2016 Activities Report

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2016 REPORT ACTIVITIES


ABOUT US AMMA is Australia’s resource industry employer group, a unified voice driving valuable workforce outcomes. Since 1918, AMMA has delivered superior workforce services to Australia’s resource industry.

AMMA OFFICES ABN 32 004 078 237

MELBOURNE (HEAD OFFICE) Level 14, 55 Collins Street MELBOURNE VIC 3000 Tel: (03) 9614 4777 vicamma@amma.org.au

As a member-based organisation, our work in policy and advocacy directly shapes the environment in which we all participate, making it an attractive place for employment and investment now and into the future.

BRISBANE Level 6, 232 Adelaide Street BRISBANE QLD 4000 Tel: (07) 3210 0313 qldamma@amma.org.au

By utilising our services, AMMA members are better equipped to face the challenges ahead.

PERTH Level 7, 12 St George’s Terrace PERTH WA 6000 Tel: (08) 6218 0700 waamma@amma.org.au

Be it an issue with human resources, workplace relations, public affairs, training, policy or even accessing a wider network of resource industry professionals and leaders, membership with AMMA provides the support resource employers need.

HOBART Level 3, 85 Macquarie Street HOBART TAS 7001 Tel: (03) 6270 2256 tasamma@amma.org.au membership@amma.org.au 1800 627 771


AMMA BOARD

CONTENTS

AMMA PRESIDENT

ABOUT AMMA.............................................................. 01

GRAEME HUNT Managing Director and Chief Executive Officer Broadspectrum

AMMA BOARD.............................................................. 02 PRESIDENT’S NOTE........................................................ 03 CHIEF EXECUTIVE’S REPORT.......................................... 05

DIRECTORS RICHARD OWEN Chairman ExxonMobil Australia RICHARD WESTON Executive Vice-President Australasia Region, Gold Fields JOHNPAUL DIMECH CEO Mining Worldwide Sodexo MICHAEL UTSLER Chief Operating Officer Woodside Energy

DRIVING WORKPLACE RELATIONS OUTCOMES.......... 07 WORKPLACE AND LEGAL CONSULTING OUTLOOK FOR WORKPLACE CONSULTING WORKPLACE POLICY AND ADVOCACY WORKPLACE POLICY: 2017 AND BEYOND

SUPPORTING INDUSTRY & WORKFORCE DEVELOPMENT.............................................................. 21 INDUSTRY DEVELOPMENT AND ADVOCACY WORKPLACE DIVERSITY SKILLED MIGRATION ADVICE AND REPRESENTATION OUTLOOK FOR WORKFORCE DEVELOPMENT

FACILITATING INDUSTRY ENGAGEMENT..................... 29 DEMONSTRATING MEMBERSHIP VALUE 2016 AMMA NATIONAL CONFERENCE

KAYE BUTLER General Manager, Human Resources Chevron

EFFECTIVE COMMUNICATIONS MEDIA AND PUBLIC AFFAIRS

CORPORATE PARTNERS................................................ 41


PRESIDENT’S NOTE In an increasingly uncertain and volatile world, Australia’s resource industry success remains critical to our nation’s economic resilience. There is no doubt that Australia’s resource employers head into 2017 facing ongoing challenges, adversity and change. However, in such an environment, it is worth considering a few plain truths about the diversity of the resource industry and its continued contribution to our national prosperity. Firstly, our industry continues to do a great deal of heavy lifting for our economy thanks to the rewards we are now reaping following decades of investment and major project construction. Mining has the highest contribution of any sector to our overall Gross Domestic Product (GDP) at $118 billion, while Australia’s total resource exports are about $172bn and are forecast to grow to $232bn by 2021. The resource industry also contributes more tax to the Australian community than any other industry – over $12bn per annum. This revenue is building the schools, hospitals and infrastructure that keep our communities thriving. The resource industry also continues to be a major driver of jobs. Despite the recent contraction due to a shift from labour-intensive construction to long-term production, our resource industry is still directly and indirectly responsible for more than 600,000 well-paid jobs in Australia. Such jobs are also diversifying and evolving at a rapid pace. Australia’s $90bn mining equipment, technology and services sector is leading the world in innovation and new technologies, and driving a ‘new breed of miner’ with advanced high-tech skills. Therefore, even within a diversifying economy, the resource industry will remain a core pillar of Australia’s economic and social development for decades to come. Notwithstanding this, turbulent market conditions are not going away. Resource employers of all shapes and sizes must continue to be up for the challenge and adjust to a new environment in which finding more productive and competitive ways to operate is a constant priority. It is in such conditions that the future of our industry is being shaped through better management, leadership and innovation. The role of AMMA, as Australia’s national resource industry employer group, is essential to this process. Also essential to this task is the support of AMMA’s members in ensuring sufficient ‘break-even’ funding

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

facilitates AMMA to undertake the industry’s advocacy with appropriately resourced organisational structures and personnel. This membership support has been and will continue to be critical to AMMA’s ongoing effectiveness, including providing enhanced advocacy and workplace relations advisory services. As demonstrated within this Activities Report, during 2016 AMMA has continued to assist employers with overcoming challenges and capturing fresh opportunities to be more effective, more productive and more innovative across all their people functions – from workplace relations management to human resources strategy and skills development. It is through the ingenuity of the people within our industry, supported by AMMA, that our sector will form the bedrock of the next evolution in Australia’s economic and social development, just as it has in years gone by.

Graeme Hunt AMMA President, Managing Director and CEO Broadspectrum


AMMA INDUSTRY SNAPSHOT PIPELINE OF GROWTH IN OUR INDUSTRY

223

MEDIAN ANNUAL BASE WAGE

resources & energy related projects in the pipeline with an estimated value of around $500.7+ BILLION

Oil & Gas Extraction

$146,851

Coal Mining

projects worth around $254.9 BILLION currently in the publicly announced or feasibility stage

180

$149,197

Total Mining

resource projects either committed or under construction with an estimated value of $245.8 BILLION

43

$208,718

Metal Ore Mining

$150,442

THESE PROJECTS BROKEN DOWN BY COMMODITY: $135,507

Exploration

2 x Aluminium, Bauxite, Alumina 7 x Lead, Zinc, Silver

Other NonMetallic Minerals and Quarrying

56 x Coal

$81,272

29 x LNG, Gas, Oil Source: ABS Cat 8415 and AMMA Analysis

10 x Copper 22 x Gold 7 x Uranium

EMPLOYED IN OUR INDUSTRY

22 x Infrastructure 9 x Nickel

223.3k

21 x Iron ore 39 x Other Commodities Source: Office of Chief Economist, Resources and Energy Major Projects list. Oct 15

SUB-INDUSTRY

Exploration and Other Mining Support Services

9.0 47.5

56.5k

Non-Metallic Mineral Mining and Quarrying

1.1

4.3 Oil and Gas Extraction

57.3

18.0

22.3k 7.2

53.6k

VALUES OF AUSTRALIA’S RESOURCE AND ENERGY EXPORTS

9.4k

67.3k

Coal Mining

Source: ABS Cat. 6291. Table 06. Aug 2016 *Not including construction and allied industries

8.3

10.0 Metal Ore Mining

People directly employed*

46.4

2.0 Mining not further defined

13.4k

11.4

2014-15

2015-16

2020-21

$172bn

$158.2bn

$232.1bn

projection

forecast

Source: Office of the Chief Economist; Resources and energy quarterly, March & June 2016


CHIEF EXECUTIVE’S REPORT As Australia’s resource employers tirelessly pursue productivity and competitiveness improvements, AMMA remains a passionate advocate on workplace policy, a leading provider of workplace advice, and a driver of key workforce development initiatives for resource industry employers. By 2016, Australia’s resource employees had long accepted that ongoing cost and productivity pressures, suppressed commodity prices and drastically reduced capital being invested into our industry typified the ‘new normal’. Their attention instead has firmly been on identifying new ways of overcoming such challenges and capturing fresh opportunities to be more effective, more productive and to use capital, assets and people resources more efficiently.

member feedback and targeted at addressing your dissatisfaction with the status quo. Building on our KPMG research project and heavy involvement in the Productivity Commission’s review of the prior year, in 2016 AMMA has further engaged with members on your policy needs through various surveys, forums, events and briefings.

This is where membership of AMMA remains an invaluable asset.

In our 2016 Federal Election Survey, you overwhelmingly told us that Australia’s workplace relations overregulation is failing to keep pace with the requirements of modern, mobile and globalised product and labour markets.

Joining our members’ appetite for renewal, AMMA has critically assessed how we operate and what we offer to support our members in a rapidly changing commercial environment.

This led directly to the priorities of AMMA’s ‘5 Reforms over 5 Years’ workplace relations campaign and other advocacy projects for regulatory reform, which you can read all about within this Activities Report.

The result has been a clear and refreshed membership value proposition that ensures AMMA’s continued relevance and success amid a constrained expenditure environment.

2016 has also shown that AMMA’s ability to deliver on the industry’s future workforce needs extends well beyond workplace relations, with continued involvement in skills development projects ranging from government panels for VET reform to gender diversity support programs and the promotion of resource careers to schoolchildren.

With greater attention to bespoke membership packages we have better recognised and assisted the individual needs of businesses, whether they be supporting transformational change in workplace arrangements and cost structures, government relations and policy development, skills and resourcing priorities and an array of other ‘people-related’ matters. In our primary service offering of workplace and legal consulting, AMMA’s national team has not only supported, but driven industry transition from excessive labour conditions experienced in past years to a more balanced approach to commercial pressures and labour costs. Our expert consultants have helped members find new efficiencies, set up sustainable labour arrangements and driven competitive advantage through a ‘wholeof-business’ approach. We are also driving innovation in the application of the Fair Work legislation to ensure employers are not constrained by traditional approaches as you seek to reduce labour-related costs and lift productivity. This has important synergy with AMMA’s ongoing advocacy for fundamental reform of Australia’s workplace relations system – advocacy driven by

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

As in our entire 98 year history, 2016 saw all of AMMA’s projects, activities and initiatives be guided by the industry’s priorities to do business, employ people and contribute to Australia’s national wellbeing. I thank each and every AMMA member for your ongoing support and participation in Australia’s resource industry employer group. It is clear through the elevated engagement of our members with all avenues of AMMA’s services, support and representation, that leadership and collaboration within our industry has never been stronger.

Steve Knott AMMA Chief Executive


AMMA - AUSTRALIA’S RESOURCE INDUSTRY EMPLOYER GROUP

ADVOCACY SERVICES: UNFAIR DISMISSAL & GENERAL PROTECTION CLAIMS

REDUNDANCY & RESTRUCTURING

STRATEGIC WORKPLACE RELATIONS MANAGEMENT PLANS & RISK ASSESSMENTS

AMMA CONSULTING SERVICES BUSINESS BENEFITS

CERTAINTY BEST PRACTICE AWARENESS

UNION RIGHT OF ENTRY

RISK MITIGATION

YOUR BUSINESS PROFITABILITY

CONNECTIONS & NETWORKS

PERFORMANCE MANAGEMENT & TERMINATION OF EMPLOYMENT

ENTERPRISE BARGAINING AGREEMENTS & COMMON LAW CONTRACTS

TRUE BUSINESS PARTNERSHIP

DISCRIMINATION ISSUES & CLAIMS INCLUDING BULLYING & SEXUAL HARASSMENT

PROJECT SPECIFIC IR STRATEGY & ADVICE

HIGH VALUE SERVICES

SUPPORT FOR GENERAL ADVICE: YOUR TEAM AWARDS, AGREEMENTS, WAGE RATES, ETC INDUSTRY EXPERTISE STRATEGIC HUMAN RESOURCES ADVICE WORKPLACE INVESTIGATIONS

WITH MEMBERS IN EVERY SECTOR OF THE RESOURCE INDUSTRY

MINING

CONSTRUCTION

SERVICES

MARINE

MAINTENANCE

LOGISTICS

VESSEL OPERATOR

TRANSPORT

SAFETY

FABRICATION EXPLORATION ENGINEERING

REFINING

PIPELINE

OIL & GAS

ENERGY

DRILLING

DREDGING

ACTIVITIES REPORT 2016

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DRIVING WORKPLACE RELATIONS OUTCOMES Faced with ongoing cost pressures and market uncertainty, AMMA members are stepping up to the challenge of finding new ways to operate with lower costs and greater flexibility. Having workplace relations arrangements that are fit-for-purpose in navigating their market and workplace challenges is critical to this success. Through our unique combination of direct strategic and practical support provided by our expert workplace consultants, and the influence and representation delivered by our workplace policy specialists, AMMA is the resource industry’s most valued partner in driving effective workplace relations outcomes.

WORKPLACE AND LEGAL CONSULTING The past 12 months has seen AMMA members remain under continued pressure to reduce operating costs while also contending with various external factors impacting their businesses, including market volatility, commodity price fluctuations, reduced investment and political uncertainty. With a major focus on reviewing labour costs against market realities and addressing unsustainable workplace relations arrangements, AMMA has proven time and time again that we are best placed to assist members to achieve desired workplace relations and human resources outcomes. This is reflected in increased across-the-board demand for AMMA’s workplace and legal consulting services, as our team of experienced workplace relations professionals provide valued guidance and support on various matters relating to managing employment risk and labour costs.

Areas in which AMMA has guided effective organisational decision making in 2016 include: •

Working closely with members to design and implement productivity initiatives and cost efficient conditions of employment through innovative and creative industrial strategy.

Assisting members to strategically analyse variable operating costs relating to labour, and forming strategies to achieve savings and efficiencies.

Delivering innovative measures for negotiating enterprise agreements and setting new industry benchmarks through enterprise agreement outcomes.

Short and long term strategic planning options based on industry, union, political, economic, client and contractor trends.

Setting up effective and productive workplace relations practices for resource sector projects, both in construction and production phase.

Through considered analysis of current employment conditions, renegotiation and variation of enterprise agreements, and increased assistance on day-to-day practical IR/HR matters, AMMA has supported our members to achieve their long-term employment and commercial objectives.

AMMA | RESOURCE INDUSTRY EMPLOYER GROUP


A NATIONAL SUPPORT NETWORK AMMA’s growing national footprint has seen members take advantage of local knowledge and experience in all key resource markets of Australia – from the Pilbara and the North West Shelf to Queensland’s Surat and Bowen Basins, the Bass Strait and Hunter Valley. In Western Australia, AMMA remains the mainstay of support for all major hydrocarbons projects including in setting up human resources policies and procedures, undertaking market analysis and remuneration benchmarking, and facilitating engagement and collaboration among industry groups. Strategic workplace relations advice has been delivered on the engineering, procurement and construction of those final projects to reach commissioning stage, including advice on the EPC, hook-up and pre-commissioning for floating LNG. AMMA has also strengthened its engagement and service delivery in key regional areas of the industry on the East Coast with a growing presence in Gladstone, Toowoomba, Townsville, Newcastle, Dubbo and Bendigo. Capacity has been bolstered in AMMA’s Brisbane office to cater for increased demand in coal, metalliferous and coal seam gas sector support in Queensland and New South Wales, while Victoria is seeing increased demand for downstream hydrocarbons projects. AMMA is also increasing its support service to national ports and stevedoring operations, and we continue to lead industry enterprise agreement negotiations for offshore vessel operators in a highly competitive and rapidly evolving environment. In addition, our growing ties with international investors, project owners and contractors is seeing general promotion of Australia’s resource industry as well as advice provided on its operational and regulatory environments.

IMAGE COURTESY OF RIO TINTO

ACTIVITIES REPORT 2016 OF CLOUGH IMAGE COURTESY 8


DRIVING WORKPLACE RELATIONS OUTCOMES

CONTINUED

DRIVING BUSINESS CHANGE AND SUSTAINABILITY

LEADING ENTERPRISE BARGAINING OUTCOMES

Resource employers continue to explore all avenues of Australia’s complex workplace relations system to set up sustainable labour practices and cost structures that support the long term viability of their businesses.

Enterprise bargaining remains a significant feature of the Australian workplace relations framework impacting how AMMA members are responding to the changing market. This is driving demand for AMMA’s expertise as employers seek to innovate and achieve valuable bargaining outcomes.

AMMA’s consultants have been vital to driving industry change within this challenging environment. At a collaborative industry level, we have facilitated a vehicle for groups of members with similar interests and expertise to collectively shape their industrial environments and achieve a more balanced approach to managing labour costs and wider commercial pressures. Working individually with member companies, AMMA’s consultants have partnered with employers to deliver sustainable long-term employment practices that recognise market and commercial realities. Members have also benefited from AMMA’s advice on direct employee engagement to effectively communicate change and maintain integrity within the employment relationship. As the industry focuses on significant cost reductions and increased productivity and flexibility, AMMA’s services and outcomes have included:

AMMA has greatly assisted by providing support and expertise in the following areas: •

Variation, termination and replacement of enterprise agreements in a down-cycle market.

Strategic planning and execution of bargaining strategies for new and replacement enterprise agreements, and ensuring these strategies align with overall business strategies.

Guiding enterprise bargaining processes and procedures from inception and planning through to lodgement and approval.

Representing members in the Fair Work Commission and managing litigation around enterprise bargaining matters.

Effectively managing threats of protected industrial action.

Facilitating discussions between company representatives and employee representatives.

Testing the new greenfields bargaining provisions with the first greenfields negotiations under the new system. Developing best practice drug and alcohol management.

Recalibrating salaries and conditions to align to current industry trends.

Design and implementation of industrial strategies for major resource project operations.

Developing employee relations management plans for bidding contractors.

Reviewing and developing employment contracts and human resources policies for both operators and contractors.

Facilitation of outcomes for industry groups, including the offshore vessel operator agreement negotiations and the development of industrial, legal and operational strategies for other key support sectors.

In addition, AMMA is increasingly providing advice and support on employee communications, particularly where employers are seeking to break conventions with multi-coverage agreements and/or make enterprise agreements directly with their workforces with no third party involvement.

In the mining sector, shaping client and contractor enterprise bargaining strategies to move to modern enterprise agreements which seek to maximise employer flexibility.

Driving the emergence of innovative employment and contracting arrangements such as maritime partnerships.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP


SUPPORTING YOUR PRACTICAL WORKPLACE NEEDS The work AMMA does in industry wide consultation and engagement, and in strategic enterprise bargaining outcomes, is complemented and bolstered by growing demand for support on practical, workplace level HR and IR matters. A large factor driving such demand is the continued rightsizing / downsizing of member companies which has often seen AMMA fill a void in internal capability. In this environment we are witnessing increased litigation, employee grievances and complaints across all sectors, particularly as unions seek to use dispute settlement procedures to stymie redundancies being effected or lodge claims hoping to achieve ‘go away money’. As such, AMMA has been providing advice and representation to defend termination of employment claims, such as unfair dismissal and general protections. Other areas where AMMA has provided advice and support for practical IR/HR matters include: •

Achieving cost reductions through contracting arrangements or utilising associated employing entities.

Performance management in general and specific circumstances.

Managing third party influence on and off site.

Interpretation and advice on employment instruments.

Managing workplace relations for turnarounds and shutdown projects.

Auditing of human resources and workplace relations systems, policies and practices.

Provision of secondment services to members for short-term placement of human resources and employee relations positions.

Transfer of business applications.

AMMA is also observing increased activity around resource employers seeking to insource and/or outsource operational functions undertaken on their respective sites. This has triggered high demand for AMMA’s expertise in navigating the complex and overly-rigid transfer of business provisions under the Fair Work Act.

IMAGE COURTESY OF ORICA ACTIVITIES REPORT 2016


DRIVING WORKPLACE RELATIONS OUTCOMES

CONTINUED

INDUSTRY LITIGATION OUTCOMES In 2016 AMMA has further developed its reputation for pursuing test cases in employment law and workplace relations that may set precedents and have significant implications for doing business in Australia’s resource industry. Significantly, AMMA intervened in the Thiess Kentz case to support INPEX and its broader contractor workforce, as well as Queensland contractors with identical agreements, in a matter relating to managing the transition of casuals at the end of FIFO contracts. Ultimately, a Full Bench of the Fair Work Commission clarified that FIFO workers are not entitled to extra pay when a period of rest and recreation (R&R) coincides with their demobilisation notice period. AMMA also led an important case on behalf of several members in the offshore oil and gas sector testing the application of Section 413 of the Fair Work Act, which relates to the taking of protected industrial action. The ruling indicates that unions do not have to comply with bargaining orders of the Fair Work Commission in order to organise protected strike action (under appeal to High Court of Australia at time of print). In addition to managing the practical impacts the outcome of this case is adding weight to AMMA’s advocacy for policy reform that would provide appropriate balance in the framework for enterprise bargaining and strike action. 2016 has also seen AMMA work closely with a significant portion of the membership to defer third party challenges to new enterprise agreements reached legitimately and directly with employees under the provisions of the Fair Work Act. In all legal work undertaken in 2016, AMMA has proven to be an assiduous advocate for employment and workplace relations outcomes that support productivity, growth and industrial harmony in Australia’s resource industry.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

IMAGE COURTESY OF FORTESCUE


OUTLOOK FOR WORKPLACE CONSULTING In 2017 we anticipate a continued focus on cost efficiencies and achieving savings through increased productivity. In consultation with AMMA, members will continue to seek ways to work within the current workplace relations legislative framework to achieve sustainable and competitive business outcomes. With many of AMMA’s members having gone through ongoing restructures, attention is turning to setting up employment systems and practices in anticipation for improved market and business conditions. Some members are expecting a significant increase in workforce size within the next 12 months. In the enterprise bargaining space, AMMA consultants will assist members with strategic IR planning and negotiating new agreements and workplace arrangements with a key focus on productivity and cost management. This will likely involve AMMA members being more strategic and exploring all avenues under the workplace relations system, including termination of enterprise agreements, to enable them to better react and respond to changing market forces. In the mining sector, greater consulting demand may arise from an expected increase in investment, particularly in copper and gold operations, driven by stabilisation and possible upward movement in commodity prices. Increased hydrocarbons work will come from completion and commissioning of various oil and gas projects on the west coast including floating LNG, and expected investment in downstream operations and fuel import terminals in the eastern states.

Further anticipated workplace consulting and legal work in 2017 and beyond includes: •

Workforce planning with a focus on organisational assessment, forecasting future workforce requirements, gap analysis and the design and implementation of workforce development strategies.

Developing and implementing new ways for organisations to engage persons to perform work on resource sector projects, such as individualised agreements and partnerships.

Growth in collective efforts by industry sectors to achieve creative workplace relations outcomes for mutual benefit.

Creating brownfields agility for operators and supply chain contractors through effective management of transfer of business and legacy employment issues.

Continuing to support employer initiatives for insourcing/outsourcing of operational functions.

Effective variation of enterprise agreements still in term to achieve competitive conditions and outcomes.

Managing and maintaining industry safety standards in the context of further cost reductions and other responses to market challenges.

Supporting new project owners and contractors in the approvals/awarding stages through sophisticated productivity planning and execution.

AMMA’s extensive experience with managing all aspects of workplace relations and legal requirements for resource employers, as demonstrated in 2016, places our consulting and legal team in prime position to assist members with all employment needs in 2017 and beyond.

ACTIVITIES REPORT 2016

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DRIVING WORKPLACE RELATIONS OUTCOMES

CONTINUED

WORKPLACE POLICY AND ADVOCACY With 2016 marking the seventh year of operation for the Fair Work Act, it has become even clearer that the collision between a heavily re-regulated workplace relations system and entrenched global pressures for resource companies to operate more efficiently, productively and competitively, continues to create major challenges for AMMA members. Despite the pressing need for change, the past 12 months has seen little movement from our national policy makers in workplace relations reform. This area of policy received little attention during the 2016 federal election campaign, with both sides of politics unwilling to meaningfully engage with the shortcomings in how Australia regulates work. The unwillingness of our decision makers to tackle these problems has heightened AMMA’s critical role in driving advocacy for Australia’s resource employers, renewing our efforts to make it clear how and why the current workplace relations system is creating difficulty for businesses, and providing thought leadership and practical steps towards improvement. During 2016, AMMA lodged dozens of submissions on behalf of members aimed at making the Australian resource industry a more competitive and rewarding place to invest, do business and employ people. In partnership with our members and guided by AMMA’s Board Reference Group of member representatives from all sectors of the industry, highlights of AMMA’s policy work includes: •

Intensifying the case for workplace relations reform and the benefits it would deliver for Australia’s resource industry and the broader community.

Leading resource industry campaigns for critical workplace reforms, including the adoption of the Productivity Commission’s key recommendations for reform of our workplace relations system and targeted advocacy during the 2016 federal election campaign.

Providing the resource industry with a strong voice on immediate regulatory and policy changes in areas including workplace relations, modern awards, state and territory workplace health and safety regulation, and skilled migration.

Engaging with resource sector IR/HR managers on their experiences and challenges working under the Fair Work Act and their short, medium and longterm priorities for legislative change.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

Representing AMMA members on a range of national and international workplace policy forums including the Minister for Employment’s National Workplace Relations Consultative Council (NWRCC) and the Ministerial Advisory Council on Skilled Migration (MACSM).

Analysing key developments including case law precedents, bargaining and wage trends, legislative and regulatory changes, thereby equipping members to maximise compliance and mitigate risks associated with their strategic workplace arrangements.

AMMA’s key activities, successes and focus areas during 2016 focused on the following critical areas.

PRODUCTIVITY COMMISSION REVIEW Following its lengthy review of Australia’s workplace relations system, the Productivity Commission’s report and recommendations to reform Australia’s national workplace relations framework were released in late 2015. As a leading voice on workplace relations reform and the only organisation submitting an evidencebased, independently researched, genuinely comprehensive submission and analysis to the review, AMMA led the resource industry’s initial response and further engagement on the PC’s recommendations throughout 2016. Notwithstanding the limitations and missed opportunities in the review’s final recommendations, AMMA’s focus turned to ensuring those recommendations that would benefit business are adopted. Many of the PC’s recommendations, including in key areas such as agreement content, greenfields bargaining for new projects and unfair dismissal directly reflected AMMA’s advocacy. Throughout 2016, AMMA’s policy specialists worked behind the scenes to advocate to key government representatives the potential benefits that the PC’s recommendations would deliver, ensuring member experiences were harnessed as key evidence of the need for change.


AMMA 2016 FEDERAL ELECTION SURVEY In the lead-up to the 2016 federal election, AMMA undertook a national survey of the resource industry to capture employer experiences operating under the Fair Work Act and to confirm their priorities for reform. The AMMA 2016 Federal Election Survey drew detailed responses from more than 100 companies in the industry, collectively employing more than 85,000 people. The survey revealed widespread industry support for fundamental workplace reform, and the real difficulties for the industry operating under Australia’s workplace relations system in increasingly challenging global markets.

TAKE ACTION!

The views of AMMA members through this survey formed a critical foundation for AMMA’s policy advocacy and federal election messaging, and continue to underpin AMMA’s advocacy going forward. Findings included:

86% 80% 77% 9 in10 87%

of employers described their current operating environment as ‘challenging’ or ‘extremely challenging’.

expect it to remain that way for the next 12 months.

had a ‘smaller’ or ‘significantly smaller’ workforce than they did two years ago.

said implementing the Productivity Commission’s positive recommendations for workplace reform was an urgent priority.

of employers wanted the government to go further, particularly in areas such as bargaining and agreement making, unfair dismissals, operational flexibility and union right of entry laws.

94% only1in13

89% 79% 95%

of employers rated government regulation / compliance costs as a key impediment to growth.

believed enterprise bargaining was meeting the needs of both employers and employees.

reported an inability to structure employment arrangements to suit their operational needs.

were concerned at the frequency of union visits to their workplaces.

were concerned at having to pay ‘go away money’ to settle unfair dismissal claims even where they had no merit.

ACTIVITIES REPORT 2016

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DRIVING WORKPLACE RELATIONS OUTCOMES

CONTINUED

5 REFORMS OVER 5 YEARS CAMPAIGN During the lead-up to the 2016 federal election, AMMA launched a national workplace relations advocacy campaign for ‘5 Reforms Over 5 Years’. This campaign drew on the results of the 2016 AMMA Federal Election Survey as well as feedback from our Board Reference Group on key priorities for workplace reform to support employment and investment in Australia’s resource industry.

AMMA’s ‘5 over 5’ campaign included a national media launch; widespread coverage in newspapers, radio, online and specialist media; opinion editorials published in major daily news outlets; the launch of a dedicated campaign website as a central resource hub; and ongoing government relations activities with Coalition, Opposition and crossbench members of parliament.

The industry’s five priority reforms are: 1. Focusing enterprise bargaining, and ensuring legally protected strike action can only be taken over claims pertaining to the employment relationship, not ‘wish lists’ of union priorities. 2. Returning balance to union powers to enter workplaces by creating an enforceable code of conduct and removing automatic union access to employee lunch rooms when other suitable meeting places are available. 3. Expanding agreement making options to allow both individual and collective options, agreed directly between employees and employers as well as with unions. 4. Reforming unfair dismissal and general protections laws to ensure employers are not forced to pay ‘go away money’ to settle claims that lack merit. 5. Replacing the Fair Work Commission with modern, balanced institutions, most importantly creating an Australian Employment Tribunal and a separate Employment Appeals Tribunal.

During the 2016 federal election campaign, AMMA wrote to every Member of Parliament on ‘5 Reforms Over 5 years’ that would significantly benefit the national interest.

amma.org.au ‘5 Reforms over 5 years’ campaign webpage.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP


INFLUENCING REGULATORY CHANGE In addition to strategic longer-term campaigns for fundamental change, AMMA’s policy specialists represent the interests of AMMA members in inquiries, reviews, Fair Work Commission cases, and other policy processes impacting on what AMMA members can achieve in workplaces. AMMA’s key representation and advocacy activities in the latter part of 2015 and throughout 2016 include: •

Supporting the Fair Work Amendment Act 2015, which passed through parliament and took effect on 26 November 2015. While a number of provisions were removed in order for it to pass through the Senate, the Act in its final form introduced important changes for greenfield agreement making and protected action ballot orders - both priorities for AMMA members.

Spearheading the resource industry’s advocacy in the first four-yearly statutory review of the modern award system, pushing back against ACTU claims that would be to the detriment of industry. This work will continue into 2017 when ACTU applications to insert clauses for additional leave and casual conversion rights into a raft of modern awards will be determined.

Supporting the abolition of the Road Safety Remuneration Tribunal (RSRT), a body that had made orders for contractor driver minimum pay rates that would have had negative impacts on the resource industry and resource communities. The tribunal was abolished in April 2016, preventing it from making further orders and rendering its existing orders defunct.

Highlighting industry concerns with proposals for unnecessary over-regulation of fly-in, fly-out working practices, particularly in Queensland and Western Australia.

Urging Queensland’s Labor Government to work with industry to develop a genuine understanding of how labour hire practices operate rather than introducing punitive regulation following a state inquiry into the labour hire industry.

Providing written submissions on a raft of proposed workplace health and safety changes in Western Australia.

AMMA New s Update 5 August 20 16

ROAD SA TRIBUNAL FUETY REMUNERATION NDER FIRE

THE federal governmen t has respon a recent ro ded to ad safety re m uneration o seeking to d rder by efer all such orders until at the same 2017 while time consid ering abolis Road Safety hing the Remuneratio n Tribunal (R altogether. SRT)

AMMA News Update 8 December 2015

UPDATE: LEGISLATION PASSED IN 2015 allenges for a federal WHILE 2015 has posed ch to reform aspects of government attempting system, some progress the workplace relations ssing of key bills has been made in the pa ing the Fair Work through parliament, includ Amendment Act 2015.

AMMA News Update 1 March 2016

AMMA ADVOCATES FOR RESOURCE INDUSTRY IN MODERN AWARDS REVIEW AMMA is spearheading the resource indu stry’s advocacy in the first four-yearly statutory review of the Modern Awards system. This article details the key union claims and explains how and why AMMA is vigorously opposing them on behalf of our resource industry members . AMMA News Update 23 August 2016

ON ATTEND WORKSHOPS WA WHS CHANGES FOR is of Mines & Petroleum THE WA Department er ov lt nsu s week to co holding workshops thi nts to phase in the me ge transitional arran and h & Safety (Resources proposed Work Healt are ich wh s, ion d Regulat Major Hazards) Act an yet to be finalised. ACTIVITIES REPORT 2016


DRIVING WORKPLACE RELATIONS OUTCOMES SUPPORTING STRONGER UNION GOVERNANCE Throughout 2016, AMMA was an influential industry voice in the political, policy and public debate on measures to strengthen transparency and governance standards for trade unions and other registered organisations. In August 2016, two government bills were re-tabled that failed to make it through the parliament prior to the 2016 federal election. Those two bills, which also provided the Turnbull Government with the trigger for a double dissolution election, included a bill to restore the full former powers of the Australian Building and Construction Commission (ABCC) with some modifications and extensions, and a separate bill to create a new Registered Organisations Commission. Those bills again came before Senate inquiries in 2016. AMMA’s consistent position has been to support the restoration of the ABCC, as an effective building industry watchdog essential to productivity and the upholding of the law on Australian construction projects. The current bill, if passed, would extend the ABCC’s compliance and enforcement powers to offshore construction projects - an extension directly reflecting AMMA’s advocacy. Itself subject to the Corporations Act 2001, AMMA has remained a strong advocate for the establishment of a new Registered Organisations Commission to properly regulate unions and registered employer groups to ensure high standards of governance and transparency. AMMA also supported the Harper Review of Australia’s competition laws and supported increased penalties for highly damaging secondary boycotts. AMMA will continue to work to ensure the Harper Review’s specific recommendations on workplace relations translate into changes in the law. In the context of two major Australian unions announcing they propose to merge, AMMA has also been instrumental in having the federal government agree that any future such mergers should face a ‘public interest test’ before going ahead. AMMA will strongly support legislation to that effect when introduced into Parliament.

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TRIBUNAL REFORM AMMA has, for some years, called for the reform of Australia’s federal employment tribunal, the Fair Work Commission, to ensure its decision making is consistent and better supports productivity and engagement between employers and employees. Previous restructures of and appointments to the commission have seen a disproportionate number of appointees come from trade union or Labor backgrounds, and AMMA members are increasingly concerned about the quality and consistency of decisions. AMMA and its members are particularly focused on ensuring the federal tribunal better understands the needs and interests of private sector businesses, and the challenges faced by contemporary resource industry workplaces. In 2016, AMMA maintained pressure on the FWC to ensure all members followed established precedents, particularly in cases involving the resource industry. AMMA has also welcomed appointments to the FWC from diverse backgrounds and the inclusion of greater numbers of women and businesspeople in its ranks. AMMA maintains there is a case for establishing a separate appeals jurisdiction that would result in fewer matters being appealed to the courts and greater consistency of decision making from the federal tribunal.


AMMA SUBMISSIONS

WORKPLACE RELATIONS POLICY

OCTOBER 2016

I have an effective and consultative relationship with AMMA. Steve (Knott, AMMA CEO) is always there to provide me with constructive advice on what you believe the government’s policy agenda going forward should be.” SENATOR THE HON. MICHAELIA CASH, MINISTER FOR EMPLOYMENT AND MINISTER FOR WOMEN - August 2016

Submission on Competition Law Amendments: Exposure Draft Consultation - Secondary boycotts and workplace relations.

SEPTEMBER 2016 Submission on the Fair Work Amendment (Registered Organisations) Amendment Bill. Submission on the Building & Construction Industry (Improving Productivity) Bill. Submission on the Fair Work Amendment (Respect for Emergency Services Volunteers) Bill 2016. Submission on Work Health & Safety (Resources and Major Hazards) Regulations for Western Australia.

AUGUST 2016 Submission on Work Health & Safety Regulations for Western Australia. Submission on maritime industry awards and model annual leave clauses.

APRIL 2016 Submission to the inquiry into the practices of the labour hire industry in Queensland. Submission to the inquiry into the Fair Work Amendment (Protecting Australian Workers) Bill 2016.

MARCH 2016 Letter on Labor’s Protecting Rights at Work Policy and Fair Work Amendment (Protecting Australian Workers) Bill 2016.

FEBRUARY 2016 Submission on the Building and Construction Industry (Improving Productivity) Bill 2013 [No.2]. Submission on the Seacare scheme consultation paper.

DECEMBER 2015 Submission to the inquiry into the Fair Work Amendment (Remaining 2014 Measures) Bill 2015. Submission to the inquiry into the feasibility of, and options for, creating a national long service standard, and the portability of long service and other entitlements.

NOVEMBER 2015 Submission to the Victorian Inquiry into the labour hire industry and insecure work.

OCTOBER 2015 Submission to the post-implementation review of parts of the Fair Work Amendment Act 2013. AMMA response to the Queensland Productivity Commission Bill 2015


DRIVING WORKPLACE RELATIONS OUTCOMES COMMUNICATING COMPLEX DEVELOPMENTS Analysing and communicating the implications of the latest workplace relations case law and legislative developments remains an important service that AMMA provides its members. AMMA is the leading provider of dedicated information and analysis of developments of relevance to resource employers in managing their workplaces, including: •

Enterprise bargaining disputes - analysing and responding to key decisions on the increasingly complex administrative requirements of the Fair Work Act’s bargaining provisions.

Changes to offshore migration regulation - in recent years numerous instruments have been issued and later been subject to challenge, making this a particularly fraught area for AMMA members’ recruitment strategies. AMMA has been at the forefront of analysing complex developments and communicating them to industry in a timely way.

Unfair dismissal and adverse action rulings – AMMA has analysed and communicated the impacts of rulings relating to the unfair dismissal and adverse action provisions of the Fair Work Act, including communicating how the implications of decisions might interact with the use of labour hire services, workplace health and safety obligations and policies relating to drug and alcohol testing.

Termination of industrial agreements – AMMA has been involved in successful applications to terminate enterprise agreements that are no longer commercially viable due to changing economic and market conditions. Such developments have been analysed and communicated to members along with strategic advice on achieving similar outcomes in other operations.

Union access to workplaces – AMMA has continued to analyse and respond publicly to detrimental decisions such as one at first instance that gave unions the ‘right’ to meet with workers in ‘lunch rooms’ attached to draglines which are essentially moving pieces of mining machinery.

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CONTINUED

LEGISLATIVE UPDATE SERVICE The AMMA Legislative Update is a subscription-based, tailored update delivered to subscribing members’ inboxes every month, enabling organisations to keep one step ahead of evolving workplace issues and changing laws and regulations. This service will continue to be made available to subscribing AMMA members in 2017 and beyond.


WORKPLACE POLICY: 2017 AND BEYOND In 2017, AMMA expects new opportunities to emerge for Australia’s resource industry, with signs of commodity price recovery and stabilising investor confidence. In this environment, a more supportive workplace relations system will be even more critical as employers move beyond immediate cost control into longer term strategies for sustained competitiveness and growth. AMMA will project an even clearer voice for workplace reform and will seek to ensure another term of parliament does not go by without addressing serious problems in the way Australia regulates work. AMMA has a clear set of reform priorities to ensure our workplace relations system better supports industry growth and will execute its advocacy in 2017 by: •

Driving a vision for the future of Australia’s workplace relations system and seeking significant and fundamental changes to better support investment, business and employment in Australia.

Addressing more applied and immediate problems experienced by AMMA members at the workplace level and engaging with specific legislative proposals, inquiries and reviews in order to make a difference on how Australia regulates work.

Continuing our ‘5 Reforms over 5 Years’ campaign will be critical to achieving outcomes in enterprise bargaining, agreement making, protected industrial action, union access to workplaces and meeting pressures for greater flexibility and productivity. AMMA’s advocacy, as always, will be driven by member input through formal and informal industry groups, reference groups, direct conversations, surveys, industry briefings and national forums throughout 2017. We will work to ensure the Australian Government not only maintains focus on the government’s immediate priorities for workplace reform but also embraces opportunities for more fundamental improvements provided by the Productivity Commission’s review of our workplace relations system. AMMA’s specialist policy team will also continue to be the resource industry’s leading source of expertise and analysis on workplace relations trends, working side-byside with AMMA’s consulting team to ensure members can build on the success of 2016, leverage the current laws to achieve maximum efficiencies and position the industry for success.

IMAGE COURTESY OF AUSTRALIAN RAIL TRACK CORPORATION

ACTIVITIES REPORT 2016

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SUPPORTING INDUSTRY & WORKFORCE DEVELOPMENT AMMA’s work in pursuing industry outcomes and supporting the development of members’ people capabilities goes well beyond our traditional strengths in workplace relations, with 2016 seeing continued involvement in broader skills, human resourcing and workforce development matters. INDUSTRY DEVELOPMENT AND ADVOCACY Whether it’s the government consulting with AMMA on national skilling solutions or our own initiatives for broadening members’ talent pools, 2016 has seen AMMA support members by ensuring Australia’s resource industry is an attractive place to work for people of all backgrounds, skills, qualifications and experience.

SUPPORTING SKILLS REFORM

TRAINING AND DEVELOPMENT AMMA continues to be recognised as a national leader in resource industry training solutions, particularly in workforce areas such as human resources, leadership, supervision, workplace relations management and occupational health and safety. Due to changing funding priorities of state and federal governments as well as shifts in employer skills requirements, there has been a distinct industry trend away from nationally accredited training programs to demand for specialist training such as resource sector workforce management.

AMMA remains a pivotal stakeholder in the Australian Government’s ongoing efforts to reform and streamline the country’s vocational education training (VET) and apprenticeships system, with our ongoing participation in various panels and committees.

AMMA responded to this trend in 2016 by focusing our service offering on specialist workplace training, delivered by our expert workplace consulting and legal team, often fully customised to clients’ upskilling needs and site requirements.

As one of a select group of industry leaders, and the only resource industry representative, appointed to the Australian Industry and Skills Committee (AISC), AMMA is directly guiding the Australian Government in maintaining the quality and relevance of the national training system.

Training has been developed and delivered for members in the following areas:

Our role on the AISC is critical to ensuring the system is focused squarely on industry needs and that Australian workers are highly skilled and job-ready. In addition, AMMA is a foundation member of the VET Advisory Board formed by the Australian Government in 2014 and that continues to advise on the skills and training challenges experienced by industry, and options to create greater practicality in regulation. Further, AMMA has contributed as one of eight representatives of the Commonwealth’s Apprenticeship Advisory Group, tasked with developing recommendations and advice on national apprenticeships reform. Through all these forums, AMMA is championing how the VET system can be leveraged to better promote flexibility, harmonise varying state regulations and overcome complexities for delivery.

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Understanding and applying workplace relations legislation.

Fitness for work.

Appropriate workplace behaviours.

Leadership and supervision (management).

Drug and alcohol management.

Anti-bullying, harassment and discrimination in the workplace.

AMMA expects the demand for this type of specialist training to continue in the short to medium term. As such we are developing courses in further areas of member interest for 2017 such as social media management in the workplace, HR investigations, cultural diversity and workplace behaviours, motivation and communication style.


FOSTERING TECHNOLOGY INNOVATION

BESPOKE LOBBYING

AMMA is supporting the rapid growth of Australia’s Mining Equipment, Technology and Services (METS) sector through various consultations on how government can support the resource industry’s role in fostering innovation and technology development in Australia.

Throughout Australia in 2016, AMMA has actively supported various resource employers by privately lobbying federal and state governments to either obtain mining approval rights or to sustain or prolong mining operations. This work has helped secure billions of dollars of future resources activity, creating thousands of future jobs and significant future tax revenues for state and federal governments.

Meetings took place with representatives of METS Ignited on the potential development of an industryled, government-funded Industry Growth Centre for mining technology providers. Through this consultation AMMA provided input into the development of framework for strengthening Australia’s position as the hub for global mining innovation and enhance the competitive advantage of the $90 billion Australian METS sector. This input was valuable to METS Ignited’s ‘sector competitiveness plan’, delivered in July and focusing on collaboration, commercialisation, innovation, global supply chains, and skills and workforce development.

INTERNATIONAL DEVELOPMENT AND ENGAGEMENT AMMA has been active in representing the Australian resource industry in advancing free trade agreements, partnerships and servicing agreements with trading partners including China, Indonesia, all 10 ASEAN countries, India, Japan, Korea, New Zealand, the United States and the European Union. These agreements are designed to advance the economic interests and thus national contribution of the Australian resource sector and allied industries. In addition, AMMA in 2016 has promoted and facilitated engagement between Australian resource producers and international buyers of Australian commodities.

ACTIVITIES REPORT 2016

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SUPPORTING INDUSTRY & WORKFORCE DEVELOPMENT

CONTINUED

WORKFORCE DIVERSITY

AWRA E-MENTORING

AMMA’s national workplace gender diversity initiative, the Australian Women in Resources Alliance (AWRA) continues to be Australia’s government-supported program for promoting the important and increasing role of women in the mining, oil and gas and allied service sectors.

In August 2016 the Australian Government announced an additional $490,000 in funding for the AWRA e-Mentoring Program that would allow AMMA to deliver the program until at least mid-2018.

Four years after its foundation in 2012, AMMA’s spokespeople for the AWRA initiative are regularly sought to provide expert views on workplace diversity issues in the resource industry and influence public debate about the role of women in what are considered ‘non-traditional’, usually site-based operational roles. In pursuit of its goal to increase the level of women in the industry from the current 15% to 25% by 2020, AWRA has delivered various programs, support and guidance materials throughout 2016.

AWRA Guide to Flexible Work

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The AWRA e-Mentoring Program is supporting the career development of women in the resources and support service sectors through a nine-month mentoring journey facilitated by a unique online platform. The program has already connected more than 200 women with experienced male and female mentors thanks to ongoing funding from the Commonwealth since 2013. Announcing the funding commitment at AMMA’s National Conference in Perth, Minister for Employment and Minister for Women Michaelia Cash said the AWRA e-Mentoring Program was a strong example of government collaborating with the private sector to obtain mutually beneficial outcomes.


GUIDE TO FLEXIBLE WORK On International Women’s Day 2016 AWRA launched a new practical guide to assist resource industry employers to implement flexible work practices and thus boost their ability to attract and retain women within their ranks. AWRA developed its Guide to Flexible Work to inform employers on how different flexible work arrangements can be put into practice in mining, oil and gas and related sector workplaces. Advice included: •

How to make flexibility work in the resource industry.

13 types of flexible work options such as job sharing, teleworking, flexible hours and expanded leave.

Example workplace policies and templates.

Useful legal tips.

Real case study examples of successful flexible work practices from across the resource industry.

WORKSHOPS AND FORUMS Throughout 2016 AWRA has facilitated a number of workshops, forums and other engagement exercises to share best practice case studies in gender diversity from across the industry, as well as provide expert presentations from government agencies and workplace inclusion specialists. AWRA has run practical, free webinars for AMMA members throughout the year to help them connect with female workforces and keep them informed of pertinent issues surrounding gender diversity. AWRA is also facilitating three unique half-day workshops in Perth, Melbourne and Brisbane aimed at ‘Enhancing Workplace Diversity’ in Australia’s resource industry. These events are supported by government funding delivered through Biz Better Together, an Australian Chamber initiative. In 2016 AMMA also became a foundation member of the Australian Gender Equality Council and a representative on the Australian Oil and Gas Exhibition’s women in oil and gas panel.

ACTIVITIES IMAGE REPORT COURTESY 2016 OF THIESS


SUPPORTING INDUSTRY & WORKFORCE DEVELOPMENT CONNECTING SCHOOLKIDS WITH RESOURCE CAREERS In May, AMMA provided more than 240 West Australian primary school students with a taste for work in the mining, oil and gas industries when we brought a number of employers together to promote and exhibit careers in science, technology, engineering and maths (STEM). Fortescue Metals Group, Thiess, Monadelphous and Georgiou Group were among the presenters for the ‘Resource Kids Connect’ event, hosted by AMMA at Halls Head College. Resource Kids Connect is an industry initiative that delivers on the National STEM School Education Strategy – the COAG Education Council’s plan for renewing focus on STEM subjects in all Australian schools. The pilot event aimed to open minds of students aged between eight and 11 to exciting resource industry jobs through hands-on activities such as digging for diamonds. A major drawcard was Thiess’ mine equipment simulator, which gave the students a realistic experience of operating machinery on a mine site. AMMA plans to roll out this program on a wider scale in 2017 and beyond. Resource Kids Connect roadshow in Perth, WA

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SKILLED MIGRATION ADVICE AND REPRESENTATION With the current cycle in Australia’s resource investment and construction curve seeing far less international skilled labour required in the country compared with 2011-14, AMMA has scaled back its own direct-tomember migration consulting services to instead act as a conduit between our members and a number of specialist, trusted suppliers of migration advice. AMMA’s role in advocating for a skilled migration system that supports resource employers for their current and future international skills needs remained critical throughout 2016. Timely access to skilled overseas labour will prove vital when new major project construction uplifts and local employers are required to supplement their skilled Australian workforces with small levels of specialist migrant labour.

OFFSHORE RESOURCES

CHANGES TO 457 VISA SYSTEM Demand for temporary skilled migration visas in the resource industry has fallen significantly in recent years. Notwithstanding that, policymakers have made changes to the 457 and 400 visa systems throughout 2016, about which AMMA has kept our members informed. In addition to ensuring members are aware of relevant changes, AMMA’s focus in 2016 has been to provide detailed feedback to policymakers about the potential impacts to industry of the latest proposals. Examples of AMMA’s industry role in relation to temporary skilled migration in 2016 include: •

Providing resource industry employers with a voice via a detailed submission and face-to-face meetings with policymakers to inform the review of the temporary skilled migration income threshold, which is critical in determining the types of roles and salaries that will qualify for future temporary skilled visas.

Highlighting to decision-makers that salary protections remain in place for temporary skilled visas and that instances of worker exploitation are not widespread and are generally confined to particular industries. The resource industry continues to be a trusted user of the skilled migration system.

Providing detailed feedback on the consolidation of numerous temporary skilled visa types into four consolidated streams which took effect in November 2016.

The regulation of international skilled labour in Australia’s offshore resource industry, specifically on those vessels which perform work in Australia’s exclusive economic zone, continues to be an area of significant change and complexity. In August 2016, the High Court ruled that a ministerial determination regarding offshore migration arrangements in the resource industry was invalid and thus all international employees in the sector were required to hold current individual working visas if working in support of an offshore resources activity. This meant that former exclusions for international workers on certain types of vessels were no longer available. While the immediate impact of the decision was not as significant as it would have been had more vessels been on the water at the time, some projects and service suppliers required AMMA’s assistance in swiftly obtaining the required visas in the wake of the decision. AMMA’s work in this area will continue to highlight the need for regulation to support Australian and international investment in Australia’s offshore resource industry. AMMA will continue to advocate that Australia should be doing all it can to position our industry to attract the next wave of global resources investment. This area may see further change in future and AMMA will continue to analyse and communicate potential impacts on our members to ensure clarity and certainty around requirements.

ACTIVITIES REPORT 2016


SUPPORTING INDUSTRY & WORKFORCE DEVELOPMENT

CONTINUED

OUTLOOK FOR WORKFORCE DEVELOPMENT The continued evolution of Australia’s resource industry will have ongoing implications for a range of workforce issues including skills, qualifications, training and the types of labour pools readily available to satisfy the operational requirements of AMMA members. In this fast-moving environment, AMMA’s role in supporting and developing the resource industry’s national workforce will remain critical to successful skills, productivity and labour availability outcomes. Our role on the Australian Industry Skills Committee will see the skills priorities of the resource industry remain central to the reform and modernisation of Australia’s VET system. This will be important for both new production-based competency requirements, as well as engineering and trades skills for when the industry’s investment and construction activity again picks up. Skilled migration requirements of Australia’s resource employers will likely follow a similar trend, rising and falling with new project investment and construction levels. This strengthens AMMA’s role in protecting the integrity of Australia’s skilled migration framework, regulation and policies during times of lower usage, to ensure access to a competitive and responsive skilled immigration system when demand rises. Regardless of the investment or commodity price cycle, the industry’s journey towards having a more gender diverse workforce will remain an ongoing and important priority. In 2017 AMMA will continue to deliver the objectives and activities of the Australian Women and Resources Alliance (AWRA) with the steadfast target of increasing female participation in Australia’s resource industry to 25% by 2020. This involves further rounds of the highly successful e-Mentoring program and continued dissemination of new information and guidance materials to resource employers. We will also seek to build on the successful pilot ‘Kids Connect’ program of 2016 to work with schools, employers and governments on the widespread promotion of the diversity and scope of careers on offer within Australia’s national resource industry.

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IMAGE COURTESY OF OZ MINERALS


INDUSTRY AND SKILLS SUBMISSIONS APRIL 2016 North Stradbroke Island mining inquiry – Additional submission on the draft economic transition strategy and the workers assistance scheme.

MARCH 2016 Submission to the North Stradbroke Island mining inquiry. Submission on the Temporary Skilled Migration Income Threshold (TSMIT) discussion paper.

FEBRUARY 2016 Inquiry into the development of bauxite resources near Aurukun in Cape York.

REPRESENTING AMMA MEMBERS National Workplace Relations Consultative Council

Committee on Industrial Legislation

Australian Industry and Skills Committee

Commonwealth Apprenticeship Advisory Group

Vocational Education and Training Advisory Board

Ministerial Advisory Council on Skilled Migration

ACTIVITIES REPORT 2016

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FACILITATING INDUSTRY ENGAGEMENT Beyond being partners in all your employment needs, AMMA membership provides a community of like-minded employers seeking to learn and share information, network, engage and jointly promote the successes and contribution of Australia’s resource industry. DEMONSTRATING MEMBERSHIP VALUE

EVOLVING THE MEMBERSHIP APPROACH

2016 has been a positive year for AMMA membership, with retention of existing members remaining strong and new members joining as the industry stabilises during its transition from the recent investment and construction period.

Key to this success in 2016 has been the ongoing evolution of AMMA’s membership approach in prioritising bespoke packages and offerings over the traditional, more standardised view of membership.

This transition has meant many AMMA members have reduced staff numbers and some, most notably those which specialise in major project construction contract work, have significantly reduced operations in Australia. Nonetheless the overwhelming experience across all AMMA member categories and sub-sectors has been that membership of AMMA remains a highly valuable investment and particularly so during times of change and uncertainty. Such behaviour coupled with the increasing number of AMMA members reaching long membership milestones demonstrates the value Australia’s resource employers place on the stability and certainty AMMA offers for all employment related aspects of doing business in Australia.

This approach has centred on direct engagement with individual members to better understand unique business needs and to ensure each member is getting the best value from their membership investment. This approach will continue to be refined and built upon to ensure AMMA is delivering relevant and valuable support to members’ workplaces, and will continue throughout 2017 and beyond.

KNOWLEDGE AND NETWORKING The AMMA ‘Industry Briefings’ series of events took place across several major locations in four tranches over the course of 2016, with the start-of-year and end-of-year briefings especially popular among all membership groups. These workforce-focused events, inclusive in AMMA membership, have seen specialist workplace relations consultants, lawyers and policy experts provide a range of important updates to member company personnel. This includes on important case law, updates from courts and tribunals, industry and workplace relations trends and predictions, and much more.

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REGIONAL ENGAGEMENT Over the past 12 months AMMA’s membership and workplace consulting teams have actively expanded the ‘Regional Briefings’ series of events to ensure each major resource region in Australia has been visited by AMMA’s workplace specialists. Building on the content delivered at AMMA’s CBD events, the regional briefings also include topics and issues specific to individual resource communities. Further, they offer a dedicated forum for all resource employers – operators, contractors and service suppliers – to come together to network and work through common industry and regional issues. Following feedback that these are highly valued and unique opportunities for regional employers, these engagement events will be further developed in future. IMAGE COURTESY OF SODEXO

Locations of AMMA events in 2016

Darwin

Townsville Karratha Gladstone Toowoomba Brisbane

Kalgoorlie

Dubbo Newcastle

Perth Adelaide

Bendigo Savage River

Melbourne

Strahan ACTIVITIES REPORT 2016

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FACILITATING INDUSTRY ENGAGEMENT CONTINUED

INDUSTRY EVENT PARTNERSHIPS

DINNER WITH THE COALITION

Building on AMMA’s own busy calendar of events, the past 12 months also saw partnerships established with other major resource industry conferences and the securing of special rates and offers for AMMA members.

AMMA’s ‘Dinner with the Coalition Leadership’ is a highly anticipated event providing a rare opportunity for resource industry CEOs to collective engage with senior ministers of the Australian Government in a private and intimate dinner setting.

In February, AMMA sponsored and hosted a special employment-focused breakfast event at the 2016 Australasian Oil and Gas Exhibition and Conference. This event brought together resource industry leaders for an interactive panel discussion on the future of the Australian oil and gas workforce.

In 2016 this event will be hosted in Parliament House during the final sitting weeks and, after a highly political federal election year, will prove extremely insightful as industry leaders learn first-hand of the Coalition’s priorities for industry and workplace relations policy and regulation during this term of government.

AMMA was also an active participant at the International Mining and Resources Conference (IMARC), hosted in late 2015. As a proud Associate Partner to the event, AMMA took place in the ‘Productivity’ stream on day two, delivering back-toback presentations on workplace relations and gender diversity in the resource industry. Our association with IMARC continues and will see increased involvement at the November 2016 event.

AMMA Chief Executive Steve Knott chairing a conference session at IMARC 2015

OUTLOOK FOR AMMA MEMBERSHIP The 2016 calendar year has created an excellent springboard for AMMA membership into 2017 and beyond. The continued loyalty and support of AMMA’s core membership base reaffirms the value resource employers see in AMMA membership and will allow us to pursue new opportunities for growth. This will include furthering AMMA’s market penetration of key resources sub-sectors where membership has presence but is somewhat underutilised. Engagement will continue with those few major employers which are not yet involved in the AMMA community and will then flow through to supply chain opportunities. Constantly refreshing the value and relevance of services, representation and engagement delivered to AMMA’s existing membership base remains a priority. This will include ongoing consultation with members on new and bespoke membership offerings, reinvigoration and expansion of our industry and regional briefing events, and discovering new ways to deliver the most pertinent workforce-related information to our members, thus supporting your efforts to employ and undertake operational activities.

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ACTIVITIES IMAGE COURTESY REPORT 2016 OF OZ MINERALS


FACILITATING INDUSTRY ENGAGEMENT CONTINUED

2016 AMMA NATIONAL CONFERENCE In 2016, AMMA’s National Conference again proved to be the leading resource industry event for all workforce, productivity and leadership-related discussions. Drawing industry leaders, political guests, ‘people practitioners’ and exhibitors, the streamlined one day format held at Fraser’s Kings Park, Perth, was a resounding success and received highly positive delegate feedback. Topics covered technical employee relations and human resources content as well as broader leadership, innovation and productivity themes.

Highlights included: •

Keynote presentations from resource industry CEOs Graeme Hunt (Broadspectrum), Nev Power (Fortescue Metals Group) and Peter Bennett (Clough) exploring workforce issues and the future of the industry.

Strategic human resources and productivity presentations from executives of Australia’s leading LNG projects.

The latest employee relations advice provided by resource industry executives and employment law practitioners.

Workshop delivered by motivation and strategy specialist Dr Jason Fox on crafting a culture fit for work and ‘making clever happen’.

An update on workplace relations legislation and the Australian Government’s plans for reform, provided by Minister for Employment Michaelia Cash.

Overview of the latest technology developments in the mining sector and how innovation is changing the working patterns and safety outcomes for Australia’s resource operators.

ABOVE: (L-R) Peter Bennett, CEO, Clough Limited; Michael Utsler, COO, Woodside Energy; Tara Diamond, AMMA; The Hon. Michaelia Cash, Minister for Employment; Amanda Mansini, AMMA; Steve Knott, AMMA; Graeme Hunt, Managing Director and Chief Executive, Broadspectrum Ltd

Nev Power, Chief Executive Officer of Fortescue Metals Group Limited

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AMMA INDUSTRY AWARDS Fraser’s Function Centre at Kings Park provided a backdrop of Perth’s city lights for the 200 resource professionals gathered for AMMA’s annual Gala Dinner and Industry Awards evening. Five organisations and two rising stars were awarded an AMMA Industry Award in 2016, recognising their commitment to improving workplace practices for the benefit of the industry and the wider community. In 2016, the AMMA Industry Awards received the highest level of nominations to date, showing that in their eighth year the standing and credibility of these accolades continue to grow. An extraordinary number of AMMA members also accepted Long Membership Awards at the Gala Dinner, including 50 Year Long Membership recipients P&O Maritime Services, Woodside Energy, Tidewater Marine, ExxonMobil Australia and the International Association of Drilling Contractors.

ABOVE: The 2016 AMMA National Conference Gala Dinner at Fraser’s Function Centre

Industry Award Winners are as follows: •

Indigenous Employment & Retention Award: Fortescue Metals Group’s ‘Trade Up’ Program.

Training & Development: The Mancala Group.

Workforce Innovation Award: Compass Group’s ‘Village Life’ Program.

Health & Wellbeing Award: New Hope Group’s ‘Live Well, Work Well’ Program.

Australian Women in Resources Alliance (AWRA) Award: Australian Rail Track Corporation.

Young Professional Award: Joint winners •

Annie Martyn, Turnaround Execution Coordinator with Viva Energy Australia.

Jarrad Oakley-Nicholls, Employment Program Manager with Wirrpanda Foundation.

RIGHT: Joint Young Professional Award winners Annie Martyn of Viva Energy Australia and Jarrad Oakley-Nicholls of Wirrpanda Foundation ACTIVITIES REPORT 2016


FACILITATING INDUSTRY ENGAGEMENT CONTINUED

EFFECTIVE COMMUNICATIONS Delivery of effective communications, ranging from the latest breaking workplace relations and industry news through to political and policy updates and in-depth case studies, remains a highly valued benefit of AMMA membership.

Sample of AMMA’s News Update Delivered to almost 3,000 member professionals weekly

WEEKLY NEWS UPDATE The AMMA Weekly News Update, emailed each Tuesday to 3000 member company representatives, was redesigned in 2015 following member feedback that all AMMA related communications should be delivered through a single packaged medium. Throughout 2016 this streamlined format has proven highly popular, achieving above industry standard engagement rates and stimulating ongoing discussions and feedback on content. The AMMA News Update has included in 2016: •

Breaking news on industry, economic and political matters

In-depth analysis of workplace tribunal and court rulings relating the member employment needs

Feedback opportunities on AMMA policy development and representation to parliamentary committees

Announcements and offers for AMMA conferences and briefing events

Engagement opportunities with AMMA workplace development initiatives

In 2017 and beyond AMMA will continue to ensure a highly relevant news service for members, confirmed through ongoing consultation and engagement on how, when and what content is of most relevance to members.

RIGHT: Sample of AMMA’s Resource People Magazine Delivered to 5,000 member professionals tri-annually

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RESOURCE PEOPLE MAGAZINE

RESOURCE INDUSTRY MARKET OUTLOOK

In 2016 AMMA published three editions of its industry magazine, Resource People, and distributed in hard-copy to more than 15,000 member, industry, government and other stakeholder representatives.

In late 2015, AMMA launched a new quarterly member publication, the AMMA Resource Industry Market Outlook, dedicated to providing analysis and insights on economic and financial matters impacting the Australian resource industry.

This unique publication is not only an AMMA member news magazine, but is the only dedicated resource sector title focusing on the ‘people’ side of the industry. Further, the publication provides AMMA members with an opportunity to promote their successes, initiatives and milestones across all human resources, training and other workforce areas. Key stories featured in Resource People during 2016 include: •

Fortescue’s award-winning Aboriginal training program ‘Trade Up’, alongside other winners of the AMMA 2016 Industry Awards.

New Clough CEO Peter Bennett’s vision for the company and views on the transition from construction to production-based contract work.

Innovation special: automation, fibre optic sensing and other technologies changing safety and operational requirements in the resource industry.

Features on the HR strategies of employers including Lynas Resources, Compass, New Hope Corporation, Orica, OZ Minerals and many others.

Columns with Employment Minister Michaelia Cash and Energy Minister Josh Frydenberg.

Regular updates and analysis on workplace relations reform and key case studies from employment tribunal and court decisions

This widely read online resource is a new area of member communications from AMMA and includes analysis and forecasts on matters including: •

Commodity prices.

Exploration activity.

New project growth.

Business and investor confidence.

Financial market volatility.

Geopolitical and macroeconomic factors impacting the resource industry.

2016 saw the publishing of four editions of the AMMA Resource Industry Market Outlook, with feedback being that this snapshot of national and international market movements, trends and data, greatly assists members in their commercial and operational planning. Sample of AMMA’s Resource Industry Market Outlook Available publicly via amma.org.au each quarter

With 15 editions published since its inception in 2012, Resource People has become a staple of all ‘people practitioners’ in the resource industry and will continue to bring unique workforce-focused stories to light in 2017 and beyond.

ACTIVITIES REPORT 2016

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FACILITATING INDUSTRY ENGAGEMENT CONTINUED

MEDIA AND PUBLIC AFFAIRS With 2016 being a federal election year, AMMA’s role in influencing public and political debate on key matters impacting Australia’s resource employers has been critical. This has not only involved highlighting the policy and regulatory priorities of Australia’s resource employers and building the case for reform during the next term of government, but also in promoting the ongoing success and contribution of the Australian resource industry to the national economy.

ADVOCATING WORKPLACE CHANGE Effective media and public affairs outcomes has been critical to communicating and building industry, political and community support for AMMA’s workplace policy campaigns. This has involved leading the resource industry’s response to, and ongoing engagement with, the final recommendations of the Productivity Commission’s review into Australia’s workplace relations laws. Further, AMMA’s highly developed media relationships have been critical to the publicising of the 2016 AMMA Federal Election Survey, which drew detailed responses from more than 100 member companies, and the subsequent ‘5 Reforms Over 5 Years’ campaign which was heavily featured in national and metro daily newspapers, specialist resource industry and workplace relations publications and a plethora of online news sources. Additional effective communications on workplace change include advocating in support of the measures to address union lawlessness and corruption such as re-establishing the Australian Building and Construction Commission (ABCC), establishing a new Registered Organisations Commission and introducing a public interest for proposed mergers of trade unions. See pages 13-17 for detail on these workplace policy campaigns.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

SUPPORTING INDUSTRY AND ECONOMIC OUTCOMES As the ‘voice’ of AMMA, the media and public affairs function is also integral in ensuring the views, priorities and operating requirements of resource employers are heard across a number of broader industry matters. In 2016 this has included AMMA providing public support for company taxation cuts, budgetary repair, free trade agreements, employee choice for superannuation, the abolition of the Road Safety Remuneration Tribunal, and policies for long-term economic growth. AMMA has also publicly opposed increased regulation for fly-in, fly-out (FIFO) working arrangements following state inquiries in Queensland and Western Australia, and actively supported the approval of new resource projects such as Adani’s Carmichael Coal Mine and Alkane Resources’ Dubbo Zirconia Project.

PROMOTING INDUSTRY INITIATIVES Another effective role AMMA fills in the public affairs space is in the promotion of the successes, initiatives and workforce development efforts of Australia’s resource employers. AMMA ensured strong media coverage of the 2016 Industry Awards and the company initiatives and achievements celebrated. We also promoted the industry’s overall positive contribution in areas including training and development, apprenticeships, Indigenous employment, general economic outcomes and gender diversity. The latter included highlighting the resource industry’s progress on social issues such as the gender pay gap, return to work incentives and underrepresentation of women in some industries. Further, the securing of new funding for the AWRA e-Mentoring program (see page 23) generated media attention.


MEDIA AND PUBLIC AFFAIRS HIGHLIGHTS Highlights of AMMA’s media presence (figures year to October 2016) include: •

954 times AMMA featured in print, broadcast or online media reports.

7 opinion pieces published in mainstream newspapers including the Australian Financial Review, The Australian and The West Australian on topics such as the federal election, workplace relations policy, and the resource industry’s contribution to the economy.

17 editorials and features in resource industry print and online publications on issues including workplace relations reform, gender diversity, and economic and resource market activity.

More than 110 media hits supporting AMMA’s 2016 federal election campaign for workplace relations reform.

Significant media coverage drawing attention to AMMA’s key reform priority of replacing the Fair Work Commission, including an opinion editorial by AMMA chief executive Steve Knott in The Australian titled ‘Reform Fair Work for actual fairness’.

Widespread coverage demonstrating AMMA’s workplace relations consulting expertise including commentary on significant Fair Work Commission and court decisions.

ACTIVITIES REPORT 2016


FACILITATING INDUSTRY ENGAGEMENT CONTINUED

Courier Mail 6 January 2016

Australian Mining Review 8 March 2016

INDUSTRY IS TIPPING COAL PRICE REBOUND

NEW WORK FLEXIBILITY GUIDE TO BOOST GENDER DIVERSITY IN MINING

AMMA said there was consensus that the Australian mining sector would continue to be driven by China’s economy and opportunities would increase because of the China free trade agreement.

Weekend Australian 6 February 2016

MARITIME DEAL DEFIES UNIONS The workplace agreements were negotiated on behalf of employers by the Australian Mines and Metals Association, which hailed the vote “a positive indicator” that wage growth will remain at a sustainable level.

The Australian Women in Resources Alliance (AWRA) has launched its Guide to Flexible Work to help mining, oil and gas and related construction sector employers to increase their workforce gender diversity.

The Australian 18 April 2016

LABOR’S FLAWED FAIR WORK LEGACY IS HURTING MINERS Right of entry to mines, enterprise bargaining and agreement-making, unfair dismissals and workplace flexibility were areas crying out for reform, the survey of more than 100 members of the Australian Mines and Metals Association representing 85,000 workers showed.

Workforce Daily 29 February 2016

BAN UNION RIGHTS TO NONMEMBER INFORMATION: AMMA AMMA is calling on the Federal Government to change the Fair Work Act’s “absurd” right of entry laws so as to ban union access to nonmember documents and make it an offence to seek them.

The Australian 22 March 2016

LEADERS BACK PM CALL ON ABCC The Australian Mines and Metals Association deemed Mr Turnbull’s move could put an “end to more than two years of political pantomime”.

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

Queensland Times 19 April 2016

MINERS WANT WORKPLACE REFORMS ON POLL AGENDA The mining industry has called for major workplace relations reforms irrespective of which political party wins power later this year.


Workplace Express 28 April 2016

Workforce Daily 4 August 2016

FWC FULL BENCH MAKES IMPORTANT RULING ON FIFO

AMMA CALLS FOR GREATER BUSINESS ORGANISATION TO PUSH IR CHANGE

AMMA legal director Amanda Mansini said the full bench had “upheld the longstanding practice in the resource industry whereby employers can give employees notice of demobilisation that runs concurrently with a period of R&R”.

AMMA chief executive Steve Knott raised the new coalition at the peak body’s national conference yesterday morning as he urged the Federal Government to implement the Productivity Commission’s recommendations during this election term.

Australian Financial Review 21 June 2016

COALITION MAY TORPEDO MILITANT UNION MERGER

Australian Financial Review 7 August 2016

MICHAELIA CASH LINES UP THE UNIONS

“It’s hard to believe an amalgamation of two of the most self-declared militant unions, the MUA and CFMEU, could be in the public interest These unions publicly and proudly commit to breaking the law,” Mr Knott said.

AMMA’s chief executive Steve Knott still called on the government to go much further with industrial relations reform in this term, warning fundamental change was necessary.

The West Australian 28 June 2016

Kalgoorlie Miner 11 August 2016

POLITICIANS COP BLAST BY MINERS

FUNDS TO CUT THE PAY GAP

Australian Mines and Metals Association chief executive Steve Knott said despite continuing rhetoric from the coalition and Labor, the industry was doing a great deal of heavy lifting for the economy.

AMMA’s chief executive Steve Knott still called on the government to go much further with industrial relations reform in this term, warning fundamental change was necessary.

Business News WA 16 August 2016

MINING SECTOR INNOVATES ON IR Australian Mines and Metals Association director Amanda Mansini said one development was an increasing usage of partnership structures, where employees became part owners in a business.

ACTIVITIES REPORT 2016

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CORPORATE PARTNERS AMMA’s Corporate Partnership Program provides unparalleled opportunities for companies to promote their products and services to the resource industry. The program has a range of levels with partnership benefits and can be tailored to meet a company’s requirements.

PLATINUM PARTNERS

SILVER PARTNERS

Tom Hatch

T 1300 337 000 E thatch@dfp.com.au

Nicholas Holdsworth

T 03 9885 8825 E nic@hwholdsworth.com.au

Coverforce was established in 1994 as a specialist provider of income protection and ancillary workers compensation insurance, to workers in the Australian construction industry. The business started with the simple philosophy of delivering an uncompromising level of service that exceeded the customer's expectation.

Jenny Spring

T 08 9389 4550 E jenny.spring@ihandover.com

Matthew Crawford

T 02 9376 7825 E matthew_crawford@coverforce.com.au A Level 12, 9 Castlereagh Street, Sydney NSW 2000 www.coverforce.com.au

Natalie Dixon

T 08 8132 7400 E ndixon@medvet.com.au

Matthew Smith

T 0439 305 062 E matt@projectmatch.com.au

GU Health is the only corporate health insurance specialist in Australia. We’re focused solely on providing innovative health insurance products to corporates, identifying your company’s unique needs to deliver a tailored experience and expert service you can depend on.

Todd Livesley

T 1800 824 227 E todd.livesley@resourcesuper.com.au

David Slack-Smith

T 02 9256 8743 E dslacksmith@guhealth.com.au A Level 6, 88 Phillip Street, Sydney NSW 2000 www.guhealth.com.au

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AMMA | RESOURCE INDUSTRY EMPLOYER GROUP

Prashil Singh

T 03 9655 4831 E prashils@vetassess.com.au




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