resource industry proven
Leadership experiencedeveloping workplace policy national advisory council Industrial relations skilled migration miningoilandgasjobs.com
reform m
ining jobs growth activities report unified 2 011 voice training and development Transitioning tomorrow’s leaders innovative services Member communications skills solutions economic driver Women in resources alliance About Us
AMMA is Australia’s resource AMMA works with its powerful network industry employer group, of like minded companies and a unified voice driving effective resource industry experts to influence policy development and lobbying; workforce outcomes. provide workforce consultancy AMMA has been serving the resource services; engage in training and industry for more than 90 years, with its development; and host valuable membership comprising the majority industry leadership events. of resource industry employers This Activities Report details how operating in Australia. AMMA continued to deliver Members include companies directly leadership, representation, and indirectly employing more than experience, innovation and half a million working Australians in interaction for its members mining, hydrocarbons, maritime, during 2011. exploration, energy, transport, construction, smelting and refining, as well as suppliers to these industries.
Contents
AMMA Board...... 2 Executive Report...... 3 AMMA Team...... 5 Media, Public Affairs and Member Services...... 6 Workplace Policy and Migration Services...... 14 W orkplace Operations...... 22 Sector Snapshot...... 32 AMMA Feedback...... 39 AMMA Sponsorship...... 40 AMMA Offices...... Back cover
11 AMMA Board
AMMA President Ian Smith Managing Director and Chief Executive Officer, Newcrest Mining Limited AMMA Vice Presidents Peter Johnston Managing Director and Chief Executive Officer, Minara Resources Limited Ulysses Yiannis Human Resources Manager - Asia Pacific South, Esso Australia Pty Ltd and Mobil Oil Australia Pty Ltd Directors Terry Burgess Managing Director and Chief Executive Officer, Oz Minerals Lucio Della Executive Vice President, Pluto, Woodside Energy Ltd Martina Johnpaul Dimech Chief Executive Officer, Sodexo Australia & New Zealand Kim Horne Executive Director, People, Environment and Corporate Affairs, Alcoa of Australia Limited Andrew King Managing Director, P&O Maritime Services Pty Ltd
2 Executive Report
Another extraordinary year has intolerable as the various groups gone by and it’s become clear the are being allowed to compete for magnitude of change occurring in membership on sites. Coupled with Australian industry is matched only by unfairly liberal Right of Entry privileges, the shifting composition of economies we’re seeing resource employers all over the world. forced to chaperone union officials on membership fishing expeditions with little Developing nations including China notice or respect for business operations. and India are dominant players on the global scale and the demand Not only are these practices for Australia’s rich natural resources is commercially unproductive, but in rising exponentially. Now more than many cases have serious implications Steve Knott ever, our industry has a key role in this for safety protocols and burden AMMA Chief Executive new global economic paradigm. our members with unnecessary costs. We’re also faced with an Important steps have been taken by unprecedented rise in unions making “Workplace industry and government in 2011 to ‘strike first, ask questions later’ actions challenges seek ways to collaboratively manage and cases where large strikes are the integral role resources is playing in facing AMMA occurring without the majority support Australia’s future. On the workplace members are of employees. relations front, the challenges AMMA becoming face when representing members and The success of resources companies increasingly the interests of the entire industry are has also seen a renewed campaign complex and in becoming increasingly complex. for mandated local content provisions in project approvals and bargaining 2011 we found Historically it takes 2-3 years for agreements. The notion limits the new avenues to business sectors to feel the full effects access Australian corporations have of a new political IR framework. This give resource to cutting-edge goods and services, concept has never been truer as we employers a while also discouraging competition rapidly approach the two year review and international benchmarking voice on these of the Fair Work Act 2009, scheduled among local manufacturers and matters.” to commence in January 2012. mining service suppliers. AMMA is continuing to drive the This year AMMA has ramped up its national argument for IR policy reform, industry leadership to assist employers particularly in the 26 key areas of the in facing such challenges. The AMMA legislation we deem most restrictive Industrial Relations Foundation Fund to employers and damaging to our was established to deal with adverse competitiveness. Clearly these flaws employer decisions in our sector in the Fair Work Act have swung the pendulum too far in the unions’ and has proven to be an invaluable favour to the detriment of employers, resource for our members. Our productivity efforts and the national expanding Workplace Operations and economic interest. Workplace Policy divisions have been more active than ever in workplace The requirement of an employer consultancy, project management, to actively promote trade union member representation, intervention in membership to new and potential significant court cases and submitting employees is just one example. industry papers to government on key Similarly, union tribalism is becoming IR policy matters.
3 Executive Report (continued)
Via our Media, Public Affairs and Members Finally, Prime Minister Julia Gillard formed Service division, AMMA’s development the National Resources Advisory Committee of industry initiatives also continues to this year in which AMMA was a key industry gather national momentum, with several representative. Joined by the CEOs of a major projects coming online. Our efforts number of member companies, we are to ease the burgeoning skills shortage in using this position to propose a series of the resource industry has been the primary industry initiatives and policy reform to goal behind many of these initiatives, as address key workforce issues and ultimately we tackle the underlying causes of the benefit our members. resource jobs crisis. One of these exciting initiatives is AMMA’s innovative new 2011 was a year in which AMMA and its website miningoilandgasjobs.com, which members faced new workplace challenges is a complete online employment and and began experiencing the full impacts recruitment centre for workers seeking of the new IR legislation. But it was also a opportunities in the resources boom. period in which we found new avenues to give resource employers a voice on these AMMA’s capacity to provide invaluable matters and successfully implemented information to landmark policy reform initiatives to address these issues in new, was demonstrated by our Workplace innovative ways. Policy Division’s active involvement in the national harmonisation of Australia’s We look forward to continuing workplace health and safety laws, taking this path in 2012. effect from January 2012. Workplace Policy is continuing to submit invaluable recommendations which will play an important role in future policy-making decisions in the resource industry. This activity includes the Federal Government’s inquiry into the use of fly-in, fly-out (FIFO) workforces, which is utilising the expertise Steve Knott and experiences of AMMA members. AMMA Chief Executive
Miners call for non-strike clause The Australian Mines and Metals Association yesterday warned the Gillard Government and the opposition failure to substantially change the Fair Work would be a “reckless abandonment of economic management”.
The Australian 24/09/2011
4 AMMA Team
Chief Executive Steve Knott
Workplace Workplace Policy Media, Public Corporate Services Operations Director - Affairs and Member Manager Director - Geoff Bull Services Corporate Services - Fiona Chong Tony Caccamo Senior Workplace Director - Manager Hydrocarbons - Policy Adviser - Minna Knight Accounts Officer - Lisa Matthews Anh Nguyen Steve Dunstan Campaign and Manager Mining - Workplace Media Adviser - Accounts Officer - Ian Turner Policy Officer - Andrew Bibb Hetal Trivedi Alyce Bowe National Training and Communications and PA to Chief Executive - Development Manager - Migration Services Marketing Adviser - Paulita Gomes Nicola Thomson Manager - Felicia Larsen Jules Pedrosa RTO Manager - Marketing and Business Beverley Long Development Manager - Tara Diamond Training and Development Consultants - Program and Christopher Bartlett Events Manager - Jacqui Cocliff Gail Gifford Dimity Stent Online (Digital) Training and Development Communications and Coordinator - Marketing Adviser - Cassandra Emmerson Michelle de Klerk Principal Legal Services Media and Consultant - Communications Adviser - Andrew Cameron Tom Reid Principal Employee Member Services Relations Consultants - Manager - Tony Bradford Marina Haydok Katrina de Lange Member Services and Bill Fitzgerald Business Development Belinda Honey Coordinator - Peter Robertson Sandy Lena Mark Wakelin Strategy and Employee Relations Graduate Employee Development Adviser - Consultants - Relations Consultants - Sharon Hinton Con Deftereos Daniel Cuthbertson and Jarrett Goos Strategy and Jenna Stajduhar Matthew Guymer Development Manager - Cara Spence Office Administration - Marie Henry Alice Trethewey Anastasia Carter and Angie Keeler
5 Media, Public Affairs and Member Services
Minna Knight Director
Under the direction of Minna Knight, the to influence legislative outcomes at all Media, Public Affairs and Member Services levels of government. In particular, AMMA division coordinates and oversees the has successfully conveyed its position and outward delivery of all communication and preferred changes on several important interaction with AMMA members, industry, government policies to various community media, government and other stakeholders. groups and industry stakeholders.
In addition to all communications and In the current political environment, stakeholder engagement activity, the community and/or employee union Media, Public Affairs and Members Services campaigns have the ability to undermine division specialises in identifying and the resource industry’s social and legislative implementing new member services and licence to operate. This often occurs initiatives to further the interests of AMMA irrespective of whether such activity is justified members and the national resource industry. or is based on the inaccurate claims of third parties only interested in generating conflict. In this space, 2011 has been an exciting and industrious period for AMMA. New and existing To resist this negative influence, AMMA’s services and initiatives were developed for media team has strategically increased the AMMA’s ever-increasing membership base, frequency and placement of key industry while AMMA’s media reach and capacity to messages and commentary in both regional influence key policy decisions impacting the and metro areas. The increased coverage industry was greatly strengthened. throughout 2011 has ensured the industry has had a voice on matters including skilled migration, fly-in fly-out workforces (FIFO), Media and External industrial relations, workforce development, Communications superannuation, OH&S and taxation issues. Effectively communicating key industry AMMA has provided commentary and messages through the media is a major actively participated in discussions across factor in AMMA and its members’ ability television, radio, print, online, public
6 “Effectively communicating key industry messages through the media is a major factor in AMMA and its members’ ability to influence legislative outcomes at all levels of government.”
7 Media, Public Affairs and Member Services (continued)
forums and other mediums. While regional • AMMA’s role in the formation of the newspapers, specialist news websites and National Resources Advisory Council. broadcast services actively seek AMMA’s expertise, the Association has been During 2011, AMMA’s media activity especially prominent across ABC Radio significantly raised the public profile of the National programs, The Australian, The Association as the leading resource industry Australian Financial Review and other key employer group, elevating AMMA’s status News Ltd and Fairfax newspapers. as a key industry and political commentator. These activities will be further enhanced Specific examples of AMMA media activities in 2012. that have generated widespread, national coverage during 2011 include: Government Relations • AMMA’s push for the Federal and Public Affairs Government to make integral changes The growth of the resource industry has to its skilled migration program to predictably attracted increased interest address worsening skills shortages in the in the sector as its economic importance resources sector; for all Australians and other parts of the • The AMMA/RMIT industry survey world becomes well understood. Scrutiny and report that demonstrates the of the policies underpinning future dissatisfaction among resource employers growth and development from all levels towards the federal IR environment; of government and politics particularly increased during 2011. • Several Fair Work Act appeals and interventions by the Workplace This interest has presented both Operations division, including AMMA’s opportunities and challenges for AMMA, its involvement in the much-publicised JJ members and the industry more broadly. Richards Case; Throughout the year, all governments sought to implement policies that have assisted the • The establishment of AMMA’s Industrial sector to alleviate problems such as labour Relations Foundation Fund as the shortages to some extent. However policy Association is publicly seen to be ramping development has failed to adequately up its resistance to unfair FWA decisions address industry concerns about the and adverse union action towards proposed MRRT, Carbon Tax, safety laws, resource employers; superannuation and the ongoing problems with the existing IR legislation. • Excellent national coverage of AMMA’s 2011 National Conference and the Working closely with AMMA’s policy workplace issues discussed by special division, chief executive and members from guests and keynote speakers; mining, oil and gas, construction, transport, maritime and allied services, the Public • AMMA’s stance on the FIFO debate; Affairs division provided strategic direction calling for regional development policy to in the delivery of AMMA campaigns. These offer better incentives for the creation of included guidance in the development of localised workforces; industry policy positions and interacting with • AMMA’s response to an Australian government ministers and representatives at Institute report that unfairly attempts to a state and federal level. damage the public perception of the mining sector; and
8 iConnect Project miningoilandgasjobs.com The Media, Public Affairs and Member After extensive consultation with its Services division has responded to member members, industry representatives feedback in 2011 by strategically advancing and government officials, AMMA the delivery and quality of communication launched its innovative new website material being sent to AMMA members on a miningoilandgasjobs.com in late 2011 to regular basis. connect with Australian workers seeking opportunities in the mining boom. Significant improvements in the quantity of member circulars and information being The strength of employment growth distributed to the industry have been prospects and wage rates compared to implemented, alongside enhancements to other sectors of the economy is continuing the existing technology underpinning the to drive demand for information on how to dissemination of this material. transit into roles in the resource industry.
The Member Services division began Miningoilandgasjobs.com is one of AMMA’s implementing the iConnect Project midway initiatives specifically designed to address through 2011, representing a significant IT this growing demand, as increased media investment dedicated to achieving greater attention on the skills shortage affecting efficiency and effectiveness of member resource employers generates widespread services and communications. interest in employment in the industry.
With the iConnect Project fully integrated Shortly after miningoilandgasjobs.com into AMMA’s existing content management was activated, an ANZ bank economic system and internal communication report published on the front page of strategies, members will enjoy greater The Australian predicted up to 750,000 connectivity to important industry new jobs will be created on the back announcements, notices and information of Australia’s mining boom. during 2012.
9 Media, Public Affairs and Member Services (continued)
Miningoilandgasjobs.com supports industry presents great opportunities AMMA’s goal of encouraging workers for the Association to increase its to plan long-term resource careers by representative scope. including a Careers and Industry Guide for invaluable assistance in the planning ABS statistics show $47.2 billion of new process. This exhaustive online resource is capital expenditure was injected into what sets the website apart from universal Australia’s resource industry during 2011, jobs boards available to jobseekers. representing a 34.1 per cent increase on Developed especially for the resource and the corresponding period. allied industries, miningoilandgasjobs.com Numerous major projects are coming provides jobseekers with information about online across the country and as such employment and career planning in mining, new members have joined AMMA from oil and gas, energy and alternative energy. a variety of sub-sectors including hard Importantly, it also provides comprehensive rock mining, coal seam gas, contract information about living and working in mining, hydrocarbons, maritime, transport, Australia, valuable career resources, and processing and allied services. training and development. Each new member enhances AMMA’s The National Resources Sector Employment capacity to unite the national resource Taskforce (NRSET) highlights current activity industry with one voice, driving effective will create about 62,000 new mining jobs workplace outcomes to ensure Australia by 2015, and clearly states employers attains the great economic opportunities in need to be innovative in their approach to this phenomenal investment period. sourcing and retaining employees. AMMA is taking proactive industry leadership to fill the void, with miningoilandgasjobs. AMMA Associate Membership com the largest online resource that allows Now its third year, the Associate Membership ambitious Australian workers to tap into this Program continues to provide additional unprecedented jobs growth. value to AMMA members through its Miningoilandgasjobs.com is the biggest connections with the various resource source of information about employment, industry suppliers involved in the program. career planning, migration, and training The number of AMMA Associate Members and development in the resources sector continues to grow as more supply companies in Australia. The site is continuing to surpass which are engaged in the resource industry many expectations as it gathers strong recognise the advantages of being industry momentum. This initiative further associated with AMMA and its membership demonstrates AMMA’s industry leadership base of key resource employers. and dedication to providing innovative solutions to the burgeoning resources Regular AMMA members enjoy the rewards labour shortage. and benefits schemes of engaging with those suppliers in the Associate Membership Membership Retention Program, while both parties enjoy the several opportunities provided throughout and Growth the year to meet and form integral business AMMA has experienced a growth in relationships. membership in all four quarters of 2011, as further investment in Australia’s resource
10 Rio foiled in bid to restrict union access Australian Mines and Metals Association spokeswoman Minna Knight said difficulties with the laws arose “because rogue unions misuse the laws to gain access to worksites for reasons not always related to safety. This can often create difficulties in workplaces.”
The Australian 06/1/2011
“Each new member enhances AMMA’s capacity to unite the national resource industry with one voice, driving effective workplace outcomes to ensure Australia attains the great economic opportunities in this phenomenal investment period.”
11 Media, Public Affairs and Member Services (continued)
Conferences, Industry SIG member forums held across the country Forums and Events and speciality conferences including AMMA’s inaugural Migration Conference The number of member and industry forums, are further outlined in the Workplace Policy Special Interest Groups (SIGs) and other section of this report. events hosted by AMMA across Australia have provided valuable opportunities for members to network and share vital National Resources information. Many events have also Advisory Council connected AMMA members with beneficial In 2011, AMMA was invited by Prime Minister third-party business contacts. Julia Gillard to represent the interests of its Moving to the East Coast of Australia this members and the wider resource industry on year, the AMMA 2011 National Conference the National Resources Advisory Council. was held on the Gold Coast and involved The Federal Government initiative is delegates from mining, coal seam gas, a tripartite body comprising industry construction, transport, ports, contract representatives, employee unions and mining and allied services. The event was an government. The establishment of this overwhelming success with large numbers group demonstrates a definite sense from of attendees, a record number of exhibitors, both industry and government that greater well received keynote speakers and the action must be taken now to ensure the inclusion of networking events, break-out ongoing success of the industry. sessions and workshops. AMMA’s presence on the Advisory Council AMMA wishes to thank conference sponsors will ensure solutions to the critical skills and and exhibitors for their ongoing support of workforce challenges facing its members the conference and looks forward to seeing will be discussed. In the coming months, members at the 2012 AMMA National AMMA will propose a series of industry Conference, being held in Perth from May initiatives to address key workforce issues 23-25, with a Careers and Training Expo and develop policy to best manage the running alongside the event. burgeoning demand for Australia’s rich natural resources.
12 The opportunity to work with members The Year Ahead and other industry stakeholders on this council is welcome by AMMA, as it calls for AMMA’s Media, Public Affairs and Member a meaningful review of the ‘productivity Services division will continue to enhance sapping’ IR laws. its existing services while developing new initiatives aimed at achieving Building on a number of recommendations positive outcomes for its members and made by the NRSET, AMMA is lobbying the national resource industry. AMMA’s the Federal and State Governments to active media participation is expected to take a nationally-coordinated approach again increase during 2012, as the division and work closely with industry on these implements a targeted media strategy to crucial challenges. better engage regional and metropolitan media outlets as the key source for resource industry commentary. AWRA Project – Australian Women in Resources Alliance The AWRA and miningoilandgasjobs. com projects are expected to continue Key industry stakeholders and policy their favourable growth curve as AMMA makers have identified women as a works closely with members and other relatively untapped source of labour for the stakeholders to ease the critical skills resource and construction sectors. The ever shortage. Ongoing participation on the increasing number of job vacancies within National Resources Advisory Council will the industry has brought the need for these further these efforts. sectors to better engage with prospective women employees to the forefront of New industry initiatives in the early planning workplace relations policy development. or development stages include an online remuneration and benefits service to As its profile and credibility for delivering assist members in wage rate and salary effective industry initiatives increases, AMMA advice. Psychometric testing is also took the lead in 2011 and established the expected to be a future available service Australian Women in Resources Alliance. available to AMMA members through Partnering with the Federal Government’s miningoilandgasjobs.com, as AMMA strives Critical Skills Investment Fund to develop and towards matching employers with the roll out the project, AMMA will coordinate best candidates for skilled roles. A public and implement a series of initiatives over the participation service is also in the pipeline, next three years designed to increase and aiming to train AMMA members with the attract a greater number of women to the community engagement and stakeholder resources sector and allied services. communications that are becoming more Enhancing the attraction and retention essential in the booming industry. of women workers in the sector is a key The Media, Public Affairs and Member objective of AMMA as we continue driving Services division has been greatly enhanced the Australian Women in Resources Alliance throughout 2011, a year of remarkable (AWRA) project. Women will play a key growth for AMMA where its position as an role in plugging skills gaps and evolving the industry leader and innovator was truly resources workforce into one of the most affirmed. Capitalising on the excellent work diverse and dynamic in the world. from this year, it’s anticipated that 2012 will prove extraordinary.
13 Workplace Policy and Migration Services
Geoff Bull Director
Geoff Bull heads AMMA’s Workplace AMMA’s policy advisory group, the Board Policy and Migration Services division. Reference Group, continues to meet on He reflects on a stellar 12 months of policy a quarterly basis to provide input into development, migration activities and strategic lobbying efforts in the workplace extensive research projects. relations space.
Workplace Policy and Migration Services has Throughout the year, AMMA regularly had another busy year in 2011, particularly consulted and corresponded with the with challenging tribunal and court offices of Prime Minister Julia Gillard, decisions that AMMA maintains are contrary Resource Minister Martin Ferguson, to the intent and purpose of the Fair Work Workplace Relations Minister Chris Evans Act and detrimental to the resource industry and Immigration & Citizenship Minister Chris and AMMA members. Bowen, as well as the Department’s of Immigration & Citizenship and Employment, A number of decisions by members of Fair Education and Workplace Relations on key Work Australia in various provisions of the matters relating to skilled migration and Fair Work Act have resulted in interpretations workplace relations. of the Act that are extremely prejudicial to employers generally and the resource industry in particular. In the interests of its AMMA Migration Services members, AMMA decided that some of AMMA Migration Services provides a these decisions should be challenged. national service to our members across To this end, AMMA has established an Australia which focuses on resource Industrial Relations Foundation Fund. industry migration activities. Given AMMA’s Comprised of voluntary one-off financial expertise in workplace relations, Migration contributions by members, the fund ensures Services’ activities have included advice AMMA can engage the necessary legal and consultancy in relation to EMAs, 457 resources to appeal through the courts and temporary skilled migration visas, training tribunals those decisions which have the most visas, labour agreements and employer- serious ramifications to the resource industry. sponsored migration.
After being established in mid-2010, The Migration Service works closely with AMMA’s Migration Service has also other AMMA divisions to enable the whole undergone strong expansion in 2011. An suite of employment related services to be important development was the Federal provided to assist members with overseas Government’s announcement in the May workers including training, employment Budget that it would introduce enterprise contracts, and general advice on migration agreements (EMAs) for ‘mega’ employment related matters. resource projects. This will allow more streamlined access to skilled and semi- skilled workers from overseas in the midst of the current skills shortage in the resource industry.
14 “The Industrial Relations Foundation Fund ensures AMMA can engage the necessary legal resources to appeal through the courts and tribunals those decisions which have the most serious ramifications to the resource industry.”
15 Workplace Policy and Migration Services (continued)
A recent survey of AMMA members revealed Workplace Policy will continue to work pro- that 74 per cent were planning to recruit actively to secure much-needed changes skilled workers from overseas in the coming to the legislative environment for the benefit months. AMMA’s Migration Service is of its members. equipped to assist companies respond to the increasing challenges of the skills shortage. Research Projects and Knowledge Sharing Skilled Migration Conference During 2011, Workplace Policy continued AMMA held its first one-day conference to drive AMMA’s national reputation as the devoted exclusively to skilled migration primary source of knowledge and research issues this year in Perth. The July conference, expertise in Australia’s resource industry. From Passports to Hardhats – Sourcing skilled workers from overseas for Australia’s The division conducted a number of resource industry, achieved excellent presentations at key industry events, attendance numbers and is likely to researched and constructed submissions become a regular annual event. for government departments making crucial policy decisions, and published High profile speakers included the Minister independent reports and papers written by for Immigration & Citizenship Chris Bowen AMMA’s policy experts. and Shadow Minister Scott Morrison, plus representatives from the Department of Immigration & Citizenship and the Office of Presentations the Fair Work Ombudsman. • The Second Annual Mining & Technology Summit; National Harmonisation of Work • Freight Week 2011; Health and Safety Laws • Safety in Mining Conferences in Perth and Brisbane; Involvement in the national harmonisation of Australia’s work health and safety laws was • Industrial Relations Summit; another important activity undertaken by • Coal Industry Conference Bowral; and the Workplace Policy division in 2011. • Mining & Technology conference in The harmonisation takes effect in all states Brisbane. and territories from January 2012, with Workplace Policy’s involvement in strategic Submissions and Publications committees enabling AMMA to influence the • Submission to Safe Work Australia on policymakers in all aspects of the process. the draft model Work Health & Safety Feedback from AMMA’s own Health Regulations 2011 and Codes of Practice; & Safety Environment Advisory Group, • Submission to the Australian Building comprised of members’ work health and & Construction Commission’s inquiry safety professionals, was also essential to - Sham arrangements and the use these activities. Most recently, AMMA was of labour hire in the building and involved in consultation over the National construction industry; Mining Regulations, which will form an • Submission to the Department of important part of the harmonised system for Immigration & Citizenship on the mine sites across Australia. proposed Short Stay Activity Visa;
16 • Submission to the Department of The project is building the case for legislative Immigration & Citizenship on the change through biannual surveys of Migration Program for 2011-2012 participating AMMA members to research and Beyond; the ongoing impacts of the Fair Work Act on • Submission to the Department of resource industry worksites over time. Immigration & Citizenship on its ‘Review The most serious issues identified in the of the permanent employer sponsored latest surveys include concerns around visa categories’; negotiating new enterprise agreements • Submission to Safe Work Australia on the under the Fair Work Act, closely followed draft National Mining Regulations; by concerns about increased right of • Submission to the House of entry requests and the potential to receive Representatives Standing Committee adverse action/general protections claims on Regional Australia on its ‘Fly-in, from current and prospective employees Fly-out’ inquiry; and independent contractors. • Policy investigation report - Fair for Who? In key areas, the project’s findings about The rhetoric versus the reality of the Fair the Fair Work Act have not been particularly Work Act; favourable, with declines being reported • Discussion paper - The Model National in employers’ perceptions of their overall Work Health & Safety Bill: What needs to workplace relations environment, labour be done to get it right?; and productivity and direct engagement levels since the Fair Work Act began. • Briefing paper - Productivity in the Mining Industry.
Member Surveys Now in its second year, the AMMA Workplace Relations Research Project has collected information from four comprehensive surveys of AMMA members and continues to track their concerns with the operation of the Fair Work Act.
17 Workplace Policy and Migration Services (continued)
In addition to the WR Research Project, • NSW Business Chamber IR Committee; the Workplace Policy division continues • DEEWR Paid Parental Leave Committee; to conduct regular member surveys on a variety of workplace issues to ensure policy • Minister for Infrastructure’s Shipping and lobbying activities reflect members’ Industry Reform Committee; views. Surveys conducted in 2011 included: • Maritime Skills and Training Reference Group; and • Fly-in, Fly-out Survey; • Committee on Industrial Legislation. • Mining Industry Remuneration Survey; • Skilling the Resources Sector Survey; Throughout 2011, the Workplace Policy division facilitated AMMA’s own Health & • Paid Parental Leave Survey; and Safety Environment Advisory Group to co- • Skills Shortage and Migration Survey. ordinate input into AMMA’s OHS policies, papers and submissions, including to the Involvement in Strategic national OHS harmonisation process. Issues Groups The Workplace Policy team also attended Members of the Workplace Policy division the Australian Building & Construction sat on various committees during 2011 to Commission’s round table on sham provide stakeholder input into workplace contracting in the building and construction relations and workplace health and safety industry, and the Department of Immigration issues. These committees included: & Citizenship’s round table on enterprise migration agreements (EMAs). • Australian Chamber of Commerce and Industry (ACCI) Workplace Policy Committee; • ACCI Occupational Health & Safety Committee; • ACCI General Counsel; • ACCI Mining Reference Group;
18 Living out here’s the pits The Australian Mines and Metals Association wants ‘‘enhanced incentives’’ to localise workforces in regional towns hit by hefty rents. It said there needed to be stronger policy decisions to support and co-ordinate regional development.
The Courier Mail 05/09/2011
“In key areas, the project’s findings about the Fair Work Act have not been particularly favourable, with declines being reported in employers’ perceptions of their overall workplace relations environment, labour productivity and direct engagement levels.”
19 Workplace Policy and Migration Services (continued)
Involvement In Significant Workplace Policy has also initiated in Fair Court Cases Work Australia changes to the Modern Hydrocarbons Industry Award to reflect its true The involvement in significant court and intentions in travel to and from a worksite. tribunal cases was a key factor in making 2011 an extremely busy year for the Workplace Policy division. The Year Ahead The nationally harmonised work health Decisions that AMMA felt were detrimental and safety system will ensure 2012 is to not only AMMA members’ interests but another big year for Workplace Policy, also to the public interest and needed to be as AMMA members start to review their challenged included: policies and procedures for compliance • The ADJ Contracting case - AMMA with the new laws. intervened to support the appeal of The skills shortage, which is already biting a decision in which Fair Work Australia in some sectors of the industry, looks set to endorsed controversial agreement worsen over the next 12 months. With 86 per content in relation to right of entry, cent of AMMA members in a recent survey the use of contractors and employer saying they are currently experiencing a skills encouragement of union membership; shortage, this area is expected to continue • Tracey v Technip Oceania Pty Ltd – generating detailed work. AMMA represented its member Technip Oceania Pty Ltd in an appeal against a Finally, the two-yearly review of the Fair Fair Work Australia decision. The decision Work Act will commence in early 2012 and in the first instance found that an official AMMA will continue to gather information of a union that had no right to represent and feedback from members about the a specific group of workers could positive and negative aspects of the Fair represent those workers as an ‘individual’ Work Act. AMMA will advocate for changes bargaining representative; and that it believes must occur if Australia’s productivity and economic performance • JJ Richards case – AMMA has filed are to improve. an application to the Federal Court to challenge the interpretation of the Fair Work Act embodied in a decision by a Full Bench of Fair Work Australia. The Full Bench decision upheld earlier decisions that found there were virtually no pre-requisites before a minority of employees could take protected industrial action. This decision became known as the ‘strike first, ask questions later’ ruling.
20 Government axes levy in new foreign Board Reference Group Members worker plan Alan Azzopardi Queensland Nickel Pty Ltd Australian Mines and Metals Association Simon Beach Newcrest Mining Limited spokesman Geoff Bull says they lobbied hard against the levy. “It’s already an Michael Bisset Newmont Australia Ltd expensive exercise bringing in overseas Geoff Blyth Compass Group (Australia) Pty Ltd skilled labour with airfares, visa fees, Mal Briggs Alcoa of Australia Ltd migration costs,” he said. Geoff Bull AMMA ABC News 13/05/2011 Tony Caccamo AMMA Steve Clancy Fluor Australia Pty Ltd Michael Collins Santos Limited Paul Duckett Skilled Group Ltd Employers to Nick Furnivall HWE Mining Pty Ltd Keith Greatrix Queensland Alumina Limited launch trifecta Mal Hallman Minerals and Metals Group of IR appeals Robyn Howlett WorleyParsons Services Pty Ltd In other pending appeals, the Australian Adrian McCowan Thiess Pty Ltd Mines and Metals Association will seek to overturn an FWA full bench decision in Lisa Matthews AMMA the so-called JJ Richards case. Chris Mitsopoulos Chevron Australia Pty Ltd Australian Financial Review 29/07/2011 Linda Nunn Sodexo Remote Sites Australia Pty Ltd David Sproule Woodside Energy Ltd William Vickers ExxonMobil Australia Pty Ltd
21 Workplace Operations
Tony Caccamo Director
Led by director Tony Caccamo, the Priority issues in 2011 have included: Workplace Operations division delivers AMMA’s specialised IR consultancy • Assisting members with employee and training services to organisations relations risk mitigation strategies for in every facet of Australia’s prosperous their operations; resource industry. • Managing employee relations on major onshore and offshore The increased activity across the oil and gas construction projects; and mining sectors of the national economy has maintained exceptional demand for • Building capability in the resource AMMA’s consulting and training services industry through our training and throughout Australia. development services;
Coupled with the expansion of existing • General consulting services associated operations, the development of significant with employment and industrial relations new projects is driving an increased need advice and human resource policies for experienced industrial relations and and procedures; workforce development professionals • Representation in various industrial to provide tailored solutions to the and legal tribunals; and resource industry. • Development of internal With a dynamic team of consultants and AMMA capability. legal practitioners across five capital cities and a nationally training function, The following outline of yearly divisional workplace operations have gone beyond activities demonstrates how Workplace fulfilling that demand and continues to Operations has delivered its services to strengthen AMMA’s reputation as an AMMA members during 2011, and will industry leader and innovator. develop and enhance its invaluable support to the resource industry beyond. The division has worked with member companies as they continue to face human resource challenges generated by the legislative environment, increased union activity, skill shortages and agreement negotiation and renewals.
22 “The development of significant new projects is driving an increased need for experienced industrial relations and workforce development professionals to provide tailored solutions to the resource industry.”
23 Workplace Operations (continued)
Resource Industry • Award applications; Consulting Services • Agreement negotiations and approvals processes; All AMMA members in the hydrocarbons and mining sectors have continued their • Union demarcation issues; high level of support and engagement • Right of entry matters; with Workplace Operations’ consulting and • Adverse action claims; and training services. • Application of the FWA and NES. These members range from operations, construction, maintenance, drilling, Management of project industrial relations exploration and marine companies; to the through the provision of strategic advice to caterers and service contractors engaged clients and contractors. Significant onshore in those sectors. Below are some examples projects during 2011 included: of the consulting and training services • GLNG upstream project in Queensland; provided by AMMA. • The Coal Hub project, which represents General industry consultancy including: the most significant involvement of AMMA in coal construction projects in • Assisting companies to develop Queensland; and implement strategies related to enterprise agreements in various • Olympic Dam project in South industries; Australia; and • Preparation of strategies to address • Mine expansion in Western Australia. transfer of business implications; Offshore projects have included: • HR placements with member companies; • Gorgon – downstream and upstream; • Assisting industry contractors to achieve • Kipper Tuna Turrum; an offshore construction four-year • North Rankin B; agreement for Western Australia and Northern Territory; and • Ichthys; • Integration of HR policies, procedures • Wheatstone; and and agreements following mergers • Reindeer/Devil Creek. involving member companies.
Advice and representation on:
• Unfair dismissal, disciplinary and discrimination matters including conducting a number of workplace investigations together with recommendations from associated reports; • Dispute settlement proceedings in FWA - including applications to prevent and stop industrial action;
24 Mines and Metals Association fights Fair Work Australia industrial
Activity in relation to the management of action ruling project industrial relations including: The Australian Mines and Metals Association has lodged an • Pre-planning activities on construction appeal against the decision, which employers feared gave projects on industrial relations and unions a shortcut to strike action. The association’s chief risk mitigation strategies, including executive, Steve Knott, said the ruling would allow a union the development of employee to bring a workplace to a standstill despite representing a relations management plans and minority of employees. execution strategies; The Australian 11/03/2011 • Assisting member companies in the tender process for significant maintenance and construction work. This included: The initiative facilitates the transition from -- Development of industrial relations university to a career in employee relations management plans; for young people interested in the resource -- Development of risk mitigation industry. Including placements with member strategies; companies and the different AMMA divisions, it aims to develop a specialised -- Identification of conditions pool of knowledge and leadership for the of employment; industry’s future The program has received positive feedback from all stakeholders -- Discussions and negotiations of and new graduates will be recruited to agreements; and commence in 2012. -- Assisting with information and advice during the pre-tender, Special Interest Groups selection and execution phases. AMMA’s Special Interest Groups (SIGs) • Providing industrial relations support the development of a community coordination advice and support of interest and continue to be popular with services pre and post mobilisation. members across the various resource sectors. Each SIG allows members with similar Additional Operations Activities operating environments to share information and their experiences on: Resource Sector Graduate Program • The changing industrial relations The initial two graduates who commenced landscape and implications for members; AMMA’s two-year Resource Sector • Developments in relation to construction Graduate Program in 2010 will successfully and operations aspects of the sector; complete the program in early 2012. • Issues associated with market rates and conditions; • Status ‘around the traps’ sessions for general discussions on ‘what’s on’; and • Feedback to AMMA on emerging issues with policy and industrial implications.
25 Workplace Operations (continued)
Members should contact AMMA if A range of meetings have been conducted interested in aligning with one of these SIGs, throughout the year in various locations and which now comprise: member feedback has strongly endorsed these continue in 2012. • Queensland Gas Interest Group; • Construction Group; Training and Development • Kalgoorlie Goldfields Interest Group; Activities 2011 • Hydrocarbons Industry Group; AMMA has continued its focus on building • Sale-based Contractors Group; capability in the resource industry by grouping • Victorian Metalliferous Mining Group; its training and development services into three key areas in 2011: • Vessel Operators Group; • Remotely Operated Vehicles • Leadership Development; (ROV) Group; • Employee Relations Workshops; and • Central and North Queensland Special • Nationally Recognised Training. Interest Group; AMMA’s trainers travel across Australia to • Onshore Drillers Special Interest Group; and deliver training in remote locations with programs often tailored to suit specific • Training and Development Group. operational needs. Regions in which training has been conducted by AMMA include:
Western Australia Nothern Territory Queensland Albany Alice Springs Brisbane Newman Bootu Creek Callie Beaudesert Northam Cloudbreak Darwin Cairns North West Shelf Collie Kunnunarra Cannington Mine Onslow Corrigin Charters Towers Orebody 23/25 Cosmos Chevallum Perth Darlot Dysart Plutonic Dongara Emerald Savannah Nickel Mine Esperance Gladstone Southern Cross Forrestfield Glenden St Ives Geraldton Gold Coast Sunrise Dam Golden Grove Isaac Plains Tallering Peak Granny Smith Mackay Telfer Hopetoun Miles Westonia Kalgoorlie Moranbah Worsley Kambalda Mt Isa Karratha Riverton Katanning Rockhampton Koorda Roma Kwinana Stradbroke Island Lake Grace Tieri Lawlers Toowoomba Leonora Townsville Merredin Mingenew
South Australia Victoria Tasmania New South Wales Adelaide Melbourne Burnie Broken Hill Ardrossan Sale Hobart Mudgee Olympic Dam Stawell Launceston Newcastle Prominent Hill Strahan Orange Whyalla Zeehan Sydney Tamworth
26 Leadership Development The AMMA Resource Industry Leadership Program will be launched in the final months A suite of new AMMA Leadership Training of 2011 and available from February 2012. Courses was developed in 2011 specifically Designed utilising feedback of resource for supervisors in the resource industry. industry employers, the courses build The Supervisor’s Toolkit, Leadership for leadership capability relevant to where the Supervisors and Employee Relations for person is positioned in their leadership journey. Supervisors training programs were all designed and delivered successfully. Additionally, the courses address specific challenges facing leaders in the The programs are delivered as part of resource industry, including working in AMMA’s published calendar of course geographically remote locations, living offerings and have also been customised in camps or small towns with the people and delivered on-site for employers they lead, the intricacies of shift work and incorporating specific organisational handover and working away from family requirements. and support networks. The AMMA Certificate IV in Frontline Management (BSB40807) continues to be Emotional a highly popular qualification for employers Intelligence building their supervisor capability. This has been delivered on various sites with excellent results. Industrial Team Relations Dynamics ed Framework The ability to positively influence team Communication behaviours, make emotionally intelligent Feedback Culture decisions, foster productivity and engage employees is crucial in eXPerienCExperienced today’s competitive labour market. Leadership Change Accordingly, 2012 will see the Ambassador Program rapid development of the AMMA Leadership Training Products.
inG
Mindful Balancing Conversations Leadership enHAnC Leadership for Leaders
Employee Supervisors’ Leadership Skills inG Relations for Toolkit for Supervisors Supervisors erG
eM
27 Workplace Operations (continued)
Employee Relations Workshops Nationally Recognised Training AMMA’s various employee relations AMMA members regularly utilise Nationally workshops increased in popularity in 2011, Recognised Training to attract, retain and with member companies being particularly upskill employees. astute to the ongoing workplace changes and challenges occurring within the As a national Registered Training resource industry. Organisation (RTO), AMMA RTO is now regulated by Australia’s VET regulatory The Equal Employment Opportunity body, the Australian Skills Quality Authority. Awareness Raising sessions and AMMA’s How to Handle Discrimination, Harassment AMMA RTO’s scope of registration continues and Bullying Complaints were highly sought- to grow across its full range of nationally after by AMMA members during 2011. recognised qualifications and units of competency, from Certificate II to Diploma Employers are aware that in today’s level and High Risk Work Licences. changing and highly technical legal landscape, any such claims may be AMMA works closely with members to ensure commenced in the court of law as well as the RTO scope of registration meets their in the ‘court of public opinion’. Accordingly, needs and qualifications are added based employers are using training as a proactive on member demand. strategy to minimise risk and ensure In 2011 AMMA Nationally Recognised employees are aware of internal complaint Training products have included: processes if they are required. • Resources and Infrastructure Industry AMMA members also continue to report Qualifications (RII09); increased third party activity within their work environments and are working to increase • Training and Assessment Qualifications the capability of HR, management and (TAE10); and supervisory staff to manage workplace issues. • Frontline Management Qualifications (BSB07). As such, the following employee relations workshops generated strong interest and participation:
• Dealing with Union Right of Entry Requests; • Bargaining Skills Under the Fair Work Act; • Fundamentals of the Employment AMMA RTO’s partnerships provide member Relationship; companies with the benefit of delivering • Understanding the Industrial Relations Nationally Recognised Training without Safety Net; and having to become an RTO in their own • Discipline and Termination. right. The successful partnership model is structured so that AMMA provides Members took the opportunity to have professional RTO support and the member AMMA customise standard courses to their organisation delivers the on-site training workplace requirements and have the and assessment. training delivered on-site when it best suited operational requirements.
28 Gillard critic “We decided to seek an AMMA RTO wins funding partnership because we wanted to One of the Gillard Government’s harshest critics has received a deliver effective nationally accredited Federal grant to boost the number of skilled workers in the mining sector. training on site using approved site The Australian Mines and Metals Association, which is demanding relevant training packages. AMMA the Government ditch the mining was chosen due to our satisfaction tax, won funding for three programs under the new Critical Skills with the high standard of training that Investment Fund. they had previously delivered on site.” The West Australian 19/09/2011 - Rod Baker, General Manager Operations, Onslow Salt Pty Ltd
With the support of government funding in Training and Development Western Australia, AMMA’s Certificate IV in Special Interest Group Human Resources Traineeship (BSB41007) The Training and Development Special has grown in popularity and this year saw Interest Group (SIG) provides strategic the introduction of face-to-face workshops advice on developing an industry position with HR trainees. AMMA’s experienced on training and development issues. It has trainers have assisted to create a new met quarterly during the past 12 months. generation of qualified HR professionals for the resource industry. A number of members of the Training and Development SIG were guest speakers AMMA has also applied for government at this year’s Training and Development funding for Nationally Recognised Training Indigenous Training and Employment on behalf of its members throughout the Conference organised by AMMA. The previous 12 months. This has been possible conference was a collaboration of AMMA through opportunities including the members sharing their experiences relating Productivity Places Program, the Critical to Indigenous training and employment. Skills Investment Fund and the National Its resounding success will see it regularly Workforce Development Fund. feature on the annual conference program.
29 Workplace Operations (continued)
AMMA’s Registered Training Organisation (RTO No 52217)
AMMA offers the following Nationally Recognised Training:
BSB31207 Certificate III in Frontline Management
BSB40807 Certificate IV in Frontline Management
BSB51107 Diploma of Management (November 2011)
BSB41007 Certificate IV in Human Resources
BSB50607 Diploma of Human Resources Management (November 2011)
BSB41407 Certificate IV in Occupational Health and Safety
BSB41507 Certificate IV in Project Management
BSB51307 Diploma of Occupational Health and Safety
RII20209 Certificate II in Surface Extraction Operations
RII20509 Certificate II in Resource Processing (November 2011)
RII30311 Certificate III in Underground Metalliferous Mining
RII30411 Certificate III in Resource Processing (November 2011)
RII30111 Certificate III in Surface Extraction Operations (November 2011)
TAE40110 Certificate IV in Training and Assessment
BSBOHS407A Monitor a safe workplace
BSBSUS301A Implement and monitor environmentally sustainable work practices
RIICOM301A Communicate information
RIIMPO310A Conduct grader operations
RIIOHS204A Work safely at heights
RIIOHS301A Conduct safety and health investigations
RIIRIS401A Apply site risk management system
CPCCLSF2001A Licence to erect, alter and dismantle scaffolding basic level (November 2011)
CPCCLSF3001A Licence to erect, alter and dismantle scaffolding intermediate level
CPCCLSF4001A Licence to erect, alter and dismantle scaffolding advanced level (November 2011)
30 Member Feedback The Year Ahead on AMMA Training The Workplace Operations Division is looking Participant feedback consistently rates the forward to meeting challenges in 2012 as quality of AMMA’s training and training it increases the level and quality of service consultants as exceptional. Compliments delivery to members. are regularly received for the interactive The AMMA Resource Industry Leadership nature of the courses; praise for them being Program launched in 2011 and available designed from ’real life’ experiences; the from February 2012 will see a significant focus trainers’ ability to explain complex legal on capability development for member aspects in simple terms; and general companies and increased activity for the recognition of AMMA’s extensive training and development function in AMMA. industry knowledge. As the resource sector continues to grow Some of the positive comments from with billions of dollars in the development recipients of AMMA training programs include: pipeline, human resources challenges for members will continue to evolve. AMMA will “Everything was explained remain at the forefront in assisting members to me in layman’s terms to meet these challenges. that I understood – In the year ahead the Workplace Operations Division will continue to: not legal jargon.” • Grow its internal resources “Good discussion of and capability; • Support and assist members through the examples, supported provision of quality, relevant and cost by strong knowledge/ effective consulting and training services; experience by the trainer.” • Build and strengthen relations and community of interest with existing and new members; and “Knowledge of the trainer • Enhance value to members through was second to none. new products and services to members.
Congratulations on the Workplace Operations thanks members for the support they provided in 2011 and looks presentation of this course.” forward to continuing to work and share success with members in 2012. “You explained things in a way that I understood. Good job – I’ll sit in a course with you anytime.”
31 Sector Snapshot
The mining industry (as defined by the Australian Bureau of Statistics) directly employs 217,100 people, or 1.9 per cent of all working Australians.
Employee Composition
Distribution of Mining Employees
12.5% 11%
Mining (other)
Oil and Gas Extraction 24.5% 5% Non-Metallic Mineral Mining and Quarrying
Coal Mining
Metal Ore Mining
Exploration and Other Mining Support Services 7% 33.5%
Data source: Supplementary data provided by the Australian Bureau of Statistics, based on 6291.0.55.001 - Labour Force, Australia, Detailed, Quarterly, Aug 2011.
Mining Employees by Gender
12.5%
Males
Females
87.5%
Data source: Supplementary data provided by the Australian Bureau of Statistics, based on 6291.0.55.001 - Labour Force, Australia, Detailed, Quarterly, Aug 2011.
32 Skills boost too small Australian Mines and Metals Association chief executive Steve Mining employees by State or Territory Knott said the need for overseas workers was a ‘‘stark reality’’ confronting the country’s fastest 41% growing businesses. ‘‘Even with the migration reforms announced there New South Wales remains a very real risk of there 5% Northern Territory being a shortfall of skilled workers 1.5% available to some industry sectors,’’ 2% Queensland Mr Knott said.
3.5% South Australia The Age 12/05/2011 Tasmania
Victoria 17% Western Australia 39%
Female mining employees by sector
50
40
% 30 34
20
18 17 16 10 8 7
0 Mining Coal mining Oil and gas Metal ore Metallic Exploration (other) mining minerals
Data source: Supplementary data provided by the Australian Bureau of Statistics, based on 6291.0.55.001 - Labour Force, Australia, Detailed, Quarterly, Aug 2011.
Miners seek fast-track migrant visas Under proposals outlined by AMMA in a submission to the Government, 457 visa processing times would be slashed to a maximum of four weeks from the current practice of a number of months.
Australian Financial Review 07/01/2011
33 Sector Snapshot (continued)
Unionisation
Union Membership - All Mining
3%
21%
Mining Employees - Union Members
Mining Employees - Non Union Members
Mining Employees - Not Specified
76%
Data source: Australian Bureau of Statistics, Employee Earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, August 2010, data released 6 May 2011, Table 13.
Union Membership – Mining Sub-sectors
60
50 50
40
% 30
20 19 15 10 14 13
5 0 Coal Mining Oil and Gas Metal Ore Non Metallic Mineral Exploration and Mining nfd Extraction Mining Mining and Quarrying Other Mining Support Services
Data source: Australian Bureau of Statistics, Employee Earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, August 2010, data released 6 May 2011, Table 13.
34 Disputation The average working days lost due to industrial disputation over the four quarters to March 2011 is shown below. The coal mining sector clearly dominates industrial action in the resource industry.
Working Days Lost Through Disputes/1000 Employees – Year to March Q 2011
1.4%
Coal Mining
Other Mining
127.3%
Data source: Australian Bureau of Statistics, Industrial Disputes, Australia, Cat No 6321.0.55.001, March quarter 2011, Table 2B, released on 2 June 2011.
Unions Dock strike proceeds want more despite last-ditch plea days off for Minna Knight from the Australian Mines and Metals Association says the union is holding the country to miners ransom. “It’s going to make life very difficult for a whole range of companies,” she said. The Australian Mines and Metals Association rejected ABC News 25/05/2011 union claims that employers put profits over safety, claiming fatigue management was the primary priority.
West Australian 25/06/2011
35 Sector Snapshot (continued)
Workplace Relations Environment Respondents to AMMA’s Workplace Relations Research Project, an ongoing survey-based analysis that seeks to track the impacts of the Fair Work Act on AMMA members over time, have rated their current workplace relations environment, labour productivity and levels of direct engagement at their operation for three consecutive six-month surveys since April 2010. Their responses over the course of the three surveys to date, presented as an index score out of 100, show a deterioration in all three areas.
How AMMA members rate their operation’s current workplace environment, labour productivity and level of direct engagement since the Fair Work Act took effect
80
70
60
50
40
Index score out of 100 Index score 30
20
10
0 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11
Perception of current WR environment Perception of current labour productivity Current level of direct engagement
Data source: Kates, Dr Steven, RMIT University, The AMMA Workplace Relations Research Project – A Survey Based Analysis, June 2011, pp 6, 11 and 12.
Fair Work makes life harder A survey of employers by the Australian Mines and Metals Association (AMMA) and the RMIT University School of Economics, Finance and Marketing, found a sharp fall in confidence in the six months to October last year.
Business Review Weekly 10/02/2011
36 How AMMA members find bargaining under the Fair Work Act compared to bargaining under the Workplace Relations Act
90
80
70
60
50
40
% of Respondents 30
20
10
0 Time devoted Number of union- Working hours The number Union Time devoted Protected to meetings and specific clauses devoted to of bargaining involvement in to tribunal industrial negotiations demanded bargining representatives bargaining processes and action during process involved applications negotiations
Increased No change Decreased
Data source: Kates, Dr Steven, RMIT University, The AMMA Workplace Relations Research Project – A Survey Based Analysis, June 2011, p 18.
Remuneration
Full-Time Adult Ordinary Time Earnings - May Q 1995 to May Q 2011
2500.00
2000.00
1500.00
1000.00 % of Respondents
500.00
0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Mining Industry All Industries
Data source: Australian Bureau of Statistics, Average Weekly Earnings, Australia, Cat No. 6302.0, Time Series Workbook, Table 10G, May quarters 1995 to 2011
37 Sector Snapshot (continued)
Labour Turnover The following graph shows trends in the turnover of all employees across the industry, direct employees and contracting employees. As shown, labour turnover for direct employees trends below the industry average, while that for contractor employees is well above the industry average.
In the face of the worst skills shortage seen in Australian industry, such data illustrates the critical attention that must be paid to labour turnover.
60
50
40
30 Turnover Rate % Turnover 20
10
0
Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Oct-05 Jan-06 Apr-06 Oct-06 Jan-07 Apr-07 Oct-07 Jan-08 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10 Oct-10 Jan-11
Overall Industry Direct Employees Contrator Employees
Chart source: Mackie Employer Solutions, Resources Industry Turnover Analysis (RITA), July 2005 to January 2011. RITA benchmarks employee turnover in the Australian Resources Sector. The data excludes corporate or head office employees and the most recent sample included 51 operational mining and processing sites engaging approximately 25,000 employees. Further enquiries can be directed to ME Solutions 08 93880100 or www.mesolutions.com.au
38 AMMA Feedback
“The clarity of AMMA’s leadership in making Invariably the feedback from our employees the case for labour market reform that works is positive and they regularly reflect on the for its members and their workplaces is an practical focus of the course, the innovative asset, not just to the mining and resources and engaging style of the AMMA facilitators, industry but to the economy as a whole.” and their thorough industry knowledge. HWE Peter Anderson, Chief Executive, Australian looks forward to an on-going relationship Chamber of Commerce and Industry with AMMA and would recommend them to any resource industry employer seeking a “AMMA’s assistance on the project, and quality training provider.” guidance given to contractors was carried Lyndon Joyce, National Employee Relations out in a thoroughly professional manner, Manager, Leighton Contractors Pty Ltd, providing confidence to the Project Resource Division Management team that contractors were receiving practical and accurate “We definitely couldn’t have got as far advice. The confidence that contractors as we have without AMMA’s help and developed in the AMMA representatives on support. AMMA’s migration services have the project was reflected by their consistent been especially diligent in following up adoption of, and implementation of, AMMA with the application and updating us on recommended strategies and processes to the progress. All our applications were deal with issues as they arose.” approved this week which is a huge relief Michael Borlase, Industrial Relations for all of us. We really appreciate everything Manager, Clough Limited AMMA has done for us to date.” Jennifer Shaw, International Recruitment “AMMA approached these negotiations Coordinator, Saxon Energy Services Australia with a clear strategy. In an environment of recent legislative change, AMMA was “The industrial campaign of the MUA able to provide some much needed caused widespread disruption to our guidance and struck the often difficult operations in spite of the company’s balance between industrial theory and the commitment to good faith bargaining. The practicalities of operational considerations.” access to meaningful third party assistance Nina Tassell, HR Manager, DOF Subsea was difficult and frustrating under the Australia Pty Ltd new Fair Work Australia arrangements. AMMA’s assistance to Farstad, their co- “A very satisfactory outcome achieved with ordination of the offshore industry and AMMA’s specialist support and guidance.” very effective media campaign greatly Terry Adams, Senior Manager HR & IR assisted the process and in ultimately Australia, McDermott Australia Pty ltd moderating the settlement for Farstad and the industry. AMMA’s media campaign “HWE Mining has worked with AMMA effectively brought the dispute to public since 2006 in developing and presenting and government attention, which was training aimed at our new and emerging necessary in all the circumstances leaders. Over this time, more than 1,000 surrounding this dispute.” attendees have participated in the training Joseph Homsey, Managing Director, and it remains an important component Farstad Shipping (Indian Pacific) Pty Ltd in our leadership development. AMMA’s facilitators have proven to be highly effective and responsive to our needs.
39 AMMA Sponsorship
AMMA’s Associate Membership Program provides unparalleled opportunity for companies to promote their products and services to the resource industry.
The program has a range of levels with associated benefits and can be tailored to meet a companies requirements.
Platinum Members
Sodexo is the strategic partner for Coverforce was established in 1994 nib believe that health insurance companies that value performance as a specialist provider of income should be easy to understand, easy and well-being, as it has since Pierre protection and ancillary workers to claim and, above all, great value. Bellon founded the company in 1966. compensation insurance, to workers Established in 1952 by workers at BHP Sharing the same passion for service, in the Australian construction Steelworks, nib has been providing Sodexo’s 380,000 employees in 80 industry. The business started with great value health cover to Australians countries, design, manage and deliver the simple philosophy of delivering for more than 50 years.’ an unrivaled range of on-site service an uncompromising level of service More than 800,000 Australians already and motivation solutions. that exceeded the customer’s benefit from a wide range of cover Sodexo has created a new form of expectation. provided by nib and they’ll be the first service business that contributes to the 14 years on and with the same to tell you it’s worth it. economic, social and environmental philosophy, Coverforce has grown nib offers Overseas Visitors Health development of the communities, to become one of Australia’s largest Cover through a subsidiary company regions and countries in which it and most capable insurance brokers, called IMAN Australian Health operates. offering all classes of insurance to Plans. Suitable for people applying In Australia, Sodexo is dedicated to business, professions and industry for working visa, and for temporary improving productivity and the quality groups. working visa holders. All plans comply of life for the thousands of people who Coverforce with the Department of Immigration call its remote sites home. WA: Madeleine Flanagan 0409 996 959 and Citizenship (DIAC) health Sodexo VIC/TAS/SA/NT: Eric Black 0448 228 188 requirements (visa condition 8501) for A: 247 Balcatta Road, NSW: Sean Pendleton 0417 171 030 457 and other 400 series visas. Balcatta WA 6021 QLD: Jodie Kornet 0425 272 705 nib T: 08 9242 0773 A: 22 Honeysuckle Drive, C: John Tehan Newcastle NSW 2300 E: [email protected] T: 0419710501 C: Samantha Edmonds E: [email protected]
Silver Plus Members
T: 02 9253 8105 C: Genevieve Paton T: 08 9242 0827 C: Shawn Murphy E: [email protected] E: [email protected]
T: 07 3868 0972 C: Isabelle Dekeranflec’h T: 08 9242 0800 C: Dorinda Sullivan E: [email protected] E: [email protected]
40 AMMA Offices ABN 32 004 078 237
Melbourne (Head office) Sydney Level 10, 607 Bourke Street Level 13, 59 Goulburn Street MELBOURNE VIC 3000 SYDNEY NSW 2000 Tel: (03) 9614 4777 Tel: (02) 9211 3566 Fax: (03) 9614 3970 Fax: (02) 9211 3077 [email protected] [email protected]
Perth Adelaide Services for members in the Northern Level 6, 41 Currie Street Territory are provided by the Perth office. (GPO Box 2883) ADELAIDE SA 5001 7th Floor, 12 St George’s Terrace Tel: (08) 8212 0585 PERTH WA 6000 Fax: (08) 8212 0311 Tel: (08) 6218 0700 [email protected] Fax: (08) 9221 5422 [email protected]
Brisbane Hobart Level 1, 200 Creek Street Level 3, 85 Macquarie Street (PO Box 2933) (GPO Box 1236) BRISBANE QLD 4001 HOBART TAS 7001 Tel: (07) 3210 0313 Tel: (03) 6270 2256 Fax: (07) 3210 0291 Fax: (03) 6270 2257 [email protected] [email protected]
AMMA Training & Development: 1800 891 662 AMMA Membership & Migration: 1800 627 771 AMMA Miningoilandgasjobs.com: 1800 615 703