PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) on Friday came out in defense of employment in the resources sector, stating that the suggestion that Australian mining workers were underpaid or precariously employed is refuted by the facts.

“Australian Bureau of Statistics data show that the mining industry employs 256 000 highly skilled workers across Australia and pays higher wages than any other industry.

“Median weekly earnings for mining workers were A$2 325 in 2020, double the median for all industries of A$1 150,” said MCA CEO Tania Constable.

She noted that approximately 84% of mining workers are permanently employed, whether by minerals producers or by service contractors who typically have enterprise agreements.

In contrast, 78% of workers across all industries are permanently employed.

Casual employees in mining had median weekly earnings of A$2 109 in 2020, which was 42% higher than the median for full-time permanent employees across all industries, who earned A$1 486.

“The gap in median weekly pay between permanent and casual employees is smaller in mining, at around 12%, than in all other industries, at 108%,” Constable added.

According to a survey of MCA members by advisory firm Deloitte Access Economics, labour hire workers account for 11% of the minerals workforce and 14% of the coal operations workforce.

“Labour hire workers deliver operational flexibility, which is crucial for mining because it experiences larger swings in production and revenue than other major industries,” Constable said.

Labour hire helps mining companies to seize expansion opportunities presented by temporary increases in commodity prices, supplement core skills such as maintenance, engineering and high-quality rehabilitation, and provide a career entry path to new workers.

“Applying a ‘same job, same pay’ policy would have adverse unintended consequences,” said Constable.

She pointed out that Deloitte Access Economics has estimated that if mining companies were required to grant labour hire workers and service contractors the same pay and conditions as direct employees, labour efficiency and future investment would decrease.

As a result, employment in coal mining would decline by approximately 2 300 full-time-equivalent jobs a year to 2031, while employment in minerals and other mining would fall by 4 900 jobs a year, and employment in mining-related construction would contract by 4 000 jobs a year.