Why pay rise for 2200 workers could be huge deal for mining sector

Unions are celebrating a landmark ruling for workers in three Queensland mines, which sets a legal precedent for same job, same pay laws. 

But industry bodies as far away as Western Australia are warning Monday's Fair Work Commission decision will put jobs at risk. 

The ruling relates to the Goonyella Riverside, Peak Downs, and Saraji mines owned by BHP in Central Queensland.

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It found thousands of workers were underpaid under the same job, same pay rules. 

The Mining and Energy Union, which brought the FWC action, said the decision would deliver about $30,000 more per year to more than 2200 labour-hire workers.

"These workers have been performing the same duties, under the same conditions, as directly employed workers but on significantly lower pay," the union said.

"This decision is the biggest win yet under same job, same pay laws. Importantly, it includes BHP Operations Services, confirming that the in-house labour hire model has been used to undercut permanent wages."

It would cost the mining giant an extra $66 million a year. 

"This is a drop in BHP's ocean, but it means the world to workers," Unions WA secretary Rikki Hendon said.

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BHP previously claimed the same job, same pay rules would cost an extra $1.3 billion annually if applied to every site.

A similar case was launched last week by WA's Electrical Trades Union, claiming contract workers at Chevron's Barrow Island facility are being short paid. 

The WA Chamber of Commerce and Industry fears without intervention these laws could damage Western Australia's global reputation. 

"It will impact WA more than any other state in the country," acting co-CEO Aaron Morey said.

Federal Resources Minister Madeline King celebrated the decision.

"The policy of this government is the law of the land and the Fair Work Commission has backed it in," she said.

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