2012 Activities Report by AREEA

resource industry

proven

national advisory council

developing workplace policy

Leadership experience

skilled relations Industrial

migration reform miningoilandgasjobs.com

report voice

training and development

unified

mining jobs growth

activities

Transitioning tomorrowâ&#x20AC;&#x2122;s leaders

innovative services

Member communications skills solutions

economic driver Women in resources alliance

ABOUT US AMMA is Australiaâ&#x20AC;&#x2122;s resource industry employer group, a unified voice driving effective workforce outcomes. AMMA has been serving the resource industry for more than 90 years, with its membership comprising the majority of resource industry employers operating in Australia. Members include companies directly and indirectly employing more than half a million working Australians in mining, hydrocarbons, maritime, exploration, energy, transport, construction, smelting and refining, as well as suppliers to these industries.

AMMA works with its powerful network of like minded companies and resource industry experts to influence policy development and lobbying; provide workforce consultancy services; engage in training and development; and host valuable industry leadership events. This Activities Report details how AMMA continued to deliver leadership, representation, experience, innovation and interaction for its members during 2012.

AMMA Offices ABN 32 004 078 237 Melbourne (Head office) Level 10, 607 Bourke Street MELBOURNE VIC 3000 Tel: (03) 9614 4777 Fax: (03) 9614 3970 vicamma@amma.org.au

Sydney Level 13, 59 Goulburn Street SYDNEY NSW 2000 Tel: (02) 9211 3566 Fax: (02) 9211 3077 nswamma@amma.org.au

Perth

Adelaide Level 6, 41 Currie Street (GPO Box 2883) ADELAIDE SA 5001 Tel: (08) 8212 0585 Fax: (08) 8212 0311 saamma@amma.org.au

Services for members in the Northern Territory are provided by the Perth office.

7th Floor, 12 St Georgeâ&#x20AC;&#x2122;s Terrace PERTH WA 6000 Tel: (08) 6218 0700 Fax: (08) 9221 5422 waamma@amma.org.au Brisbane Level 6, 232 Adelaide Street (GPO Box 2933) BRISBANE QLD 4000 Tel: (07) 3210 0313 Fax: (07) 3210 0291 qldamma@amma.org.au AMMA Training & Development: 1800 891 662 AMMA Membership & Migration: 1800 627 771 AMMA Miningoilandgasjobs.com: 1800 615 703

Hobart Level 3, 85 Macquarie Street (GPO Box 1236) HOBART TAS 7001 Tel: (03) 6270 2256 Fax: (03) 6270 2257 tasamma@amma.org.au

CONTENTS

2012 activities report

AMMA Board..................................................................... 4 President’s Note................................................................. 5 Chief Executive’s Report..................................................... 6 AMMA Team...................................................................... 8 Industry Services Division................................................... 9 Consulting Services Division..............................................29 AMMA Sponsorship..........................................................38

2012 Activities Report

AMMA Board AMMA President Ian Smith

Managing Director and Chief Executive Officer, Orica Limited

AMMA Vice Presidents Peter Johnston

Managing Director and Chief Executive Officer, Minara Resources Limited

Ulysses Yiannis

Human Resources Manager - Asia Pacific South, Esso Australia Pty Ltd and Mobil Oil Australia Pty Ltd

Directors Terry Burgess

Managing Director and Chief Executive Officer, Oz Minerals

Johnpaul Dimech

Chief Executive Officer, Sodexo Australia & New Zealand

Andrew King

Managing Director, P&O Maritime Services Pty Ltd

Vince Santostefano

Chief Operating Officer, Woodside Energy Ltd.

past Directors (vacated in 2012)

Lucio Della Martina

Executive Vice President, Pluto, Woodside Energy Ltd

Kim Horne

Executive Director, People, Environment and Corporate Affairs, Alcoa of Australia Limited

2012 Activities Report

EDGE

greater competitive Ian Smith – President’s Note

AMMA takes great pride in having represented the Australian resource industry for more than 90 years. As 2012 comes to a close, it is evident our industry continues to play an important role in our national well-being.

“

In recent times AMMA has expanded and evolved in line with the great opportunities and the heightened challenges within Australia’s resource industry.

”

Ian Smith, AMMA President, Managing Director and CEO, Orica Limited

Ian Smith, The resource industry remains Australia’s fastest growing source of jobs,President recording 25% annual employment growth. According to ABS data, there are now more than 270,000 Australians working directly in mining, oil and gas. Taking into account downstream employment, about 600,000 Australians now earn their living from resource activity. Despite our industry’s many achievements, 2012 has also seen a range of challenges within the political and regulatory environments in which we operate. Commentary that investment growth in Australian resource projects will slow in the mediumterm appears to have guided political and public discourse towards a new awareness that our industry indeed operates in a global contest for capital. Even so, there is currently total capital expenditure of $500 billion in resource projects either committed or awaiting approval. The challenge is to ensure we have an environment in which proposals become projects. Recent events have shown Australia’s legislative and regulatory base is currently not conducive to long-term business growth. Many of our country’s business leaders have raised serious concerns about the cost position of the Australian resource industry and moving forward, that remains our biggest challenge. As Australia’s competitors close the gap on our technical capabilities, we require a greater competitive edge. Now is the time for industry and government to develop the regulatory environment and economic strategies that will see our resource industry realise its true potential. Aside from the obvious taxation and environmental matters, the ongoing reform agenda must include industrial relations, skilled migration, workforce development, skills capacity building and labour mobility. Employment growth in the resource industry has been recorded at double the rate predicted by the National Resources Sector Employment Taskforce and demand for skilled workers far outstrips supply in a number of industry sub-sectors. If the skills challenges of the resource industry can be addressed, there will be hope that we can translate policy outcomes into arrangements that encourage, not discourage investment and employment growth. Recently, AMMA has expanded and evolved to meet the great opportunities and the heightened challenges within Australia’s resource industry. Different stakeholders and sections of the community will always have varying opinions on how Australia should manage our industry. Regardless, the resource industry must continue to work with key government policy-makers so we can remain a key driver of Australia’s economic wealth and employment prospects. The important steps AMMA is taking now will ensure this is realised well into the future. Your ongoing membership and support allows AMMA to continue this role and represent our industry’s interests at the highest level. 2012 Activities Report

Chief EXECUTIVE’s REPORT To use an old cliché, it’s been a rollercoaster year for the Australian resource industry. The first half of 2012 featured record export volumes and continued investment; a sharp contrast to the falling commodity prices and project deferrals seen in the latter period.

“

To meet heightened demand and consolidate our expansion during recent years, 2012 has seen a significant shift in AMMA’s organisational structure into two primary divisions. Steve Knott AMMA Chief Executive

”

Nonetheless, the numbers still indicate our industry’s great potential in this period, both in economic and employment terms, is far from realised. The latest ABS labour force figures show an additional 53,000 more Australian workers are employed in resources jobs than this time last year. Similarly, our research has upgraded the total value of resource and related infrastructure investment either committed or proposed for our nation to more than $680 billion. So while we possibly have moved past the peak in commodity prices, AMMA has certainly not experienced any slowdown in member demand for our expanding range of workforce services. To meet this demand and consolidate the association’s expansion during recent years, 2012 has seen a significant shift in AMMA’s organisational structure into two primary divisions: Industry Services and Consulting Services. Our Industry Services Division now covers our policy, media and public affairs, member services, events and special projects activity. This division has experienced great diversification over the past 12 months, in both our representative position through government relations and lobbying, as well as our expanded workforce development initiatives. The growth of this division is evident in the many new members AMMA has secured throughout 2012, increasing our industry penetration and breadth across the various sub-sectors. Our policy team has had a very active year with important industry research and AMMA submissions made on workplace relations, migration, labour mobility, taxation and superannuation – to name just a few areas. The last 12 months has seen AMMA elevate the workforce challenges faced by our members to a new level on the policy agenda and display leadership in moving these discussions forward in a productive way. Challenging the application of workplace policy at the highest level has been particularly important throughout 2012, with several interpretations of the IR framework deemed by AMMA to be not in our members’ interest, nor how the Federal Government intended it should operate. The most significant development was the Fair Work Act Review process which, at time of writing, is still ongoing at industry consultation level. AMMA’s submission was among the most comprehensive of all employer groups.

2012 Activities Report

“ While it looks likely that some of our specific recommendations could be adopted, at this stage it would appear the opportunity for significant reform is lost amid the political discourse. AMMA’s leadership in this space is integral to the well-being of our members, as we continue to lobby for reforms that would address the escalating pressures and costs of employing people. Migration was another major area of both policy development and public lobbying for AMMA in 2012, particularly with the industry’s first EMA approved in May. In the face of the unions’ public fear mongering and divisive campaigns, AMMA became the assertive voice for the benefits of skilled migration programs and EMAs – policy that promotes our national well-being. AMMA’s public affairs team has also worked hard in 2012 to bring attention to the great initiatives and benefits employers in our sector deliver to Australia. Our new magazine Resource People is just one of many important communication tools in this process. Many of AMMA’s workforce development initiatives that were launched in late 2011 experienced considerable growth and success throughout 2012. AMMA miningoilandgasjobs.com has been a standout, with employers and jobseekers benefiting from this non-commercial industry service. This website is important to fostering sustainable employment in Australian resources by providing candidates with sufficient information to plan long-term industry careers. Attracting and retaining more women workers in the industry is another key objective of AMMA as we continue rolling out the Australian Women in Resources Alliance (AWRA) project. AWRA continued to break new ground in these efforts during 2012, as our Way Forward guides, E-mentoring program and education campaigns begin to make waves within our membership base. Some new initiatives that will be launched in coming months include AMMA Skills Connect, which will directly link our members to qualified and job-ready candidates, and the AMMA Pit Crew Labour Index. In line with this wider representation, our calendar of major conferences and industry events were greatly expanded during 2012 and will continue in 2013. While these initiatives demonstrate AMMA’s evolution in recent times, the demand for our traditional areas of expertise also greatly increased throughout 2012. AMMA’s Consulting Services Division now comprises our expanded team of workplace relations consultants, alongside a dedicated arm for Legal and Migration Services businesses. For the first time in AMMA’s 94-year history, we are now able to deliver a true end-to-end consulting service to our members. This capability has been widely utilised by all categories and sectors of AMMA members during 2012, ranging from the multi-billion dollar oil and gas projects in Western Australia and Queensland, to the delivery of specialist advice to our junior explorers and contractors. While our consultants are placed within resource projects and operations across the country, our new dedicated legal team has represented individual members in a wide range of legal matters.

Over the past decade, the resource industry has been responsible for the greatest creation and transfer of wealth and skills in Australia’s history. It is AMMA’s role as your national employer group to allow our members to continue this great path.

”

This new capacity has been widely utilised and presents a great opportunity for further growth and member benefits. With our industry’s insatiable demand for highly skilled workers continuing to be a priority issue for our members, AMMA Migration has been greatly assisting employers to meet their short-term requirements. AMMA is now recognised as the leading source of expertise for migration in the resource industry, whether it is 457 Visa processing, advice on the Enterprise Migration Agreement (EMA) framework or general advice about sourcing skilled workers from overseas. Our Training and Development business has also been very active throughout 2012; delivering a range of Nationally Recognised Training and resource industry-specific courses to many of our member companies. Through our ongoing partnership with the government’s Critical Skills Investment Fund, we have provided this support and training to all membership categories, with top priorities being leadership capability and best practice HR management techniques. Over the past decade, the resource industry has been responsible for the greatest creation and transfer of wealth and skills in Australia’s history. It is AMMA’s role as your national employer group to allow our members to continue this great path. The biggest challenge for our industry is to secure the arms and legs required to build and operate the new resource projects slated for our shores. AMMA’s continued growth and diversification has occurred on the premise that, whether it is workplace relations, migration, taxation, OHS or any other workforce issue – our purpose is to assist in making Australia a better place to invest and work. No doubt we will begin 2013 with a more uncertain economic environment than 12 months ago, but our dedication to achieving this purpose remains stronger than ever. Our activities over the past 12 months have focused on facilitating short and medium-term solutions for periods of peak labour demand; and a range of workforce development strategies to secure long-term Australian jobs for decades to come. On behalf of our Board of Directors and AMMA staff, I extend my sincere thanks to all for your support throughout 2012 and going forward.

Steve Knott AMMA Chief Executive

2012 Activities Report

AMMA Team Chief Executive – Steve Knott industry services

consulting services

Executive Director, Industry Minna Knight

Executive Director, Consulting Richard Berriman

Policy & AWRA

Workplace Operations

Senior Policy Adviser – Industry Julie Copley

Director, Workplace Operations Tony Caccamo

Senior Workplace Policy Adviser Lisa Matthews

Manager, Mining Ian Turner

Workplace Policy Officer Luke Achterstraat

Manager, Hydrocarbons Steve Dunstan

Senior AWRA Adviser Gina Meibusch

Principal Legal Services Consultant Andrew Cameron

AWRA Research & Project Adviser Elspeth Meredith

Principal Employee Relations Consultants Tony Bradford Bill FitzGerald Belinda Honey Peter Robertson Katrina De Lange Mark Wakelin

Media and Government Relations Media & Government Relations Adviser Tom Reid Media & Communications Officer Kylie Sully

member services Director, Member Services Tara Diamond Member Services Project Coordinator Marina Haydok Communications & Marketing Adviser Michelle Deklerk Communications & Marketing Adviser (AMMA miningoilandgasjobs.com) Felicia Larson

Employee Relations Consultants Karen Jones Catherine McGonigle Cara Spence Alice Tretheway Estha van der Linden Wesley van der Spuy Simon White Industrial Relations Officer Laura Walsh Graduate Employee Relations Consultants Sarah Helfer Verity Crease

Legal and migration servces

Event & Membership Consultant Anne Berry

Director, Legal & Migration Services Amanda Cochrane

Administration Assistant Shaya Wouts

Manager, Migration Services Jules Pedrosa

Event Strategy and Sponsorship Manager

Employee Relations Lawyers Alice Lui Amelia Peters

Clint O’Brien Events Manager Gail Gifford

Training & Development Membership and Business Development Manager, Membership & Development (WA) Matthew Petrich Membership Development & Workplace Relations Adviser Con Deftereos Member Services Coordinator (Qld) Candice Byrnes Qld Office Coordinator Jane Mathers

Director, Training & Development Janine Temple Training and Development Consultants Debbie Butler Craig Gilvarry Geoffrey Timmerman Training Coordinators Shane O’Brien Michelle Tilley Contracts & Compliance Coordinator Debbie Cummins Client Relationship Coordinator Abby Woods Training & Development Admin Assistant Emma Gaebler

2012 Activities Report

corporate services

Chief Financial Controller Fiona Chong PA to Chief Executive & VIC IR Society Paulita Gomes PA to Director, Workplace Operations Nikki Page Accounts Officers Anh Nguyen Hetal Trivedi Ann Fernando Lily Wray Administration Assistant Molly Rhys-Jones

innova

growth membership

Alliance

INDUSTRY SERVICES DIVISION Headed by Minna Knight, AMMA’s Industry Division encompasses the association’s policy, media & external relations and member services activities. This newly consolidated structure has allowed AMMA to increase our breadth of policy development and industry representation, expand our national program of industry events and increase capability through new and existing workforce development initiatives.

“

AMMA’s Industry Services Division has developed new workforce initiatives, streamlined its policy development and lobbying and ramped up all its activities during 2012.

”

Minna Knight Executive Director, Industry

POLICY Throughout 2012, AMMA has continued to build on its strong capability for extensive policy research and development on all workplace relations issues and wider workforce matters. By constantly improving the processes by which we obtain and present the relevant information from our membership base, AMMA’s effectiveness in the policy arena is a major driving force behind our reputation as one of the most proactive and dynamic industry employer groups in Australia. In 2012, AMMA lodged a greater number of policy submissions, presented to more federal inquiries and conducted more member surveys than any other period in our 94-year history. Policy has also continued to build on AMMA’s reputation as a source of knowledge and research expertise in Australia’s resource industry. The policy team is currently overseeing two research projects, the ‘AMMA Workplace Relations Research Project’ and ‘The costs and benefits of 457 visa working arrangements’. Our policy development activities are constantly evolving in line with the shifting political and legislative environments, with workplace relations, superannuation, safety, training, skills, workplace taxation issues and skilled migration all on the agenda over the past 12 months. Such activity enables us to represent the interests of our members to governments in a cohesive and bipartisan manner, ultimately working towards stronger workforce outcomes for the wider resource industry. AMMA’s policy activity has benefited from the new divisional structure, with additional resources, new team members and closer interaction with other functional areas such as media and government relations creating great efficiencies and effectiveness.

2012 Activities Report

Industry study finds poor IR framework

Research to be released today by the Australian Mines and Metals Association has found a significant deterioration in the nation’s workplace relations climate, with an almost fivefold increase in the number of mining employers who consider that the industrial environment is unacceptable. The Australian 02/07/2012

AMMA was also the first organisation to be invited for further discussions with the panel, in which we elaborated on key written recommendations. Underpinned by the AMMA Workplace Relations Research Project and building on AMMA’s 2008 submission to the Senate inquiry into the Fair Work Bill, AMMA highlighted that resource industry employers were experiencing complex and numerous problems with the current IR system. Examples included reforms to: • Break the union monopoly over greenfield (start-up) agreement making, particularly where a reasonable agreement could not be reached with a union within a reasonable timeframe;

AMMA Workplace Relations Research Project The third year of the AMMA Workplace Relations Research Project has been the most significant in the short history of this surveybased analysis, with 2012 activities producing two report papers. The past 12 months has seen the industrial relations debate elevated to the forefront of political discourse, as the full impacts of the Fair Work Act 2009 began to be felt by employers across all business sectors. This research project, performed in partnership with RMIT University, has been a key body of evidence in documenting the ongoing adverse impacts that the Fair Work Act has had on Australian resource employers. The six-monthly member surveys provide invaluable information to AMMA’s policy development and reinforce our submissions to government with irrefutable industry evidence. The fifth report in this project, for the period ending April 2012, underpinned AMMA’s submission to the Fair Work Act Review Panel. The report confirmed a rising incidence of conflict in Australian workplaces with the number of resource employers who rated their industrial environment as unacceptable increasing fivefold in just two years. This research project will continue to analyse the long-term impacts of the Fair Work Act on our members. Electronic versions of the six-monthly report papers are available on the AMMA website.

Fair Work Act Review This year, the Federal Government conducted a two-yearly review into the operation of its workplace relations legislation, the Fair Work Act 2009. Representing its members, AMMA lodged a comprehensive 178-page submission to the Fair Work Act Review Panel, making 54 recommendations for changes to the current workplace relations framework.

• Make protected industrial action a last resort and not able to be taken where union claims are exorbitant and bargaining has not yet been exhausted; • Allow bargaining and ensuing protected industrial action, in the absence of agreement by the employer, to only occur where a majority of employees support such action; and • Ensure a minimum mandated level of flexibility is provided by flexibility clauses in enterprise agreements. Like all of AMMA’s submissions and research papers, our submission to the Fair Work Act Review Panel can be found on the AMMA website. At time of writing, the Workplace Relations Minister was continuing to consult key stakeholders, including AMMA, before delivering the government’s final outcomes from the Fair Work Act review process. However, preliminary recommendations by the Review Panel indicate that employers will likely receive some positive and some negative outcomes from the process. In response to a contentious Fair Work Australia ruling, the Review Panel adopted AMMA’s specific recommendations around union representation (arising from the Technip case) and protected action ballot orders (arising from the JJ Richards case).

Union wars hurt projects: miners

“With billions of dollars worth of projects in the pipeline, it is imperative the Fair Work review considers how we might minimise the bickering and turf wars that regularly take place between unions,” AMMA’s Minna Knight said in submission to the federal government’s review of the Fair Work Act. Australian Financial Review 13/01/2012

2012 Activities Report

changes

recommended

to the Fair Work Act Review Panel. However, some of the panel’s recommendations could provide further challenges for AMMA members. AMMA policy team will continue to lobby for effective reform in these areas well into 2013. AMMA would like to thank AMMA members, our Special Interest Groups and Board Reference Group who contributed to our recommendations to the Fair Work Act Review and the ongoing RMIT University research project that has provided crucial supporting evidence to our activities.

The costs and benefits of 457 visa working arrangements The use of skilled migration on resource projects was hotly debated throughout 2012 and, to support our members’ needs in this area, AMMA jointly funded a groundbreaking research project into the benefits of migrant workers to Australia’s resource industry. The study titled 457 Visa Workers in the WA Resource Industry: The benefits and costs for business, migrant families, and the community is a joint initiative between AMMA and the Edith Cowan University (ECU) School of Management. Overseen by ECU researcher Dr Susanne Bahn, the industry-first study has shown that temporary migrant workers play an essential role in filling highly skilled vacancies that cannot be filled domestically in the short term. Dr Bahn presented interim findings at AMMA’s 2012 Migration Conference in Perth, which show highly-specialised overseas workers are utilised as a short-term solution to ensure resource projects move through construction and into the operational phase. The research arising from this project has proven an invaluable tool for dispelling divisive arguments from trade unions and other vested interests that AMMA members should be restricted in their access to overseas labour. In addition, the project provides important evidence to inform the labour mobility debate, with findings showing some retrenched workers from other parts of Australia are reluctant to relocate to Western Australia for a range of reasons, including lifestyle preferences.

OHS harmonisation The process of nationally harmonising Australia’s work health and safety laws has continued to be an area of importance for AMMA members over the past 12 months. AMMA has undertaken various activities throughout the year to ensure our members are well prepared for these changes to the legislative environment. During 2012, AMMA Policy consistently provided advice and clarity to our members as to what these changes mean for their workplaces. This information process has occurred through regular member briefings, conferences and AMMA’s Health & Safety Environment Advisory Group as well as via regular internal member communications.

Our policy team will continue to update members on any important changes in this area and will continue to lobby state and federal governments for legislation that will make this transition easier.

AMMA Policy submission examples January 2012 – Submission to the Senate Inquiry into the Building & Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2012 February 2012 – Submission to the Fair Work Act review panel on the post-implementation review of the Fair Work Act 2009 February 2012 – Submission to the Treasury, Philanthropy and Exemptions Unit (Fringe Benefits Tax and Living Away From Home Allowances) regarding proposed changes to the taxing of the living away from home allowance March 2012 – Joint submission with Master Builders of WA and the WA Chamber of Commerce & Industry to the WA Government on the need for a code of conduct in the building and construction industry April 2012 – Submission to the General Manager of Fair Work Australia on the first three years of operation of Individual Flexibility Arrangements (IFAs) under the Fair Work Act 2009 June 2012 – Submission to the Senate, Education, Employment & Workplace Relations Committee’s inquiry into the Fair Work (Registered Organisations) Amendment Bill 2012 June 2012 – Verbal submission to the House of Representatives Standing Committee on Regional Australia’s inquiry into Fly-in Fly-out workplace arrangements, providing further information in support of AMMA’s earlier written submission to the inquiry

Industry backs use of FIFO

In its recent submission to the FIFO enquiry, AMMA says it comes down to identifying regional areas where there are people with the right skills, high levels of unemployment, and suitable transport links, and placing FIFO coordinators there. The Australian 23/06/2012

2012 Activities Report

2012

member surveys

July 2012 – Submission to the House of Representatives Standing Committee on Education and Employment’s inquiry into workplace bullying July 2012 – Submission to the House of Representatives Standing Committee on Economics inquiry into the Tax Laws Amendment (2012 Measures Number 4) Bill 2012 August 2012 – Submission to the Department of Immigration & Citizenship on the exposure draft of the Migration Amendment (Reform of Employer Sanctions) Bill 2012 September 2012 – Submission on the Education, Employment and Workplace Relations Legislation Committee on the Protecting Local Jobs (Regulating Enterprise Migration Agreements) Bill 2012

Industry fights unions on skilled migration In a speech at the Fair Work Summit in Sydney on Tuesday, Australian Mines and Metals Association (AMMA) chief Steve Knott said rhetoric from the unions about the use of foreign labour by resource companies was untrue and simplistic, and failed to incorporate all the facts. News.com.au 29/05/2012

September 2012 – Submission to the Queensland Skills and Training Taskforce September 2012 – Submission to the Queensland AttorneyGeneral on the need for a state-based Code of Conduct in the building and construction industry.

Member surveys In addition to the AMMA Workplace Relations Research Project, throughout 2012 the Policy team continued to conduct regular member surveys on important workplace issues. This helps to ensure AMMA’s policy and lobbying activities continue to reflect members’ views. The surveys are also a valuable means of sharing information among AMMA’s membership in key areas. This year, AMMA conducted surveys of its members on issues including:

• Pay rises awarded under Fair Work Act agreements • Proposed changes to building industry laws and • Proposed changes to Australia’s skilled migration legislation.

Presentations and information sharing

• Superannuation;

Driven by our policy team, AMMA’s national reputation as the primary source of knowledge and research expertise in Australia’s resource industry has presented many opportunities to share information. Select examples of AMMA presentations include:

• The impacts of changes to the taxing of the living away from home allowance; and

Held to ransom under Fair Work: why productivity is not really on the table March 2012, Tonkin Industrial Relations Summit

• Workplace bullying.

Addressing key immigration issues and how it ties in with industrial relations May 2012, 5th Annual Fair Work Summit

Migrant workers boost local jobs: study

A pilot study into the use of migrant workers in the mining industry has found they aren’t taking jobs Australians could fill. Report author Dr Susanne Bahn says the workers are critical to helping fill gaps to get resource projects off the ground. ABC News 09/08/2012

2012 Activities Report

Productivity at work; challenges and opportunities under the Fair Work regime July 2012, APPEA Workforce Development and Productivity Conference IR laws and flaws – A resource sector perspective August 2012, The Australian Club A resource industry overview September 2012, AMMA Tasmanian Conference

The Australian Resource Workforce Employment Growth According to the ABS, the national resource industry directly employs 270,600 people, or 2.3% of all working Australians. According to the Australian Government, up to three additional jobs are created with each direct resource position. Estimates put the total Australian employment as a result of resource activity at 600,000+.

(â&#x20AC;&#x2DC;000)

300 250 200 150

100

50 0 AUG 2007

AUG 2008

AUG 2009

AUG 2010

AUG 2011

AUG 2012

Distribution of Mining employees

34.5% 21.5%

18%

Metal ore mining

exploration & other mining services

Coal Mining

14%

6.5%

5.5%

Mining (other)

Oil & gas extraction

Non-metallic mineral mining & quarrying

Data Source: ABS Labour Force, Detailed, Quarterly (Aug 2012)

research expertise

Numerous informal presentations were also conducted to provide input into various strategic information groups external to AMMA. Over the course of the year, AMMA has represented its members’ interests on the following committees: • Australian Chamber of Commerce and Industry (ACCI) Workplace Policy Committee; • ACCI General Counsel; • ACCI Occupational Health & Safety Committee; • ACCI Mining Reference Group; • ACCI Communications Group; • ACCI Workplace Bullying Reference Group; • ACCI Economics and Taxation Committee; • ACCI Industry and Environment Committee; • ACCI Small Business Committee; • Australian Business Industrial Advisory Council; • Minister for Infrastructure’s Shipping Industry Reform Committee; • Maritime Skills and Training Reference Group; and • NSW Migration Program Consultations. As AMMA’s policy activity continues to evolve in line with the association’s increasing membership, internal resources and breadth of subject expertise, we will continue to leverage opportunities to share our knowledge and our members’ policy positions with a wide range of industry and political stakeholders.

Better laws needed to catch the drug cheats

New university research commissioned by the Australian Mines and Metals Association claim saliva tests often fail to detect some drugs, even during the intoxication phase, and can sometimes be duped with mouthwash and lollies. The West Australian 04/01/2012

Minna Knight AMMA Executive Director, Industry

2012 Activities Report

MEDIA 819 48

Media Releases

IN NUMBERS (to October 2012): Media & External Affairs Media and Public Affairs Through an active media and public affairs team, AMMA provides an assertive industry voice for effective policy outcomes. 2012 has been exciting and industrious, as we effectively communicated key industry messages through the media – an important factor in influencing legislative outcomes at all levels of government. As the Australian resource industry continues its unprecedented advancement at an economic and societal level, some segments of the community such as the trade union movement have ramped up their attacks on our industry and engaged in divisive and misleading commentary. On behalf of our members, it is the role of AMMA’s public affairs team to offset such negative commentary by reinforcing the widespread benefits the industry provides to Australia’s national well-being; as well as dispel much of the misinformation being disseminated in public forums. Major campaign activity throughout 2012 has included:

Workplace relations reform With the Federal Government announcing it would conduct a review into the Fair Work Act 2009 early in the year, there has been an ongoing focus in AMMA’s public commentary about the impacts of the workplace relations framework on Australian resource employers. Using the AMMA Workplace Relations Research Project, key Fair Work Australia rulings and other feedback from members as evidence, AMMA built on its public reputation as the workplace relations experts within the wider Australian resource industry. An integral role in this debate has been highlighting major positions within AMMA’s policy submissions and crafting key narratives around our push for legislative reform. AMMA’s media and public affairs team has proven highly effective throughout 2012 at using the experiences of our members and technical policy positions, to deliver media-friendly, powerful and succinct messages that have strongly resonated with the general public.

Skilled migration The resource industry’s use of skilled migration programs to ease key labour shortages has come under intense scrutiny throughout 2012, with a number of legislative amendments also proposed in this area. A driving force for this has been widespread commentary about skills shortages and growing frustrations within some community groups around employment matters. The approval of the industry’s first Enterprise Migration Agreement (EMA) in May was a major political event of 2012 and AMMA played a vital role in backing the industry’s use of such programs to advance major projects. AMMA Chief Executive Steve Knott

AMMA Media Hits

featured on a wide variety of television programs, radio broadcasts and print media to articulate that programs such as EMAs are vital to ensuring projects of national significance secure the necessary funding and are delivered on time and on budget. Media & Public Affairs established AMMA as the leading voice for the industry and the benefits of skilled migration. It is important for our members and the national well-being that we continue to dispel the myths and reinforce the benefits of our industry’s use of migration.

Industry rejects tougher rules on enterprise migration

“The existing parameters of the EMA program already ensure skilled migrants are only used for temporary positions to get projects built on time and on budget. The Greens bill not only ignores these important facts, but instead seeks to add further regulatory burdens to employers who are seeking access to skilled labour markets,” AMMA executive director Minna Knight said. Australian Financial Review 14/09/2012

Skills and workforce planning As other areas of AMMA ramped up its industry initiatives to address complex workforce challenges in Australia’s resource industry, Media & Public Affairs has made a concerted effort in 2012 to broaden AMMA’s public campaigning from specific workplace relation and HR challenges into wider discussion around skills development and workforce planning. This is an ongoing and wide campaign that incorporates AMMA’s media messaging in workplace relations and skilled migration with all people issues including superannuation, HR, training, labour mobility, OHS, taxation and so on. This campaign has proven highly effective in encouraging a ‘bigger picture’ outlook in many public media forums. Our media and public affairs team utilises industry information, policy research and economic data to back all our messages with core business and community outcomes.

2012 Activities Report

Spike in working days lost raises unrest fears Steve Knott, the chief executive of the Australian Mines and Metals Association, said industrial unrest had become steadily worse under the Labor Government’s Fair Work Act, which had already watered down the power of the ABCC. The West Australian 09/03/2012

Industrial action A major element in AMMA’s goal to redirect focus on wider workforce matters and barriers to business growth in Australia has been our media campaigns around industrial action. Throughout 2012 and particularly in the latter half of the year, Australia has seen a dramatic increase in industrial activity that has widespread economic implications. While our campaigning for workplace relations reform has focused on specific legislative amendments and the Fair Work Review, AMMA’s wider commentary on industrial action highlights the impacts such activity is having on Australia’s attractiveness as a destination for investment and business. During instances of damaging industrial activity in 2012, AMMA’s media and public affairs activities have successfully shifted focus towards the broader implications for employers and the national well-being. This proven strategy will continue into the future.

Government Relations One of the key and often understated benefits of membership within a national employer group, is the ability to become heavily involved with policy debate at all levels of government without infringing on any individual company.

Through AMMA’s 2012 government relations activity, we have not only sustained our presence at the forefront of policy discussions, but elevated our industry representation to a higher level of economic and community debate. While AMMA’s correspondence with the Federal Minister and Shadow Minister for Workplace Relations remains as significant as ever, we have engaged more heavily with the federal departments for resources and energy; skills; immigration and citizenship; taxation; superannuation; and special minister for state. While AMMA’s government relations ‘behind the scenes’ continues to influence policy makers and reinforce our public positions, in 2012 we have also continued to secure many of Australia’s decision makers to directly address members at AMMA events. In addition to our activity at a federal level, AMMA has built on our relationships with both new and existing state governments to broaden our reach and increase our representative depth. This allows AMMA members to be active participants in decisions that influence our regulatory and operating environments.

Member Communications Communicating key developments in legislation, policy, case law, AMMA activities and general movement in the marketplace remains a core benefit to our members. The fortnightly AMMA Bulletin continues to be a highly popular service in which our policy and communication experts distribute the most relevant news and information across our core areas of expertise. In 2012, the AMMA Bulletin was re-designed with new formatting and aesthetic elements to improve the user interaction. Complementing our fortnightly bulletin are our member circulars that deliver urgent breaking news and policy updates in a timely manner.

Fair Work shift may curb unions

Australian Mines and Metals Association chief executive Steve Knott said yesterday his organisation had been involved in ‘‘extensive consultations’’ with the government and the panel over agreement making for new projects’’. The Australian, 18/06/2012

2012 Activities Report

Federal Resources Minister, Martin Ferguson, addressing the AMMA 2012 National Conference

iConnect project In one of our largest investments in state-of-the-art communications technology, early 2012 saw the official launch of the AMMA iConnect Project. This IT, content management system, database and communications project was initiated in response to member feedback and the scope was completed in quarter three of 2012. Issue 00 2

The project represented a significant investment with the purpose of achieving greater efficiency and effectiveness of member services and communications. The development of these areas is ongoing with enhancements to ensure members’ access to important industry announcements, notices and information is provided in a targeted and efficient manner.

Resource People magazine In May 2012, AMMA launched the first edition of its high-gloss, 56-page magazine Resource People. With the human element of our dynamic and diverse industry often shadowed by the technical feats and economics, Resource People focuses on the human side of Australian resources - from the boardrooms of our member companies to the most remote worksites in the country. While exploring many of the challenges and opportunities for our members, this magazine is about celebrating the true achievements of our national resource industry and highlighting the good news stories and significant contributions made by resource employers every day. Delivered to 5000 contacts within AMMA’s membership base, every quarter Resource People profiles our industry’s leaders, explores pressing workforce issues and provides in-depth case studies with middle management.

Eric Abetz, Leader of the Opposition in the Senate & Shadow Minister for Workplace Relations

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Among the diversity of stories, talent and subjects contained in Resource People are important updates and features on policy, political and legislative matters. More importantly however, this magazine is an effective communication tool for sharing information and promoting the strong collaborative culture within our industry. Two editions of Resource People were published in 2012, with the third edition to be distributed to members in January 2013.

Adam Bandt, Deputy Leader of the Greens & Workplace Relations Spokesperson

Participants on the ‘AMMA 2012 Q&A Panel Session with Tony Jones’

2012 Activities Report

Resource employees by state or territory

1.5% 43%

86.6% 13.4%

resource employees by gender

26.5% 17% 5% 2%

female resource employees by sector

34%

24.5%

16%

Metal ore mining

exploration & other mining services

Mining (OTHER)

12%

11.6%

Oil & gas extraction

Coal mining

Non-metallic mineral mining & quarrying

Data Source: ABS Labour Force, Detailed, Quarterly (Aug 2012)

delegates at

2012 National

Conference Member Services AMMA Member Services has continued its remarkable growth and diversification in 2012, with greater member penetration in the national resource industry, great advancement of existing services and the development of valuable new workforce tools.

Retention and Growth With growth in the resource industry and major projects coming online throughout the year, AMMA has seen an increase in membership revenue of 13% in 2012, with new members joining through each quarter of 2012. We consider this increase in membership solid, given the additional economic and legislative pressures placed on employers in the resource industry. AMMA allows for a level of natural turnover in its membership, particularly in the lower categories where subcontractors gain/lose contracts on projects and membership to the peak industry body becomes more/less relevant.

500+

Fortescue looks east in search of workforce

Speaking on the sidelines of the Australian Mines and Metals Association conference in Perth, Fortescue human resources manager Linda Dawson said on Thursday she wanted to recruit as many people as possible on the eastern seaboard but did not have a firm target because it would take time to win over recruits. Australian Financial Review 25/05/2012

AMMA Associate Membership

It is very promising however, that AMMA has retained the vast majority of its new members attained through heightened activity in our industry. Given AMMA comprises the largest number, coverage and diversity of any resources employer group in Australia, we are satisfied that our current levels of growth are highly sustainable and validate our increased services and benefits.

The AMMA Associate Membership Program continued to deliver connections to key industry supplier companies in its fourth year of operation.

Each new member enhances AMMA’s capacity to unite the national resource industry and AMMA’s membership growth is occurring across all the various sub-sectors, including mining, hydrocarbons, maritime, drilling, construction, and allied services.

Throughout 2012, AMMA members enjoyed the introduction to Associate Members with formation of integral business relationships.

Throughout the year, AMMA’s extended suite of services has consistently provided our members with value, innovation, support, services and most importantly, industry leadership - one voice, driving effective workplace outcomes.

Tony Jones, ABC personality

Associate Members are passionate and engaged organisations which have key products and services directly related to the workforce requirements of the Australian resource industry.

The growth in Associate Membership reflects the high level of growth in AMMA Membership as more supply companies recognise the benefits of being associated with AMMA and the significant workforce areas we represent.

Clive Palmer, Mining Entrepreneur

Participants on the ‘AMMA 2012 Q&A Panel Session with Tony Jones’

2012 Activities Report

70 AWRA

attendees at the inaugural

National Workshop

Government has role to play in boom Speaking at the Australian Mines and Metals Association (AMMA) 2012 National Conference, Mr Ferguson outlined the national resource industry’s continued success and said “maintaining our competitive advantage is no easy task”. North West Star 06/06/2012

Conferences, Events and Industry Forums AMMA has continued in 2012 to build on its ever-growing range of major conferences, member and industry forums, Special Interest Group (SIG) meetings and other events hosted across the nation. These events provide valuable opportunities for members to network, share vital information, and keep abreast of the latest developments and issues pertinent to resource industry employers. Many events have also connected AMMA members with beneficial third-party business contacts. May 2012 saw AMMA’s largest ever National Conference take place in Perth, drawing more than 500 delegates from mining, oil and gas, construction, transport, maritime and allied services. The event attracted a record number of delegates who engaged with a number of high profile keynote speakers from industry and government; while enjoying an array of networking events, breakout sessions and workshops. The AMMA 2012 National Conference event also drew a large number of exhibitors for B2B networking as well as those who participated in the inaugural AMMA miningoilandgasjobs.com Careers Expo. The latter attracted more than 14,000 public candidates seeking employment in the resource industry and further demonstrates AMMA’s commitment to facilitating our members’ direct access to labour markets. AMMA one-day conferences, designed to provide members with practical insights and tools for use in their organisations, have continued to expand in the past year seeing the delivery of the HR-centric Fresh Thinking Series; the expansion of AMMA’s annual Migration and Labour Sourcing Conference to now include the east and west coasts; and the development of the upcoming AWRA and Training and Development Conferences for 2013 and beyond.

2012 Activities Report

AMMA’s West Coast Conference in October remained the most highly attended outside the National event in May. AMMA wishes to thank conference sponsors and exhibitors for their ongoing support of the these events and looks forward to seeing members at the 2013 AMMA National Conference, to be held in Melbourne in May 2013, once again alongside the AMMA miningoilandgasjobs.com Expo.

AMMA LONG MEMBERSHIP AND INDUSTRY AWARDS The 2012 AMMA Long Membership and Industry Awards were presented at the AMMA 2012 National Conference Gala Dinner. AMMA Long Membership Awards were presented to St Barbara Limited and Origin Energy Limited in recognition of their support of AMMA for more than 20 years. 2012 also saw a record number of nominations in the various Industry Award categories. These awards recognise excellence in a particular workforce area. The 2012 judging panel included: Simon Beach – Newcrest Mining Limited Linda Nunn – Sodexo Bill Vickers – ExxonMobil Offshore Marine Services Alliance team

Kyla Jones – AMMA miningoilandgasjobs.com Belinda Honey – AMMA

2012 Industry Awards Winners • Sarah Wilkinson, Newcrest Mining (Young Professional Award) • Offshore Marine Services Alliance (Indigenous Employment and Retention Award) • Newmont Asia Pacific, Newmont Boddington Gold (Innovation in Training and Development Award) • Oz Minerals (AWRA Australian Women in Resources Alliance Award) • Newcrest Mining (Best Promotion of Regional Careers Award) • Santos (Most Creative Recruitment Award)

Overcoming Labour crisis key to mining boom

The Australian Mines and Metals Association, for instance, says the sheer volume of projects under construction in the new year will start to stretch the market as work begins on even more projects. Sydney Morning Herald 14/01/2012 Amanda Bald – Santos

2012 Activities Report

AMMA miningoilandgasjobs.com Online careers centre and information portal AMMA miningoilandgasjobs.com continues to substantially alter the landscape of recruitment in the resource industry, following its official launch in November 2011. As an alternative to commercial recruitment websites, resource organisations use AMMA miningoilandgasjobs.com to connect directly with qualified candidates with the knowledge that their expenditure flows back through AMMA’s work to promote wider workforce development. Boasting world-leading software and mobile-accessible platforms, AMMA miningoilandgasjobs.com removes agencies and third parties from the recruitment process to deliver an authentic service to both jobseekers and employers. The site’s Careers and Industry Guide is an invaluable tool for domestic and overseas jobseekers on transitioning into the sector. Containing information on jobs, lifestyle, career planning, migration and training and development, the breadth of coverage was furthered in August 2012 with the new Construction section. The position of this initiative as a trusted authority on employment and career planning was evident at the AMMA miningoilandgasjobs. com exhibition held in May. This Perth-based event was attended by more than 10,000 jobseekers and will be replicated in 2013. Also in 2012, the site earned Federal Government endorsement with the government’s own Resources Sector Jobs Board depending on AMMA miningoilandgasjobs.com’s powerful search engine and frequently updated listings to drive its search capabilities. By proving real jobs by real employers to the jobseeking public, AMMA miningoilandgasjobs.com demonstrates our commitment to finding real solutions to the industry’s labour-sourcing challenges. AMMA will continue this great momentum in 2013.

Mentoring the way to lift participation of women in mining

The Australian Women in Resources Alliance hope to lift women’s participation to 25 per cent. The group recently met in Perth and Minna Knight says the next task is to set up a mentoring program to get more women into mining. ABC Rural 04/06/2012

2012 Activities Report

Australian Women in Resources Alliance (AWRA) Following the establishment of the Australian Women in Resources Alliance (AWRA) in late 2011, AMMA has this year moved the initiative forward in leaps and bounds. AWRA is delivered by AMMA in partnership with the Federal Government’s Critical Skills Investment Fund and draws on the support of a number of employer groups, key member companies and other stakeholders across the resource, construction and allied industries.

The primary objective of this initiative is to increase women’s participation in these industries to 25% by 2020, with the first major awareness tool in ‘The Way Forward’ paper being released on March 8, 2012. Coinciding with International Women’s Day, this move gathered media interest and further momentum for the initiative. The AWRA Reference Group has continued to drive this project throughout 2012 and comprises the following members: • Australian Mines & Metals Association (AMMA); • Australian Institute of Mining and Metallurgy (AusIMM); • Chamber of Minerals and Energy (CME); • Consult Australia; • Minerals Council of Australia (MCA); • National Association of Women in Construction (NAWIC); • Queensland Resources Council (QRC); • Resources and Engineering Skills Alliance (RESA); • Women in Mining Network (WIMNet); and

The Reference Group is leading four working groups comprised of other key industry stakeholders to collaboratively develop solutions to the barriers impeding women’s participation under the headings of attraction, retention and organisational culture. These groups have all commenced activities in 2012 and a research and development group has been assisting their activities. AMMA has also signed on a number of senior executives to complement the work of AWRA, provide oversight of the initiative and promote awareness and support. A number of key activities were commenced in 2012 and continue to deliver the objectives of the AWRA project and promote best practice, cultural awareness and industry change. AWRA is also developing its extensive ‘Baseline Report’ to provide situational analysis of the current issues facing women in the sector. The report also provides a point of reference against which the impact of the AWRA project and progress towards AWRA goals can be measured throughout the duration of the project. AWRA is unique in having established a coordinated, national, unified voice on gender diversity best practice for the resource industry. We look forward to furthering this initiative throughout 2013.

• Additional representatives from the resources, related construction and allied industries.

AMMA Skills Connect

The way

forward

AMMA is committed to assisting members in the complex area of access to skilled labour and workforce planning. We have been working with members on pilot programs in the development of AMMA Skills Connect. This initiative is the consolidation of services across a wide range of labour sourcing and workforce capability elements. Through AMMA Skills Connect, we bring together Australia’s peak industry bodies and pre-eminent organisations in workforce-related fields to provide members a single point of service delivery. These bodies include Master Plumbers Association, Civil Contractors Federation, National Electrical Contractors, Institute of Welding, Engineering and Technology, Industrial Foundation of Accident Prevention and Vetassess. The AMMA Skills Connect scope encompasses services related to members’ workforce needs. It provides a single point of access to services across multiple skills, trade and qualification areas. AMMA Skills Connect will launch to members in the last quarter of 2012.

2012 Activities Report

Skill shortage a continuing challenge Resource industry employer group, the Australian Mines and Metals Association, believes that despite reports of a small number of companies scaling back workforces, the demand for skilled workers in the resources sector remains unprecedented in Australia’s history. Australian Financial Review 25/09/12

AMMA Pit Crew Labour Index In 2012, AMMA announced an upcoming new labour forecasting member service is in development – the AMMA Pit Crew Labour Index. In partnership with the country’s leading firm for major project demand analysis, Pit Crew Management Consulting, this tool will be invaluable for our industry and those outside the industry to come to understand the true magnitude of labour demand and skills shortages within our industry. The data that will be publicly available in this index includes: • The number of major projects by state;

This process will focus attention on gaining maximum effectiveness from each of our functional areas in policy, media and external affairs and member services. On the policy front, the full outcomes of the Fair Work Act Review process will soon be known and will comprise a large portion of the workplace relations policy research undertaken by AMMA into 2013. We also anticipate migration and EMAs will remain a major focus area as we lobby for greater efficiency and more approvals. In addition, wider policy work will continue to support skills development across our industry as the labour shortages begin to intensify. AMMA’s public affairs and government relations activity will continue to support this heightened policy activity through strategic media campaigns and generating publicity for major industry developments and legislative areas. AMMA’s wider public campaigns will focus on reducing the costs and barriers to doing business in Australia, and also lobby for the right policy settings to secure our future pipeline of resource projects. In the Member Services arena, AMMA is forecasting continued growth in membership and associate membership as we further spread our expertise across the industry. The AWRA project is gaining momentum and we are starting to see in-roads into this complex area being created; while AMMA miningoilandgasjobs. com goes from strength to strength and is expected to secure a range of new partners and clients as our marketing and awareness activity increases.

• Capital value by state for approved and unapproved projects;

Taking a macro perspective to our role within the industry, AMMA Industry Services will focus on the following broad areas:

• Construction labour demand by state as a percentage of demand versus availability, including a table of supporting figures and total demand as a number; and

• Influencing the conditions to make Australia an attractive destination for resource investment;

• Operational labour demand to be included as a whole figure, by state. This initiative is an innovative new way in which we are serving our members interests – both in the public and private domain. Pit Crew’s presentations at AMMA events throughout 2012 have been widely commended by attendees, and we expect this formal service to be ready for members’ use in early 2013.

The Year Ahead Having developed new workforce initiatives, streamlined its organisational structure and ramped up its activities in 2012, AMMA’s Industry Services Division will now focus on consolidating its additional resources and evolving position in the national resource industry.

2012 Activities Report

• Increasing the value of the membership offer; • Strengthening the quality and consistency of AMMA’s member relationships and services; • Seeking new areas for assistance and service in the resources sector and resources sector supply chain; • Facilitating ready access to skilled labour for our member companies; and • Representing the interests, benefits, and positive activities of the industry at the highest level. The AMMA Industry Services Division thanks members for their ongoing support of our new and existing activities throughout 2012. We anticipate 2013 will prove another highly successful and exciting year as our industry continues its great advancement.

hts to AMMA fig ojects r secure p worth of projects in the

w ns of dollars Work revie “With billio ve the Fair ti ra e ring p ke im ic b ’s e the pipeline, it ight minimis m e en w e w tw e o ce b considers h larly take pla gu re at in th id s sa and turf war inna Knight A director M M s review M t’ A n ” e s, m n unio ral govern e d fe e th to submission ork Act. W ir Fa e of th 13/01/2012 cial Review n a in F n a li Austra

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Apprenticeships must be restored

The Australian Mines and Metals Asso ciation is absolutely right. The skills crisis is worsening and we need to ramp up training or risk losing vital projects. – Ted Malone, then Member for Mirani, shadow mini ster for industrial relations and employment skills. Daily Mercury 29/02/2012

g testing u r d s y a s A M AM res with fe r te in n io is c de perogative pported t n e m e g a n a m A) which su Association (AMM ines and Metals improper The Australian M tial decision was an ini e th id sa al pe ’s ap n failed to Endeavour Energy y”, and the decisio m no to au ial er ag “man ligations. interference with orkplace safety ob w r’s ye plo em e ht to th give proper weig s 14/08/2012 Workplace Expres

Union action sta ll in five mining p s one rojects Research to be

released today by the Australian Mines an Association has fou d Metals nd a significant deter ioration in the natio workplace relations n’s climate, with an alm ost fivefold increase the number of mini in ng employers who consider that the ind environment is unac us trial ceptable. The Australian 02/0 7/2012

mines Golden era for women in e it a tt says the industry needs to mak AMMA chief executive Steve Kno ations. anis org its in rsity imise gender dive strategic business priority to max . says list or full potential,” he “This will help enable us to rea The Australian 28/04/2012

Spike in wor k raises unres ing days lost t fears Steve Knott, th

e chief executive of the Australian Association, said Mines and Metals industrial unrest had become ste Labor Governm adily worse unde ent’s Fair Work Ac r the t, which had alrea the power of the dy watered dow ABCC. n The West Austra lian 09/03/2012

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Business View

Special Minister of State and chair of the National Resources Sector Employment Taskforce Gary Gray and AMMA CEO Steve Knott speak at the Mines and Metals Association National conference about the first Enterprise Migration Agreement for the Roy Hill project. Sky Business News 26/05/2012

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disputation working days lost/1000 employees (â&#x20AC;&#x2DC;000) june 2012 quarter

Industry unionisation resource employees

Coal mining

76.3%

Manufacturing

NON Union members

Construction

19.7%

Union members

Education & training; Health care & social assistance

Not specified Data Source: ABS, 6321.0.55.001 Industrial Disputes, Australia (released 25/09/2012)

Union membership resource sub-sectors 40%

30%

20%

10%

Coal mining

Oil & gas extraction

Metal ore mining

Non-metallic mineral mining & quarrying

exploration & other mining services

Mining (OTHER)

Data Source: Australian Bureau of Statistics, Employee Earnings, Benefits and Trade Union Membership, Australia, Cat No 6310.0, August 2011 (data released 27/4/2012)

2012 Activities Report

specialist consultancy

innova

growth

Alliance

CONSULTING SERVICES DIVISION Led by Richard Berriman, the Consulting Services Division delivers AMMA’s specialised IR consultancy, legal, training and migration services to organisations in every facet of Australia’s prosperous resource industry.

“

AMMA remains uniquely positioned to deliver a wide range of expertise to resource employers.

”

Richard Berriman, Executive Director, Consulting

During 2012, AMMA’s Consulting Services Division has experienced continued growth and service expansion across all its functional areas. The nature and further development of pre-existing and new large scale resource projects across Australia is driving high levels of demand for experienced industrial relations and workforce development specialists able to provide tailored solutions to the industry. AMMA remains uniquely positioned to deliver a wide range of this expertise to resource employers and we continue to expand our core capabilities in response to emerging needs and the increasing complexity of Australia’s workforce landscape. In addition to increased activity in workplace relations, training and migration services, 2012 has also seen the introduction of AMMA Legal Services, a new service fast becoming recognised for its high degree of technical expertise and sophistication in advice delivery. Legal complements and further enhances our existing capabilities and one which now enables AMMA to offer members a true end-to-end consulting and advisory service. The division has worked with member companies as they continue to face significant challenges generated by the legislative environment, increasing levels of union activity and militancy, labour and skills shortages and agreement negotiations and renewals. Underlying the breadth of AMMA’s service offerings is our ongoing commitment to continuous improvement in: • Assisting members with employee relations risk mitigation strategies for their operations; • Delivering strategic industrial relations advice regarding the legal and commercial structure and execution of EPCM engagements on major construction projects; • Building capability in the resource industry through investment in our training and development services; • The provision of legal advice and strategies to manage both vexatious litigation claims and workplace change in sensitive unionised environments; • General consulting services associated with employment and industrial relations advice and human resources policies and procedures;

2012 Activities Report

• Representation in various industrial and legal tribunals; and • Development and refinement of AMMA internal capabilities to ensure our members continue to receive the highest possible levels of service and advice. The following outline of yearly divisional activities demonstrates how Consulting Services has delivered on its commitment to members during 2012 and will further develop and enhance our support to the resource industry into the future.

Miners face increased workplace pressure

The closing of year provided further opportunities to work with members as they faced shifting workforce challenges resulting from ongoing skill shortages, issues associated with the legislative environment and increased cost control and revenue challenges around some decreases in commodity prices and project postponement.

AMMA Resource Sector Consulting Services All AMMA members have continued their high level of support and engagement with AMMA Consulting. Outlined below are examples of the types of consulting activity provided:

On Projects Workplace Consulting provided a range of services on various resource and related-construction projects during 2012. Significant projects included:

AMMA, which actively consultants on many Australian resources projects, has argued that its members face a sharp rise in site visits by officials from multiple unions amid a trend of increasing working time being lost to industrial disputes.

• Gorgon (Western Australia);

Australian Financial Review 04/01/2012

• Ichthys (Western Australia);

• Roy Hill (Western Australia); • Browse LNG (Western Australia); • Yara-Tan Burrup (Western Australia);

• Wheatstone (Western Australia); • North Rankin B (Western Australia);

Workplace Consulting

• Coal Hub Project (Queensland);

Overview

• GLNG (Queensland);

Workplace Consulting is responsible for delivering AMMA’s human resource and employee relations consulting services through our national network of skilled consultants.

• Queensland Curtis Island LNG;

The level of consulting activity in 2012 was highly active with solid results across all states. Consulting opportunities presented in: • Coal seam gas projects in Queensland; • Offshore construction projects in Victoria and Western Australia; • Shut down and onshore construction work in Victoria, Western Australia, Queensland and South Australia; and • Continued demand in operational areas across all sectors. A major feature of our consulting activity across Australia was the demand generated by the large-scale investment in projects across all major resources: oil and gas; coal; uranium; and iron ore. In addition to project demand, a large focus was on negotiating new and replacement workplace agreements in all sectors. In 2012, AMMA’s consulting resources were also widely engaged in all states due to a range of internal human resourcing challenges within our members.

• Australia Pacific LNG (Queensland); • Olympic Dam Expansion (South Australia); and • Kipper Turrum (Bass Strait). AMMA’s project industrial relations activities included the following services: 1. Market and environmental analysis: • Project booklets and IR reports to companies and contractors. 2. Pre-qualification and tender advice: • Provide assistance to contractors to prepare prequalification questionnaires and tenders that comply with the project specific IR requirements. 3. Projection execution services including: • Site roles; • Provide expert coordinated and consistent IR advice to contractors and the EPCM during project execution; • Ensure compliance with Employee Relations Management Plans; and • Ensure compliance with applicable legislation.

2012 Activities Report

specialists legal Migration 4. Enterprise Agreements: • Assist in the proper implementation and interpretation of enterprise agreements; and • Assist contractors to draft, negotiate, and process agreements to certification. 5. IR Procedures and Training: • Develop and implement coordination and information forums and procedures, right of entry procedures, training on right of entry and agreement interpretation and implementation; and training for supervisors and emerging leaders on IR awareness, employee engagement and communications and grievance resolution procedures. 6. Project Close: • Post evaluation reports and forums to ‘lessons learnt’ and review project IR systems and processes.

Advice and Representation In addition to project-specific consulting services, members also engaged AMMA’s workplace consulting services to provide general human resources and employee relations consulting services including:

Other Activities

Resource Sector Graduate Program The successful AMMA Resource Sector Graduate Program, introduced in 2010, was further enhanced in 2012 with the program including placements with member companies on construction sites and corporate environments. In addition, members sought the inclusion of a placement with AMMA as part of their own internal graduate programs. The program runs over two years and includes placements with member companies and with the different AMMA Divisions. The program is establishing an excellent reputation for the development of graduates seeking a career in employee relations. Past graduates have already established career paths with member companies following completion of the program.

Striking before talking upheld

• Issues associated with transfer of business;

The Australian Mines and Metals Association said the decision confirmed the need for the federal government to change the laws. “The government must amend obvious shortcomings in the workplace laws that left unchanged will facilitate widespread union strike action occurring in workplaces across Australia,” the association’s chief executive Steve Knott said.

• Contractual benefits proceeding; and

The Australian 21/04/2012

1. Advice and representation on: • Unfair dismissal, disciplinary and discrimination matters including conducting a number of workplace investigations together with associated reports recommendations; • Right of entry issues; • Adverse Action claims;

• Jurisdictional questions with the enforcement of contracts. 2. Providing advice and representing members in dispute settlement proceedings in FWA. 3. Provision of HR placements in member companies.

Legal and Migration Services

4. Assisting members with enterprise agreements including advice on options, rates of pay and assistance with negotiations etc.

Overview

5. Representing members in s418 applications, Provision of advice and representation on new claim (payment for pre-start meetings) from offshore construction unions – this has industry wide implications if conceded. 6. Site placements on construction projects with members. 7. Drafting Employee Relations Management Plans (ERMPs) for utilisation during tender processes and project execution. 8. Advice on maritime strategies for various projects. 9. Investigations into bullying allegations. 10. Provide advice and assist in the development of indigenous employment plans.

2012 Activities Report

Following the introduction of Legal and Migration Services as a separate functional area in 2012, AMMA is now proud to offer members an end-to-end consulting and advisory service. With a unique, deep understanding of the operational elements of the resource industry and its current and imminent challenges, our national network of qualified lawyers provide innovative technical and strategic legal advice, as well as tribunal and court appearance work. In the current workplace relations environment, managing employment matters is increasingly challenging and attracts attention at the highest levels within our member companies. AMMA’s Legal team is committed to reducing risk, while ensuring our members are known as best practice employers.

amma workplace relations research project 80

Current workplace relations environent

score out of 100

70 60

Perception of labour productivity

Direct engagement with workforce

April 2010

Oct 2010

April 2011

greenfield agreements under fair work act

Oct 2011

April 2012

individual flexibility arrangements (IFAs) Of significant value

50%

40%

Of some value

30%

Of very little value

20% Of no value 10% 10%

attempted union to negotiate refused to bargain

delayed process

20%

30%

40%

Data Source: All based on member feedback in the AMMA Workplace Relations Research Project, published in Fifth Report â&#x20AC;&#x201C; for the period from Nov 2011 to April 2012

2012 Activities Report

Union fury over Rinehart move to import workers

Australian Mines and Metals Association chief executive Steve Knott said the project “delivers a critical piece of mining infrastructure to support our economy over the next generation”. The Age 26/05/2012

Testing the Fair Work landscape More than three years since the introduction of the Fair Work Act, we continue to see the interpretation of key provisions for the first time. This year, Legal worked with AMMA Policy to intervene in three such cases of significant importance to our members: • Ryan v Whitehaven Coal Mining Limited – AMMA intervened to support the company in arguing that the National Employment Standards do not oblige an employer to pay annual leave loading on termination where an agreement is silent on the issue; • Appeal by Endeavour Energy – AMMA was refused leave to make a unique jurisdictional argument, but in the alternative intervened in support of Endeavour Energy in seeking to overturn Fair Work Australia’s decision to implement a salivabased drug and alcohol policy; and • ADJ Contracting – AMMA supported an appeal about the validity of clauses in an agreement which restricted payment of wages for contractors, varied right of entry and required promotion of union membership. In just one response to the major disputation that has besieged the construction industry this year, Legal also tested the good faith bargaining provisions by applying for a bargaining order in response to an unlawful employee picket. This was one of the first applications of its kind.

Strategic Advisory for Major Projects Despite the challenges which the legislation and its common law interpretations present, AMMA is well known for its consulting work in executing commercial workplace relations strategies on major projects. This year, Legal has successfully partnered with AMMA’s expert consultants and in-house member expertise at all levels of the EPC(M) hierarchy, to develop workplace relations strategies for a number of major projects in the initial pre-execution phase. With many more major projects reaching approval, Legal looks forward to contributing to the commercial effectiveness of our members, from project-owners to contractors and sub-contractors, over the coming year.

Migration Services 2012 has seen many exciting developments in migration law, including approval of the first Enterprise Migration Agreement and a critical test case about the operation of migration laws in the offshore oil and gas industry. As demand for labour on major projects heightens, AMMA members are faced with increased challenges in attracting and retaining skilled staff from the local recruitment market. Simultaneously, the increased scrutiny of foreign labour sourcing practices raises these workforce challenges. This backdrop has increased the demand for AMMA’s migration advisory and visa processing services within the resources industry, to now be at a higher level than ever. We forecast this will only continue throughout 2013. In Migration, we have focused on assisting our members to think strategically about their responses to labour shortages and the cost of doing business in Australia. Working with AMMA Policy to stay ahead of the trends, AMMA Migration offers a unique industry benefit by reinvesting in resources. As knowledge of our highly efficient, cost-effective service grows, so does our contribution to the industry. AMMA’s Migration Conferences are also providing a tailored forum for members to learn, network and share ideas with peers about resourcing solutions and experiences. With a number of new projects attaining financial commitment and plans for expansion of our service in the pipeline, AMMA Migration looks forward to supporting our membership in reducing mobilisation constraints and sustaining the Australian economy in the coming year.

2012 Activities Report

AMMAâ&#x20AC;&#x2122;s trainers and assessors travel throughout Australia to provide a service to our members. The areas in which training has been conducted include: Western Australia Albany Bootu Creek Cloudbreak Collie Corrigin Cosmos Darlot Dongara Esperance Forrestfield Geraldton Golden Grove Granny Smith Hopetoun

queensland Kalgoorlie Kambalda Karratha Katanning Koorda Kwinana Lake Grace Lawlers Leonora Merredin Mingenew Newman Northam North West Shelf

Onslow Orebody 23/25 Perth Plutonic Savannah Nickel Mine Southern Cross St Ives Sunrise Dam Tallering Peak Telfer Westonia Worsley

Mackay Miles Moranbah Mt Isa Riverton Rockhampton Roma Stradbroke Island Tieri Toowoomba Townsville

Brisbane Beaudesert Cairns Cannington Mine Charters Towers Chevallum Dysart Emerald Gladstone Glenden Gold Coast Isaac Plains

South australia

Victoria

Tasmania

New South Wales

Northern Territory

Adelaide Ardrossan Olympic Dam Prominent Hill Whyalla

Melbourne Sale Stawell

Burnie Hobart Launceston Strahan Zeehan

Broken Hill Mudgee Newcastle Orange Sydney Tamworth

Alice Springs Callie Darwin Kunnunarra

2012 Activities Report

Building up the front line

The training is being run by the Australian Mines and Metals Association, an industry group and registered training organisation, and was designed to ease critical skills shortages on resources projects. The Australian 25/02/2012

AMMA Training & Development Overview The increased activity across the national resource industry has maintained exceptional demand for AMMA’s training services throughout Australia. During 2012 the delivery of AMMA Training and Development services to our members increased in scope and frequency. There was a significant focus on competency-based training and assessment with products and services customised for the resource industry. In addition, AMMA also provided tailor made training and/ or assessment to accommodate specific operational requirements across Australia. A significant proportion of the training and development activities in 2012 were due to funding from two major government initiatives: • The Critical Skills Investment Fund (CSIF); and • The National Workforce Development Fund (NWDF). AMMA was successful in attracting in excess of one million dollars to support training initiatives in a number of representative member companies. AMMA’s training and development products and services are represented in two key areas: • Short courses (including the Resource Industry Leadership Program (RILP) and Employee Relations Workshops); and • Nationally Recognised Training.

Short Courses

Resource Industry Leadership Program (RILP) Leadership development has been a popular theme among resource employers throughout 2012. The AMMA suite of courses in the RILP offerings has attracted new supervisors, middle managers and experienced managers and leaders. There are seven courses in total which can be delivered as stand-alone units or as a comprehensive leadership program. These are widely utilised for professional development and career development in the resource industry. The courses have been developed as a result of feedback from AMMA members and are constantly reviewed to ensure the outcomes address current requirements and challenges facing resource industry supervisors, managers and leaders.

Employee Relations Workshops There was a dramatic increase in the workshops delivered by AMMA within the employee relations arena throughout 2012. Member companies invested in training as a proactive strategy to minimise risk and ensure employees are aware of internal and external processes in dealing with their people. The management of workplace issues was a common theme with the following workshops generating strong interest and participation: • Dealing with Union Right of Entry; • Bargaining Skills under the Fair Work Act; • Fundamentals of Employment Relationships; • Understanding the Industrial Relations Safety Net; and • Discipline and Termination. In addition to the calendar courses delivered throughout the year, AMMA members also requested a range of customised courses to align to their workplace requirements, all of which were delivered on-site to accommodate operational requirements.

Nationally Recognised Training AMMA’s scope of registration includes courses ranging from Certificate II through to Diploma and units of competence aligned to the High Risk Work (HRW) licensing requirements. AMMA has enrolled more than 300 participants in a variety of qualifications over the last 12 months. Of these, 50% have now completed certificates in Frontline Management, Human Resource Management, Training and Assessing, Underground Mining, Resource processing and Occupational Health and Safety. A range of member partnerships are currently in place whereby members deliver the qualifications on-site and AMMA provides the RTO compliance and support. This is a significant benefit to members who do not have the capacity or necessity to become an RTO in their own right.

2012 Activities Report

86 In support of these partnerships, and industry in general, AMMA has been proactive in delivering an upgrade program for trainers and assessors as a result of changes to the training package. With a new dynamic training team and specialised training and development consultants, AMMA Training and Development will continue to strengthen AMMA’s reputation as an industry leader and innovator.

The Year Ahead AMMA’s Consulting Services Division will be presented with significant opportunities and challenges in 2013 as the level and quality of service delivery to our member base increases. The major focus for 2013 will be to add value to AMMA membership through the horizontal and vertical integration of consulting services we offer our member companies. This will assist the industry with evolving human resource challenges in what is emerging as an uncertain economic environment. With anticipated market factors likely to produce a level of cost pressures within our membership base not seen since 2008/2009, AMMA is well placed to assist members with these challenges as it did then.

locations across Australia to receive

AMMA training We anticipate sustained high levels of demand for project-related activities will continue during 2013 and AMMA will be front and centre in assisting our members to meet ongoing workforce challenges. In the year ahead the Division will continue to: • Expand our service offerings and internal resources and capability to ensure that we can best service member needs; • Support and assist members through the provision of quality, relevant and cost effective consulting, legal training and migration services; • Build and strengthen relations and communities of interest with existing and new members; and • Maintain a focus on continuous improvement efforts to ensure that we maximise our own productivity and outcomes and are able to deliver increased value to our members. The AMMA Consulting Services Division thanks members for the support they provided in 2012 and looks forward to continuing to work with members in 2013.

2013 will also see a continued effort by AMMA to enhance its engagement with members through optimising existing consulting resources, skills and experience. This enables us to provide members with an enhanced consulting service and the continued expansion of both our Legal and Training and Development capabilities. Through these enhanced capabilities, we ensure that AMMA can continue to meet the evolving needs of our members.

2012 Activities Report

AMMA Sponsorship AMMA’s Associate Membership Program provides unparalleled opportunities for companies to promote their products and services to the resource industry. The program has a range of levels with associated benefits and can be tailored to meet a company’s requirements.

The AMMA Business Partnership Program, launched in late 2012, provides companies with the opportunity to increase their brand awareness to the Australian resource industry through a listing in ‘Resource People’ magazine and the AMMA website.

Platinum Associate Members

Big Sky has supported the resources sector for 42 years; as one of Australia’s premier resource based financial institutions, providing a range of banking, financial advice and insurance solutions to the employees and families of some well known resources companies and many suppliers to the mining industry.

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.

Big Sky

Coverforce

A: T: E:

A: Level 12, 9 Castlereagh Street,Sydney NSW 2000 T: 1300 503 503 C: Sean Pendleton E: Sean_Pendelton@coverforce. com.au

(H/O) 114 Albert Road, South Melbourne VIC 3205 1300 654 321 bigsky@bigsky.net.au

nib believe that health insurance should be easy to understand, easy to claim and, above all, great value. Established in 1952 by works of the BHP steelworks, nib has been providing great value health cover to Australians for more than 50 years. More than 800,000 Australians already benefit from a wide range of cover provided by nib and they’ll be the first to tell you it’s worth it.

Sodexo works as a strategic partner of clients to deliver on-site services with passion to support individual’s quality of daily life and contribute and the performance of their organisations. Sodexo’s on site teams provide consumer-centric activities that enhance physical, and social wellbeing - Foodservices, Facilities Management, Hospitality and Technical services. Sodexo is ranked in the top three of the world’s outsourcing companies.

nib A: 22 Honeysuckle Drive, Newcastle NSW 2300 T: 0419 710 501 C: Samantha Edmunds E: s.edmunds@nib.com.au W: www.nibresources.com.au

Sodexo A: Level 8, 607 St Kilda Road, Melbourne VIC 3004 T: 03 9880 6300 C: Maria Kucherhan

Silver Plus Associate Members

C: Genevieve Paton T: 02 9253 8105 E: genevieve.paton@aonhewitt.com

C: Shawn Murphy T: 02 9202 8222 E: shawn.murphy@customercare.com.au

C: Tom Hatch T: 1300 337 000 E: thatch@dfp.com.au

C: Dorinda Sullivan T: 08 9422 5000 E: dorinda.sullivan@frontiersoftware.com.au

C: Christian Hammerle T: 1300 304 199 E: info@greyhoundcommercial.com.au

C: Michael McIntosh T: 08 9242 0800 E: michael.mcintosh@kinetichealth.com.au

C: Brett Wing T: 1800 824 227 E: info@resourcesuper.com.au

C: Marcus Simpson T: 03 6333 3888 E: info@searsonbuck.com.au

C: Samir Momin T: 03 9655 4801 E: samirm@vetassess.com.au

2012 Activities Report