For many years I have been pointing out the exploitation of casual workers who are paid less than workers doing the same job next to them. Despite Labor’s promises, they have failed to do anything to fix this problem.
My Equal Pay for Equal Work Bill prevents the exploitation of workers through the use of casual labour hire contracts in 7 industries where the award mandates full time employment, including the Black Coal Industry.
My bill targets large labour hire companies who are using enterprise agreements to allow mine owners to move full time employees over to casual employment, on rates of pay that are up to 40% less than the directly-employed mine employee working next to them.
Half of the workers in the Black Coal industry are now employed on these contracts.
The ALP have been promising to fix this problem since 2018 and have done nothing. This may be because the CMFEU has signed off on these enterprise agreements in return for union dues, superannuation contributions and a fee from the Mining Companies for each contract adopted.
Nationals Senator Perin Davey spoke against my bill today because in her words, the wording of the bill may allow the Minister to extend the provisions to agriculture.
The Nationals are giving half the picture. Any extension requires the consent of the Parliament by way of a Disallowable Instrument. If the Minister has the numbers for an instrument to pass, this would also mean the Minister has the numbers to amend the Fair Work Act 2009 on their own accord.
The Fair Work Amendment (Equal Pay for Equal Pay) Bill 2022 will not impact on rural or small businesses.
In opposing my bill the Nationals are using a dishonest argument to align themselves with labour hire companies against the interests of coal miners and coal mining communities.
With State elections coming up in NSW and Queensland, it is clear a vote for the Nationals, Liberals or the ALP is a vote for corporate interests over coal mining communities.
One Nation is proud to stand for coal miners, and with the workers affected by labour hire exploitation including airline air and ground crew.
Labor has also indicated they will not support the bill. So much for the party of the workers.
Transcript
As a servant to the people of Queensland and Australia, my Fair Work Amendment (Equal Pay for Equal Work) Bill 2022 was drafted in response to exploitation of casual coalminers in central Queensland and the Hunter Valley. It’s since been widened. My bill was referred to the Education and Employment Legislation Committee for inquiry, and I thank the committee for organising a public hearing so miners could testify about their exploitation personally. The committee found there was a need for my bell yet then recommended waiting for the government’s version. Labor announced its hollow ‘fair work for fair pay’ idea back in 2018, four years ago. Labor and the unions campaigned on their bill in the 2019 state election in New South Wales and the 2019 federal election.
The problem is that Labor’s bill did not exist. I confirmed that and began drafting my bill in April 2021. Labor’s bill was not introduced into parliament until December 2021, a month after my bill was completed and three years after Labor first promised it. If the Labor Party were serious about fixing this issue, their bill would have appeared in 2018, not four years later after One Nation repeatedly called them out.
Labor’s bill was a dog’s breakfast, so the government has chosen to start over. Now, I accept the government saying it’s just started meeting with stakeholders, yet a briefing with the minister’s advisers last week revealed that consultation has only been with the companies and union bosses that perpetrated this scandal. The miners, air crew, ground crew and other workers ripped off for tens of millions in wages have not yet been consulted after six months, which of course means the Labor Party, the CFMMEU and the industry are trying to find a way to keep these labour-hire contracts going. I’ll explain why in a minute. And so I’m advancing my bill, preparing for a vote early next year. I thank Senator Babet for allowing me to use his bills time today.
Early in my career, I spent three years in the union as an underground coalface miner, including in the Hunter and Queensland. My father was an underground coalface miner, senior executive and later Queensland Chief Inspector of Coal Mines. He was awarded an Order of Australia for eliminating black lung in our state’s coal industry. Having completed an honours degree in engineering, I returned to manage coalmines, which involved daily interaction with the CFMEU in the Hunter and in Queensland. This issue is very personal to me because the CFMEU and its predecessor, the Miners Federation, were once strong unions that looked after and served their members. The reports I received in my Senate office in 2019 from Queensland and the Hunter have shocked me. After visiting these areas repeatedly and listening to miners, I was no longer shocked. I am outraged at the injustice.
The big picture is this. Labour hire companies were employing casuals in black coal industry production despite the award not allowing it. It was illegal. Exclusion of casuals extends beyond the black coal industry. It includes airline flight crew and other awards, which I will speak to in a moment. Back to the black coal award. Casuals are excluded for a good reason. Coal mining can be dangerous. It requires training and constant skilling to improve productivity and, most importantly, for safety—safety of an individual miner and safety of the whole mine and everyone in it.
Underground miners typically retire ahead of most other industries, when they can no longer do the physical work. That’s why proper unions like the old Miners’ Federation negotiated high rates of pay. The modern award is much lower than negotiated rates because it assumes miners can be reskilled and redeployed into other industries after they exit from mining, allowing for a full working life. That’s a fairytale. That simply ignores the reality of life in the coal industry. Labour hire contracts are used to cut miners’ wages. This represents a 40 per cent cut in wages against the pay a permanent miner earns in a mine’s direct employ, doing the same job, side by side. Two Australians working side by side doing the same job on the same shift, and one is getting 40 per cent less than the other. That is wrong.
This has been going on for ten years under the Hunter CFMEU, working with some mining companies and with protection from the local Labor members, Joel Fitzgibbon and now Dan Repacholi. Casual coal workers on labour hire contracts supposedly receive a loading for loss of holiday and sick pay; yet their pay packets are still 40 per cent less. What caused this large reduction in pay was not the absence of loading, because that was supposedly paid. It was the very low base rate that the CFMEU installed.
In 2021 One Nation supported the concept of not enabling workers paid for casual loading because that was paid. What we did was to ensure that workers retained their rights under industrial laws to take legal action for illegal pay rates. Yet the CFMEU then lied, shouting that One Nation stopped workers from getting what was theirs. No, we upheld miners’ rights to pay and entitlements while at the same time protecting small business from being forced to pay casual loading twice, as some union bosses dishonestly demanded. It was the union that signed up on these enterprise agreements that robbed workers of 40 per cent of their pay. The Hunter CFMEU pocketed union dues from labour hire casuals and money from labour hire employers for dodgy enterprise agreements with low pay rates. It was the Hunter CFMEU that jointly directed coal long-service leave funds that under-accrued and avoided paying employer contributions to labour hire casuals. I exposed that, and a government review later confirmed me as correct. It was originally a Hunter CFMEU owned labour hire company that collected fees from the mines for supplying labour under a labour hire contract. The CFMEU is clearly directing labour to protect their nice little earner, even at the expense of the workers that the Hunter CFMEU supposedly pretends to represent, while hypocritically and deceitfully speaking badly of casual employment and workers.
The committee report accurately describes the effects on communities of the reduction in local spending due to taking wages out of the community. I was lucky enough to find a lawyer who drew these agreements up on behalf of Hunter labour hire companies and who has since seen the error of his ways. His advice informed my bill. Many exploited workers contributed to my bill. I have the most knowledgeable legal minds on labour hire contracts in the coal industry contributing to my bill, and I have generations of personal experience in the coal industry. What confuses my critics is that I’m not lining the IR club pockets with overly complex wishy-washy nonsense that opens more loopholes than it closes, as Labor’s short-lived dog’s breakfast did.
My bill will fix this mess. My bill sets an additional provision for Fair Work Australia to require an enterprise agreement to pass before being approved. It allows an employee to appeal an existing enterprise agreement to Fair Work if an enterprise agreement breaches this new provision. The provision is simple: a worker on a labour hire contract must be paid the same rate of pay, including allowances, as a worker who is directly employed doing the same job on the same shift roster. That is clear. If the whole crew is labour hire, then the commissioner must make a judgement on what the rate of pay should have been based on historical information and a comparison with similar mines in similar conditions. That is clear. The cost of using labour hire contractors will now fall on the employer rather than the worker. The intention is to require the employer to project their labour requirements, employ, train and nurture their people—like employers used to.
One complication is that some workers are on day shift and others on rotating shift. My bill takes that into consideration. Clause 3(b) of the bill expressly provides that the roster the employee is working must be considered in the assessment of equal pay for equal work. The committee report correctly identifies when labour hire contracts subvert the black coal mining industry award 2010 and the aircraft cabin crew award 2020. I’ve circulated an amendment to this bill to include the airline operations ground staff award 2020 which makes provisions for casuals that foreign companies bypass to exploit workers through labour hire contracts. I know Senator Sheldon is leading a fight against that exploitation. My bill will give him the ammunition to drag the whole situation back to Fair Work. I urge Senator Sheldon and Labor to adopt it.
My bill’s simplicity will prevent lawyers feasting because it allows Fair Work commissioners discretion to make value judgements. I reckon they’re up to it. The remaining awards are excluded in the Fair Work Amendment (Equal Pay for Equal Work) Bill 2022 as a line in the sand. While labour hire agreements are not being abused in these industries, explicitly including those awards in this legislation was designed to ensure labour hire firms do not treat these awards as a new profit centre once the opportunity for exploitation is removed from coalmining and aircraft operations.
Witnesses who discussed their treatment under labour hire contracts were pleased to have the opportunity to publicly testify, and I thank the committee. These workers were not always afforded that opportunity. Stuart Bonds, from the Hunter, listed case after case after case where miners have been employed under labour hire agreements with a 40 per cent reduction in pay rate. More troubling were the stories of exploitation and victimisation these workers received, especially following a safety report or physical harm.
Simon Turner testified to the committee on his inhumane experiences as an injured worker. He’s one of many, sadly. Workers like Simon tried for years to get justice. The mine owner and the labour hire company completely ignored him—tossed him on the scrap heap. The Hunter CFMMEU betrayed workers. Local Labor MPs let them down. Only when workers came to One Nation was progress made.
Another worker on a labour hire contract saw a safety issue—water trucks laying down too much water, creating slippery conditions—and reported it. This worker was required to report that safety issue. Her contract was terminated the next week. There’s no job security in labour hire contract arrangements. Workers injured at work were refused medical treatment and not paid workers compensation or accident pay as legally required. Workers were afraid of reporting safety issues for fear of being sacked.
Workers were rostered two years in advance to work 52 weeks of the year straight—no holidays. If you’re working a full-time 12-hour shift and being given these shifts two years ahead then you’re not casual. You are a permanent worker. Despite being, in effect, permanent these workers are unable to get home loans, car loans and provide a future for themselves and their families because banks won’t lend to casual labour hire employees. When I say exploitation I mean exploitation!
All this happened with the Hunter CFMMEU doing deals enabling mining companies more interested in profits than basic human decency. Labour hire deals and contracts are used to lower wages across an entire industry. Qantas pulled this stunt on their ground crew. They fired thousands of workers and re-employed them through labour hire companies at the lowest rate of pay. What’s a worker to do? Refuse the deal and have no job or take the deal and try to get by on 40 per cent less? Qantas are using these tricks on flight crew and pilots as well. Senator Sheldon can speak to this, so I won’t. Correct loading on a plane is vital to flight safety and people on the ground.
In my meeting with Qantas, their executives defended their behaviour as being ‘necessary to maintain viability’. Qantas have run their staff into the ground, cut staff pay to the bone, moved staff from full-time secure jobs to casual junk jobs, worked staff on shifts with not enough time to recover, provided insufficient training and supervision—and now things are going wrong. What a surprise! And they belted loyal, long-serving employees with COVID injection mandates. One Nation’s Fair Work Amendment (Equal Pay for Equal Work) Bill 2022 remains the only legislation before parliament designed to correct this unfair and dishonest corporate behaviour. It should have been in the government’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, but it’s not. Yet it’s not too late. Here it is.
I’ll now discuss the specific topics in the committee report. Firstly, the bill does not act widely enough. My bill allows the minister to add more than the seven awards this bill currently covers by using a disallowable instrument where exploitation occurs. It allows the minister to remove that listing should an industry stop exploiting. This is surely best practice? Only act where there’s a problem, and only for as long as the problem exists. Adding 700-plus awards ‘just in case’ will needlessly add to the cost and complexity of our industrial relations system.
Secondly, definitions of key concepts. The definitions enabled every submitter to correctly understand my bill’s intent, yet some of them went on to say the definitions were incomplete after correctly identifying the meaning of the words used. The wording was chosen carefully because once a term is given a specific meaning, that meaning is considered the term’s full meaning. Cunning lawyers use detailed definitions to limit a term’s application. This allows for deficiencies in definitions to be exploited as loopholes. I will not play the industrial relations club’s game. It’s up to the Fair Work Commissioner to decide if a labour hire agreement falls under this bill’s provisions. Should the Fair Work Commission fail to honour this legislation’s intent, then and only then should we wander into the legal minefield of definitions that become exclusionary rather than inclusionary. It’s time to start using clear language expressing clear principles and rely on the Fair work Commissioner to exercise their wisdom and knowledge and to follow these principles in their judgements.
My bill’s intention and action: my bill provides a provision to existing provisions that enterprise agreements must pass to meet the Fair Work Commission’s approval. This test is in section 321 of the Fair Work Act 2009 to show this equal pay for equal work provision is separate and additional to the better off overall test—the BOOT test. Section 321 is exactly where this provision belongs.
In conclusion, the supposed downside that some vested interests attribute in broad terms comes from the same entities who turned industrial relations into a club for their own profit and power at the workers’ expense. These entities do very well from complexity. Workers pay the price in so many ways. This must stop. If the government is serious about equal pay for equal work, get on with it. I thank senators contributing to this debate and look forward to bringing the bill to a vote at the next opportunity.
