregulation. responsive and socially responsible. This is contrary to the consistent Australian Chamber of Commerce The most significant recommendations for advocacy of the business community, and Industry (ACCI) director Jenny the resource industry include speeding up particularly after the Review Panel Lambert was one of the review panel the approval processes for skilled migration reinforced the belief that LMT measures members and notes the panel found labour agreements for major resource introduced by the former government did little evidence of ‘rorting’, as claimed projects; implementing more realistic more to appease union demands than by the former Labor government. English language testing standards; and add value to the system. RP

CERTAINTY RESTORED IN offshore visa challenge

IN A DECISION that has restored certainty to the offshore The laws and regulations the MUA and AMOU were resource industry, the Federal Court has rejected a union campaigning against have been in place in Australia since challenge to a Coalition ministerial determination that exempted 1982 and are consistent with both international maritime law foreign vessels temporarily servicing offshore resource projects and resources work around the globe. from Australia’s migration zone and labour laws. AMMA chief executive Steve Knott says the unions’ The Coalition’s determination effectively unwound the unsuccessful legal challenge is a significant and welcome former Labor government’s attempts to capture all maritime development in a longstanding union campaign to have work in the offshore sector within Australia’s migration zone. all offshore resources activities captured within Australia’s In rejecting the challenge by the Maritime Union of Australia migration zone and thus within the reach of Australia’s (MUA) and the Australian Marine Officers Union (AMOU), Justice workplace laws and union membership coverage. Robert Buchanan held the government’s right to effectively “This campaign is simply the maritime unions’ attempt reverse the previous Labor government’s amendments to the to gain control over areas historically outside their legal Migration Act through a ministerial determination. reach,” Knott says. The judge notes the concept of a migration zone as set “These small number of international specialist workers out in the Act was ‘clearly intended to be a starting point, actually help create Australian jobs. They travel globally and are not a fixed or final one. The amendments are capable of paid in accordance with national and international laws.” contraction and of expansion’. The Federal Court will hear an MUA appeal in March 2015. RP

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE MIGRATION 41

5 minutes with... AMMA Migration Services Manager, Jules Pedrosa

A typical day’s work for me involves: are the ones that like me. roads in Western Sydney. This includes Working closely with AMMA members, My alternative career choice would be: Sydney Motorsport Park. their candidates/nominees/appointees who MotoGP rider with either the Factory One thing on my bucket list is: To fly in need visas, consulting with staff members Yamaha or Honda motorcycle companies. a wing suit (Google it). of various levels at the Department of But I’d settle for a seat in World Superbikes. I’m inspired by: Everyday people Immigration and Citizenship and Border If I could give my younger self one who overcome overwhelming mental, Protection. piece of advice it would be: Keep physical or emotional odds without The thing I like most about my job is: persisting: you are doing the right thing, no reward or recognition. The variety. Every day is a different day matter how frustrating it seems right now. My signature culinary dish is: Anything with different activities. The people I If I got a free airfare to anywhere, pasta with red or white sauce. I once come into contact with also make my day I would go: Anywhere tropical and (more came second in a company Masterchef interesting and fulfilling. importantly) cheap! I like my winters to be competition and beat about 20+ The greatest challenge of my role like mild summers with endless warm sun. participating employees. I’m pretty sure is: Trying to get the Department of What I like most about living in Sydney is: the victor bought their last dish! Immigration to approve visas in a timely I’m not going to be clichéd here and When I’m not at work I’m: Trying to manner, when AMMA members (and their mention the breathtaking harbour, the overcome my limitations in being good nominees) need them. scenic mountains or the engaging people. enough for my alternative career choice My colleagues think I am: Pedantic, Instead, I’m glad that I live within 30 (see above). Guess I’ll be at AMMA for a grumpy and not at all funny. And those minutes from the best motorbike riding little while longer... RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 42 LEADERSHIP

KICKING GOALS WITH Aboriginal Maritime With the involvement of prominent Aboriginal community leaders and AFL football legends, Australia’s first Indigenous-owned marine services provider is kicking goals for Indigenous employment and social outcomes.

LEARNING THE OVERWHELMING the 100 per cent Indigenous-owned currently have a 28 per cent stake majority of Aboriginal Maritime Pty Ltd Aboriginal Marine Services Indigenous in the company, however, funding (AML) employees voted in favour of an Corporation (AMSIC), which undertakes arrangements will soon see them hold a enterprise agreement negotiated directly training, mentoring and job readiness controlling interest of 51 per cent. with the marine services employer came programs for Indigenous candidates. Bergmann anticipates AML’s workforce as little surprise to managing director, Another driving force behind AML’s of 61 to at least double annually as it shareholder and Indigenous community success is the calibre of its shareholders pursues an aggressive growth strategy leader Wayne Bergmann. and leadership group. building on its current contracts. While the mid-2014 vote piqued media Along with Bergmann, who is also a iMarine Services has recently interest for its lack of union involvement, member of the Prime Minister’s Advisory established a joint venture with Bergmann says implementing an EBA Group on Northern Australia, AML’s international contractor Bourbon Offshore is fundamental to creating industrial Indigenous shareholders include a roll call to operate and manage crew transfer relations certainty and supporting the of AFL football legends-turned Indigenous vessels in Australian waters. company’s exciting growth plans. employment advocates, including However the greatest activity remains “Having this enterprise agreement Essendon royalty Dean Rioli and Michael on the manning and crewing side of its in place will provide certainty for the Long, and 2006 West Coast Eagles business. AMM provides Indigenous labour next four years of pay, conditions and premiership player David Wirrpanda. for leading offshore services provider responsibilities. The support we receive Nine Indigenous shareholders Tidewater Marine and exclusively for from our employees shows they feel they are looked after,” says Bergmann, a former head of the Kimberley Land Council. “We may be called Aboriginal Maritime, but about half of our workforce are non-Aboriginal and all of our workers Our involvement in Prelude FLNG will be in developing get treated equally and fairly whether an Indigenous recruitment and employment strategy, they are black or white.” staff mentoring and delivering a sustainable community While its connections to Indigenous communities in Western Australia and engagement model. the Northern Territory provide strong advantages for the company, just as critical to AML’s success has been its corporate structure that allows it to offer a range of capabilities to offshore resource sector and commercial shipping clients. AML, the brainchild of former MD and now chairman Clinton Wolf, and Perth dealmaker John Poynton of Azure Capital, is a non-operating holding company that controls AMSA-approved seafarer recruitment and placement provider Aboriginal Marine Manning (AMM) and iMarine Services, which caters for a range of inshore and offshore work. AML is also closely affiliated with Wayne Bergmann www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE LEADERSHIP 43

My message as a footballer was to get a good education and become independent, so it was just a natural flow for me to go from football to helping Indigenous people find employment. Dean Rioli

Teras Australia, a local vessel operator employees the skills to work on a vessel. we have the structure in place to make for Singapore’s Ezion group that holds a That’s when our masters, engineers and crew sure the program is set up for Indigenous 50-year lease on Port Melville in the Tiwi really step in and mentor the Indigenous people to succeed.” Islands, north of Darwin. guys which is a huge benefit,” he says. Nationally, AML has maintained a 96 “We’re manning three vessels and two “About 15 Indigenous guys have per cent pass and retention rate among supply bases and expect to fill another 50 worked for us for over a year now, program participants. When asked what positions in 2015,” Bergmann says of the with substantial onshore and offshore impact it will make in the offshore resources Teras Australia contract. experience. These employees will also maritime sector over the next few years, From 2016, AML will also be the exclusive go on to mentor future Indigenous Rioli and Bergmann are equally optimistic. Indigenous content provider for tugboat employees.” “For me, it would be fantastic to see operator KT Maritime in a 10-year contract Many of AML’s Indigenous staff have a greater number of Indigenous people with the Shell Prelude FLNG project. cultural connections to the sea, including become engineers and masters in the “Our involvement will be in developing a group from the Tiwi Islands, who all industry,” Rioli says. an Indigenous recruitment and employment successfully completed the AMSIC pre- Bergmann adds: “We have a track record strategy, staff mentoring and delivering employment training. now of being able to train a workforce and a sustainable community engagement “We never set anyone up for failure, so deliver professionally in this environment. model, but we’re in discussions to increase for us to have a 100 per cent completion “Our medium term vision is to joint the opportunity there. We are ready to get among Tiwi Islanders just goes to show venture with a number of tier-one more involved in the contracting side as the program works,” Rioli adds. companies, but it’s also about finding the well,” Bergmann says. “No doubt it will be different for every right partners who believe in what we are Seizing these new opportunities largely community that we enter, but we feel that trying to achieve.” RP comes down to AML’s training efforts. In the late ‘90s and early 2000s, AML shareholder Dean Rioli was making a name for himself at Essendon Football Club, but these days his focus is on kicking goals in Indigenous employment and education outcomes. “My message as a footballer was to get a good education and become independent by setting yourself up in a career. So it was just a natural flow for me to go from football to helping Indigenous people find employment,” says Rioli, who played 100 games for Essendon Football Club before retiring in 2006. Becoming involved with AML a year ago, Rioli spearheads its pre-employment and labour hire activities, working closely with his brother Jeremy Rioli, who is a director of AMSIC and also a shareholder and senior Indigenous mentor with AMM. Jeremy Rioli (L) mentors “We run a 28-day program that gives new Indigenous seafarers

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 44 LEADERSHIP

TORO ENERGY POISED for new uranium age Targeting emerging energy markets with Western Australia’s first uranium mine, Toro Energy managing director Dr Vanessa Guthrie discusses the company’s ambitious plans to make its mark on the Australian resource industry.

PRIME MINISTER TONY Abbott’s recent resources and when she talks about the disposal that sparked a genuine interest in signing of a Civil Nuclear Cooperation ‘passion for mining’ that led her to become a sector she is now pursuing with gusto. Agreement with India leaves Australia as Toro’s managing director in early 2013, it is “When the opportunity came up to a potential leading uranium supplier to clear she is the right person for the job. join Toro it was a perfect storm for me. It a country planning to meet up to 25 per A career spanning 25 years has seen her aligned with my technical, environmental, cent of its energy demand with nuclear work across gold, copper, nickel, alumina, and government and community relations power by 2035. oil and gas, or in her words ‘just about any background which are all very important in Joining the Prime Minister’s business commodity you can think of’. uranium,” she explains. delegation to India was Toro Energy’s Guthrie’s tertiary qualifications in “Toro is a small company with a really managing director Dr Vanessa Guthrie, who geology and environment served her well big vision to build Western Australia’s first is leading the company’s uranium interests. as she progressed to leadership roles uranium mine and be a producer. I was Its flagship project, Wiluna, is set to be with recognised organisations such as excited by that challenge.” Western Australia’s first uranium mine. Woodside Energy and Alcoa, but it was the Located in the state’s mid-west, Toro’s “Australia has a third of the world’s PhD she completed on radioactive waste wholly-owned Wiluna project contains known uranium resources yet supplies approximately 76.5 million pounds of only 11 per cent of the world’s supply,” uranium oxide capable of being mined for Guthrie tells Resource People from Toro’s 20 to 25 years. Perth headquarters. In 2013, Toro received final government “The nuclear cooperation agreement approvals to develop two of the project’s really creates an opportunity for Australia Australia has a third six deposits, Centipede and Lake Way, and and Toro in particular to provide uranium of the world’s known have applied for approvals for another two to emerging markets such as India and deposits, Lake Maitland and Millipede. China, which have aggressive nuclear uranium resources yet The company is now looking for a energy expansion programs underway.” supplies only 11 per cent financing partner for the $315m project while Guthrie has an extensive background in of the world’s supply. Guthrie analyses the market to determine the

Drilling takes Toro’s Wiluna uranium place at Wiluna pilot test plant

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE LEADERSHIP 45

“Construction of Wiluna will likely return the landscape to as close as possible happen once structural changes in to what it was before we were there.” uranium pricing have occurred. This could Toro also aims to provide skills be as early as 2016.” development opportunities to local Guthrie accepts that the strong safety Indigenous people as part of its plan for record of uranium mining in Australia is still a mixed local and FIFO workforce. It is clouded by some misconceptions. As such, anticipated that sourcing 350 employees Toro is dedicated to address any community for construction and 170 for operations anxieties lingering since beginning the will be fairly straightforward. approvals process five years ago. “People think a uranium project would Acknowledging the local Aboriginal require very unique and specialised skills, community’s concerns around changing but in reality it is quite a simple mining culturally significant landscape, the and processing operation,” Guthrie says. Vanessa Guthrie company adapted the design of the mine “The skills sets are similar to that of a and processing plant. gold, nickel or copper operation which best time to start construction. “There is a particular area in one of also require good hygiene to maintain “We have completed our technical the ore deposits that is culturally very acceptable occupational exposure levels. studies. Wiluna is a highly developed, highly significant to the local people, so we “In some ways we are quite fortunate advanced project,” Guthrie says. agreed to exclude the mining of ore in that many of Australia’s major projects are “The closure of the Japanese nuclear that area,” Guthrie says. completing construction and moving into reactor fleet after the Fukushima accident “We are also taking a different approach the operational phase. Toro is now in a resulted in an oversupply of uranium in to a normal open cut mine. After digging position where the skills sets we need are the market, which impacted price. the ore out and processing it, we will put more available in the market. “However, Japan have confirmed nuclear tailings and waste rock back in the hole “We look forward to getting on will be a key part of their future energy mix rather than build a tailings dam and waste with development and bringing new and their reactor restarts look imminent. rock dump. That means post-mining, we will production to emerging markets.” RP JSD02677

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 46 INNOVATION

VIRTUALLY IMMERSED in safety training Standardised training in the resource industry could one day involve an electric shock, falling off a ledge or crashing a heavy vehicle. Good news is, it will all take place in the virtual world.

IF RESEARCH BY Deloitte and Curtin Immersive technologies are already potential for the resource industry. University proves successful, the latest used for training purposes in the resource “You can have these immersive generation virtual reality immersion industry to an extent, most commonly for environments shared by more than one technologies could soon transform safety machinery simulators. However, Deloitte person. For instance, at a FIFO family and training in the resource industry. and Curtin University’s research promises day, children can put the headset on “It’s about making someone to take it to the next level. and go with dad on a truck or walk into accountable for their actions and making While still in the experimental stage, the mine and experience what the work them experience something that is not Du Plessis is eager to undertake further environment is like,” he says. allowed on a mine site – failure,” says trials and help resource organisations “It enables families to have a meaningful Coert Du Plessis, Deloitte WA’s advanced understand the potential to personalise conversation about work and safety. analytics lead partner. training, identify gaps in individual learning “There is also potential to use it in Having undertaken extensive research and reap cost and productivity benefits. the recruitment and induction process into the link between training and safety “There is a lot of data generated in by allowing people to feel what it is outcomes, Du Plessis believes that too each experience. We have the ability to like onsite with the noise and buzz of often training is done for compliance identify, for example, that 80 per cent everything, before they begin work.” RP purposes and doesn’t always translate to of a group had a really great learning positive safety outcomes. experience, but 20 per cent of the group He says utilising new immersive didn’t. You can then manage that through technologies, such as the Oculus Rift VR additional one-on-one training,” he says. headset, can provide a real-life experience The research is funded by the federal in different safety scenarios, giving users government as part of Curtin University’s a full range of vision and the ability to ‘Learning for Tomorrow’ strategy and aims physically move and interact within a to create authentic environments where virtual environment. students can apply the theory they learn in This particular virtual technology was class to industry. originally developed for the computer But Du Plessis sees far reaching Coert Du Plessis gaming world, but is quickly going mainstream. Electronics company Samsung has reportedly partnered with Oculus to develop a smart phone with curved sides that converts into a virtual reality headset. “Oculus Rift is one example where someone can be fully immersed in an environment such as a mine site or a workshop. We can then present them with a number of incidents and measure their behaviour,” Du Plessis says. “From our experiments, we know people have a much more emotional training experience. They can experience what would happen if they fell from that platform, didn’t see that electrical fault or BGC Contracting’s look hard enough over their shoulder when mining operations manager Greg Dark operating machinery. It’s a virtual failure, experiences the Oculus Rift VR headset but it has a stickiness and lasting effect.” www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE JSD02736 48 INNOVATION

3D MAPPING BOOSTS ore extraction The next phase of Rio Tinto’s Mine of the Future program will utilise world-first 3D image software that retrieves data from automated trucks and drills to identify the size, location and quality of ore.

THE REAL-TIME PROCESS using three- mapping tightly focused on removing “This technology allows us to quickly dimensional mapping technology, is high value ore. and easily view, compare and evaluate anticipated to reduce costs and improve Rio Tinto head of innovation John data to paint a picture of what’s under the efficiency of mining operations. McGagh says the technology has led to the ground – it’s like an ultrasound According to Rio Tinto, the ‘RTVis 3D’ greater ore recovery through sharper image of the deposit delivered in real technology creates 3D images of mine boundary identification, more accurate drill time, something that we could never do pit activities that previously could not be blasting, reduced explosives, improved before,” McGagh says. measured and provides pinpoint accurate waste classification and enhanced dig rates. “RTVis is a low-cost application that complements existing group-wide data technology in a way previously never available to enhance our mining operations. “It quickly brings information to a much broader audience – from a single operator in the field to an expert team in the Rio Tinto Operations Centre in Perth. “Armed with this detailed information, our operations to recover the ore bodies will be significantly more efficient and effective.” The new 3D technology is deployed at Rio Tinto’s West Angelas iron ore mine in Western Australia and trials are also underway in other Rio Tinto product groups including copper, energy and diamonds and minerals. RTVis also provides rapid feedback on the impact to equipment while another important benefit is in mine planning, with certainty provided on the nature of ore deposits at an earlier stage. RP

This technology allows us to quickly and easily view, compare and evaluate data to paint a picture of what’s under the ground.

Technology plays a large role in Rio Tinto operations

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE INNOVATION 49

INNOVATION ALLIANCE targets mine productivity

AUSTRALIAN-BASED MINING services patent application this year for a new produce many outstanding innovations. giant Orica has signed a five-year research method of ore waste boundary mapping “The new agreement gives us even alliance with the CSIRO to commercialise that minimises ore dilution. more opportunity for our science to groundbreaking technology aimed at CSIRO chief executive officer Megan Clark make a difference to industry and the improved productivity and environmental says the alliance with Orica will continue to community,” she says. RP performance in the mining sector. “Over the past five years Orica and the CSIRO have been engaged in a hunt for innovation across the mining value chain and to date our partnership has achieved very pleasing results,” says Orica managing director and CEO Ian Smith. “The second alliance agreement will allow a number of these ground breaking research projects to continue their progression towards commercialisation.” CSIRO’s Megan Clark Research milestones already achieved with Orica’s Ian Smith during the alliance include filing of a

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 50 ECONOMY & FINANCE

MINING WHIZ OPENS FAMILY focused money school Lacey Filipich capitalised on her successful resources career with keen financial planning skills learnt from her mother. Now she is helping other resource workers and their families master the almighty dollar.

THE RESOURCE INDUSTRY has been thinking more about my responsibility responsible for a huge level of wealth to pass on the knowledge that my mum creation over the past decade. The latest taught me. Australian Bureau of Statistics data lists “We don’t really cover that anywhere resource workers as the country’s highest in our education, so Money School earners on average, taking home just particularly aims to address the existing under $2,500 per week before bonuses gap in school curriculum by teaching and overtime. families financial skills.” Unfortunately for some, entering a high- Money School coaching sessions are paying resources role does not equate to tailored to families, adults or children and financial freedom. cover everything from the very basics “It’s even riskier for people who earn a of how to save and plan a budget, right high income because they can do some through to investing. pretty significant investing or make some “One thing that is really popular with really bad decisions and create a lot of adults is understanding how loans work, debt,” says Lacey Filipich, who recently how credit works, what’s good debt and launched financial coaching business what’s bad debt, and how to work out Money School. how much you can afford to borrow,” “I hear plenty of stories about people Filipich explains. Lacey Filipich overcommitting on financial purchases. If “Every course also has a component they go down to a single income or lose about how to teach kids those skills. This “This could be anything from doing work, it can be a real shock.” includes simulations, training and games a 12 month house swap with a family in Thanks to her financially savvy mother, that you can play with kids to get them Spain to completing an MBA full time at a Filipich learnt how to manage her money learning about money.” world-standard university,” she says. from a young age and began investing in But Filipich doesn’t want to take all the “I have had several mini-retirements in property early. fun away from those earning a high income. my life, and interestingly they have been She graduated as a chemical engineer While she advises people to set aside some the least cost-per-week periods of my life.” and went on to forge a successful career money and make a list of ways to downsize Filipich is also a non-executive director in the West Australian resource industry, spending, she also encourages them to of Consumers of Mental Health WA, a working in business management and create an ‘awesome rainy day plan’. not-for-profit that advocates the voices of training roles with BHP Billiton Nickel people with lived experiences of mental West before becoming a senior business health issues. coach with global consulting firm Believing financial skills can have great Lodestone Partners. influence on mental wellbeing, she says As Filipich progressed her career and the success of Money School will be financial goals, she saw plenty of others measured by helping people take control struggle with money. Before long she I hear plenty of of their money and thus become happier acted on a long-held desire to pass on her stories about people in their lives. financial know-how to others. overcommitting on “Worrying about money can be very “Particularly in the mining industry, financial purchases. If invasive in your life,” she says. people were earning lots of money but “The better strategies you have in often didn’t know how to make it work for they go down to a single place, the less that becomes an issue in them,” she says. income or lose work, it can relationships and the better chance you “When I had my daughter I started be a real shock. have of success.” RP www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE ECONOMY & FINANCE 51

RESOURCE INVESTMENT BEHIND higher living standards

RESOURCE ACTIVITIES OF the past decade have underpinned wages by 6 per cent and lowered the unemployment rate by significant improvements to Australia’s standard of living, about 1.25 per cent,” the RBA says. according to a report on the impact of the ‘mining boom’ by the “The combination of the substitution and income effects mean Reserve Bank of Australia. that motor vehicle purchases may have been 30 per cent higher In its research discussion paper, The Effect of the Mining as a result of the mining boom, and durables 25 per cent higher.” Boom on the Australian Economy, the Reserve Bank compared Additionally, those who have bought into mining shares, the economic outcomes of Australia’s mining investment surge including through superannuation funds, are said to have against projected benefits had the mining boom not occurred. benefitted most from the mining boom. “The world price of Australia’s mining exports has more than However, the report also notes that other industries had tripled over the past decade, while investment spending by the experienced a slight downturn coinciding with the ramp-up of mining sector increased from 2 per cent of GDP to over 8 per resource investment from 2002. cent,” the report reads. “The combination of changes in income, production and “This ‘mining boom’ represents one of the largest shocks to relative prices [associated with the mining boom] has meant large hit the Australian economy in generations.” changes in the composition of economic activity,” the report says. The research, which circulated primarily around the “While mining, construction and importing industries have overarching impact of rising commodity prices, found that boomed, agriculture, manufacturing and other trade-exposed income, wages and employment rates had increased as a result services have declined relative to their expected paths in the of resource investment. absence of the boom.” RP The increases of income, combined with the improved exchange rate associated with the mining boom, led to higher purchases of household goods, food and communications. “By 2013, we estimate that the mining boom had raised real per capita household disposable income by 13 per cent, real

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RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 52 ECONOMY & FINANCE

EXPORT EARNINGS SURGE with resource production The national economic benefits of the resource industry’s transition into a long-term production phase are beginning to reflect in Australian commodity export earnings data.

ACCORDING TO THE latest Resources projects across Australia. national economy increased by $72bn and Energy Quarterly from the Bureau “First LNG shipments from the east since 2003-04; with its share of GDP up of Resources and Energy Economics coast are expected to start by the end of from 7.8 per cent to 11 per cent in the (BREE), commodity export earnings have 2014, rapidly ramping up over the period same period. increased by 12 per cent in the past 12 to 2019 to make Australia the world’s Calder adds that ‘the prospects for months to reach a record $195 billion. largest LNG producer.” the resources and energy industry Australia is now exporting more than Over the next 12 months, resource and remain positive’. two-and-a-half times the mineral and energy exports may drop by 1.4 per cent in “Continued economic growth in energy commodities than it was 10 years line with softer commodity prices resulting highly populated emerging economies ago. This is just getting started, however, from oversupply in key markets, but a will sustain increased demand for both with an influx of LNG capacity set to rebound is also expected, with totals likely resources and energy commodities into increase annual natural gas export value to reach $274bn in the next five years. the future,” he says. RP from $16.4bn to $57.1bn by 2019. The BREE report also pay homage to “Australia is moving decisively from the the past contributions of the resource investment phase of the mining boom to industry to the Australian community. the production phase,” says BREE deputy The report notes the past decade’s executive director Wayne Calder. growth in exports and investment has Australia is now exporting “We will continue to see expansions ‘supported employment, regional more than two-and-a-half in capacity from the Australian resources development and increased revenues for and energy sectors with increasing both federal and state governments’. times the mineral and supply of iron ore and coal as well as It outlines how the Australian mining energy commodities than the commencement of major new LNG industry’s gross value added (GVA) to the it was 10 years ago.

Port Hedland, WA ECONOMY & FINANCE 53

COASTAL SHIPPING REFORMS for a globalised industry

IN AN ADDRESS at a recent Shipping compared with operating costs for foreign potential to cost a lot more jobs in our Australia conference in Sydney, ships,” says Minister Truss who is also manufacturing industries, aluminium Minister for Infrastructure and Regional Deputy Prime Minister and Nationals leader. and mineral sands processing, gypsum, Development Warren Truss reaffirmed the “For example, Cristal Mining submitted cement and sugar to name a few.” government’s commitment to forthcoming that the difference between using Australian Welcoming the Minister’s comments, coastal shipping reforms with the release and foreign ships costs their business an AMMA chief executive Steve Knott says of his department’s Australia Sea Freight additional $5 million every year.” Australia’s ‘coastal highways’ should be a 2012-13 research paper. Minister Truss pointed to Australia’s competitive advantage for the nation, not Speaking on the previous Labor workplace relations system as one area a major cost drain on local employers. government’s ‘flawed, bureaucratic and impacting the sector’s competitiveness. “More effective and efficient coastal protectionist tiered licencing system’, “We operate in a global arena. shipping regulation will better support the minister noted that in just two years Global businesses like shipping Australian businesses competing in the under Labor’s Coastal Trading Act 2012 need labour arrangements that are global marketplace,” Knott says. the carrying capacity of Australia’s coastal competitive – both to attract the right “It is another piece to the puzzle in fleet dropped by 64 per cent. people and to ensure the business building a domestic policy framework “It is already clear that the operating costs remains afloat,” he says. that will see yet-to-be-determined of Australian ships, and particularly labour “Labor’s sop to the maritime resource projects approved and arrangements, are uncompetitive when union is costing jobs and has the developed in Australia.” RP

RESOURCE PEOPLE |SUMMER 2014-15 | www.amma.org.au 54 EVENTS

NOVEMBER Wed 3 – Fri 5 Wed 19 AMMA INDUSTRY WRAPS AUSTRALIAN WOMEN IN RESOURCES These AMMA member-only events provide valuable legislative ALLIANCE (AWRA) FORUM and operational updates for resource employers. Engage with EVENTSThe 2014 AWRA Forum will explore workforce diversity and AMMA specialists on important workplace matters and network inclusion across gender and culture. Resource employers and with friends and colleagues from across the industry. Upcoming diversity experts will cover practical solutions to barriers preventing events to be held in Brisbane, Sydney and Melbourne. greater attraction, retention and development of underutilised More info at: www.amma.org.au labour pools including women and Indigenous Australians. Held at The University Club of Western Australia, Perth. More info at: www.amma.org.au/awra

Tues 25 – Wed 26 8TH ANNUAL MINING SOUTH AUSTRALIA Hear the latest insights into South Australia’s project developments, mining operations, exploration, infrastructure, ports and rail and much more. Held at Middleback Theatre, Whyalia. More info at: www.informa.com.au

Tues 25 – Wed 26 QUEENSLAND GAS CONFERENCE & EXHIBITION This conference is dedicated to the latest developments and issues surrounding coal seam gas and liquefied natural gas in Queensland. The program will explore the technical and JANUARY commercial drivers to ensure operational excellence and Wed 29 – Fri 30 deliver on project goals. Held at Brisbane Convention and WOMEN IN SAFETY LEADERSHIP SUMMIT 2015 Exhibition Centre. This summit will cover practical strategies and innovative solutions More info at: queenslandgasconference.com.au to enhance women’s leadership effectiveness for optimal career advancement and success in safety. Held at Fraser Suites Sydney. More info at: www.liquidlearning.com.au DECEMBER Tues 2 – Wed 3 TECHNOLOGY & PRODUCTIVITY IN MINING CONFERENCE FEBRUARY In a period of profound technological and cultural change, this Tues 24 – Wed 25 conference will analyse the key role played by new technologies SUMMER ENERGY BRIEFING to improve mining productivity, with a renewed focus on the This inaugural event will gather the experts to analyse, debate critical role played by humans to manage these technologies. and collectively discuss some of the key issues surrounding the Held at Fraser Suites Perth. energy market and possible solutions that will help shape the More info at: www.informa.com.au energy future of Australia. Held at Marriott Melbourne. More info at: www.informa.com Tues 2 – Wed 3 OFFSHORE SUPPORT VESSELS Wed 25 – Thurs 26 The Offshore Support Vessels Conference will provide practical RIU EXPLORERS CONFERENCE examples of successful operational performance and technical The RIU Explorers Conference is a major Australian forum for the capacity in OSV activity. Oil and gas majors, OSV specialists, junior resources sector, with mineral exploration companies and and technical and operational heads will discuss trends, case emerging miners attracting an ever-growing group of brokers, studies and the latest information on active and future projects. fund managers and investors to hear their presentations. Held at Held at Fraser Suites Perth. The Esplanade Hotel, Fremantle. More info at: www.informa.com.au More info at: www.riuconferences.com.au

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE

56 BUSINESS PARTNER DIRECTORY

www.amma.org.au |SUMMER 2014-15 | RESOURCE PEOPLE