voice of employers in the resources sector

Activities Report 2008

AMMA’s Chief Executive Steve Knott and Director Workplace Policy Christopher Platt present AMMA’s submission at the first day of the AIRC Award Modernisation hearings

Photo courtesy of the AIRC Contents

President’s Report 1

Chief Executive’s Report 3

AMMA Statement 5

AMMA Board 7

AMMA Team 8

Workplace Policy 9

Board Reference Group Members 12

Operations 13

Education and Training 17

Membership, Communications and Media 23

Resources Sector Employee Relations Statistics 26

AMMA Members 29

AMMA thanks its member companies Xstrata, Woodside, TMS, BMA and Newmont for the photos used in this Report. President’s Report

The global financial crisis is going to test for greater continuity in the industrial relations 1 the tenacity of the Australian economy and landscape. With that in mind, it is pleasing to

Activities Repo r Australian businesses – a challenge that the see a renewed commitment of the Council of resources sector is well placed to manage Australian Governments towards increased but which heightens the necessity for sound harmonisation and the continuation of specific government policy decisions. industrial relations reform measures designed to offer business effective redress from Years of investment in the development of new

t 2008 damaging strikes. projects and expansion of existing projects in the resources sector has put in good AMMA continues to promote a well balanced stead to withstand the full effects of the US industrial relations system that maintains sub-prime mortgage crisis. Strong investment Australia’s high job growth, low industrial has increased export capacity and, buoyed by disputation levels and strong financial strong commodity prices and demand for most investment. AMMA’s submission of a of the year, the resources sector has achieved comprehensive and flexible draft Industry record levels in export earnings and has assisted Safety Net Award – an approach taken by no Australia to reach its second-biggest trade other party – has set the standard in the award surplus on record. modernisation process and the unified approach The outlook remains positive based on a of the AMMA membership in this process is to record listing of 341 resources sector projects; be commended. A favourable response to the but many projects still require decisions on draft award by the Australian Industrial Relations investment before they proceed to development. Commission is a powerful endorsement of There is every possibility that these investment AMMA’s industrial influence. decisions may be curtailed on the back of the The new government has actively sought global financial crisis and potentially reduced AMMA’s views on a broad range of employment- business investment confidence. This highlights related matters. AMMA has also actively the importance of having a robust workplace relations system in place and measures to represented members’ interests on the National address current capacity constraints caused by Workplace Relations Consultative Council and infrastructure bottlenecks and skills shortages. the Committee on Industrial Legislation.

The election of a new government armed with Continuing its strong support for a tough a new industrial relations policy agenda at the industry regulator in the building and end of 2007 has continued the debate about construction industry, AMMA released an the best way to regulate the workplace. AMMA extensive discussion paper, Building Industry has witnessed the industrial relations pendulum Regulator: a tough cop or a return to toothless swing over the years, noting back in 1999 in its tiger, and called on the government to retain a Beyond Enterprise Bargaining report the need tough cop on the beat in the national interest. Eve Howell AMMA President

The skilled labour shortage in Australia has organisational productivity improvements. required the increased use of foreign skilled AMMA’s advisory services will continue to 2

labour. This increased activity raised a range support members in their endeavours. Activities Repo r of political and industrial issues. Again AMMA, with the assistance of its members, was able AMMA has continued to grow its membership to lobby government and assist members to in 2008, with 38 new companies joining the Association. The size and diversity of the address the difficulties experienced by membership base continues to ensure an members utilising the migration program. effective and authoritive representation of t 2008 Recognising the inevitable shift towards national employers in the resources sector. occupational health and safety regulation, This past year has offered many challenges AMMA’s newly established Health, Safety and that AMMA and its staff have met with vigour Environment Advisory Group will ensure the and continued professionalism. Together with interests of AMMA’s broad membership base the support of AMMA’s membership, AMMA are adequately represented in the development will head into 2009 in a position of of model occupational health and safety laws. significant strength. AMMA’s Education and Training Division continues to provide quality services to members and has delivered training programmes to several thousand participants to support the continued success of the resources sector. Nationally- accredited training, from Certificate 1 through to Associate Diploma level courses, will continue to be in high demand in 2009.

The year has been a busy year for AMMA’s employee relations and human resource management advisory services as members transited to a system without the capacity to make new Australian Workplace Agreements. Contingency plans for the new industrial relations legislative environment that will take effect in 2010 will again ensure an active advisory environment during 2009. The slowing world economy, global financial crisis and reducing commodity prices impacting on the resources sector now and in the months ahead have increased members’ pursuit of further Chief Executive’s Report

We are likely to remember 2008 as the year Communications and Media Division has 3 of paradigm shifts: it is the year that saw kept members informed of the fast changing

Activities Repo r comprehensive overhauls of our workplace environment through frequent electronic relations system on the national front as circulars, online and face-to-face member well as unprecedented growth, followed by forums, as well as our celebrated annual unprecedented contraction, in the global National Conference. economy. Keeping abreast of local changes and anticipating the impact of global developments A significant feature of the post January 2010 t 2008 on issues as wide ranging as climate change landscape includes a return to industry awards, and fiscal policy presented many challenges for which will be restored as a primary safety net. our members. AMMA, celebrating its 90th year In order to ensure that the resources sector’s in 2008, has been well positioned to support international competitiveness is not threatened and advise our membership throughout these by a claw back of the hard-won flexibilities turbulent times. achieved to date, AMMA has invested significant resources in representing our members’ The new Labor government started the interests in the award modernisation process. introduction of its workplace relations reform We were successful in achieving priority award agenda early in the year through the Forward status for the mining industry and our Workplace with Fairness Transitional provisions (no new Policy Division worked tirelessly to produce a Australian Workplace Agreements) followed modern, succinct and flexible award that will shortly afterwards by the exposure draft on the allow all mining industry employers to maintain new proposed National Employment Standards. current flexibilities in working arrangements. AMMA has been intricately involved in these Significantly, the Australian Industrial Relations legislative processes through its participation on Commission has adopted much of what AMMA the National Workplace Relations Consultative has proposed and a good foundation has been Council as well as the Committee on Industrial laid for the other industry awards that have been Legislation. scheduled for modernisation in the latter half of 2008 and in 2009. AMMA’s knowledge of the emerging legislation positioned the Association to provide timely The challenges for our members have, and authoritative advice to our members however, not been limited to the legislative as our consulting staff assisted members front. Continuing skills shortages have seen a in the transition to the new workplace renewed commitment amongst our members to relations landscape. AMMA members have the upskilling and training of their most valuable benefited from strategic advice provided resource, their people. AMMA’s Education and by our Operations Division to position their Training Division delivered training to thousands organisations both prior and post January 2010, of participants in 43 locations across Australia when the Labor government’s policy agenda is and New Zealand, with a majority of these set to be implemented in full. Our Membership, locations being our members’ operational sites. Steve Knott Chief Executive

We have also remained responsive to industry needs and introduced numerous new training 4

workshops, with a specific focus on upskilling Activities Repo r frontline managers. Our alignment with industry needs will be further strengthened through our recently established Education and Training Advisory Committee, which will play a key role in identifying emerging trends and providing t 2008 strategic advice to our Education and Training Division. We are also excited and encouraged by our work offshore: AMMA was involved in the design and delivery of training in Indonesia and is at present developing a Mining VET program in China. AMMA is well on its way to becoming the preferred education and training provider within the resources sector.

At the time of writing, 2009 looks to be a watershed year. The ability of our members to rise to the challenges created by a turbulent and uncertain global economy will be tested. So will our commitment to providing workplaces where employees are valued and developed and where we can advance the resources sector’s agenda of engaging directly with our employees. Thank you to all our members for their continued support in 2008. We commit to remain responsive to our members’ needs in 2009 and will continue to promote and protect members’ interests in all we do. 5 Activities Repo r t 2008

AMMA – 90 years of accumulated experience, knowledge and industry representation AMMA Statement Activities Repo r t 2008

AMMA is the voice of the resources sector, promoting the employee relations and human 6 resource management interests of our members since 1918.

Our 90 years of accumulated experience, knowledge and industry representation makes us the leading provider of advice and representation for all resources sector Integrity: Conduct activities in a employee relations and human resource fair, honest and transparent manner management matters. Responsibility: Act in the best AMMA’s experienced and qualified professional interests of our members staff are available to assist members whenever and wherever they are needed. Recognition: Reward and develop our employees AMMA’s national and regional conferences, online communication products and regular AMMA members member forums ensure members keep up to • network with colleagues in their field at date with all the important issues. AMMA’s regular member-only events AMMA Education and Training provides • use AMMA’s e-communication tools to stay nationally recognised training and informed on all sector news contextualised courses tailored to meet the requirements of the individual member and • access courses provided by AMMA Education always with a resources sector perspective. and Training, the sector’s leading training and education provider AMMA compass statement • rely on assistance from AMMA’s professional Vision consultants to provide cost-effective AMMA will be the resources sector provider of employee relations advice and representation choice for employment related services. • become part of the voice of the resources Mission sector, influencing significant developments in employee relations, both at federal and As the premier resources sector employer state level, through AMMA’s dynamic organisation, we will protect and promote the lobbying activities interests of members. AMMA membership is open to all companies Values operating in the resources sector and Ethics: Represent the views of our members allied industries. amma Board

AMMA President 7 Eve Howell – Executive Vice President Northwest Shelf, Woodside Energy Ltd. Activities Repo r

AMMA Vice Presidents

Peter Johnston – Chief Executive and Managing Director, Limited

Ian Smith – Managing Director and Chief Executive Officer, limited t 2008 Directors

Ian Ashby – President Iron Ore, BHP Billiton Ltd

Neil Barrett – Chief Executive Officer, Australia and New Zealand, Sodexho Australia Pty Ltd

Steve Hodgson – President and Chief Executive, Alcan Bauxite and Alumina

Kim Horne – Executive Director Human Resources and Environmental Health and Safety Australia, Alcoa of Australia Limited

Andrew King – Managing Director, P&O Maritime Services Pty Ltd

Tim Wall – Managing Director, Apache Energy Limited

Ulysses Yiannis – HR Manager, Australia/New Zealand/Pacific Islands, Esso Australia Pty Ltd and Mobil Oil Australia Pty Ltd amma Team

Chief Executive Steve Knott 8 Activities Repo r

Operations Division Workplace Policy Membership, Business Education and Director – Tony Caccamo Division Communications Development Division Training Division and Media Division Manager Hydrocarbons – Director Director – Corlia Roos Director – Helene O’Donnell t 2008 Geoff Bull – Christopher Platt Director – Minna Knight National Education Manager Mining – Senior Workplace Policy Communications Manager and Training Manager Ian Turner Adviser – Naomi Ford – Ruth Bain – Nicola Thomson Policy and Employee Membership Assistant National Projects Manager, Relations Assistant – Marina Vorster Education and Training – Alice Trethewey – Robert Wilson Membership Assistant Policy Support Staff Officer – Pam Dyson Education and – Karina White Training Adviser – Mark Wilkes-Jones Education and Training Project Support/ Team Assistant – Sharan Laly

Corporate Services Division Manager Corporate Services – Fiona Chong Accounts Officer – Hetal Trivedi PA to Chief Executive – Paulita Gomes

Melbourne Office: Principal Employee Relations Consultant – Susan Butterworth; Employee Relations Consultant – Tony Bradford; Employee Relations Consultant – Cath Pollard

Perth Office: Principal Legal Services Consultant – Andrew Cameron; Employee Relations Consultant – Dayle Carnachan; Employee Relations Consultant – Belinda Honey; Employee Relations Consultant – Peter Robertson; Employee Relations Consultant – Mark Wakelin; PA to Director Operations – Rosemarie Harrison; Operations Support Staff Officer – Karine Round

Brisbane Office: Employee Relations Consultant – Katrina DeLange; Employee Relations Consultant – Jarrett Goos

Adelaide Office: Employee Relations Consultant – David Johns

Sydney Office: Principal Employee Relations Consultant – Peter Baxter; Employee Relations Consultant – Lillian Papantoniou; Business Development Manager Operations – Kylie Johanson

Hobart Office: Principal Employee Relations Consultant – Bill Fitzgerald 9 Activities Repo r t 2008

AMMA sought and was granted priority award status for the mining industry Workplace Policy Activities Repo r t 2008

The election of the new Labor government in late 2007 has resulted in an increased level of activity 10 in the workplace policy area in 2008 and this will continue into 2009 as the government introduces its Forward with Fairness policy agenda.

The reform agenda got off to an early start in January 2008. AMMA was involved in the review of the Forward with Fairness Transitional In May 2008 AMMA made a Provisions through its participation on the submission to the Australian National Workplace Relations Consultative Productivity Commission’s Council and the Committee on Industrial review on paid maternity leave, Legislation. AMMA’s knowledge of the emerging supporting a taxpayer-funded legislation also enabled the conduct of timely model. May 2008 also saw the employer briefings once the final legislation was commencement of the award publicly released. modernisation process with the release of the Minister’s Award Modernisation Request. In February 2008 AMMA lodged a submission to the Senate Committee reviewing the AMMA sought and was granted priority award government’s Transitional Bill. AMMA status for the mining industry and proposed a recognised that AWAs would be excised modern, succinct and flexible award that will and called for the government to provide an allow all mining industry participants access accessible alternative that provided the same to flexible working arrangements. The release level of flexibility. AMMA’s lobbying efforts of the exposure draft Mining Industry Award were rewarded with improved access to the in September proved that AMMA’s decision transitional replacement for AWAs. to commit significant resources to the award modernisation process was the right approach, In March 2008 AMMA made a submission with much of AMMA’s proposed award being on the exposure draft of the new National accepted by the Australian Industrial Relations Employment Standards that, together with Commission. AMMA will represent the modern awards, would underpin Labor’s new hydrocarbons industry in Stage 3 of the award industrial system from January 2010. AMMA modernisation proceedings in March 2009. argued for a flexible system that would allow resources sector employers to have continued At the same time the government commenced access to flexible work arrangements, the Wilcox review on the transition to Fair Work particularly for award-free employees. Australia for the successful Australian Building and Construction Commission. Following its 11 submission to the government on the proposed Key papers and submissions by AMMA in 2008:

Activities Repo r Terms of Reference for the Wilcox review, AMMA released a paper titled Building Industry • The building industry regulator: a tough cop or a transition Regulator: a tough cop or a return to toothless to toothless tiger tiger and called on the government to retain a tough cop on the beat in the national interest. • Submission to Senate Inquiry on the Building and Construction Industry (Restoring Workplace Rights)

t 2008 AMMA’s Board Reference Group, comprising Bill 2008 senior workplace relations practitioners from • Submission to the Australian Industrial Relations AMMA members, continued to meet quarterly Commission on Award Modernisation (Metals Industry) to review research projects and discuss topical issues. • Submission to the Australian Industrial Relations Commission on Award Modernisation (Mining Industry) In October 2008 AMMA’s Workplace Policy Director spent ten days in Canberra reviewing • Submission on the National Review Panel into Model the government’s Substantive Bill. The passage Occupational Health and Safety Laws of the Bill, which is expected to be introduced • Submission to government on the proposed new laws to into the last session of Parliament in December reform the section 457 visa program 2008, is expected to increase union access to • Submission to the Productivity Commission on Paid workplaces, expand agreement content and give Parental Leave the Australian Industrial Relations Commission’s replacement greater capacity to impose • Submission on the proposed terms of reference for outcomes on employers. AMMA will be busy the Wilcox Consultation on the Transition to Fair Work over the Christmas/New Year period preparing a Australia of the Australian Building and Construction Senate submission on what could be a return to Commission a pre-2006 style industrial relations system. • Supplementary Submission to the Australian Industrial At this point 2009 looks like it will present as Relations Commission on Award Modernisation many challenges as did 2008 and AMMA will • Submission to the Australian Industrial Relations ensure that members are kept up to date on the Commission Consultative Hearing on Award detail of the new industrial relations system and Modernisation how best to take advantage of any opportunities it may offer. • Submission on the National Employment Standards Exposure Draft • Submission to Senate Inquiry on the Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008 Board Reference Group Members

Simon Beach General Manager Human Resources Newcrest Mining Limited 12 Geoff Blyth Group Workplace Relations Manager Compass Group (Australia) Pty Ltd

Matt Brady Executive Manager People, Health and Safety Activities Repo r Tony Caccamo Director Operations AMMA Steven Clancy Director Labour Relations Fluor Australia Pty Ltd Greg Cornish Senior Adviser Employee Relations Santos Limited Paul Davies Chief Advisor Employee Relations Rio Tinto Limited t 2008 David Dawes Mining Services Manager Leighton Contractors Pty Ltd Paul Duckett Group General Manager Workplace Relations Skilled Group and Human Resources Naomi Ford Senior Workplace Policy Adviser AMMA Keith Greatrix H R Superintendent Queensland Desiree Harker General Manager Human Resources P&O Maritime Services Steve Knott Chief Executive AMMA Jill Lever Executive General Manager Human Resources OZ Minerals Ian Masson General Manager Employee Relations Woodside Energy Limited Chris Mitsopoulos Employee Relations Manager Chevron Australia Pty Ltd Chris Mitchell Group Manager Employee Relations BHP Billiton – Stainless Steel Materials Linda Nunn Industrial Relations Manager Sodexho Total Support Services Carl Phillips HR Manager WA Operations Alcoa World Alumina Australia Christopher Platt Director Workplace Policy AMMA Merv Saltmarsh Manager Human Resources – Drilling Services Boart Longyear Pty Ltd Murray Smith Vice President Human Resources BHP Billiton – Iron Ore Pty Ltd Bill Vickers Industrial Relations Manager ExxonMobil Australia Pty Ltd Paul Walters Vice President Human Resources BHP Billiton – Olympic Dam Corporation Pty Ltd Garry Whiting Manager Rail Suppliers Australasian Railway Association 13 Activities Repo r t 2008

... over 1000 separate consulting assignments undertaken by AMMA’s consulting staff across Australia Operations Activities Repo r t 2008

The human resources challenges faced by member companies in 2008, together with 14 legislative changes and increased competition, required a concerted effort from the Operations Divisions’ staff to meet member requirements and take the opportunities presented during 2008.

These were concentrated around: In the mining and hydrocarbons • managing the industrial relations for onshore sectors AMMA consultants have: and offshore construction projects; • provided onsite employee • analysing the organisational risk of proposed relations support during legislation and assist members develop and construction and implement strategies to mitigate that risk; shutdown projects;

• assisting with agreement development and • negotiated individual and collective (union implementation; and and non-union) agreements;

• general consulting advice on human resource • provided representation in conciliation and management and industrial relations issues. arbitration matters in various state and federal industrial and discrimination commissions and Due to an increased demand on services, AMMA tribunals; has undertaken an intense recruitment exercise to complement staff resources, knowledge and • assisted companies with the design skills. Accordingly AMMA is well positioned to and implementation of flexible working meet the challenges presented in 2009. arrangements, including rosters and human resource management policies; Consulting Activity • assisted companies develop, draft and AMMA has offices in every state and our negotiate various forms of employment experienced consultants have undertaken regulation; general consulting assignments for member companies across Australia. These assignments assisted members in a range of areas including front-end strategy, representation, rolling out project agreements, transitioning workforces onto a particular agreement and day-to-day advice and assistance. • assisted companies develop and implement The objective is to avoid unnecessary delays 15 company-specific employee relations and HR through industrial relations or safety disputes.

Activities Repo r strategies and services; This requires a concentrated, well planned and executed effort and dedicated and experienced • managed employee relations on a wide range staff. In 2008 AMMA again demonstrated it of offshore and onshore resource projects; has the staff and the capability to perform this and service effectively.

t 2008 • provided advice and guidance on managing OFFSHORE CONSTRUCTION redundancies, discipline, unfair dismissals and the application of federal and state legislation, During 2008 AMMA consultants were engaged agreements and awards. by a number of hydrocarbons companies and construction contractors to assist with offshore ONSHORE CONSTRUCTION AND construction projects. SHUTDOWNS The services offered by AMMA varied based on In addition to general consulting assignments, the stage of the project and included: AMMA has been engaged by member companies to assist with the management • front-end strategy development; of industrial relations for construction and shutdown projects. This has included: • assisting tenders with information and support through the tender process; • the development of employee relations management plans; • the development and review of employee relations management plans; • the establishment of construction conditions of employment; • union project briefings and developing and negotiating agreements with relevant unions; • discussions and negotiations of agreements and with unions; • coordinating and providing day-to-day advice • assisting contractors with information and to contractors during the execution phase. advice during the pre-tender and execution phases; Offshore projects that AMMA has been involved with include: • site services to provide on site support to Gorgon Pluto contractors; and Basker Manta Kipper/Turrum • assisting clients with the coordination and Enfield Vic P44 (Henry Field) auditing of contractors on site. Blacktip Vincent Angel Ichthys THE YEAR AHEAD 16 The year ahead promises to be an exciting one full of opportunities and challenges for AMMA Activities Repo r and its members. These include the:

• slowing world economy and global financial crisis (see President’s Report);

• volatile commodity prices and organisational t 2008 demand for improved productivity;

• changes to workplace relations legislation; and

• continued shortage of skilled labour.

This environment will require new and innovative approaches to the management of employee relations including an ongoing focus on employee engagement.

The Operations Division is well placed to assist members address these challenges and continue to revise current approaches to human resource and employee relations management.

In 2009 the Operations Division will continue to focus on:

• providing support and assistance to members transitioning to the new workplace relations system;

• providing a quality and relevant human resource management consulting service;

• capability development to meet ongoing demand for consulting services; and

• continuing to build and strengthen relationships with members. 17 Activities Repo r t 2008

We understand the operational requirements of our industry Education and Training Activities Repo r t 2008

AMMA Education and Training has had a busy year in 2008, with the number of organisations 18 utilising our education and training services continuing to grow. AMMA delivered training to several thousand participants nationally over the past 12 months. We are well on the way to becoming the preferred education and training provider in the resources and allied On-site courses ranged from a few services sectors. hours to a few days, with popular Our suite of education and training services is courses this year including: continually updated to take into account global • Essential Skills for Supervisors; developments, industry trends and legislative changes; our delivery methods are flexible • Performance Management; and work around your rostering requirements; and we can deliver on-site training 365 days a • Discipline and Termination Training; year anywhere in Australia. We understand the • Industrial Relations for Human Resource operational requirements of our industry. Practitioners;

What we delivered • Human Resource Management; Customised, in-house training • Conflict Management; and The number of members utilising AMMA’s • Union Right of Entry Workshops (offered for customised in-house training saw particularly the first time in 2008). strong growth in 2008. Benefits to members of tailored training packages include the ability to Other courses launched in 2008 were: work with AMMA to blend company-specific policies and procedures into course content. • Organisation-Specific Industrial Relations;

• Supervisors’ Communications;

• Supervisory Development Programs; and

• Time Management. Calendar courses Other services 19 AMMA’s calendar courses continued to be In 2008, AMMA continued to deliver a diverse Activities Repo r popular with members. Standard courses ran as range of education and training services including one-day workshops in capital cities or regional e-learning and self-directed learning as well as centres (see the AMMA website for future listings). training for trainers. Popular courses this year were: Regular focus groups ensured our offerings

t 2008 • Discipline and Termination – Reducing the Risk; remained member-driven and responsive to changing industry needs. We also continued to • Contact Officer Training for Discrimination, run regular industry forums, seminar series and Harassment and Bullying Complaints; special interest groups.

• Fundamentals of the Employment Relationship AMMA continues to offer a range of training (updated to reflect Labor’s transitional consulting services including training needs workplace relations legislation); and analysis, training plan development and strategic plan preparation. • Recruitment and Selection in the Resources Sector. All our services are delivered by specialist staff who are experts in their field. All our services are delivered by specialist staff who are experts in their field

20 Activities Repo r t 2008 21 Activities Repo r t 2008

Where we • Brisbane • Kalgoorlie • Perth delivered • Broken Hill • Kambalda • Port Hedland • Burnie • Karratha • Queenstown In 2008, AMMA • Coolangatta • Kirkalocka • St Ives facilitated training • Dampier • Lonsdale • Stawell in locations across • Darwin • Marvel Lock • Tanami Australia and New • Devonport • Melbourne • Tom Price Zealand including: • Emerald • Mount Isa • Townsville • Adelaide • Eneabba • Newman • Waihi (NZ) • Area C • Geraldton • Olympic Dam • West Coast of • Argyle • Halls Creek • Orebody 18 Tasmania • Ballarat • Hamilton • Orebody 25 • Windarling • Boddington • Jundee • Paraburdoo • Yandi

AMMA is also involved in the design and delivery of training in Indonesia and is developing a Mining VET program to be delivered in China. Education and Training Productivity Places Program Advisory Committee 22 AMMA is proud to have been approved in 2008 The AMMA Education and Training Advisory to deliver training under the Commonwealth Activities Repo r Committee was established in 2008 and currently Government’s Productivity Places Program is made up of fifteen member organisations. (PPP). The PPP replaces and transforms the The committee met for the first time in October Australian Work Skills Vouchers Program. The and will meet quarterly. It will play a key role PPP will assist in tackling skills shortages in the in identifying emerging trends and providing mining industry, especially in regional areas. As t 2008 strategic advice on developing an industry an RTO, AMMA will be an active participant in position on training and education issues. this program.

Registered Training AMMA Education and Training can assist Organisation accreditation members to source funding for numerous training and skill shortage schemes AMMA’s status as a Registered Training and initiatives. Organisation (RTO) was audited in March and we were given the green light to deliver Our hotline is open 24 hours a day, 7 days a nationally recognised training qualifications in week for any education and training related the areas of Occupational Health and Safety, enquiries. Phone 1800 891 662 or email Frontline Management, Metalliferous and Coal [email protected]. through to 2012. This year we also sought to expand our RTO Scope of Registration to include qualifications from the Chemical, Hydrocarbon and Oil Refining Training Package (PMA02) and the oil and gas and maritime industries. The number of AMMA’s RTO partnerships continues to grow, with now more than 2,000 Accredited Training Qualifications issued via RTO partnerships. 23 Activities Repo r t 2008

AMMA’s membership represents the widest and most diverse gathering of employers involved in the resources sector Membership, Communications Activities Repo r

and Media t 2008

In 2008 AMMA celebrated its 90th year serving the employers in the resources sector. The size 24 and diversity of AMMA’s membership are worth noting when looking back on the proud history of the Association.

Our membership has grown from a dozen mining operations in 1918 to a healthy 330 members in 2008, with 38 new members joining AMMA in the past year. Members mining, services to mining (such represent global mining giants, as well as small as catering, cleaning and security), and medium size enterprises; international exploration companies, consulting organisations, as well as companies that have a engineering firms and EPCM long and proud Australian heritage. contractors, vessel operators, diving, pipelines, ports and Two of the initial mining operations involved aviation services. in the founding of AMMA are still operating assets similar to the ones covered by their During 2008 AMMA’s information services have initial membership in 1918: Broken Hill and Mt continued to provide members with high quality, Lyell in Tasmania. The current owners of these timely advice on important developments operations were acknowledged during our affecting people management issues in 90th birthday celebrations at the AMMA 2008 the sector. Members received in excess of National Conference. A further two members, 100 electronic circulars, whilst the traffic (Bell Bay) and Consolidated on the AMMA website has almost doubled Rutile Limited, received 40 year Long in comparison with 2007, to approximately Membership Awards in 2008, recognising their 100,000 visits in 2008 to date. We have also commitment to AMMA and their dedication to improved the quality and depth of the articles the ongoing improvement of workplace relations published in the monthly AMMA Bulletin, in the sector. providing members with more comprehensive coverage of matters directly affecting them. AMMA’s membership represents the widest and most diverse gathering of employers On the networking front AMMA members again involved in the resources sector. At the time supported the AMMA National Conference of its foundation, AMMA represented the key in record breaking numbers. More than 320 mine owners within the metalliferous sector in delegates attended the conference which Australia. Today, AMMA’s members are engaged was held at the Flemington Racecourse in in the following segments of the resources Melbourne. The theme of the conference, A sector: metalliferous mining, coal mining, World of Difference: People Management in hydrocarbons (both on and offshore), contract a Global Context, reflected the increasing globalisation of the resources sector and AMMA’s popular quarterly member forums 25 politicians and industry experts presented on the continued to be delivered both face-to-

Activities Repo r challenges and opportunities facing the sector. face as well as online, featuring topics such Prominent speakers included: as legislative changes (the new National Employment Standards and the Transitional Act), • Hon. Julia Gillard, Deputy Prime Minister the award modernisation process, employer of choice strategies, overseas workers, and • Hon. Julie Bishop, Deputy Leader of the superannuation changes. The online delivery

t 2008 Opposition platform ensured that members have been • Eve Howell, Executive Vice President able to access high quality information in a Northwest Shelf, Woodside Energy Ltd. and very timely and convenient manner, and the AMMA President popularity of the online forums has continued to grow over the past year. • Justice Geoffrey Giudice, President of the AIRC AMMA has also continued with its relationship with industry conference organisers such as • Jeff Lawrence, Secretary of the ACTU Informa, IIR and AJM, and through our support of numerous industry conferences in 2008 • Professor Roger Collins, Professor Emeritus, AMMA members continued to enjoy the benefit The University of New South Wales of discounted conference fees (10 per cent for • Professor Graeme Hugo, Professor of the most conferences). Discipline of Geographical and Environmental In 2009 AMMA’s Membership, Communications Studies, University of Adelaide and Media Division looks forward to fulfilling our We are again grateful to our sponsors for the members’ information and networking needs AMMA 2008 National Conference, whose in an efficient and innovative manner, ensuring sponsorship contributed to the overall success maximum membership value for our members. of the event:

• Gold Sponsors: Boart Longyear and ESS Support Services Worldwide

• Silver Sponsors: Active Selection, WesTrac, ITS People Solutions and Catapult People

• Conference Dinner Sponsor, Morris Corporation Persons allocated as not further defined within mining industry 10% Coal mining 21% OilPersons and gas allocated extraction as not 8% Metalfurther ore defined mining within 29% mining Otherindustry mining 10% 7% ServicesCoal mining to mining 21% 25% Oil and gas extraction 8% Metal ore mining 29% Other mining 7% Services to mining 25%

Female mining employees 13% Male mining employees 87% Female mining employees 13% Male mining employees Resources sector 87% employee relationsUnion members 22% Non union members 73% Not specified 5%

Union members 22% Non union members 73% statistics Not specified 5%

The mining industry (as defined by the Australian Bureau of Statistics) employs 172,000 people, or 1.6 per cent of all working Australians. 26

Distribution of mining employees Union membership – Mining categories Activities Repo r

Persons allocated as not Coal mining 57% further defined within mining Oil and gas extraction 15% Personsindustry 10%allocated as not Metal ore mining 12% furtherCoal mining defined 21% within mining Non metallic mineral mining Coal mining 57% industryOil and gas 10% extraction 8% and quarrying 4% t 2008 Oil and gas extraction 15% CoalMetal mining ore mining 21% 29% Exploration and other mining Metal ore mining 12% OilOther and mining gas extraction 7% 8% support services 12% Non metallic mineral mining MetalServices ore to mining mining 29% 25% and quarrying 4% Other mining 7% Exploration and other mining Services to mining 25% Source: Australian Bureau of Statistics, Australian Labour Source: Australian Bureau of Statistics,support services Employee 12% Market Statistics, Cat. No. 6105.0, October 2008, Table 2.2 earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, April 2008, Table 13. Mining employees by gender Days lost/1000 employees due to disputes Female mining employees 2007-08 13% Coal mining industry 68.8 FemaleMale mining mining employees employees Other mining industry 0.9 13%87% Male mining employees 87% Coal mining industry 68.8 Other mining industry 0.9

Source: Australian Bureau of Statistics, Australian Labour Market Statistics, Cat. No. 6105.0, October 2008, Table 2.2 The non-coal mining sector has lost less than one full working day per thousand employees due to Union membership – All miningUnion members 22% Non union members 73% disputation in the last seven quarters and in three of UnionNot specified members 5% 22% the last five quarters, has lost zero working days due Non union members 73% to disputation. Not specified 5% Source: Australian Bureau of Statistics, Industrial Disputes, Australia, Cat No 6321.0.55.001, June quarter 2008

Source: Australian Bureau of Statistics, Employee earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, April 2008, Table 12. Coal mining 57% Oil and gas extraction 15% CoalMetal mining ore mining 57% 12% OilNon and metallic gas extraction mineral mining 15% Metaland quarrying ore mining 4% 12% NonExploration metallic and mineral other mining mining andsupport quarrying services 4% 12% Exploration and other mining support services 12%

Coal mining industry 68.8 Other mining industry 0.9 Coal mining industry 68.8 Other mining industry 0.9 Lost Time Injury Frequency Rates

10.0% 90

9.5% 10.0% 80 90 78 9.0% 9.5% 70 80 69 78 8.5% 9.0% 61 60 70 69 8.0% 8.5% 52 50 60 61 7.5% 8.0% 27 42 52 40 50 7.0% Activities Repo r 7.5% 33 42 30 40 6.5% 27 7.0% 25 33 20 21 30 6.0% 6.5% 18 27 15 25 12 11 11 21 10 9 20 5.5% 18 t 2008 6.0% 7 7 6 5 5 15 12 0 10 11 11 5.0% 9 5.5%1987 2007 7 7 6 Oct 03 – Oct 04 Oct 04 – Oct 05 Oct 05– Oct 06 Oct 06 – Oct 07 Oct 07 – Oct 08 Years 5 5 0 5.0% 1987 2007 Source: MineralsOct Council03 – Oct 04of Australia,Oct Safety 04 – Oct Performance 05 Oct Report 05– Oct of 06 the Australian Oct 06 Minerals – Oct 07 Industry Oct 2005 07 – Oct– 2006; 08 Years 2006 – 07 figures advised 2 October 2008.

Remuneration

2500.00 Full-time Adult Ordinary Time Earnings May Q 1994 to May Q 2008 25% 2500.00 2000.00 25% 20% 2000.00

1500.00 20% 15% 1500.00

1000.00 15% 10% 1000.00

500.00 10% 5% 500.00 0.00 5% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0% Years 0.00 2/1 3/1 5/2 8/6 9/5 Even 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Mining Industry All Industries Fly-in/Fly-out Residential 0% Years 2/1 3/1 5/2 8/6 9/5 Even

Mining Industry All Industries Fly-in/Fly-out Residential

Source: Australian Bureau of Statistics, Average Weekly Earnings, Australia, Cat No. 6302.0, May quarters 1994 to 2008 Year on Year Changes in Base Salary in the Australia Metalliferous Mining Industry – October 2003 through 2008

10.0% 90 9.5% 80 78 10.0% 9.0% 90 70 69 9.5% 8.5% 80 60 61 78 9.0% 8.0% 52 50 70 69 8.5% 7.5% 28 42 60 61 40 8.0% 7.0% Activities Repo r 33 52 50 30 6.5% 27 7.5% 25 42 40 20 21 6.0% 18 7.0% 15 33 12 11 11 30 10 9 5.5% 7 7 6.5% 27 t 2008 6 25 5 5 20 21 0 5.0% 6.0% 18 1987 2007 Oct 03 – Oct 04 Oct 04 – Oct 05 Oct 05– Oct15 06 Oct 06 – Oct 07 Oct 07 – Oct 08 Years 12 11 11 10 9 5.5% 7 7 6 5 5 Source: McDonald and Company Australasia Pty Ltd 2008 – All rights reserved 0 5.0% 1987 2007 Oct 03 – Oct 04 Oct 04 – Oct 05 Oct 05– Oct 06 Oct 06 – Oct 07 Oct 07 – Oct 08 Years Rosters 2500.00 Tradesperson Rosters by Operation Type in the Australian Metalliferous Mining Industry 25% (April 2008)

2000.00

2500.00 20% 25% 1500.00 2000.00 15% 20%

1000.00 1500.00 10% 15%

500.00 1000.00 5% 10%

0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 500.00 0% 5% Years 2/1 3/1 5/2 8/6 9/5 Even

Mining Industry All Industries Fly-in/Fly-out Residential 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0% Years 2/1 3/1 5/2 8/6 9/5 Even

Mining Industry All Industries Fly-in/Fly-out Residential

Source: McDonald and Company Australasia Pty Ltd 2008 – All rights reserved 29 Activities Repo r t 2008 AMMA Members

> A.G.D. Mining Limited > Australian Red Cross > Caterpillar Underground Mining 30 > Abigroup Limited Blood Service Pty Ltd

> Acergy Australia Pty Ltd > Australian Zircon NL > CBH Group Activities Repo r > Admiralty Marine Services > Baker Hughes Australia > CBH Resources Limited Pty Ltd > Barminco Limited > Central Norseman Gold > AGC Industries Pty Ltd > Barrick Gold of Australia Limited > Corporation Limited > AGR Asia Pacific Pty Ltd > Bemax Resources Limited > Century Resources

> Aibel Pty Ltd > Bendigo Mining Limited > Chevron Australia Pty Ltd t 2008 > AJ Lucas Coal Technologies > BGC Contracting Pty Ltd > CITIC Pacific Mining Management > Aker Solutions Australia Pty Ltd > Bhagwan Marine Pty Ltd > Alcoa of Australia Limited > BHP Billiton Iron Ore Pty Ltd > Civmec Construction and Engineering Pty Ltd > NL > BHP Billiton Mitsubishi Alliance > Clough Limited > Allied Diving Services Pty Ltd (BMA) > Cobar Management Pty Ltd > Allseas Construction > BHP Billiton Nickel West Contractors S.A. > BHP Billiton Olympic Dam > Compass Group (Australia) Pty Ltd > Allstate Explorations NL Corporation Pty Ltd > NL > Alumina Limited > Birla Mount Gordon Pty Ltd > ConocoPhillips Australia Pty Ltd > AMEC Engineering Pty Ltd > Birla Nifty Pty Ltd > Consolidated Rutile Limited > AMIRA International Limited > Bluestone Australia Pty Ltd > Coogee Energy Pty Ltd > Anglo Coal Australia Pty Ltd > Boart Longyear Pty Ltd > > AngloGold Ashanti Australia Limited > Boral Limited Pty Ltd > Apache Energy Limited > Bounty Industries Limited > CopperCo Limited > Apex Minerals NL > BP Kwinana Refinery > CPC Engineering Pty Ltd > Applus RTD Projects Services > Bristow Helicopters Australia > CTC Marine Projects Limited Pty Ltd Pty Ltd > Dalmarine Pty Ltd > Argyle Diamonds > Brunel Technical Services > Delco Australia > Arrow Energy Limited > Byrnecut Mining Pty Ltd > DGHR Services > Ascentis Operations Pty Ltd > Cal Dive International (Australia) Pty Ltd > Diab Engineering Pty Ltd > Atlas Drilling(s) Pte Ltd > Calibre Projects Pty Ltd > Diamond Offshore General Company > Atwood Oceanics Australia Pty Ltd > Cape Crushing and Earthmoving > Dioro Exploration NL Contractors Pty Ltd > Ausdrill Limited > Diversified Construction Corporation > Cape Flattery Silica Mines Pty Ltd > Australasian Railway Association Pty Ltd > Dockwise Shipping Australia Pty Ltd > Australian Bulk Minerals > Carpentaria Gold Pty Ltd > DOF Subsea Australia Pty Ltd > Australian Mines Limited > Dominion Mining Limited > Geoservices Australasia > Jotomex Pty Ltd 31 > Doral Mineral Sands Pty Ltd Pty Ltd > Kagara Zinc Limited

Activities Repo r > Downer EDI Engineering Limited > Gerald Spaulding Drillers > Kalgoorlie Consolidated Gold > Downer EDI Mining Limited > Gindalbie Metals Limited Mines Pty Ltd > Downer EDI Works Limited > Global Industries Offshore > Kemerton Silica Sand Pty Ltd Pty Ltd > DT Workforce Pty Ltd > Kimberley Diamond Company > Global Technical Services Group > Dyno Nobel Asia Pacific Limited > Kingsrose Mining Limited

t 2008 Pty Ltd > Eagle Drilling NQ Pty Ltd > KT Pty Ltd > Go Offshore > Emeco International Pty Ltd > La Mancha Resources Australia > Gold Fields Australia Pty Ltd Pty Ltd > Eni Australia Limited > GR Engineering Services > Lampson (Australia) Pty Ltd > ENSCO Australia Pty Ltd Pty Ltd > Leighton Contractors Pty Ltd > Ensign International Energy > Halliburton Australia Pty Ltd Services > Lihir Gold Limited > Hallin Marine Australia > Lloyds North Pty Ltd > ERA – Energy Resources of Pty Ltd Australia > Logitech Electro 80 > Heathgate Resources > ERG Group Joint Venture > Helicopter Resources Pty Ltd > Eroc Pty Ltd > Macmahon Contractors > Hillgrove Resources > Exact Mining Services > Macmin Silver Limited > International Association of > Maersk Contractors Australia > Expro Group Australia Pty Ltd Drilling Contractors Pty Ltd > ExxonMobil Australia Pty Ltd (Australasian Chapter) > Magellan Petroleum Australia > Farstad Shipping (Indian Pacific) > Icon Engineering Pty Ltd Limited Pty Ltd > Limited > Mammoet Australia Pty Ltd > FH Bertling Pty Ltd > Impact Fertilisers Pty Ltd > Mancala Pty Ltd > Fluor Australia Pty Ltd > Imperial Snubbing Services > Matrix Metals Limited > Focus Operations Pty Ltd > Intertek Group plc > Maxfield Drilling Pty Ltd > Limited > Inpex Browse Limited > McConnell Dowell Constructors > Fox Resources Limited > Intrepid Mines Limited (Aust) > Fugro Survey Pty Ltd > Ivanhoe Australia Limited > McDermott Industries (Aust) > GBF Underground Mining > Jabiru Metals Limited Pty Ltd Company > James Technologies Pty Ltd > Mermaid Marine Vessel > GEMCO Mining Company > Jemena Limited Operations Pty Ltd Pty Ltd > JMB Industrial Services > Millennium Inorganic Chemicals > Geokinetics (Australasia) Pty Ltd Limited Pty Ltd > John Nitschke Drilling Pty Ltd > Minara Resources Limited > Mines Rescue Pty Ltd > Modec Inc > OMV Australia Pty Ltd > Rapid Crushing & Screening 32 > Moly Mines Limited > Onslow Salt Pty Ltd Contractors Pty Ltd

> Monadelphous Engineering > Origin Energy Resources Limited > Rema Tip Top Industrial Australia Activities Repo r Pty Ltd Associates Pty Ltd > OZ Minerals > Rio Tinto – Research & > Monto Minerals Limited > P & O Maritime Services Development Pty Ltd > Morris Corporation Pty Ltd Pty Ltd > Rio Tinto Alcan Limited > Mosaic Oil NL > Pacific National Tasmania

> Rio Tinto Coal Australia t 2008 > Mosslake Drilling Services > Paddington Gold Mine Pty Ltd Pty Ltd > Panoramic Resources Limited > Rio Tinto Limited > Mount Gibson Iron Limited > Parker Drilling Company > Roche Mining (MT) Pty Ltd > Nabors Drilling International > Peak Gold Mines Pty Ltd Limited > S&N Concreting & Constructions > Pearlstreet Limited Pty Ltd > Nabors Well Servicing (WA) > Perilya Limited Pty Ltd > Saipem (Portugal) Comercio > PGS Australia Pty Ltd Maritimo > Nacap Australia Pty Ltd > Piacentini & Son Pty Ltd > Santos Limited > Neptune Diving Services > Company Services > Schlumberger Oilfield Australia > Australia > Pioneer Road Services Pty Ltd > Newcrest Mining Limited > Plexal Group > Scientific Drilling International > Newmont Asia Pacific > Port Waratah Coal Services > Seadrill Offshore AS > Norilsk Nickel Australia Limited > Setori Engineering Pty Ltd > Northern Port Services > Prairie Downs Metals Limited > SGS Australia Pty Ltd Pty Ltd > Precision Drilling International > Shark Bay Resources > Northern Project Contracting (Aust) Pty Ltd > Shell Development (Australia) > Northgate Australian Ventures > Premium Casing Services Pty Ltd Corporation Pty Ltd Pty Ltd > Sides Drilling Contractors Pty Ltd > Northparkes Mines > Production Services Network > Silcar > NWC Facilities Management Pty Ltd Pty Ltd > Skilled Group > Pybar Mining Services > Sodexho Total Support Services > Oceaneering Australia Pty Ltd Pty Ltd > Sonsub International Pty Ltd > Oceanic Offshore Pty Ltd > Quality Maintenance Services > Offshore Marine Services Pty Ltd > Specialised Reline Services Pty Ltd > Queensland Alumina Limited > Limited > Offshore Unlimited > Queensland Magnesia > Stena Drilling Limited > OIS MOC Joint Venture Pty Ltd > Stevens Resources > OM (Manganese) Limited > R J Robbins and Associates > Stooke Consulting Group Pty Ltd > Stornoway Contracting Pty Ltd > Western Construction 33 > Straits Resources Limited > WesternGeco (Aust) Pty Ltd

Activities Repo r > Sun Metals Corporation Pty Ltd > William Adams Pty Ltd > Svitzer Offshore > Wilshaw Engineering > Swire Pacific Ship Management (Australia) > Woodside Energy Limited Pty Ltd > Worsley Alumina Pty Ltd > Talison Minerals Pty Ltd > Xstrata Coal Pty Ltd t 2008 > Tamboritha Consultants Pty Ltd > Xstrata Copper Pty Ltd > Technip Oceania Pty Ltd > Zeehan Zinc > Temco > The Underwater Centre Fremantle > Thiess Pty Ltd > Tidewater Marine Australia Pty Ltd > > Toll Energy Logistics Pty Ltd > Tom Browne Drilling Services Pty Ltd > Tomago Aluminium Company > Total Marine Services Pty Ltd > Total Marine Technology Pty Ltd > TPW Pty Ltd > Transfield Services (Australia) Pty Ltd > Transfield Worley > Transocean > Troy Resources NL > TS Marine Pty Ltd > TWP Australia Pty Ltd > UME Australia Pty Ltd > Unimin Australia Limited > United Group Limited > Van Dieman Mines > Van Oord Australia Pty Ltd > Veritas DGC Australia Pty Ltd > Weatherford Australia Pty Ltd > Weldtronics Australia Pty Ltd > Wesfarmers LPG Pty Ltd AMMA Preferred Suppliers 34 The AMMA Preferred Supplier Program is designed to assist our members in finding Activities Repo r quality service providers for the varying needs within the resources sector.

International Underwriting Services Pty Ltd

is an AMMA Preferred Supplier t 2008

IUS (International Underwriting Services Pty Limited)

ABN 32 074 494 885 AFSL 237881 www.ius.com.au

IUS is the largest provider of Group Income Protection Insurance to companies in the mining, metals and infrastructure industries.

Contact John Cavana, General Manager – Marketing, IUS, PO Box 6215, North , NSW 2060. T: 02 8912 7229 E: [email protected]

AMMA is pleased to have awarded IUS Preferred Supplier status in 2008. You can find out more about IUS on the AMMA website (see the Preferred Supplier menu link). AMMA Offices ABN 32 004 078 237

Melbourne (Head office) Sydney Perth

Level 10, 607 Bourke Street Level 13, 59 Goulburn Street 7th Floor, 12 St George’s Terrace MELBOURNE VIC 3000 SYDNEY NSW 2000 PERTH WA 6000 Tel: (03) 9614 4777 Tel: (02) 9211 3566 Tel: (08) 9221 5444 Fax: (03) 9614 3970 Fax: (02) 9211 3077 Fax: (08) 9221 5422 [email protected] [email protected] [email protected]

Adelaide Brisbane Hobart

Level 6, 41 Currie Street Level 1, 200 Creek Street Level 3, 85 Macquarie Street (GPO Box 2883) (PO Box 2933) (GPO Box 1236) ADELAIDE SA 5001 BRISBANE QLD 4001 HOBART TAS 7001 Tel: (08) 8212 0585 Tel: (07) 3210 0313 Tel: (03) 6270 2256 Fax: (08) 8212 0311 Fax: (07) 3210 0291 Fax: (03) 62702257 [email protected] [email protected] [email protected]