Resources association says forced multi-employer bargaining ‘a threat to the economy’

AUSTRALIAN Resources and Energy Employer Association deputy CEO, Tara Diamond has issued a warning about multi-employer bargaining being ‘foisted’ on the resources sector.

She said the practice could destabilise parts of the highly competitive resources and energy industries.

“It is very concerning for Australia’s mining industry that three sites run by completely independent companies and with unique commercial and operating requirements, are being compelled to bargain together for a multi-employer agreement,” Ms Diamond said.

“Multi-employer bargaining has no place in complex businesses like mining where employment is highly paid and there are substantial international competitive pressures. 

“Enterprise-level bargaining, where employers and employees negotiate workplace-specific outcomes, has been the cornerstone of Australian industrial relations since the mid-1990s. This system has underpinned key Australian industries, like mining, becoming productive and competitive against global benchmarks.

“Forcing independent businesses to bargain together for common sets of employment arrangements is a retrograde step. It can only result in lower productivity, lower wages and more inflexibility, compared to the enterprise-specific outcomes that have been negotiated over the past 30 years.

“Multi-employer bargaining must be confined to lower-paid and primarily government-funded sectors where the same competitive pressures and workplace complexities don’t exist.

This is why AREEA campaigned very hard against the Albanese Government’s introduction of multi-employer bargaining into the private sector.

The highly controversial proposal came out of left field in late 2022. It wasn’t part of the ALP’s industrial relations policies it took to the federal election and there was no business case supporting it, outside of ambitions to re-unionise certain industries.
Ironically, then-Minister for Workplace Relations Tony Burke played down the legitimate concerns of the mining industry by stating the sector would not be “significantly impacted”.

The industry didn’t buy that at the time. AREEA’s concerns are now coming to fruition – the most important industry to the national revenues that fund our schools, roads, hospitals and other infrastructure, is clearly in the crosshairs.

For the sake of the economy, Australians should hope this particular outcome is isolated and doesn’t fuel momentum for additional multi-employer bargaining authorisations in the resources and energy industry.

www.areea.com.au

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