AMMA Offices Melbourne office (Head office) Level 10, 607 Bourke Street MELBOURNE VIC 3000

Tel: (03) 9614 4777 Fax: (03) 9614 3970 [email protected]

Perth office activities report 2006 7th Floor, 12 St George’s Terrace voice of employers in the resources sector PERTH WA 6000 activites report 2006 Tel: (08) 9221 5444 Fax: (08) 9221 5422 [email protected] voice of the resources sector

Sydney office Level 12, 59 Goulburn Street SYDNEY NSW 2000

Tel: (02) 9211 3566 Fax: (02) 9211 3077 [email protected]

Brisbane office Level 1, 200 Creek Street (PO Box 2933) BRISBANE QLD 4001

Tel: (07) 3210 0313 Fax: (07) 3210 0291 [email protected]

Adelaide office Level 6, 41 Currie Street (GPO Box 2883) ADELAIDE SA 5001

Tel: (08) 8212 0585 Fax: (08) 8212 0311 [email protected]

Hobart office Level 3, 85 Macquarie Street (GPO Box 1236) HOBART TAS 7001

Tel: (03) 6270 2256 Fax: (03) 62702257 [email protected] www.amma.org.au

activities report 2006 voice of employers in the resources sector

AMMA’s mission: as the premier resource sector employer organisation, we will President’s Report The evolution of Australia’s industrial relations productive workplace practices continues, and the use of state- legislation has been a key factor in the nation’s based occupational health and safety regimes to drive third protect and promote the interests of members. party agendas rather than to pursue safety improvement in the economic success since 1993. Workplaces have workplace is an area of particular concern. The industry’s focus had increased opportunities to meet the challenges and objective to achieve zero incidents and fatalities should not provided by the world’s rapidly changing economies. be distracted by external union agendas and attempts to use This has given Australia as a nation the ability to occupational health and safety as a vehicle for often unwanted AMMA is the voice of the resources sector, promoting the employee relations and human and unwarranted union access and involvement in workplaces. resource management interests of its members since 1918. not only compete in international markets, but has created an environment for investment and business Our experience, knowledge and industry awareness makes us the leading provider of opportunities. The ensuing changes in government policy advice and representation in all resource sector employee relations and human resource Modernisation of relationships between employers and management issues. employees, with shared objectives, increased flexibility and and employment practices over the past 13 the ability for individuals and teams to realise their potential, years have resulted in increased employment, Our experienced and trained staff are available for members wherever and whenever you have been the driving force for the successful evolution of need them. Australia’s industrial relations environment and its contribution more challenging jobs and recognition of the to Australia’s economic success. Turning back the clock to importance of workplace reform. Our easy to use e-communication products and regular member forums ensure you keep an old style adversarial industrial relations system will reduce our competitiveness, will cost jobs and will not be in the best up to date with all the important issues. interests of Australia or Australians.

In the past, rigidity in workplace relationships has been The Australian Labor Party’s revised industrial relations policy is a significant cost to Australian business, perhaps best due for release in early 2007. Already the party has stated that AMMA compass statement demonstrated in the resources sector. History shows that in the there will be no place for statutory individual bargaining such 1970s and1980s resource companies were unable to guarantee as Australian Workplace Agreements (AWAs). Also on its ‘to Vision reliability, suffered low productivity and had to endure highly do’ list should it win government is ‘ripping up’ the Coalition’s AMMA will be the resource sector provider of choice for employment related services. adversarial industrial relations and workplace relationships. WorkChoices legislation. This intent, in conjunction with the These rigidities also saw companies unable to focus on best ACTU’s plans to restore compulsory bargaining regimes Mission enterprise solutions, which not only harmed employers but also and arbitration outcomes, is viewed with concern not just employees and those seeking employment. The ensuing changes by the resources sector but by all leading business groups As the premier resource sector employer organisation, we will protect and promote the interests of members. in government policy and employment practices over the past 13 and industry sectors. years have resulted in increased employment, more challenging Values jobs and recognition of the importance of workplace reform. Ethics: Represent the views of our members The Hawke / Keating Government can be credited with Integrity: Conduct activities in a fair, honest and transparent manner the realisation that workplace relations should focus on the Responsibility: Act in the best interests of our members enterprise. This fundamental change in policy was essential in enabling Australia to re-establish a competitive economy. The Recognition: Reward and develop our employees reform process continued with the Howard Government’s 1996 Workplace Relations Act and again with further reform in 2004.

March 2006 saw the introduction of WorkChoices, which has further changed the face of workplace relations in Australia. AMMA members WorkChoices removes intrusive third party interaction in the workplace relationship and provides for the possibility of greater • Become part of the voice of the resource sector flexibility between employers and employees. It also provides • Network with colleagues in their field at AMMA’s regular member only events for a range of employment arrangements – from collective agreements through to individual workplace agreements. • Use AMMA’s e-communication tools to stay informed on all industry news WorkChoices and the welfare to work reforms implemented • Access courses provided by AMMA Training and Education, the industry leading training and education provider over the last 12 months are driving increased participation and productivity, both of which are key to job creation and economic • Express views and together with other members influence significant developments in employee relations, both at success. This ongoing evolutionary reform process will continue federal and state level, through AMMA’s dynamic lobbying activities to ensure that Australia is in a sound position to capitalise on • Rely on assistance from AMMA’s professional consultants to provide cost effective employee relations advice opportunities and move forward. and representation State governments have had varied results in dealing with AMMA membership is open to all companies operating in the resources and allied industries. workplace relations and continue to create poor examples of policy, law and decision making. Acceptance of counter Above: President Charlie Lenegan

2 3 activities report 2006 voice of employers in the resources sector

Chief Executive’s Report Contents Below: Chief Executive Steve Knott 2006 has been a year of great change for AMMA and 1 AMMA Profile P.2 the Australian employee relations landscape alike. Internally, AMMA has implemented a new organisational structure that better focuses AMMA resources and 2 President’s Report P.3 services. Members would have noticed our move away from the state branch structure towards a new national platform. AMMA now has four divisions:

3 Chief Executive’s Report P.5 • Workplace Policy; • Operations; • Membership Services; and 4 AMMA Board P.6 • AMMA Education and Training

Functions that were previously performed by state branches are now centralised and managed at a national level through the new 5 AMMA Team P.6 divisional structure.

AMMA continues to promote the industry’s employee relations interests. This task has been championed by our new 6 Operations P.7 Workplace Policy Division, which has been working hard to ensure the interest of members are represented to state and federal governments as well as opposition parties and other National Conference and the first AMMA Coal Summit ensure 7 Education and Training P.9 industry stakeholders. Examples of this can be seen in AMMA’s members have many opportunities to network and learn on an work in securing five year agreement making, extending the ongoing basis. life of greenfields agreements, securing an extension of the protection from prosecution for record keeping breaches, The environment governing the employment relationship 8 Workplace Policy P.11 retaining enterprise awards and AMMA’s ongoing discussions in Australia has undergone the most significant change with opposition and other parties regarding issues arising from since federation. the use of common law contracts and the importance of continuity of supply, or in other words no industrial action. March 2006 heralded the introduction of the Federal 9 Membership Services P.13 Government’s WorkChoices legislation, providing sweeping Through the establishment of AMMA’s Operations Division we changes to the way we look at employee relations in our industry. have been able to increase our service levels for members and These changes have strengthened the ability for employers and have addressed the ongoing demand for consulting services employees to restrict unwanted third party involvement in their 10 Industry Employee to the industry. This year has seen AMMA providing strategic workplace and, as a result, there has been a high take up rate support to both the onshore and offshore industry as well as high of individual contracts and collective non union bargaining in level industrial relations support to a number of mine developments the resources sector. Relations Statistics P.14 and expansion projects. Since the announcement of the WorkChoices legislation AMMA has been proactive in informing and educating members of their 11 AMMA Members P.15 new responsibilities and obligations. As part of this process The environment governing the employment AMMA successfully tendered for the right to provide the Federal relationship in Australia has undergone the Government’s Employer Advisory Program, an education program designed to inform all Australians about their opportunities and 12 AMMA Offices P.18 most significant change since federation. obligations under the WorkChoices system. AMMA consultants were charged with providing attendees a working knowledge of the new WorkChoices legislation and its impact on employers and the opportunities that are available to them. More than 250 AMMA thanks its member companies Woodside, education seminars in more than 130 locations around Australia AMMA has also established a dedicated Education and Training TMS, BMA and Newmont for the photo’s and images were conducted in this program. These seminars were free and Division. Through AMMA’s Registered Training Organisation (RTO) open to any employer, covering a wide range of information aimed used in this Report. status, a number of RTO partnerships were put in place in 2006. at improving the understanding of the new legislation and enabling Details of the extensive training programs – most nationally business to be prepared to adjust for the new regulations. recognised training covering employee relations, occupational safety health and environment, manager and supervisor training, AMMA’s efforts to represent our members interests will continue workplace training and assessment and so forth – are detailed next year, as will our ongoing dedication to providing members with on our website. valuable services and an unwavering commitment to the resources sector. It has been my pleasure to serve as Chief Executive for the The establishment of the Membership Services Division has past year. resulted in significant improvements in the quality and variety of services offered to members. Information services including In the year ahead, an election year, continuing growth in the new AMMA website, e-newsletters and online daily news feed membership support and retaining and developing our highly are now available to members and form a key part of AMMA’s professional and competent staff will ensure AMMA is well 4 service to members. Events, including Member Forums, the AMMA equipped to honour our 1918 founding members’ charter, to promote and protect our members’ interest. activities report 2006 voice of employers in the resources sector

AMMA Board Operations

AMMA President For the Operations Division, priority issues for 2006 included: Charlie Lenegan - Managing Director, Rio Tinto Limited 1. Capability development to address ongoing demand for consulting services to the offshore oil and gas sector, to offer greater consulting support to metalliferous mining members, and to develop a greater presence in the coal mining sector. Board Members 2. Establishing a dedicated education and training service through use of AMMA’s Registered Training Organisation (RTO) status. • Eric Ford - Chief Executive Officer, Anglo Coal Australia Pty Ltd • David Byers - General Manager Human Resources and Public Affairs, Exxon Mobil 3. Provide consultancy services to a number of major offshore oil and gas developments. • Greig Gailey, - Managing Director and Chief Executive Officer, Zinifex Limited 4. Industrial relations support to a number of mine developments and expansion projects. • Andrew King - Managing Director, P & O Maritime Services 5. Delivering WorkChoices training under the DEWR funded Employer Assistance Program conducted in both metropolitan and regional areas throughout Australia • Ian Smith – Managing Director and Chief Executive Officer, Newcrest Mining limited • Tim Wall – Managing Director, Apache Energy Limited 6. General consulting activities associated with reviewing company policies, procedures, common law contracts of employment, collective agreements and AWAs in light of the amendments to the Workplace Relations Act. • Kim Horne - Refinery Manager, Alcoa World Alumina Australia Metalliferous Mining

Activities in the mining sector have focused on: AMMA Team 1. The review of employment arrangements as a consequence of the Workplace Relations Amendment (Work Choices) Act 2005. Chief Executive 2. Providing consulting services to new mine development, construction and shutdown work. Steve Knott 3. General consulting. WorkChoices related activity took the form of: Operations Division Education & Training Division Workplace Policy Division Membership Services Divsion • Reviewing member AWAs for new employees employed after 27 March 2006; Tony Caccamo, Helene O’Donnell, Christoper Platt, Corlia Roos, • Reviewing arrangements of non-award based employees; General Manager General Manager General Manager General Manager Nicola Thomson, Naomi Byron, Troy Cush, • Conducting HR audits to ensure WorkChoices compliance and redrafting of agreements and policies where appropriate; Advisor Workplace Policy Advisor Marketing & Communications Specialist • Assisting companies determine strategies to deal with employees under pre- reform AWAs whose entitlements to conditions such Kerry McGuckin, Julie Sawyer, as annual leave, personal leave, payment for those forms of leave, and hours of work may be less than those employees employed Administrator Membership Officer after 27 March; • Lodging pre- and post WorkChoices AWAs. Companies also sought assistance to standardize their approach to these issues on an Australia wide basis. AMMA was able to Melbourne Office Brett Barton, Principal Employee Relations Consultant. Ian Harmer, Principal Employee Relations Consultant. respond to these requests by providing a coordinated national service managed through one consultant. Claire Brown, Employee Relations Consultant. Ruth Bain, Employee Relations and Research Officer. Fiona Chong, Mine development, plant extensions and shutdown / outages consulting services were provided to projects in Western Australia, Financial Controller. Melinda Donato, PA to Chief Executive. Pam Dyson, Support Staff Officer. South Australia, Queensland and Victoria. This included providing strategic advice and developing Industrial Relations and Employee Relations Management Plans for members and assisting with their implementation. Perth Office Terry Adams, Practice Leader (Construction). Michael Borlase, Practice Leader (Mining). John Flood, Senior Consultant. Geoff Bull, Principal Employee Relations Consultant. Andrew Cameron, Principal Legal Services General consulting services provided to member companies included: Consultant. Peter Robertson, Employee Relations Consultant. Lyndon Joyce, Employee Relations Consultant. • Negotiating, drafting and lodging new agreements; Rose Giardina, Office Administrator. Suzette Steele, Support Staff Officer. • Representing companies in unfair dismissal proceedings; Brisbane Office Ian Turner, Principal Employee Relations Consultant. Stephen Button, Principal Employee Relations Consultant. • Representing member companies in discrimination and sexual harassment proceedings and other EEO and disciplinary proceedings; and Adelaide Office Jerusha Dolan, Employee Relations Consultant. Karina White, Support Staff Officer. • Providing day to day HR advice and assistance. Sydney Office Susan Butterworth, Principal Employee Relations Consultant. Natasha Wainwright, Employee Relations Consultant. On site HR management services were also provided to member companies through the temporary secondment of AMMA consultants to site based positions. Hobart Office Bill FitzGerald, Principal Employee Relations Consultant. Hydrocarbons

The year in review has seen a continuation of a high level of consulting activity in the hydrocarbons sector. AMMA consultants have been particularly active in provision of strategic advice to projects prior to mobilisation and assisting with the management of industrial relations throughout the implementation phase of the project. These Projects included: • Gorgon • Angel • Enfield • Perseus over Goodwyn • Papua New Guinea to Australia • Casino Pipeline • Basker Manta • Otway • Stybarrow • Blacktip • BassGas • Stag Flow-line • Vincent

7 activities report 2006 voice of employers in the resources sector

Consulting services to the hydrocarbons sector included: Education and Training • Developing employee relations management plans; 2006 saw the launch of AMMA Education and Training, a new division within AMMA, • Providing project briefings to maritime and construction unions; offering education and training services to the Resource and Allied Services sector.

• Developing and negotiating agreements with unions; AMMA Education and Training offered a wide range of education and training services throughout • Representing member companies in disputes and grievance resolution processes; the year to assist both member organisations achieve their staff development goals. AMMA’s Registered Training Organisation status enables AMMA to offer a number of qualifications including • Providing strategic and day to day advice to project management; and Frontline Management, Human Resource Management, Extractive Industries Metalliferous Mining and Coal Mining. • General review of company policies, procedures, contracts of employment and agreements in light of the amendments to the Workplace Relations Act. With the number of projects either committed or in the planning phase, the hydrocarbons sector will remain a constant source of Registered Training Organisation (RTO) activity for AMMA in the year ahead. AMMA’s Registered Training Organisation has been increasing its scope of registration to include more qualifications from Certificate II to the Advanced Diploma level to provide our members Coal Mining with a greater choice of qualifications or individual units of competencies. At the end of 2006, AMMA’s Registered Training Organisation will be the largest supplier of Resource and Allied In 2006 AMMA increased its presence and representation in the coal sector throughout Queensland, New South Wales and Services sector qualifications. Western Australia. AMMA has been heavily involved with the formation of RTO partnerships with many member Existing coal members such as Rio Tinto Coal Australia, Anglo Coal and the BHP Billiton Mitsubishi Alliance were joined by a number companies. Our RTO partnership models have proven successful, with seven partnerships of new members in 2006 including Griffin Coal Mining Pty Ltd, New Hope Coal Australia and Xstrata Coal Australia Pty Ltd. entered into this year. We look forward to improving our partnership models in 2007 through the introduction of Smartcard technology and a central repository system that will make record The inaugural AMMA Coal Summit was held on 21 August 2006 and attracted representatives from fifteen companies involved in coal keeping easier for our RTO partners. mining in New South Wales and Queensland. AMMA staff delivered presentations on the Award Review Process, emerging employee relations issues in the coal sector, OH&S and right of entry issues and recent case law on bargaining periods. Guest speakers included Training Workshops Prof Tony Palmer from the Queensland University of Technology presenting on the impact of the ageing workforce on health and fatigue management on site and Steve McDonald from McDonald & Company presenting on remuneration trends and wage inflation in AMMA’s calendar courses were well received by members and non-members throughout the year. the sector. The calendar courses were reviewed in 2006 to ensure they reflected the latest needs of the sector and provided the latest and most relevant content. This also included incorporating the new The speakers were well received and attendees welcomed the initiative of holding a national summit for the coal sector. Attendees WorkChoices legislation into the employee relations courses where relevant. recommended that the event be held on a bi-annual basis and the next Coal Summit will be scheduled in the second quarter of 2007.

The Year Ahead AMMA Education and Training services assist employees to work The Operations Division has been established and significant staffing and operational change has been implemented. These changes towards nationally recognised qualifications such as Certificates will provide better resource utilisation across AMMA, enable service delivery to members on a coordinated national basis and provide an enhanced education and training service to members. in Front Line Management. For 2007 the division will focus on: • Building and strengthening our relationship with existing and new members; A number of the employee relations, occupational safety, health and environment, management • Developing our capability so that we can provide a quality relevant service to members and enhance our reputation as the preferred and workplace training and assessment courses have been designed so that they align to national provider of Human Resources and Employee Relations Consulting Services to AMMA members; and units of competency. Members have taken advantage of this new training structure to use AMMA • Investigating new service and product opportunities to enhance the value added services available to AMMA members. Education and Training services to assist employees working towards nationally recognised qualifications such as Certificates in Front Line Management.

AMMA continues to grow in the area of customised training for individual member organisations delivered on site or corporate head or regional offices. Organisations are relishing the opportunity to have standard training courses tailored to their specific organisational needs. Customised training allows for company specific policies and procedures to be incorporated and offers the opportunity for joint facilitation of workshops by Human Resource Team members and AMMA Consultants.

The combination of scheduled calendar courses and organisational specific courses resulted in AMMA facilitating training in locations such as Perth, Laverton, Kalgoorlie, Karratha, Kambalda, Melbourne, Ballarat, Bendigo, Brisbane, Townsville, Emerald, Mt Isa, Hobart, Burnie, Queenstown, Rosebery, Orange and Broken Hill.

Demand for AMMA’s introductory supervisory course ‘Essential Skills for Supervisors’ has been strong, as is requests for Discipline and Termination training and Equal Employment Opportunity Awareness Raising sessions (ranging from 2 to 4 hour sessions) and Equal Employment Opportunity Contact Officer training. AMMA Members have also been keen to upgrade the training and assessor qualifications of their own staff members through the bridging course to upgrade from Certificate IV in Training and Workplace Assessment to the new Diploma of Training and Assessment.

There has also been a growing demand for AMMA Education and Training to develop training materials for members to use in their internal programs on general employee relations topics and broader concepts such as leadership.

2007 promises to be a busy year for Education and Training, with continued growth expected in both the RTO partnerships and the delivery of training workshops. activities report 2006 voice of employers in the resources sector

Board Reference Group Members Workplace Policy

Carl Phillips Alcoa World Alumina Australia WA Operations Human Resources Manager AMMA’s Workplace Policy Division ensures that prosecuted in respect of record keeping obligations, to 26 March 2007. AMMA will continue to lobby the government in respect of Linda Dawson Alinta Ltd General Manager Human Resources AMMA members receive timely professional advice on contemporary workplace relations issues. the record keeping requirements in order to affect an amendment Christopher Platt AMMA General Manager Workplace Policy to the regulations or other government directive that companies Pauline Hansen Apache Energy Ltd Human Resources Manager The Division is also responsible for developing AMMA’s policy who are clearly not underpaying their workers and not purposely Alan Tietzel Argyle Diamonds General Manager Human Resources position and making recommendations to the AMMA Board circumventing their obligations under WorkChoices are exempted from prosecution. Chris Mitchell BHP Billiton – Group Manager Employee Relations via the Board Reference Group (BRG). Stainless Steel Materials The BRG is comprised of senior workplace relations practitioners AMMA has met regularly with Minister Andrews and his staff during Murray Smith BHP Billiton Iron Ore Pty Ltd Vice President Human Resources from AMMA members and meets quarterly to review topical matters the year. In August the Minister attended an AMMA Board meeting Merv Saltmarsh Boart Longyear Pty Ltd Human Resources Manager Australian and the AMMA research program. which discussed issues regarding reasonable additional hours, and New Zealand annual leave accrual and the definition of shift work. AMMA has also During the last twelve months the Workplace Policy Division has consulted with Treasurer Costello concerning the recognition of Geoff Blyth Compass Group Manager Human Resources/ foreign superannuation contributions. (Australia) Pty Ltd Industrial Relations been busy with the introduction of a number of significant legislative initiatives at the Federal level. Bill Vickers ExxonMobil Industrial Relations Manager/ Lubes and distribution Manager These initiatives have included: Steve Clancy Fluor Australia Pty Ltd Employee Relations Director AMMA submissions are valued by the David Dawes Leighton Contractors Pty Ltd Mining Services Manager WorkChoices Government and continue to influence Matthew Butlin Newcrest Mining Ltd Executive General Manager – Organisation Effectiveness The WorkChoices amendments to the Workplace Relations Act the policy making process. Neil Holland Newmont Australia Ltd Human Resources Manager 1996 commenced operation on 27 March 2006. Desiree Harker P & O Maritime Services General Manager Human Resources Many of the changes it brought about reflect AMMA lobbying Paul Tooker Queensland Alumina Ltd Human Resources Superintendent initiatives in recent years and highlighted in the March 2005 AMMA AMMA has been engaged in discussions with Shadow Minister Paul Davies Rio Tinto Ltd Chief Advisor Employee Relations Position Paper on Workplace Relations Legislative Reform Options. for Industry, Infrastructure and Industrial Relations, Stephen Smith The following reforms had been actively sought by AMMA: Mick Nash Roche Mining Group Employee Relations Manager in the lead up to the development of their industrial relations policy, • A single national unitary system of industrial regulation; particularly concerning the retention of a individual agreement Greg Cornish Santos Ltd Senior Human Resources Advisor making option that preserves the features of the current AWA model. Mike Connell Thiess Pty Ltd General Manager Human Resources • Reductions in content and scope of awards; and Safety • AIRC powers of compulsory arbitration to be significantly The Award Review process under WorkChoices is another area Jane Clifton Universal Sodexho Pty Ltd Human Resources Director – reduced; where AMMA has lobbied on behalf of members with success. In November 2006, Minister Andrews’ response to the Award Review Asia / Australia • A streamlined agreement making process with the maximum Taskforce Report on award rationalization reflected some concerns term to be increased to five years; Ian Masson Woodside Energy Ltd Industrial Relations Manager raised by AMMA particularly in the areas of: Russell Murphy Zinifex Ltd Human Resources Manager • AWAs to have primacy over certified agreements; and • The retention of enterprise awards; • A mechanism to allow the Minister to intervene in intractable • Retention of sub-industry groupings which will allow the disputes. continuation of sectoral specific arrangements in coal, hard rock Since the introduction of WorkChoices AMMA has actively lobbied and oil and gas and avoid a ‘one size fits all’ approach; the Government to ensure that legislative changes promote • The decision not to extend the award system beyond its current maximum workplace flexibility and support productivity and limits and not to reignite Union turf wars by ensuring existing competitiveness within the resources sector. AMMA submissions Union coverage demarcations will not be undermined by award are valued by the Government and continue to influence the policy rationalisation; making process. • The position that the award rationalisation process will not One of the results from extensive lobbying by AMMA was the impose additional cost on employers. decision to extend the grace period, in which employer’s cannot be

12 11 activities report 2006 voice of employers in the resources sector

Independent Contractors Legislation the Australian Workers’ Union whose representatives would be appointed as Workplace Inspectors. In late October the Australian Membership Services The Independent Contractors Bill 2006 and the Workplace Chamber of Commerce and Industry commenced an investigation Relations Legislation Amendment (Independent Contractors) to determine if the Tasmanian Government’s actions are in breach The Membership Services Division was Ian and Karl are the co-authors of the recently released Bill 2006 were introduced into the House of Representatives of International Standards. established in March 2006. Troy Cush book Systems Leadership – Creating Positive in June 2006 and were referred to the Senate. (Marketing and Communications Specialist), Organisations (2006). The Master Class focused on In August 2006 the South Australian Government commenced a equipping participants to create the conditions where The Independent Contractors Bill 2006 excludes state and review of the OH&S penalty regime. AMMA’s submission opposed Julie Sawyer (Membership Officer) and Corlia people at all levels in an organisation can work productively territory deeming laws, which interfere with genuine contracting the introduction of industrial manslaughter, a threefold increase to Roos (GM Membership Services) work together and to their potential; ensure the right people are in the arrangements and enable applications for harsh/unfair contracts. penalties and any change to the aggravated offence provisions. to bring AMMA members up-to-date information right role doing the right job; and use basic assumptions The Workplace Relations Legislation Amendment (Independent services, co-ordinate networking opportunities about human behaviour to create models of good Contractors) Bill amends the Workplace Relations Act 1996, Announcement of ACTU and ALP Policy for AMMA’s membership and promote AMMA leadership, organisational strategy, systems design particularly in relations to outworkers, unfair contracts provisions and social process. and misrepresentation of the employment relationship. In September 2006 the ACTU released a report titled ‘A Fair Go to the sector in general. at Work: Collective Bargaining for Australian Workers’ and at the At the time of writing the Bills had yet to be debated in the Senate. ACTU Congress released its industrial relations policy. In 2006 significant improvements have occurred in the The ACTU policy includes compulsory collective bargaining, quality and variety of services offered to our members. Department of Employment and abolishing AWAs, expanding the legislated minimum standards, A brand new AMMA website was launched in February, Our membership has seen significant increasing the powers of the Australian Industrial Relations which, among other things, now provides members’ with Workplace Relations Employer Commission and providing unfair dismissal protection for all a daily news feed on significant developments affecting growth in 2006, with over 30 new Assistance Program Phases 1 and 2 employees. employee relations in the sector. A new Members’ Area companies joining the AMMA fold. also gives members easy access to handy fact sheets, AMMA successfully tendered for a Commonwealth grant to AMMA commented on the ACTU report in the media, describing checklists and other advice, particularly on WorkChoices provide 232 WorkChoices employer seminars in over 120 rural it as a Model T Ford approach to industrial relations (you can legislation. In the ten months’ since its launch, more than and regional locations across Australia. The free seminars, which have any agreement you want so long as it’s a union one) and 30,000 users have accessed the website. In addition to its own events, AMMA also co-promoted took place throughout May to July 2006, provided an opportunity highlighted that the proposals, if implemented, will reverse and supported the following industry conferences and for AMMA members to be further educated on the contents and 15 years of labour market reform and is a strategy to increase Our new look eNewsletters deliver news on important events in 2006: impact of the WorkChoices legislation. AMMA members who union membership. developments directly to members via email. More than • Contract Mining Conference (presentation by AMMA) attended the seminars provided positive feedback and benefited 60 National and 30 State specific eNewsletters ensure from numerous fact sheets and frequently asked questions which The ALP provided an insight into its industrial relations policy that members are kept up-to-date and informed on matters • Open Cut Coal Operations Conference were published on the dedicated WorkChoices website. at a press conference in September 2006. The ALP does not affecting their business. • DIMIA Australia Needs Skills Expo (Brisbane) The site attracted more than 2,000 visitors. propose to release its IR policy until the April 2007 ALP National • APPEA National Conference Conference. What detail is available indicates that the ALP AMMA’s popular Member Forums occurred more frequently • The Mining Summit (Perth) AMMA accepted an extension of the program, with a further 80 proposes collective bargaining where the majority of employees this year, with at least four forums per State taking place. • AJM Longwall Mining Summit sessions delivered as part of Phase 2 during the period October want it, increased powers to the Australian Industrial Relations Forums have also been introduced in new locations such as • Drill 2006 (presentation by AMMA) and November 2006. Commission, new minimum standards (not detailed but likely to be Kalgoorlie. AMMA Member Forums provided members with influenced by ACTU policy), abolishing AWAs and replacing them an opportunity to hear from key government agencies in the • 5th Annual Longwall 2006 (presentation by AMMA) AMMA also ran a program where members were provided with common law contracts. industrial relations field such as the OEA and the ABCC, • 3rd Annual Australian Mine Safety Conference with a free ‘Workchoices Health Check’ to determine the impact as well as providing members with timely advice on the (presentation by AMMA) In addition Opposition leader Kim Beazley has also indicated that on their business. We expect these initiatives to be ongoing numerous matters that arose from the introduction of the • 2006 Gunnedah Coal Conference the ALP would support an increase to the current superannuation in 2007. WorkChoices legislation. • 8th Annual Open Cut Coal Conference employer contribution rate of 9% for all Australians. • Australian International Mine Management State Occupational Health AMMA’s flagship event, the annual National Conference, Conference 2006 and Safety Issues Issues for 2007 took place in March in Launceston, Tasmania. Speakers • The Workforce Annual Conference (presentation included the Hon. Justice Geoffrey Giudice, President by AMMA) The pace is expected to increase in 2007, especially in light of the of the AIRC, Bill Shorten, National and Victorian Branch In February 2006 AMMA made a submission to the Queensland • Seacare Awards & Conference 2006 Government proposing to remove the provision in the Coal Mining forthcoming federal election. Secretary of the AWU, Oscar Groeneveld, Chief Executive of Comalco and Greig Gailey, Managing Director and • Annual Conference of the Industrial Relations Society Safety and Health Regulations 2001 which requires that a Senior The following are some of the issues to be addressed by AMMA of Victoria Site Executive may establish criteria for assessment of workers Chief Executive Officer of Zinifex. The record number of in 2007: attendees were treated to one of the best views, and meals, • Annual Conference of the Industrial Relations Society for fatigue, physical impairment, psychological impairment and of Western Australia (presentation by AMMA) drugs only in agreement with a majority of workers at the mine. - A comparative review of the ALP and Coalition Industrial in Tasmania at the delightful Rosevears Estate. The AMMA submissions also sought amendments to allow for Relations Policy against AMMA policy. This year also saw AMMA hosting the inaugural Coal A new Preferred Supplier Program was launched in an employer, on reasonable grounds, to request an employee to - The release of AMMA’s ‘Employee Engagement’ research October 2006 and replaces the previous Alliance undergo a health assessment. Summit in August, an event that gave representatives project. from fifteen of our member companies in the coal sector arrangements. The Preferred Supplier Program will create In May 2006, AMMA made a submission to the New South Wales - Lobbying of Federal Government and the ALP to protect the opportunity to discuss topics such as the remuneration the opportunity for members to access quality service Government in response to its draft Occupational Health and the gains of the WorkChoices legislation, in particular: trends in the industry, the health challenges posed by providers to the industry who have been audited by AMMA. an ageing workforce and the impact of WorkChoices Safety Amendment Bill 2006. AMMA opposed the amendments • The single national system; to right of entry allowing unions to enter and speak with non- on the industry. Our membership has seen significant growth in 2006, members, the proposal for reinstatement applications for • The ability to make five year agreements; with over 30 new companies joining the AMMA fold. The new members operate in diverse industries, including employees unlawfully dismissed, the proposal for unions to receive • The ability to make individual agreements that override On 21 November 2006 AMMA hosted a Master Class on coal mining, hard rock mining, minerals sands, off-shore monetary reward for successful prosecutions and the recording of all other agreements and/or awards; Systems Leadership and Creating Positive Organisations oral evidence by inspectors without consent. in Perth. The Master Class was lead by Dr Ian Macdonald, contracting and service providers to the resources sector. • The simplified approval process for agreements; Director and Principal of Macdonald Associates In July 2006, AMMA was vocal in its opposition to Workplace • Access to employer greenfields agreements; Consultancy, Karl Stewart, former Managing Director of Safety Tasmania’s proposal to delegate its powers pursuant Comalco Smelting and former President of AMMA. to section 60 of the Workplace Health and Safety Act 1995, • Protection of SME’s against unfair dismissal proceedings. to the Construction, Forestry, Mining and Energy Union and We look forward to meeting these challenges, and more, in 2007. 12 13 Source: Australian Bureau of Statistics, Employee earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, 28 March 2006.

30,000 Source: Australian Bureau of Statistics, Employee earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, 28 March 2006. 25,000

20,000

15,000 30,000 Numbers of Employees

10,000 25,000 0 Coal mining Oil and gas Metal ore Other Services mining mining to mining 20,000 Source: Australian Bureau of Statistics, Employee earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, 28 March 2006.

15,000 Numbers of Employees 60 activities report 2006 voice 10,000of employers in the resources sector 50 52

40 42 30,000 33 0 30 27 Coal mining Oil and gas Metal ore Other Services 25 Days lost/1000 Employees: June 05 to June 06 Average weekly earnings mining mining to mining Industry Employee Relations20 Statistics21 25,000 18 140 15 12 May quarter 2006 average weekly earnings - original ($): The Mining Industry (as defined by the ABS) employs 1.3% of all working Australians.11 11 123.3 10 9 8 7 120 Days lost/1000 % Change from All industries % Change from Number of employees as at August 2006 4 employees: year to same quarter same quarter 20,000 0 current June 2006 previous year previous year Mining industry As % of all mining 100 1994-95 1995-96 1996-97 1997-981998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 60

Coal mining 30,100 Years 23%2005-06 to date Full-time adult $1682.50 6.4% $1041.60 3.5% 80 52 ordinary time 15,000 Oil and gas extraction 1800 8,500 6% 50 earnings Numbers of Employees Metal ore mining 1600 46,300 35% 60 40 42 1400 Full-time adult $1787.40 5.9% $1088.30 2.8% Other mining 9,600 7% total earnings 10,000 33 1200 4030 Services to mining 22,500 17% 27 1000 25 21.5 Persons allocated as not further defined within mining industry 15,600 12% 20 21 800 20 18 Total earnings $1740.30 6.0% $826.90 4.7% 0 Total 132,600 100% 11.9 140 15 Coal mining Oil and gas Metal ore Other Services 600 12 11 11 100 Source: Australian Bureau of Statistics, Average Weekly Earnings,123.3 Australia, mining mining to mining 400 Coal mining Other mining All industries9 8 Composition by gender as at August 2006 industry industry 7 Cat No. 6302.0, May quarter 2006, Tables120 10, 5,2. 200 4 Mining industry - Mining industry - All industries - All industries - Source:0 Australian Bureau of Statistics, Industrial Disputes, Australia, Cat No 6321.0.22.005, no. of employees as % of total0 no. of employees as % of total June quarter 2006 Period Includes ACTU National Day of Community Protest on 28 June 100 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2006. Release date for next survey report: 7 December 2006. 1994-95 1995-96 1996-97 1997-981998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Male employees 116,800 88% 5,589,800 Years 55% Full-time Adult Ordinary TimeYears Earnings 2005-06 to date Lost Time Injury Frequency Rates Female employees 15,800 12% 4,582,100 45% 80 1800 60 Total employees 132,600 100% 10,172,000 100% 1600 52 Source: Australian Bureau of Statistics, Australian Labour Market Statistics, Cat. No. 6105.0, August 2006. Release date for next quarter figures: 5 January 2007. 50 60 1400 Average annualised wage increases per employee 1200 40 42 40 Certified during All current agreements 1000 33 21.5 current quarter 30 27 800 25 20 For Employee Collective (successor to pre-WorkChoices Section 170LK) agreements (directly between employer 3.6% 3.6% 11.9 and employees) 600 20 21 18 0 140 For Union Collective (successor to pre- WorkChoices Section 170LJ) 4.4% 4.1% 15 12 Coal mining Other mining All industries agreements (with union) 400 11 11 10 industry9 industry 123.3 200 8 7 120 For Union Greenfield (successor to pre WorkChoices Section 170LL) 3.7% 4.0% 4 agreements (Greenfield agreement with union) 0 0 For Employer Greenfield agreements (No pre WorkChoices precedent) 3.4% 3.6% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 100 Years All industries 1994-95 1995-96 1996-97 1997-981998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 For Section 170LN agreements (to settle dispute) (No Workchoices 3.9% 4.4% Years Source: Australian Bureau of Statistics, Employee earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, 28 March 2006. Source: ABS Cat 6302.0, February quarters 1994-2006 Mining industry 2005-06 to date successor to these) Source: Minerals Council of Australia, Australian Minerals Industry Safety Survey Report, 80 1800 2nd quarter 2005-06, December 2005. Source: Department of Employment and Workplace Relations, Trends in federal Enterprise Bargaining, June quarter 2006, released 1 September 2006. Release date for next quarter figures: late November 2006. 1600 60 1400 Trade Union Membership AMMA Members 1200 40 30,000 A.G.D Mining Limited AMIRA International Limited1000 Australian Zircon NL 21.5 ABB Australia Pty Ltd Anglo Coal Australia Pty Ltd800 Baker Hughes Australia 20 11.9 Union Members Abigroup Contractors Pty Ltd AngloGold Ashanti Australia Limited Ballarat Goldfields NL 25,000 600 Acergy Australia Pty Ltd Apache Energy Limited Barminco Limited 0 400 Coal mining Other mining All industries Adsteam Offshore Pty Ltd Argyle Diamonds Barrick Gold of Australia Limited industry industry Non Union Members 20,000 AGC Industries Pty Ltd Ascentis Operations Pty Ltd200 Bendigo Mining Limited Agility Management Pty Ltd Atlas Group Holdings 0 BGC Contracting Pty Ltd Aker Kvaerner Australia Pty Ltd Atwood Oceanics Australia Pty Ltd1994 1995 1996Bhagwan 1997 1998 Marine 1999 2000 2001 2002 2003 2004 2005 2006 15,000 Alcan Engineering Pty Ltd Ausdrill Limited BHP Billiton Iron OreYears Pty Ltd Source: Australian Bureau Numbers of Employees of Statistics, Employee earnings, Alcan Gove Pty Ltd Australian Bulk Minerals BHP Billiton Mitsubishi Alliance Benefits and Trade Union 10,000 Membership, Australia, Cat No Alcoa of Australia Limited Australian Magnesium Corporation BHP Billiton Olympic Dam 6310.0, 28 March 2006. Alinta Limited Pty Ltd Corporation Pty Ltd Release date for next Australian Mine Services Pty Ltd BHP Billiton Petroleum Pty Ltd 0 survey report: March 2007 Allegiance Mining NL Australian Mines Limited Birla Mount Gordon Pty Ltd Coal mining Oil and gas Metal ore Other Services Allied Diving Services Pty Ltd mining to mining mining Allseas Construction Contractors S.A. Australian Raise Drilling Pty Ltd Birla Nifty Pty Ltd 14 Allstate Explorations N.L Australian Refined Alloys Pty Ltd Bluestone Australia Pty Ltd 15

60

50 52

40 42

33 30 27 25 20 21 18 140 15 12 11 11 10 9 123.3 8 7 120 4 0 100 1994-95 1995-96 1996-97 1997-981998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Years 2005-06 to date 80 1800 1600 60 1400 1200 40 1000 21.5 800 20 11.9 600 0 400 Coal mining Other mining All industries industry industry 200 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Years activities report 2006 voice of employers in the resources sector

AMMA Members Boart Longyear Pty Ltd ENSCO Australia Pty Ltd John Nitschke Drilling Pty Ltd Bonney Fox Pty Ltd Ensign International Energy Services Jotomex Pty Ltd Bonus Well Servicing (WA) Pty Ltd ERA - Energy Resources of Australia Jubilee Mines NL Boral Limited ERG Transit Systems Ltd - NSW Kagara Zinc Limited AMMA Members Bristow Helicopters Australia Pty Ltd Eroc Pty Ltd Kalgoorlie Consolidated Gold Mines Nacap Australia Pty Ltd Rapid Crushing & Screening Taten Pty Ltd Pty Ltd Broadspectrum Australia Pty Ltd ESS Support Services (Australia) New Hope Coal Australia Limited Contractors Pty Ltd Technip Oceania Pty Ltd Kellogg Brown & Root Pty Ltd Brunel Technical Services Exactmix Pty Ltd Newcrest Mining Limited Ravensthorpe Nickel Project Tectonic Resources NL Kemerton Silica Sand Pty Ltd Byrnecut Mining Pty Ltd Expro Group Australia Pty Ltd Newmont Australia Limited Rema Tip Top Industrial Australia Pty Ltd Temco Kimberley Diamond Company C.D Operations Pty Ltd ExxonMobil Australia Pty Ltd Nickel West Renison Consolidated Mines NL Terrex Seismic KMC Oiltools Calibre Projects Pty Ltd Falconbridge (Australia) Pty Ltd Northern Port Services Pty Ltd Resource Management & Development Territory Diving Services Komatsu Australia Pty Ltd Pty Ltd Canyon Offshore Limited Farstad Shipping Northern Project Contracting Thalanga Copper Mines Pty Ltd (Indian Pacific) Pty Ltd KT Pty Ltd Rio Tinto - Research & Development Cape Crushing & Earthmoving Northparkes Mines Thiess Pty Ltd Contractors Pty Ltd Fluor Australia Pty Ltd Lampson (Australia) Pty Ltd Pty Ltd NWC Facilities Management Pty Ltd Thunderlight Pty Ltd Cape Flattery Silica Mines Fox Resources Limited Legend Mining Limited Rio Tinto Coal Australia Pty Ltd O & G Solutions Pty Ltd Tidewater Marine Australia Pty Ltd Carpentaria Gold Pty Ltd Fraser Diving (Australia) Pty Ltd Leighton Mining ROC Oil (WA) Pty Ltd Oceaneering Australia Pty Ltd Tiwest Joint Venture CBH Resources Limited Fugro Survey Pty Ltd Leviathan Resources Limited Roche Mining (MT) Pty Ltd Oceanic Offshore Pty Ltd Toll Energy Logistics Pty Ltd Central Norseman Gold GBF Underground Mining Company Lextor Developments Pty Ltd Roche Mining Pty Ltd Offshore Marine Services Pty Ltd Tom Browne Drilling Services Corporation Limited GEMCO Mining Company Pty Ltd LionOre Australia (Nickel) Limited Rock and Crete Crushing Pty Ltd OIS MOC Joint Venture Tomago Aluminium Company Century Resources General Flying Services Pty Ltd M.G Mining Services Pty Ltd RTD Steeltest Pty Ltd OMV Australia Pty Ltd Total Marine Services CH4 Gas Limited Geoservices Overseas (SA) Macmahon Contractors Pty Ltd RUC Mining Contractors Onslow Salt Pty Ltd Total Marine Technology Pty Ltd Chevron Australia Pty Ltd Gippsland Ports Committee Maersk Contractors Australia Pty Ltd Saint - Gobain Ceramic Materials Pty Ltd Origin Energy Resources Limited TPW Pty Ltd Civmec Construction of Management Inc Magellan Petroleum Australia Limited Saipem (Portugal) Comercio Maritimo, and Engineering Pty Ltd OWI Group (Australia) Pty Ltd Lda Transfield Services Global Offshore Pty Ltd Mammoet Australia Pty Ltd Clough Limited Oxiana Limited Sally Malay Mining Limited Transfield Worley Global Technical Services Mancala Pty Ltd Cobar Management Pty Ltd Group Pty Ltd Ozoil Production Services Pty Ltd Sandvik Transocean Matrix Metals Limited Comalco Aluminium Limited Gold Fields Australia Pty Ltd P & O Maritime Services Pty Ltd Santos Limited Triako Resources Limited Maxfield Drilling Pty Ltd ConocoPhillips Australia Pty Ltd Griffin Coal Mining Pty Ltd Pacific Manning Company Pty Ltd Schlumberger Oilfield Australia Pty Ltd Troy Resources McConnell Dowell Constructors Pty Ltd Consolidated Rutile Ltd (CRL) Halliburton Australia Pty Ltd Pacific National Tasmania Seawest Marine TS Marine Pty Ltd McDermott Industries (Aust) Pty Ltd Coogee Energy Pty Ltd Harmony Gold (Australia) Pty Ltd Pac-Rim (QLD) Pty Ltd Setori Engineering Pty Ltd UME Australia Pty Ltd McFee Pty Ltd Co-operative Bulk Handling Limited Heathgate Resources Pty Ltd Parker Drilling Company SGS Australia Pty Ltd Unimin Pty Ltd Mermaid Marine Vessel Operations Peak Gold Mines Pty Ltd United KG Pty Ltd Copper Mines of Tasmania Pty Ltd Helicopter Resources Pty Ltd Pty Ltd Shell Development (Australia) Pty Ltd Pearlstreet Energy Services ETRS Universal Sodexho Pty Ltd Covus Corporation Pty Ltd Hillgrove Resources Limited MI & E Holdings Pty Ltd Sides Engineering Pty Ltd Perilya Limited Upstream Petroleum Pty Ltd Croesus Mining NL Hydro Aluminium Kurri Kurri Pty Ltd Millennium Inorganic Chemicals Ltd Silcar Perseverance Corporation Limited Van Dieman Mines Pty Ltd DA & DH Jones Pty Ltd Icon Engineering Pty Ltd Minara Resources Limited Skilled Group Limited PGS Australia Pty Ltd Van Oord Offshore BV DalMarine Pty Ltd Iluka Resources Limited Minerals Council of Australia Sonsub International Pty Ltd Piacentini & Son Pty Ltd Veritas DGC Australia Pty Ltd Darwin Offshore Logistics Base Pty Ltd Impact Fertilisers Pty Ltd Mitchell Australasia Pty Ltd Southern Cross Fertilisers Pilbara Iron Company Services Vetco Aibel Australia Pty Ltd Delco Australia Pty Ltd Imperial Snubbing Services Modec Inc Spinifex Projects Pty Ltd Pilbara Marine Port Services Wesfarmers LPG Pty Ltd Diamond Offshore General Company Inpex Browse Limited Monadelphous Engineering Associates Spotless Services Australia Limited Diamond Protection Pty Ltd Instrument Installation Services Pty Ltd Pioneer Road Services St Barbara Mines Limited WesternGeco (Aust) Pty Ltd Diversified Construction Intec Hellyer Metals Pty Ltd Monto Minerals Limited Port Waratah Coal Services Limited Stena Drilling Limited WesTrac Equipment Pty Ltd Corporation Pty Ltd International Association of Drilling Morris Corporation Pty Ltd Precision Drilling International Stevens Resources Pty Ltd William Adams (Australia) Pty Ltd Dominion Mining Limited Contractors - Australasian Chapter Mosaic Oil NL Stooke Consulting Group Pty Ltd Wilshaw Engineering Premium Casing Services Pty Ltd Downer Engineering Group Pty Ltd Intrepid Mines Limited Mosslake Pty Ltd Stornoway Contracting Division Woodside Energy Limited Pybar Mining & Civil Contractors Downing Teal Pty Ltd Jabiru Metals Limited Mount Gibson Mining Limited Straits Resources Limited Works Infrastructure QNI Pty Ltd Dyno Nobel Asia Pacific Ltd Jan De Nul N.V. MPI Mines Limited Sun Metals Corporation Pty Ltd Worsley Alumina Pty Ltd Quality Maintenance Services Pty Ltd Egis Australia Pty Ltd Jayrow Helicopters Pty Ltd Nabors Drilling International Limited TAD Technical Careers and Contracts Xstrata Coal Pty Ltd ENI Australia Limited JMB Industrial Services Pty Ltd Queensland Alumina Limited Pty Ltd Xstrata Copper R J Robbins & Associates Tamboritha Consultants Pty Ltd Zinifex Limited

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