RESOURCE PEOPLE Issue 009 | Summer 2014

RESOURCE Issue 009 Summer 2014-15

Exploring Gold Fields Breathing new life into WA mine assets Peabody: HR for the highs and lows of coal Kicking goals with Aboriginal Maritime

PLUS mining’s community connection and Grange turns pink and blue

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CONTENTS

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COVER IMAGE Gold Fields Australia

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EDITOR Tom Reid Tom.Reid@amma.org.au DEPUTY EDITOR Kylie Sully Kylie.Sully@amma.org.au AMMA CONTACTS 1800 627 771 membership@amma.org.au migration@amma.org.au policy@amma.org.au training@amma.org.au

PUBLISHED BY The Magazine Publishing Company ABN 70 010 660 009 PO Box 406, Nundah Qld 4012 PHONE (07) 3866 0000 FAX (07) 3866 0066 EMAIL sales@tmpc.com.au WEB www.tmpc.com.au

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

CONTENTS

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REGULARS

04 05 41 54 56

From the Editor Chief Executive’s Message 5 minutes with...

Events Calendar Business Partner Directory

COVER STORY

06 African touch rejuvenates Aussie gold mines HUMAN RESOURCES

10 Newmont’s tool to tackle absenteeism 12 Peabody re-energises talent solutions OHS & WELLBEING

15 16 18 19 20

Grange Resources turns pink and blue FIFO in focus Bristow employees ask R U OK? Defence Force Q&A: Managing absence from home Career hazards of a safety adviser

MEMBER NEWS

22 Community connection

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TRAINING

24 26 27 28

NRW supervisors earn their stripes West Coast: School program delivers rising star East Coast: Gemma beats the boys to apprentice award VET reform: Skilling for the long haul

DIVERSITY

30 32 34 34 35

Caterpillar gears up for gender diversity Indigenous skills program launches Sodexo careers BHP’s Tyler an exceptional talent Campaign tackles widening gender pay gap Online tool measures workplace cultural diversity

POLICY

36 37 38 39

Policy at a glance New powers to stop strikes here to stay IR still ranked Australia’s biggest challenge FIFO mental health a priority, inquiry told

MIGRATION

40 Improvements to 457 visa scheme pending 40 Certainty restored in offshore visa challenge

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LEADERSHIP

42 Kicking goals with Aboriginal Maritime 44 Toro Energy poised for new uranium age INNOVATION

46 Virtually immersed in safety training 48 3D mapping boosts ore extraction 49 Innovation alliance targets mine productivity ECONOMY & FINANCE

50 51 52 53

Mining whiz opens family focused money school Resource investment behind higher living standards Export earnings surge with resource production Coastal shipping reforms for a globalised industry

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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REGULARS

Tom Reid EDITOR

From the Editor AUSTRALIA’S GOLD SECTOR may be facing its fair share of challenges, but in Resource People Summer ’14-15 we look at two large gold employers that are improving their productivity and their bottom line by encouraging innovation and efficiency among their workforces.

In our cover story, we learn how change management, people culture and performance have played a major role in the success of Gold Fields Ltd, as the South African-based miner consolidates its increased Australian portfolio as part of a global restructure.

Our other gold feature is on Newmont, where a new leave management system has proven once again that small improvements in workplace practices and culture often have the greatest impacts on operational efficiencies.

The Human Resources section takes readers over to the east coast for a special feature on coal miner Peabody. Reminding us that decisions made today will shape the workforces of tomorrow, Peabody executive Geoff Woodcroft discusses recruitment, skills development and attracting the next generation of resource employees.

In light of the increased focus on mental health and wellbeing

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in our industry, OHS explores the experiences of the FIFO working lifestyle from several different perspectives, each providing insight into the growing employee assistance and support initiatives embraced by the industry.

In Training and Development, we learn about the supervisory training that is introducing greater skills and confidence in contractor NRW’s workforce, and hear how AMMA executive director Tara Diamond is assisting in the government’s national vocational education and training (VET) reforms. Diversity celebrates Caterpillar Australia’s ‘gold’ rating in the AWRA Recognised assessment of organisational gender diversity capability.

In Leadership, we gain access to Australia’s first Indigenousowned marine services provider. With prominent Aboriginal community leaders and sporting legends such as the AFL’s Dean Rioli steering the ship, Aboriginal Maritime is delivering real training and employment outcomes for Indigenous Australians.

Finally, with 2014 drawing to a close, we felt it was time for a Resource People refresh. You may notice some subtle design improvements as you read the stories in this ninth edition; all found within our vibrant and evolving resource workplaces. RP

Steve Knott

Chief Executive’s Message FROM THE TRANSFORMATION undertaken by Gold Fields Ltd of its new Australian gold mines, to the ‘back to basics’ HR practices put in place by Peabody Energy and Newmont, this edition of Resource People offers unique insight into the workforce strategies of Australia’s resource employers as a commercially challenging 2014 draws to a close.

While a strong focus is on finding new efficiencies and improving productivity, it is encouraging to read the raft of investments still being made in developing the skilled employees and resource industry leaders of tomorrow. Management training, high achieving apprentices and successful schoolkid programs are all on display within these pages.

Diversity and Leadership showcase ongoing initiatives and programs to engage with underrepresented talent demographics in our sector, in particular encouraging more women and Indigenous Australians to take up career opportunities in our industry.

With an increased focus on mental health among Australia’s FIFO workforces, this edition also includes a timely feature exploring the benefits and challenges of undertaking this working lifestyle, including from the perspectives of the family members back at home and an onsite safety and wellbeing manager who undertakes a FIFO roster.

Recently, AMMA submitted to the West Australian parliamentary inquiry into FIFO mental health that employers in our industry have put significant energy and focus into comprehensive FIFO wellbeing initiatives over the past decade and more. However, employers in our sector are also very aware that the range of unique factors associated with FIFO work must be acknowledged and managed as part of ‘whole-of-business’ mental health and workplace safety policies and initiatives.

All this ensures sustainable employment opportunities are created by the resource industry and accessible to all throughout the broader community. As we look towards 2015, Australia’s mining, oil and gas, and allied sector employers continue to build a positive legacy that will improve our national wellbeing for many more years to come.

With each edition of Resource People we endeavour to showcase just a small portion of these efforts.

AMMA CHIEF EXECUTIVE

With the G20 meeting of global leaders taking place in Brisbane in midNovember, we have seen a renewed focus on Australia’s competitiveness in the global marketplace.

On the latter issue, there is no doubt Australia’s workplace relations laws can and should provide a much more supportive framework for economic and employment growth. More broadly, the role of government in creating a regulatory environment that supports and encourages industry innovation and investment remains absolutely critical.

To this end, AMMA was very pleased to have recently hosted an exclusive Dinner with the Coalition Leadership event where 40 executive leaders from an extensive cross section of our membership engaged directly with Prime Minister Tony Abbott and eight senior Australian Government ministers including Julie Bishop and Warren Truss.

This Canberra event provided a unique opportunity for senior representatives from Australia’s resource industry to hear from key political decision makers and discuss a raft of important policy issues impacting their individual enterprises and our wider industry.

Shortly thereafter, AMMA also facilitated a private meeting between Employment Minister Eric Abetz and various leaders from our industry to discuss the key areas of workplace relations reform that AMMA has consistently advocated in recent years.

The ongoing support we receive from our members enables AMMA to maintain and expand our representative work across ENGAGING WITH OUR NATIONAL LEADERS critical policy areas impacting all parts of Australia’s resource industry. It ensures our industry can grow and remain the Resource People also explores how as an industry we can cornerstone of our national economic wellbeing. deliver a strong return on the billions of dollars of new project investment into our country in recent years, and reap the By now many of you will have received the AMMA 2014 Activities Report, distributed to all members along with national benefits of our nation’s new production capacity.

AMMA’s 2015 membership renewal information. Also With the G20 meeting of global leaders taking place in available on the AMMA website, the Activities Report outlines Brisbane in mid-November, we have seen a renewed focus on the breadth of AMMA’s policy and influence work for all parts Australia’s competitiveness in the global marketplace. of our diverse membership.

At the ‘B20’ precursor event for business leaders, the head of AMMA looks forward to continuing to advance the interests of the International Monetary Fund Christine Lagarde suggested infrastructure investment and labour market reform will be critical our members and to actively influencing the government’s policy agenda in 2015 and beyond. RP to meeting the G20’s global growth target of 1.8 per cent.

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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COVER STORY

AFRICAN TOUCH REJUVENATES

AUSSIE GOLD MINES It’s been just over 12 months since South African-based Gold Fields took over three underperforming West Australian gold mines, significantly increasing its investment portfolio and workforce Down Under.

As the ambitious producer enacts its plan to turn the mines into efficient, worldclass assets, Resource People explores the change management, cultural and community strategies behind the takeover.

THE VERY DAY Gold Fields was handed the keys to the Granny Smith, Darlot and Lawlers gold mines in October 2013, the 800-odd employees across the three sites were kitted out in new yellow PPE clothing complete with Gold Fields’ distinctive lion’s head logo.

You might not consider replacing the orange Barrick Gold uniforms to be a priority when taking over US$270 million worth of mine assets, however such was the importance of immediate cultural change within Gold Fields’ newly acquired workforce.

“In my experience, if you don’t move quickly you lose the opportunity to implement cultural change and to make strong improvements early,” explains Richard Weston, Gold Fields Australasian executive vice president.

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“You need to change the systems as quickly as you can, otherwise the workforce sees the new operator as being no different.

So as soon as we gained access to the three mine sites, the first thing we did was change the colour of the PPE and ensure everyone had Gold Fields clothing from day one. The other priority issue was transferring all employees across to Gold Fields employment conditions and contracts.

“Then, during the first week we started putting technical review teams onto the three sites to discuss with the management and employees how we could improve the operations and what they needed to improve. We said we’ll give you capital but we want improvements, and that has worked well

COVER STORY

Granny Smith gold mine by night

across all three mines.”

Gold Fields acquired the three Australian assets, all located within WA’s famous central gold producing region, following an earlier corporate restructure that saw it splitoff its conventional underground mines in South Africa into a separate company. With its South African interests greatly reduced, Australia now represents 43 per cent of Gold Fields’ global production capacity.

The three newer mines join Gold Fields’ existing West Australian assets, Agnew and St Ives, to give the company a local production capacity of one million ounces per annum. Collectively, the mines employ about 2,150 people of which a higherthan-average 15 per cent are female.

Last year, falling gold prices presented

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Underground at Darlot in central WA

an opportune moment for Gold Fields to acquire underperforming assets at a bargain price. As relatively small mines within Barrick’s massive global portfolio, Weston believes offloading the three mines to Gold Fields made commercial sense.

“In the first half of 2013, the gold price dropped 30 per cent and any company selling assets had to change their expectations as to what they could get,” Weston says.

“The opportunity arose whereby we could pick up three of Barrick’s assets for around US$270m, and in my view, you couldn’t have built any one of those assets for US$270m. So we got what we consider a very good deal.

“Barrick has good operating systems

and a good operating culture, but we felt we could operate these three mines more efficiently; certainly we could give them more care and attention. Furthermore, we could exploit synergies with our existing operations in WA, at Agnew and St Ives.”

INTEGRATING GOLD FIELDS’ DNA Like any strong employer in the resource industry, Gold Fields operates around several core company values: safety, responsibility, honesty, respect, innovation and delivery.

But what really resonated with the new employees was an education program on Gold Fields’ ‘DNA’. Weston explains this is about the company’s strategic objectives, commitment to stakeholders, and its operating model and structure. »

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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Work underway at Agnew, 375km north of Kalgoorlie

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“When we took over the three assets it was the DNA presentation that went down really well with our new people, because they could understand exactly what Gold Fields was all about,” he says.

“Now, about 12 months on, we’ve just done a cultural survey of all our employees and it is clear that message was communicated particularly well.”

While describing his own leadership style as based on fairness and treating people well, Weston says Gold Fields also has high expectations in the performance, productivity and efficiency of both its assets and its people. He says the senior personnel the company inherited with the Barrick mines were told cash margin was more important than sheer production.

“With the capital we were willing to invest in the mines, and the focus on cash generation over production levels, we have seen strong improvements across all three assets,” Weston says.

“In particular Gold Fields has invested significantly in near-mine exploration at all its operations to enable the mines to build up their resources and reserves and extend the lives of these mines.

“We recently provided some of our South African underground colleagues with an opportunity to experience operating conditions in our highly mechanised underground Australian

mines. They were quite amazed at what can be achieved and at the levels of discipline in safety, equipment performance and maintenance.

“That was a unique training program, but we’re always prepared to make such investments if we consider it worthwhile.

In this instance the transfer of Australian expertise to our South African crews has proved invaluable.

“A team of 26 Australians is also assisting Gold Fields at its South Deep mine in South Africa in implementing advanced mechanised mining methodologies and practices.”

Gold Fields has encouraged the majority of Barrick’s former staff to remain employed on the projects, though general management of two of the three mines has since changed hands. Weston particularly notes that Stuart Matthews, the new GM of the Granny Smith mine, the largest of the three acquisitions, has experience in operating ‘difficult mines’ internationally and has implemented a number of significant changes.

“He has been very instrumental in changing the workplace culture and improving operations both underground and in the process plant. This year, Granny Smith is outperforming even our highest expectations,” Weston says.

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

SAFETY AND SUSTAINABILITY Weston has worked on a number of resource operations around the globe and, since returning from his latest four-year sabbatical, has implemented a focused safety regime at Gold Fields’ worksites.

Unsurprisingly, safety culture was a major part of the new mines integration process.

“Australia is highly regulated in terms of safety legislation, use of PPE and formal safety processes, but there are always improvements that can be made,” Weston says.

“This year we have introduced a complete safety behavioural program called ‘Vital Behaviours’, with the objective to ensure people not only take more care of themselves in the work environment, but have a much greater awareness and interest in what other people are doing in the workplace.”

Another area in which Weston brings an international perspective is in community relations and corporate social responsibility.

Through the Gold Fields Australian Foundation support is provided to community projects around Kalgoorlie, Kambalda and more recently Leinster.

It also contributes to broader initiatives such as the Royal Flying Doctor Service and the Princess Margaret Children’s Hospital. In addition, the foundation takes

COVER STORY

Richard Weston

a keen interest in providing educational opportunities for young Indigenous Australians and currently sponsors 13 talented individuals to undertake tertiary education in fields as diverse as medicine, law and engineering.

Weston notes maintaining a healthy relationship with West Australian communities is much easier than its operations abroad.

“I’ve worked in some very sensitive areas, both environmentally and in strong anti-mining communities,” he says.

“Operating here is nothing like the issues we see in Ghana, Peru or South Africa.

“Western Australia in general is very accepting as long as you demonstrate you are a good employer, take care of the environment and are socially involved and making a valuable economic contribution to the state.”

LEADERSHIP, PRODUCTIVITY, INNOVATION Weston has worked for Gold Fields since 2010, joining the company after spending four years in the United States as a senior operations executive with Coeur Mining, one of the world’s largest silver producers now based in Chicago.

Re-entering Australia’s resource market, he noted greater issues around labour market efficiency, productivity and competitiveness.

“When I arrived back in Australia, I quickly realised that in the four-year gap where I’d been in the United States, labour remuneration rates had almost doubled and there was little increase in

the industry’s productivity,” he explains.

“That’s clearly an issue we are seeing in all sectors of the resource industry, and something that is still causing great concern for Australia’s global competitiveness.”

The potential impact of such issues to Australia’s wider industry led Weston to recently join the AMMA Board of Directors.

“Through my involvement with AMMA I hope to make a valuable contribution to addressing these industry-wide issues and ensure Australia can better compete for job-creating, international capital,” he says.

Where Australia can regain its competitive advantage, says Weston, is innovation.

“I’ve worked overseas in a lot of different countries and Australians are up there with the best miners and can innovate well,” he says.

“Increased performance won’t come from cost-cutting. It is important that we continue to innovate, do new things, use new technology and seek paradigm shifts in the way we operate.

“While this does require capital, which is tight in the industry at the moment, it’s

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important to recognise that investing in equipment doesn’t give you innovation. It has to be achieved through your people; you’ve got to use your people to come up with the thought processes that will give you that paradigm shift.”

As for his medium term plans for Gold Fields’ increased Australian presence, Weston is motivated, if not a little cautious.

“I can’t say at this point if we’ll be producing two million, or even one million ounces per annum in five years’ time,” he says.

“However, I can say that we will be a sustainable and profitable gold mining company that delivers good returns for our shareholders and all other stakeholders, including local communities and of course our employees.

“Gold Fields also strives to be a reputable gold producer with highly sustainable operations that maintain very competitive margins. And while we aren’t the biggest employer in our sector, our goal is always to be viewed as one of the best employers in Australia’s gold industry.” RP

Gold Fields may not be the biggest employer in our sector, but our goal is always to be viewed as one of the best employers in Australia’s gold industry.

Women comprise 15% of Gold Fields’ workforce

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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HUMAN RESOURCES

NEWMONT’S TOOL

to tackle absenteeism As resource employers seek new operational efficiencies to boost productivity and address competitive challenges, the work of Newmont Boddington’s HR team is proving that often the subtle changes – like leave management – can go far.

Newmont is improving workforce efficiencies through a new leave management tool

MULTINATIONAL GOLD PRODUCER Newmont may be a global leader in its field, but with the resource industry facing new competitive pressures, even it is taking stock of its operations to eliminate lost productivity or efficiencies.

An immediate focus area is in its people policies and procedures – starting with its drive-in, drive-out remote workforces.

“Newmont’s concentration on the utilisation of labour came out of a bigger picture project to assess the full potential of our site and opportunities to improve efficiencies,” says senior HR adviser Linda Crowe.

“We realised there were significant gains to be made in the way we utilised our people and, with the Boddington mine in particular, through addressing issues around leave and absenteeism.”

Since pouring first gold in 2009, Newmont’s wholly-owned West Australian

open cut gold and copper mine, Boddington, has become one of the largest gold producers in the country with a 704,000 ounce output in 2013.

A mine life expectancy of more than 20 years means the company is understandably keen to establish a desired culture and to maximise workforce outputs for the long haul.

Crowe explains that as it is located 130 kilometres southeast of Perth, Boddington is ideally placed to employ a full drive in, drive out (DIDO) workforce of 1,030 people.

While this eliminates many of the human resource challenges associated with FIFO practices, she says it does pose other people management difficulties.

“Having a DIDO workforce, we are able to integrate a broad range of different rosters across the site, which is quite different to our FIFO counterparts and works to our favour in some ways,”

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Crowe says.

“But while it is easier to track FIFO employees’ movements through inflight systems, we didn’t have the infrastructure in place to be tracking our employees as they drove into site. We were trusting a large number of workers that they would adhere to their working hours.”

Determined to properly start quantifying absenteeism, Newmont’s HR team pored over monthly leave reconciliations, which confirmed some regrettable planned and unplanned leave trends.

“While we didn’t necessarily have a high absenteeism rate, it confirmed our assumptions that leave was not being accounted for,” Crowe says.

“If an operator who is planned to be on site is not present, it results in a ‘no-operator standby’ which means a truck is laying idle because there is nobody to drive it.

“That can cost up to $5,200 per day.

HUMAN RESOURCES

“This reconciliation process brought about the first step change in absentee management and the initial project reduced our leave liability by more than $1 million.”

Recent research has shown how such workplace inefficiencies can end up damaging overall business performance and competitiveness.

In its 2014 report Mining for Efficiency, PricewaterhouseCoopers found the global mining industry’s open cut equipment productivity has declined by 20 per cent over the past seven years. In Australia, mining equipment runs at lower annual outputs than most of its global competitors.

PwC found equipment productivity was heavily dependent on whether there were clear and strategic work practices to follow, and this could deliver better output improvements than investing in higher rated pieces of equipment.

As with most resource employers, management and leave recording falls largely with Newmont’s onsite supervisors.

“At Boddington it is not unusual to have up to 55 employees to one supervisor

per crew. Expecting that supervisor to keep track of all planned and unplanned absences was unrealistic without an efficient system in place,” Crowe says.

With the help of colleagues at Newmont’s headquarters in the United States, a new electronic ‘leave marker’ tool was created and is now being piloted with four supervisors and their teams.

Crowe is already seeing improvements in supervisors’ management capabilities.

“If somebody has not arrived for their shift, the supervisor will simply put a flag in the leave marker system,” she says.

This reconciliation process brought about the first step change in absentee management and the initial project reduced our leave liability by over $1 million.

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“That marker remains in place until the employee accounts for the absence and at any given time, we can print a report and see if the absence has not been followed up on.

“So it puts the onus back on the individual and deals with live data which helps us to reduce no-operator standbys and avoid other inefficiencies such as overpayment of wages.

“Aside from improving HR practices, I’m confident the supervisors will be better equipped to drive cultural change and greater employee engagement. It has the capability to extend to other Newmont sites if required.”

Driving efficiency across everyday workplace processes may seem minor in isolation, but the impact on wider productivity improvements in a costcompetitive environment cannot be underestimated and will surely help determine which resource companies remain leaders.

Newmont’s new tool to tackle absenteeism will assist greatly in keeping the gold producer at the top of its game. RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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HUMAN RESOURCES

PEABODY RE-ENERGISES

talent solutions

From the impacts of retiring baby boomers to competing for future talent with the oil and gas sector, Peabody Energy’s head of HR Geoff Woodcroft tells Resource People the coal sector’s workforce and skills challenges remain as complex as ever.

AFTER ALMOST FIVE years as vice president of human resources for Peabody Energy’s significant Australian coal operations, Geoff Woodcroft has witnessed the highs and lows of coal prices, talent shortages and human resources budgets.

“We had quite a few years of very prosperous growth and, like many of our peers, we are now at a very critical point in time. Many organisations are facing headwinds that they haven’t experienced before,” Woodcroft says of Australia’s mining sector.

In 2011, the US-headquartered coal giant achieved the strongest financial results in its 129-year history with $8 billion in revenue across its global operations.

Peabody’s metallurgical and thermal coal projects in Queensland and New South Wales accounted for half of those earnings.

Since that defining year, declining coal prices have impacted revenue growth.

Despite this, Peabody expects global coal demand to rise by 600 million tons by 2016 and is targeting Australian sales of a healthy 35 to 37 million tons this year – just above the 34.9 million tons sold in 2013.

The challenges facing the coal sector makes internal skills development as critical as ever.

“When you think of the current market conditions in respect to the impact on talent, it’s a real balancing act because we must respond to current business imperatives to reduce costs whilst keeping an eye to the coming years. The decisions we make today are going to shape our future, and we need to get it right,” Woodcroft says.

“Prices may not go back to the dizzy heights we had, but we will come through this. And the companies that are making the right decisions now about their talent needs will be the ones who will be able to quickly take advantage of the next upswing.”

Peabody Energy’s Geoff Woodcroft

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MANAGING NEW EXPECTATIONS Now the dust has settled on the ‘war for talent’, one of the biggest challenges for HR teams is managing employee expectations formed during times of high wages growth and very healthy career development budgets.

At the height of the skills shortage, Peabody like many other companies, was having to offer significant salary packages, including the buy-out of bonuses and long-term incentives to attract critical talent.

“Some people might say that candidates were the only winners in the war for talent but that’s really not true because it has consistently raised their expectations about what companies can offer and how fast their career could progress. That has to reach a ceiling at some point, and some people are finding that to be a difficult concept to accept,” Woodcroft says.

“Helping our employees to understand that now it’s really all about business survival, execution and remaining competitive in the current market is a difficult task. Some of them have never experienced a downward trend in the market, and keeping engagement levels high in the current environment is very challenging.”

SKILLS CHALLENGES REMAIN Like its competitors, Peabody experienced a much-welcome decrease in staff attrition rates within its 3000-strong workforce as the coal market eased. This however, also comes with its own challenges.

“If increased retention is occurring across the mining industry, it means that highly skilled talent is staying put, so there are still shortages in some critical skills areas,” Woodcroft says.

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“For example, we’re talking about the type of roles that are required to allow a mine to legally operate. If you can’t secure the right people for these roles, you are in really deep trouble.

“Our baby boomers are starting to retire and there’s going to be a huge number of people exiting the workforce in the next 10-15 years. That’s going to leave us short of some very critical talent and so the issue of skills shortages won’t be going away.”

To reduce the impact, succession planning, workforce diversity and leadership development are major focus areas in Peabody’s current and future talent management plan.

“Succession planning is critical. If you are not having conversations about how to prepare people for the next level, and

As an industry, we could be doing more to promote mining careers at a time when labour shortages have eased, or perhaps prospects in the oil and gas sector look more appealing.

the one above that, then you are not meeting the needs of your organisation,” Woodcroft elaborates.

“There’s also a large pool of talented women that the industry is not utilising as well as it could be. That’s both a challenge and opportunity for companies like Peabody, along with refining work readiness programs for Indigenous people.

“More so than when times are good, it is our leaders who set the culture of the organisation, and that can be a real competitive advantage when attracting and retaining talent. Peabody has significantly ramped up its management and leadership development initiatives to ensure our leaders have the skills and mindset to navigate our workforce through tougher times.” »

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HUMAN RESOURCES

» ATTRACTING FUTURE GENERATIONS Looking beyond Peabody’s immediate needs to the wider picture, Woodcroft believes it is now important for industry, government and educators to address future skills needs, adding that constant media speculation about the industry could be swaying career choices.

“The education system hasn’t really come on board with the need to get young people thinking about the exciting career opportunities in mining,” he notes.

“And as an industry, we could also be doing more to promote mining careers at a time when labour shortages have eased, or perhaps prospects in the oil and gas sector look more appealing.

“During the Global Financial Crisis we saw a reduction in the number of young people choosing mining degrees, resulting in a shortfall of qualified mining engineers a few years later. The current market downturn is likely to have the same impact and this will be a significant problem.”

Taking charge of its own pipeline of young talent, Peabody’s HR team is

now exploring greater opportunities to maximise its investment in graduates.

While these programs are usually the first to suffer from financial cuts, Peabody is balancing short term cost savings with future talent needs and is committed to its graduate program.

“Like many companies we have had a fairly traditional graduate program, so the HR team has refreshed our offering to make it more appealing to the brightest young minds,” Woodcroft says.

“The next generation want visible career paths and flexible arrangements.

We have to ensure we meet these expectations otherwise we just won’t be able to attract the right talent to take Peabody into the future.

“Just as we are introducing new technology into our mining practices, we have to be prepared to apply the same focus on innovation into our workplace practices as well.”

What is certain, according to Woodcroft, is that the industry is in an era of continuous change and

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that means HR must be proactive in identifying opportunities to help the business thrive.

“My team and I are constantly looking at new ways for the function to meet the needs of our organisation. That can be tough, especially in such a challenging market, but I guess it is also what makes the job so rewarding,” he says. RP

OHS & WELLBEING

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Grange Resources crew raised $9,000 for cancer charities

GRANGE RESOURCES

turns pink and blue TASMANIAN MAGNETITE MINER Grange Resources has welcomed two very large and very colourful additions to its Savage River mine site.

The company has painted two trucks – one pink and one blue – to raise awareness of both breast and prostate cancer.

Aside from turning heads with creative awareness messages like ‘It’s never too late to check your prostate’, the trucks are delivering tangible outcomes for local charities.

Employees raised $9,000 in donations between July and August. Cancer Council Tasmania has received $7,050 while the remainder was shared between the McGrath Foundation and Prostate Cancer Foundation of Australia.

General manager Ben Maynard says Grange Resources is the first mining company in Tasmania to paint trucks for cancer awareness.

“Grange Resources regularly supports worthwhile funds, including Relay For Life, SIDS, and World’s Greatest Shave,

and the positive response from the employees on this occasion has been outstanding,” he says.

“The initiative came from our assistant mine superintendent, Adrian Bonde. He saw an opportunity to inspire his teams to support this important cause, and to raise awareness of Grange employees’ health and wellbeing.

“Raising funds for cancer research and care is fantastic, but (this is) more about their health awareness, and (prompting them) to have a check-up. We know that early detection gives the best chance to

fight cancer.”

Grange’s ‘Crew B’ raised the most funding of each employee group – $4,000 – using a number of creative fundraising methods including live entertainment provided by a musically gifted crew member in the camp wet-mess, a raffle of items donated by local retailers, and employee cash donations.

The Grange Resources blue and pink trucks were painted by N & P Enterprises with paint donated by Paint-Tech Hobart.

The health awareness messages were done by Super Signs Australia. RP

A truck displays an important health reminder

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OHS & WELLBEING

FIFO IN focus With a FIFO mental health inquiry underway, Resource People looks at the mounting focus on wellbeing support for workers and families alike.

FAREWELLING HER HUSBAND as he embarks on a critical role as a fly-in, fly-out (FIFO) emergency management professional with a major Pilbara mining operator is something Dani Tamati is used to.

After eight days hard at work she will welcome him home for a six-day break, where he can resume his hands-on role in raising their four children.

The lifestyle is not without its challenges, but for the Tamati family, it works.

“It took about six months for our family to get used to the FIFO lifestyle, but now we prefer it,” Tamati says.

“When my husband comes home for his break, it allows us to really connect. He also does the school drop-offs and pickups and the kids get to spend quality time with their dad.

“Of course you also miss out on things, but if you plan ahead for family events, it puts you in a better place mentally.”

Tamati can relate to her husband’s working lifestyle because she too once worked onsite, embarking on a FIFO roster of 13 weeks on and three weeks off in the resources hospitality sector more than two decades ago.

After meeting her husband and starting a family, they resided in the Pilbara for 14 years before relocating to Perth in 2010. Tamati now runs recruitment firm The Resources Hub and says the time employees are expected to work away has dramatically reduced.

“In general, the longest rosters my candidates are employed on are four to six weeks away,” she says.

Well aware of the current debate around FIFO, she believes there are advantages in resource employers opening a greater dialogue with families.

“Because of my personal FIFO experience, I know where my husband goes when he leaves for work. Our children also have an understanding from having lived in a mining community,” she explains.

“But there are a lot of partners and families that don’t have that insight, so I think resource companies introducing the family to what site life is all about is a great initiative.”

In August this year, the West Australian Government announced a parliamentary inquiry to examine mental health among FIFO workers, following some deaths of FIFO employees over the past 12 months.

At the time, chair of the WA Parliament’s Education and Health Standing Committee Liberal MP Graham Jacobs indicated the inquiry would take a holistic view, looking at initiatives of government, industry and the wider community, as well as the ‘responsibilities of employees and employers’.

During this period, a number of trade unions have stepped up campaigns for shorter FIFO rosters across a range of new enterprise bargaining agreements for major projects.

The final report, including findings of any correlation between different rosters and mental health, won’t be handed down until March 2015. However, the industry is already approaching the review as an opportunity to improve on existing employee wellness programs.

The Tamati family with some impressive mining equipment in the Pilbara

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

FAMILY BUSINESS Nicole Ashby has certainly received growing interest from resource employers in the support services of her company FIFO Families.

Launched in 2010 as a networking and support group for resource industry families, FIFO Families has since expanded to deliver education programs and seminars to organisations and residential communities.

“We talk about how to successfully navigate a FIFO life, including everything from how to communicate effectively with your loved ones to

FIFO Families founder and director Nicole Ashby

OHS & WELLBEING

putting financial strategies in place and how to access professional mental health support,” Ashby says.

“Employers acknowledge and appreciate that there are some complexities around the FIFO lifestyle and want to make sure their workers have access to the resources they need.

“They know that if their workforce feels better about working away, they will be safer, more productive and loyal.”

Ashby hopes to one day see mental health awareness and support for workers and families become standardised across the industry, just like physical safety training.

The merits of doing so is backed by a recent joint FIFO Families and Creating Communities survey of 800 West Australian FIFO workers.

“We found that family acceptance and availability of family support were seen as very important factors for workers to remain in FIFO arrangements, however only 2 per cent had been involved in an induction of family members into the FIFO lifestyle,” Ashby explains.

“Greater preparation for FIFO, induction and ongoing support for workers and families will help promote satisfaction and a sense of connection, which will also naturally lead to greater productivity for companies.”

DRILLING DOWN THE ISSUES FIFO Families provides social support and education programs to a number of resource industry organisations including Mineral Resources, BGC Contracting, AngloGold Ashanti and Shell.

Integrated mining and energy services company Ausdrill has offered FIFO Families membership to its mobile workforce since 2011.

About 20 per cent of the employer’s people fly in and out of the Pilbara and Goldfieds regions, regional Queensland and South Australia as well as West Africa.

Managing director Ron Sayers sees it as an essential piece of the company’s employee assistance offerings.

“As a business, we are aware the FIFO lifestyle can put extra demands on families and individuals, and Ausdrill is therefore committed to making sure our FIFO employees and their families have appropriate support and information,” Sayers says.

“We offer a wide range of benefits to our employees including discounted health insurance, gym membership and access to a confidential counselling service through the Ausdrill Employee Assistance Program.

“We also have a program called the

17

Ausdrill managing director Ron Sayers

‘Ausdrill Way’ which funds immediate, short-term financial support for workers and their families in a time of crisis.”

While Ausdrill is taking deliberate steps to support the broad needs of its workforce, Sayers is disappointed by the level of negative attention FIFO often receives.

“The resources industry is not the only sector that has people working away in something along the FIFO lines, yet it does seem to get a disproportionate amount of attention for the issues that can arise,” he says.

“There are plenty of families in areas such as defence or agriculture that are dealing with similar issues. »

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RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

18

OHS & WELLBEING

»

“It’s simply a fact of life for many people, particularly in a big country such as ours where many of the jobs happen to be located in remote areas.”

MAKING THE RIGHT CHOICE Working in middle management for Mount Gibson Iron, Richard Kirkup oversees the wellbeing of around 50 staff onsite in the far north Kimberley. He also undertakes a FIFO roster of 12 days on, nine days off.

Like the Tamati family, he enjoys the FIFO lifestyle for its many benefits but believes individuals need to carefully consider their choice before diving headfirst into the industry.

“I get the best of both worlds. I live in Perth and spend quality time with family and friends, then I get out of the city and back to work which I enjoy because my job challenges me,” Kirkup says.

“And of course the money is fantastic. I know a lot of young people who have been able to set themselves

up early in life.

“But FIFO is a choice and it’s not for everyone. Each individual needs to figure out what working situation is best for them and their family.”

Kirkup sums it up well when he says the issue of mental wellbeing across all Australian industries is evolving and will require ongoing attention and improvements in workplace strategies.

“We have come from a time when 20 or 30 years ago the image of the industry was of a hardcore miner who just got in and got the job done,” he explains.

“But there is a new generation of people, a lot of whom are fresh out of their trade school or university and come into the job without a lot of life skills.

“I believe that supporting workers and their families is becoming more recognised within the industry and the more awareness we can create about the lifestyle – both the benefits and challenges – the better it will be for all.” RP

FIFO worker Richard Kirkup says the lifestyle gives him the best of both worlds

BRISTOW EMPLOYEES

ask R U OK?

THERE IS ONE phrase employees of helicopter transportation company Bristow Group have grown accustomed to hearing – R U OK? Bristow promotes mental health awareness among its predominantly male workforce of engineers, pilots and operational staff who work in remote locations and other safety critical environments, with the annual R U OK? Day every September.

The R U OK? organisation encourages Australians to regularly check on the wellbeing of friends, relatives and colleagues. Bristow Group first supported the cause in 2011 by sponsoring the Afield Program which develops resources targeting FIFO and DIDO workers.

Bristow human resources manager Keir Williams says the program offers an opportunity to highlight support services available and equip their staff with tools to confidentially engage in conversation with each other.

“Raising awareness and breaking down the stigma attached to mental health illnesses has given Bristow staff the

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

confidence to share personal stories with their workmates, enabling closer relationships within the workforce and increasing understanding of the needs of some employees,” says Williams.

Bristow Group’s Employee Assistance Program has seen an increase in usage, demonstrating that the message is resonating with the workforce in a positive and practical way. RP

Bristow Group employees with the R U OK? Foundation bus

OHS & WELLBEING

19

DEFENCE FORCE Q&A:

Managing absence from home Preparing serving members and their families for time apart is something the Australian Defence Force considers a major responsibility and critical to its success.

Resource People recently sat down with the Defence Community Organisation’s Northern Territory manager Paul Gibbs and family liaison officer Tree Malyan to discover what resource employers with FIFO workforces can learn.

Why does Defence invest in support for serving members and families?

GIBBS: In Defence, we have highly skilled people who do a range of really complex roles. It is not unusual for people to be away from home for weeks or months at a time, whether that is for training or deployment. In cases of international posting, they can even be away from family support for a year or two.

Managing this comes down to thinking about what it takes to maintain people’s capabilities and work performance.

A crucial component of capacity building is to help families prepare for that separation.

The role of the Defence Community Organisation is to contribute to that by assisting families to be more resilient.

Tree Malyan with commander Ben Favell at a family event.

How does Defence prepare members and families for time apart?

MALYAN: We offer a range of briefings, programs and services to help Defence families learn skills to manage their time apart and form a support network for each other.

One of the key resources that we work with Defence members and families to complete is a Member and Family Care Plan, which is essentially a comprehensive document that will guide them through any situation that may occur.

The care plan includes important information such as wills, medical details and financial planning. But it also covers all the silly inconveniences such as who to call if the washing machine breaks down or what the car insurance details are.

Defence We also have school-based aids and Community Organisation mentors working with Defence children to NT manager Paul Gibbs help them during parental absence.

Underpinning all of this is a 24-hour Defence Family Helpline that is staffed member to be a calming influence and by qualified professionals including social still feel like they are helping their partner workers and psychologists who support even though they are away. families during time apart.

Many resource employers offer support What does this offer the Defence programs to their FIFO employees, however, some people won’t seek help member while they are away?

GIBBS: Having a completed absence when they need it. Has Defence made a deliberate effort to build a culture where away from home plan really means that there is no shame in seeking support? the Defence member can go about their GIBBS: Yes, and it has taken quite some tasks knowing their families are prepared time to refine but it is now something for anything that may happen at home.

MALYAN: It is important for the families that Defence does really well. We’ve got the systems in place and we really pay to be resilient and handle a situation on their own, but if there is a crisis, it is attention to the detail. natural that the person you want to speak MALYAN: We always reiterate to to is your partner.

Defence members and families that there So if it is possible for the family to speak is support available and there is no shame to the serving member and they can talk in seeking that support, especially when about the care plan together, it allows the they have been deployed. RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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OHS & WELLBEING

CAREER HAZARDS

of a safety adviser In the 20 years he has spent as a training and safety professional, Paul Brabender has seen it all when it comes to the performance of workplace safety advisers.

WITH EVEN THE most confident of safety advisers falling into common traps of the profession, respected health and safety trainer at SAI Global, Paul Brabender, has some sage advice based on his own experiences.

BE PERSONABLE AND ENGAGING The importance of a capable safety adviser cannot be underestimated, especially on a risk-riddled resource project site, but Brabender explains that unless an effort is made to engage with, and respect the knowledge of employees, it will be an uphill battle.

“Nothing isolates a safety adviser more than an inability to engage the workforce.

Talking down to people who actually know more about the business than you do creates bad feelings and undermines your credibility,” he says.

“It is also less likely that people will trust you on those occasions when they really should.”

While a safety adviser must always be looking for potential problems, giving positive feedback can help build collaborative relationships in the workplace.

“A switched on safety adviser is also switched on to the great things that are happening right in front of them and is not shy in letting workers know what they are already doing successfully,”Brabender says.

“Pay attention to what you are being told, follow up on your commitments and work on making your contribution to the workplace chock full of preventative actions rather than corrective ones.”

BUILD A SAFETY CULTURE THAT FITS THE WORKPLACE One of the biggest mistakes Brabender sees safety advisers make is not integrating safety rules with business goals.

And if that doesn’t work, it’s time to

think outside the square.

“If sound reasoning and impeccable logic are inexplicably failing to change someone’s safe behaviour, the safety adviser should investigate further to find out why that is,” Brabender says.

“It could be a non-compliant manager instructing a task to be done a certain way or unrealistic time pressures. Or perhaps there is a more safe and efficient way.”

Although it is important to work with managers and employees, Brabender says a good safety adviser will not perform all safety duties on behalf of others.

“The safety manager who chairs all safety committees, writes all toolbox talks and completes all the safety inspections is probably ensuring their long term employment, but this will not develop a safety culture in the workplace,” he says.

REMEMBER THAT CREDIBILITY IS EVERYTHING Brabender believes safety advisers

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should feel confident that managers are committed to improving health and safety, otherwise the role is not worth taking.

Once in a company, he says advisers have a responsibility to ‘walk the walk’.

“I once witnessed a safety adviser implore a large group of workers to report all incidences for investigation.

The meeting became embarrassing when three workers asked what had been done about the incidents they had already reported and subsequently heard nothing about,” he notes.

As a final piece of advice, Brabender believes safety professionals who create more work for themselves will inevitably fail to build a safe workplace.

“Think about whether daily administrative activities are actually beneficial or if they can be streamlined,” he says.

“You will spend less time on corrective actions and more time implementing safer work systems by harnessing those with the greatest stake in workplace health and safety – the workforce.” RP

22

MEMBER NEWS

COMMUNITY connection A decade of record investment in Australia’s resource industry has seen projects reach new levels of sophistication. Just as important for resource companies is the continual investment in a social licence to operate through initiatives that meet the needs of local communities. Here, Resource People delivers a snapshot of industry-led programs demonstrating the widespread benefits that flow from a successful resource industry.

ORIGIN SCHOLARSHIPS BOOST COMMUNITY SKILLS ORIGIN ENERGY HAS awarded 25 youths from central and south-west Queensland an Origin Community Skills Scholarship worth up to $13,500 each to complete apprenticeships in their local areas.

Origin manages the Community Skills Scholarship program, now in its eighth year, on behalf of the $24 billion Australia Pacific CSG-LNG project.

The successful 2014 candidates hail from towns including Biloela, Taroom, Dalby, Roma and Chinchilla. The

total number of scholarships awarded under the program has reached 157, representing a funding commitment of more than $2.1 million.

16-year-old Dylan Wilson from Taroom is studying a Certificate III in Automotive Body Repair while working at Taroom Motors.

“I live in town during the week to go to work and then head back out to my family property on the weekends, so the scholarship will help with travel as well as tools for work,” Wilson says. RP

Origin Scholarship winner Dylan Wilson is studying automotive body repair

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

MOBIL GRANT INSPIRES WHIZ-KIDS MOBIL IS HOPING to inspire a new generation of engineers and scientists by injecting more than $100,000 into local schools and kindergartens through its 2014 Bright Future Grants.

25 schools and kindergartens close to the Mobil Altona Refinery and Mobil Yarraville Terminal have received a grant of up to $4000 each for a variety of maths and science resources and projects.

“Scientists and engineers are critical for addressing the challenges of 21st century life. That’s why we invest in education programs that focus on inspiring kids to pursue careers in science, technology, engineering and mathematics,” says Altona Refinery manager Andrew Warrell.

Kindergartens, primary and secondary schools are using the money for a broad range of maths and science resources and projects, from purchasing new technology such as iPads to funding outdoor programs to teach students about sustainability. RP

Scientists and engineers are critical for addressing the challenges of 21st century life.

MEMBER NEWS

23

QGC BRINGS TELEHEALTH TO REGIONS FAMILIES IN QUEENSLAND’S Western Downs will have better access to specialist medical care after the expansion of a ‘telehealth’ service supported by QGC and The University of Queensland.

The services ensure patients visiting participating medical centres can consult medical practitioners by videoconference and webcast technology rather than travel hundreds of

kilometres for specialist appointments in Toowoomba or Brisbane.

The expansion to Tara and Wandoan builds on the establishment of the Health-e-Regions service in Miles, Dalby and Chinchilla during the past year. In the next year QGC will invest $516,000, in addition to the $1.3 million contributed to establish and run the initial, two-year pilot phase of the project. RP Fortescue funding helped launch junior cricket in Port Hedland

COMMUNITY PROGRAMS TO GET FORTESCUE FUNDING

QGC has invested in critical health technology for regional communities

MMG HELPS CONGO TEACHERS SEE BRIGHTER FUTURE 32 TEACHERS AND school administrators can thank their improved vision on a partnership between MMG and the Waza Alliance for Quality Education.

MMG supported the Waza Alliance to conduct vision screenings and issue free glasses for 61 teachers and administrators at primary schools near its copper mine Kinsevere, located in the

Democratic Republic of Congo (DRC).

To encourage teacher engagement and improve learning outcomes, MMG also worked with the Waza Alliance and local education authorities to conduct teacher training at target schools.

The Waza Alliance is a US-based nongovernment organisation which aims to improve the lives of children in the DRC through quality education. RP

Teachers near MMG’s Kinsevere mine receive free vision screening

LOCAL COMMUNITY ORGANISATIONS within Port Hedland, east Pilbara and the Tom Price are in the running to receive funding of up to $5,000 each through the latest Fortescue Community Support program.

Now in its sixth year, the Fortescue Community Support program has helped not-for-profit organisations and community groups fund beneficial programs, activities and events. It focuses on initiatives that embrace and support education and training, Indigenous engagement, health and wellness, community safety, community involvement, economic development and environmental responsibility.

Recently, the program provided much-needed funding to help launch junior cricket in Port Hedland. Budding cricketers were lucky to learn from Australian cricketer Shaun Marsh at the Port Hedland Junior Cricket Association’s ‘Have a Try’ night. RP

Now in its sixth year, the Fortescue Community Support program has helped not-for-profit organisations.

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

24

TRAINING

NRW SUPERVISORS

earn their stripes

At either extreme, the proficiency of a supervisor can drive day-to-day productivity or destroy workforce morale. Taking no chances, mining contractor NRW is ensuring all junior supervisors step into the role with the right support and the right skills.

DURING ITS TWO decades on the Australian resources scene, mining contractor NRW has provided many ambitious junior operators and labourers ample opportunities to move through the ranks of its 3000-strong national workforce.

One of the big jobs keeping its workforce busy is providing services for Hancock Prospecting’s $10 billion Roy Hill iron ore project in the Pilbara.

Two contracts worth a combined $820 million for earthworks and concreting in the construction of a railway and processing plant required a peak workforce of over 2,000.

Behind the scenes, NRW has been steadily building its workforce capabilities with a specific focus on entry level supervisors.

“For us it’s about improving our

capacity not only in numbers but also in quality,” says human resources manager Elardus Rademeyer.

“Although it is a challenging time for

Elardus Rademeyer

NRW ensures all new supervisors receive industry training

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

mining contractors, the consensus from NRW leadership is that there are certain principles we have to maintain – we cannot stop investing in our people.”

When Rademeyer first assessed the company’s leadership training processes, he fast realised a more structured approach was needed to maximise NRW supervisors’ development.

“We’ve had a lot of inexperienced guys who progressed from operators to leading hands and then junior supervisory roles without any formal training and we saw real inconsistencies in the way they led and managed our guys onsite,” he says.

“That’s when we approached AMMA to help us to tailor a program for our requirements.”

Since 2012, AMMA’s Training and

25

Over time we have seen a direct link between the training our junior employees received and tangible morale improvements.

Development consultancy has delivered a two-day ‘Supervisor’s Toolkit’ to around 70 staff at NRW’s Belmont headquarters in Western Australia and more recently onsite in Middlemount, central Queensland. The training is incorporated in the broader NRW Supervisor Development program, which is aligned with the Certificate IV in Frontline Management.

“Today’s workplaces pose a range of challenges that can be overwhelming for new leaders if they don’t have the knowledge, skills and confidence to deal with them effectively,” says AMMA principal employee relations consultant Peter Robertson, who included some workplace relations training in the package.

“The course teaches NRW’s people such principles as time management right through to managing the performance of others, dealing with conflict and even decision making.

“These may seem like basic competencies, but putting them into practice with people you work alongside everyday can be very challenging. The participants were keen to learn and gained a great deal of knowledge from the course.”

NRW employee Greg Smith supervises a team of people working in maintenance and says the training helped him to hone the people-management side of this job.

“One of the most beneficial parts of the training was actually the team building exercise,” Smith explains.

“Professional development is often something that can be overlooked in the big picture, but as people progress through an organisation, their technical skills become less relevant in their job while their people skills and emotional intelligence become more important to getting the most out of their reports.

“So it is very important that people are provided the opportunity to develop these skills.”

Rademeyer is noticing a difference in the way NRW’s supervisors conduct themselves in the workplace since taking the course, noting a clear return on the company’s investment.

“Over time we have seen a direct link between the training our junior employees received and tangible morale improvements,” he says.

“They are taking the supervisory tools

back to the workplace and that’s because there is a good correlation between what they learn in training and the practical application onsite.”

The next step for NRW in its journey of effective and cost-efficient workforce development is to work with AMMA’s Registered Training Organisation in building the capacity of its internal operator trainers. RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

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TRAINING

WEST COAST: SCHOOL PROGRAM

delivers rising star

Approaching a one-year milestone as a Chevron apprentice, Riley Anderson is testament to the value of school-based education programs.

ANDERSON IS JUST one of many bright young minds exposed to opportunities in the resource industry through Chevron’s Powering Careers in Energy (PCiE) program, delivered to a number of West Australian high schools.

As a final-year Pinjarra Senior High School student, he completed five units of study to gain foundational knowledge of the industry before becoming the first participant to gain full-time employment through the energy giant’s apprenticeship program.

Anderson now works as an electrical instrumentation apprentice on Barrow Island, which sits 60 kilometres off the northwest coast of Western Australia and is the site of the liquefied natural gas and domestic gas joint venture currently under construction for the Chevron-led Gorgon project.

“I started the trade quite green, not really understanding some of the principles and how things work, but thanks to the training and close mentoring provided by Chevron employees, I’m really starting to retain countless amounts of knowledge passed down to me,” the 18-year-old says.

“I have been working closely with some tradespeople from Chevron’s WA oil division, some of whom have been working on Barrow Island longer than I’ve been alive.

“They are a diverse bunch of men and women that know their trade and responsibilities on the island very well.

I have the utmost respect and trust for these people that I work so closely with.”

Launched in 2012, the PCiE program has seen more than 300 high school students from a dozen West Australian towns including Onslow, Exmouth and Kwinana complete the one-year course which is endorsed by the WA School Curriculum and Standards Authority.

Chevron learning and development specialist Tanja Pisaric, says that along with providing Anderson with a greater understanding of the LNG sector, the PCiE program increased his understanding of available careers in the industry and the types of skills required.

“This enabled Riley to align his ambitions and existing skills to a career he could see himself in,” Pisaric explains.

“He learned of the values and expectations required of those who work within Chevron – particularly the focus on safety, which assisted him in his preparation for his company interview and application process.”

Chevron is now focusing on expanding the program throughout the state in the hopes of attracting more emerging talent to the industry.

Chevron apprentice Riley Anderson

A new generation of young minds will soon be discovering and shaping our world’s energy future, which is why we choose to invest in quality education and training programs.

The students of today are tomorrow’s energy leaders “A new generation of young minds will soon be discovering and shaping our world’s energy future, which is why we choose to invest in quality education and training programs. The students of today are tomorrow’s energy leaders,” Pisaric says.

Having now been exposed to some crucial on-the-job experience, Anderson hopes his trade backing will further broaden his horizons.

“I would like to end up working at either the Wheatstone or Gorgon

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

projects, but in saying that I would jump at the opportunity to use my trade to take me around the world,” he says.

“If Chevron wanted to send me to Thailand, the United States, Latin America, Saudi Arabia, Europe or any of the countries they operate out of, I would not hesitate to seize an opportunity to work in and experience different cultures while getting paid to do so.”

The skills and knowledge Riley gained throughout the program will no doubt help as he pursues such ambitions. RP

TRAINING

27

EAST COAST: GEMMA BEATS

the boys to apprentice award GEMMA HARTWIG MAY notably be one of a growing number of young women drawn to resource industry apprenticeships, but what really continues to impress her employer Ostwald Bros is her technical abilities and passion for the trade.

The apprentice diesel fitter took out the ‘School-based Apprentice of the Year’ award at the 2014 Queensland Training Awards State finals and will compete in the National Training Awards later this year.

“When I applied for the school-based apprenticeship with Ostwald Bros it seemed to me that they didn’t think twice about me being female,” says Hartwig, who works with the integrated services company’s mechanical maintenance team.

“I enjoy the fact that I’m breaking out of stereotypical gender roles and tackling something different.

“I’m really happy that I’ve won. I want to

excel; I want to be an advocate for women working in this field.”

Hartwig is completing a Certificate III in Engineering (Diesel Fitting) while finishing her final year at Our Lady of the Southern Cross College in Dalby and serving as school captain.

After completing her training, the high achiever hopes to work with the familybased Ostwald Bros on a remote site.

The Queensland Training Awards were first established 50 years ago to recognise outstanding achievements of individuals and organisations within the vocational education and training sector.

Hartwig took out the school-based apprenticeship category for the Darling Downs and South-West region in August before being announced the state winner a month later.

Ostwald Bros group plant manager

Brian Ostwald says Hartwig is a deserving recipient of state award as she consistently meets the company’s expectations.

“Gemma has demonstrated a highlevel of commitment towards all her responsibilities,” Ostwald says.

“She works well independently and has displayed great persistence when problem solving and working through complex tasks.”

Hartwig was also a recipient of Origin Energy’s Community Skills Scholarship this year, winning a $13,500 grant provided by Australia Pacific LNG to help young people learn and earn in their local communities.

The National Training Awards takes place on 21 November – check out Australian Training Awards.gov.au to see how Hartwig places against other star apprentices from around the country. RP

Gemma Hartwig is an apprentice diesel fitter with Ostwald Bros

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TRAINING

VET REFORM: SKILLING

for the long haul

As a member of the five-person advisory board leading the Australian Government’s reform of vocational education and training (VET), AMMA executive director Tara Diamond discusses how the skills needs of the resource industry will be represented.

EARLIER THIS YEAR I was invited by Minister for Industry Ian Macfarlane to join a five member Vocational Education and Training (VET) Advisory Board that will provide direct feedback to the government as it embarks on important reforms for the national VET sector.

The minister declared that the establishment of the Advisory Board will strengthen links between industry and the skills sector. AMMA’s representation as the peak national resource industry employer group reflects the extensive role our industry continues to play in the creation of employment and upskilling opportunities for Australians.

The resource industry invests more than $1.1 billion annually in the training and skills development of apprentices, trainees, existing employees and those transferring from other sectors.

However, now we are at a critical junction. Our industry is making a transition from an unprecedented construction phase to a period of heightened production and export activities that can fuel our economy for the long-term.

To underpin this activity, our industry’s evolving skills demands must effectively be met. Our workforces should be nothing short of the most skilled and productive in the world; demonstrating to the international investment community that Australia is the leading destination for projects to be developed and operated by world-class talent.

For these reasons, it is essential that the resource industry’s priorities are at the forefront of policy development and that the national VET system is truly responsive to the needs of employers, employees and jobseekers.

My fellow Advisory Board members and I are tasked with addressing five

overarching reform areas including options to create stability and practicality in regulation, setting an approach to the review of VET standards, developing a plan for international VET, providing direction to the development of training packages and advising an approach to apprenticeship harmonisation.

It is on this last point that I especially intend to emphasise as a key priority for the Advisory Board and the VET reform process.

AMMA’s engagement with our member companies overwhelmingly indicates that the trade apprenticeship system is not as effective as it could be.

This fragmented system sees employers forced to devote valuable resources to navigate wages, conditions, registration and qualification requirements that are inconsistent from state-to-state.

This makes it incredibly difficult and sometimes commercially unviable

Tara Diamond

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to efficiently source and transfer apprentices and trainees to locations where they are needed and will gain valuable vocational experience.

For an industry that relies on the mobility of its labour, encouraging and facilitating the movement of apprentices to areas where there are skills demands should not be stifled by bureaucracy.

This advisory process also provides the opportunity to shine a light on the unique needs of emerging sectors.

The $200 billion natural gas sector is driving much of the evolution of skills in this country, yet unlike our North American counterparts that have a longestablished gas industry, Australia is experiencing persistent shortages in key occupational groups and skill levels, such as mid-tier drillers.

Individual employers should be commended for the leading in-house training programs that upskill existing employees and draw on other trade groups to ensure their projects are adequately skilled.

However, we must also ensure a national VET framework supports the availability of trainers and training facilities for Australians who desire to become qualified in an in-demand trade that will lead to employment outcomes.

Continued engagement with AMMA members will remain vital as the Advisory Board prepares to provide feedback to the Australian Government’s VET Reform Taskforce.

The effectiveness of workforce skills development is reflected in the resource industry’s success. As the global environment becomes more competitive, employers should be thoroughly supported by a flexible and competitive national training system. RP

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DIVERSITY

CATERPILLAR GEARS UP

for gender diversity

Being the first to achieve a gold rating in Australia’s only resource industry assessment of gender diversity capability has provided Caterpillar with further motivation to get more women behind the company wheel.

A SUCCESSION OF enormous yellow trucks powerfully hauling tonnes of rock, ore and coal is an iconic image of the Australian mining industry.

Caterpillar, the global company behind these impressive machines, is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and dieselelectric locomotives with 2013 sales and revenues of over $55 billion. The company employs about 115,000 people worldwide.

While staying at the top of its game requires innovation in engineering and product development, its latest global pursuit is in gender diversity.

“Caterpillar has been very clear in its strategy that people are the key to everything we do,” says Scott Latham, country manager for Caterpillar’s human services division in Australia and South-East Asia.

“We believe that by focusing on increasing diversity in our workplace, we will achieve greater talent attraction, development and retention outcomes than our competitors.”

Caterpillar isn’t only now coming out of its cocoon in workforce diversity – the company established its Global Diversity and Inclusion Office 10 years ago.

In most countries, it has created Women’s Initiative Networks and regularly undertakes an inclusion survey to identify strengths and disparities across different employee demographics.

Feeding from this global vision, it is no surprise that Caterpillar’s 1,400-strong Australian arm achieved the first gold rating in the Australian Women in Resources Alliance (AWRA) ‘Recognised’ assessment of organisational gender diversity capability.

Taking part in the first round of AWRA Recognised assessments, Caterpillar had its

Australian workplace policies, procedures and practices evaluated against a rigorous model of diversity capability developed by research and consulting body the Centre for Gender Economics and Innovation, and based on international best practice in diversity and inclusion.

A tiered system of bronze, silver, gold

and platinum indicates the position of an organisation to leverage gender diversity to drive business performance and profitability, attract talent and innovate.

As Australia holds its own unique set of talent attraction and retention challenges, Latham says it was important for the Caterpillar’s local operations to undergo

We found it difficult to recruit female talent to our autonomous mining trucks area. So our recruitment team reviewed the language used in job advertising to focus on inclusive skills and attributes and ensure ads were more appealing to women.

Caterpillar Australia received AWRA Recognised Gold

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31

Caterpillar want more women behind the innovation of its mining equipment

a separate gender diversity analysis to the global business.

“We wanted to have a recognised external body review our Australian diversity programs to provide us with a diversity ‘health check’ and a road map to achieve greater diversity outcomes in this country,” Latham says.

“Without a real focus on attracting, developing and retaining female employees we knew we would miss out on the large portion of the local talent pool.”

AMMA is the facilitator of the AWRA Recognised program and executive director Tara Diamond says the assessment is designed to give resource employers specific recommendations to benefit from gender diversity and inclusion.

“Caterpillar Australia’s gold rating across three areas shows leadership, recognises the barriers to women’s participation and is working to build an organisation that thoroughly supports and leverages gender diversity,” she says.

CHANGING ITS APPROACH While retention of female employees is not so much a challenge for Caterpillar, Latham says the attraction of female candidates has been an issue for some time.

“Traditionally, female candidate participation in our graduate programs, as well as specialty engineering and product development, and production

Scott Latham

and leadership roles has been below published benchmarks,” he says.

“However, we are starting to achieve greater levels of female participation across the board and this is the result of changing the way we have traditionally attracted talent.

“For example we found it difficult to recruit female talent to product and service roles within our autonomous mining trucks area. So our recruitment team reviewed the language used in job advertising to focus on inclusive skills and attributes and ensure ads were more appealing to women.

“Interaction with female graduates and candidates at careers fairs is also very high and the percentage of female candidates applying for non-traditional roles has

increased dramatically.”

It often takes an objective view to identify where problems in an organisation exist, and Latham says the AWRA assessment pointed to some room for improvement at Caterpillar.

“Communication was one area where our leadership team thought we were doing well but the results were not convincing. We learned that our successes should be communicated more widely and clearly,” he says.

“We have already come a long way in addressing this issue. We have several regular newsletters to better communicate with employees via their preferred avenue.

“Similarly, we ensure that our diversity and sustainability programs, outcomes and achievements are shared and celebrated. This can only result in better performance and team engagement.”

Over the next five years, Caterpillar will focus on further lifting female participation across its engineering, product development and leadership roles.

“We are purposefully and methodically working through action plans to build on our gold assessment and continue to lead our industry,” Latham says.

“Providing our talented female employees with the opportunity to participate in the projects and programs that develop their leadership skills will ensure future diversity outcomes are protected.” RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

32

DIVERSITY

INDIGENOUS SKILLS PROGRAM

launches Sodexo careers

The inaugural group of Indigenous jobseekers from Perth’s first hospitality Vocational Education and Training Centre, based on the GenerationOne employment model, has begun training for careers in the West Australian resource sector.

A GROUP OF Aboriginal and Torres Strait Islander trainees is on course to complete a nationally accredited Certificate II in Hospitality and move into permanent Sodexo employment through a new workreadiness program.

Delivered by Sodexo’s remote site operations in partnership with Indigenous advocacy body GenerationOne, skills provider Polytechnic West and employment services group AtWork Australia, the program is part of the Vocational Education and Training Centre (VTEC) project established by the Australian Government.

Participant James Mead saw the promise of gaining new skills and employment upon completion of training as too good an opportunity to miss.

“Sodexo has a wide range of job opportunities on offer and the program prepares me for employment through jobspecific training, as well as communication and team-working skills,” Mead says.

Nationally, $45 million has been committed for the establishment of VTECs to equip 5,000 Indigenous Australians with job-specific skills and employment

by July 2015. Perth’s first VTEC will provide guaranteed jobs for up to 200 Indigenous people and Sodexo has promised employment for 10 per cent of this commitment.

Sodexo Remote Site chief operating officer Keith Weston says getting involved was a ‘no brainer’ for Sodexo.

“We’ve been on a journey with our Indigenous Reconciliation Action Plans for a number of years now and are very committed to a strategic approach around Indigenous engagement,” Weston says.

“Being connected locally is also an important part of Sodexo’s business.

We employ 428,000 people across 80

countries and, interestingly, 97 per cent of our employees are hired locally.”

In selecting candidates for the program, Sodexo canvassed Aboriginal communities and employment centres across Perth.

Weston was encouraged to find that the prospect of a real job at completion of the course was an extremely powerful motivator for Indigenous trainees.

“Some participants have been out of work for a period of time and are very keen to break the cycle of welfare by upskilling and moving on to gainful employment.

That for me is the most powerful part of the VTEC program,” he says.

“You don’t have to dig any deeper for validation of how promising the participants see this program as opposed to others which didn’t culminate in real employment outcomes.”

Beyond just teaching participants the range of hospitality and customer service skills needed to work for Sodexo, the program also focuses on enhancing life skills

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that will support sustainable employment.

“The VTEC trainees started with an allencompassing pre-employment training program,” Weston says.

“This includes understanding employer expectations, managing money, achieving work-life balance and adjusting to the FIFO life”.

“Very early on we arranged a site visit to Boddington, south of Perth, for the trainees to get a sense of a real remote environment. We wanted to prepare them as much as possible for the realities of what it would be like to work at a remote site.”

Now that he’s had a taste for the resources hospitality sector, Mead is optimistic about where his training could take him.

“The training and employment opportunities with Sodexo are helping to get my foot in the door. Having knowledge and experience under my belt will allow even more work opportunities to open,” he says. RP

James Mead with Sodexo employee Alexis Schauer at Polytechnic West’s Bentley campus in Perth

34

DIVERSITY

BHP’S TYLER AN

exceptional talent THE FIRST FEMALE to be an asset president of a BHP Billiton mining project, Laura Tyler, has won the Exceptional Woman in Australian Resources Award at the inaugural Thiess Women in Resources National Awards.

One of her many achievements was introducing the first diversity plan to improve attraction and retention of women at the company’s Cannington Mine, which Tyler manages in North-West Queensland.

“Nowadays, it’s not unusual to see women on our crews, even women leading teams running entire sites,” she says.

“These achievements are real and we should be really proud to be working in

an industry that empowers and builds in this way.”

Delivering a keynote address at the awards, BHP human resources president Mike Fraser spoke of the company’s diversity focus.

“We are addressing the historical gender imbalance we have seen in our industry by having a particular emphasis on increasing female representation in key operational roles,” Fraser says.

Due to its targeted diversity strategies, BHP Billiton has achieved 25 per cent female participation at its Daunia mine and 21 per cent at its Caval Ridge mine in Queensland. RP

Laura Tyler

CAMPAIGN TACKLES

widening gender pay gap THE WORKPLACE GENDER Equality Agency (WGEA) has launched a campaign to raise awareness and understanding of gender pay equity as national data shows the salary gap has widened.

According to the Australian Bureau of Statistics (ABS), the average man working full-time earns 18.2 per cent or $283.20 more than the average full-time working woman.

The resource industry is one of seven industries analysed by the ABS that has a pay gap above the national average.

Men working in mining, oil and gas roles occupations on average 23.8 per cent more than women.

New data released by WGEA shows almost three quarters of Australian employers haven’t taken steps to ensure they pay women and men fairly. 73.7 per cent of organisations have never done a gender pay gap analysis, and less than one in five have done a gender pay gap analysis in the past 12 months.

Of those organisations that haven’t done a gender pay gap analysis, the most common reasons were because pay

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is set by awards or industrial agreements, or because they pay market rates.

WGEA director Helen Conway says there is a lack of awareness of how gender bias can creep into performance and pay decisions.

“Most leaders genuinely believe they pay people in their organisation fairly, but without examining their payroll data they simply don’t have the evidence to back that up,” Conway says.

“Employers who analyse their data tell us they always find instances of pay gaps that can’t be explained or justified, at least the first time the analysis is conducted, and so they take corrective action to fix imbalances and develop action plans to address the root causes.”

As part of its campaign WGEA launched the website www.inyourhands.org.au where employees can see if their organisation has undertaken a gender pay gap analysis and offers practical resources to promote and calculate pay equity. RP

DIVERSITY

35

ONLINE TOOL MEASURES

workplace cultural diversity A NEW ONLINE tool has been developed to help organisations measure themselves against international best practice in cultural diversity.

Diversity Council Australia and VicHealth teamed up to develop the tool, which is available on the Australian Human Rights Commission website and focuses on recruitment and retention for a diverse workplace.

Race Discrimination Commissioner Dr Tim Soutphommasane, says while Australians embrace cultural diversity, there is still a long way to go in getting things right in the workplace.

“Managing diversity is about Australian employers being leaders in a global economy,” Soutphommasane says.

“The Workplace Cultural Diversity Tool will help businesses improve their performance. It will help businesses in recruiting and retaining the best talent, and in creating a more welcoming workplace.”

Diversity Council Australia CEO Lisa Annese says the tool identifies areas for improvement in an organisation based on international best practice.

“The tool rates organisations on their current cultural diversity and guides them through the process of moving to best practice, tracking their progress over time,” Annese says.

“As Australia becomes more culturally diverse, it is important that organisations have the right resources to effectively

manage the opportunities this presents.”

Top tier professional services firm PricewaterhouseCoopers is an early adopter of the new online resource, with CEO Luke Sayers looking forward to its contribution to PwC’s diversity and inclusion agenda.

“We recognise the value a culturally diverse workforce brings – not just for our people, but for our clients as well. In a society as diverse as Australia, having a workforce that reflects that diversity is fundamental,” Sayers says.

“We’ve set a target to increase the number of our partners from an Asian cultural background to 5 per cent by 2016, and this tool will be a valuable resource as we work towards that goal.” RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

36

POLICY

POLICY AT a glance A wrap-up of recent resource industry and employment policy developments

by AMMA executive director, policy and public affairs, Scott Barklamb.

FAIR WORK CHANGES: The Fair Work Amendment Bill 2014 has passed through the lower house of parliament and is currently before the Senate. The bill proposes a number of amendments to the Fair Work Act 2009, some of which will take effect immediately upon the bill receiving Royal Assent, with others to come into effect up to six months later.

Some of AMMA’s key workplace reform priorities are addressed in this bill, such as changes to union site entry laws and a more balanced and efficient new project (greenfields) agreement making system.

GENDER REPORTING: The Australian Government has implemented new minimum standards for businesses reporting on gender diversity targets, effective from 1 October 2014 for the 2014-15 reporting period.

Designed to boost women’s workforce participation, employers are expected to implement a policy or strategy which meets one or more of the minimum standards set by the Minister for Employer Eric Abetz by way of legislative instrument.

Visit wgea.gov.au to learn more.

CONSTRUCTION CODE: The Victorian Code of Practice for the Building and Construction Industry 2014 has taken effect, retaining the drug and alcohol testing requirements introduced into the state code and guidelines in July this year, and including a new requirement that successful tenderers provide the client agency with a project-specific health and safety management plan that meets the client agency’s satisfaction.

To promote a ‘lawful, fair, efficient, productive and safe’ industry, the Victorian Code includes a raft of provisions relating to workplace relations arrangements and prohibitions on particular courses of conduct. The federal building code has not yet passed the Senate.

SUPER INCREASES DEFERRED: The passing of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 in

Scott Barklamb

September means employers’ compulsory superannuation contributions will not rise again until 2021.

The Superannuation Guarantee Charge (SGC) as of 1 July 2014 was set at 9.5 per cent of employee earnings, where it will remain until 2021. On 1 July each year beginning in 2021, the SGC will rise by 0.5 per cent, eventually reaching 12 per cent by 1 July 2025.

Under Labor’s original legislation, compulsory employer contributions were set to reach 12 per cent by 1 July 2019, therefore the recent legislative change represents a six-year deferral.

RENEWABLE ENERGY TARGET: The Warburton Review into Australia’s Renewable Energy Target (RET) has been handed to the government and publicly released, recommending a number of proposed adjustments.

AMMA particularly welcomes the flagged adjustment of the RET to reflect energy demand growth trends, which would be a sound platform for renewable energy subsidy if such a policy must be pursued.

However, we note there is also a strong argument to scrap the RET altogether and instead allow market-driven investment into cleaner energy sources to reshape how our nation powers its households and industry.

COASTAL SHIPPING: AMMA welcomes

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the federal government’s focus on more competitive and efficient coastal shipping that will better support resource employers operating in a fast-moving global marketplace.

This quarter, Minister for Infrastructure and Regional Development, Warren Truss, released his department’s Australia Sea Freight 2012-13, which shows Labor’s changes to Coastal Shipping are costing jobs in the broader Australian economy and require urgent redress.

COMPETITION POLICY REVIEW: AMMA has highlighted the importance of retaining existing prohibitions against secondary boycotts by unions in a strong submission to the Australian Government’s Competition Policy Review.

LEGISLATIVE UPDATES: As the national resource employer group, AMMA is committed to keeping members up to date on all the latest workplace policy developments with its monthly legislative update service, tailored specifically for your organisational needs.

The Monthly Legislative Update is a customised service which can cover a vast range of policy information to help you ensure compliance. AMMA’s policy experts can ensure you only receive updates relevant to your organisation. Email policy@amma.org.au for more info. RP

POLICY

37

NEW POWERS TO STOP

strikes here to stay EXPANDED NEW CAPACITIES for third parties to intervene in damaging strikes will become a mainstay of Australia’s workplace relations system, after crossbench senators including those of the Palmer United Party voted with the government to defeat the Greens on the issue.

With Labor’s backing, the Greens’ raised a Senate disallowance motion that would have undone the new powers to seek relief from forthcoming strikes, implemented by the Australian Government in June.

The new regulation enables any third party that would be significantly impacted by forthcoming protected industrial action to have their case heard by the Fair Work Commission as part of an application for the strike to be pre-

emptively suspended or terminated.

For the resource industry, this important change now allows major project operators to potentially intervene in damaging strike action taking place along its supply chain.

Another significant outcome of the regulation was to enable Western Australia, as the only state that has not yet conferred its private sector industrial relations powers to the Commonwealth, to seek relief from the Fair Work Commission where industrial strike action could financially damage the state economy or local communities.

In justifying the government’s change to this area of Australia’s workplace laws, Minister for Employment Eric Abetz draws on the example of planned strike action

by tug boat operators at Port Hedland.

“The state government of Western Australia may well have an interest in seeking to avoid industrial action in circumstances where, as has been suggested – and, indeed, threatened – there might be industrial action by about five dozen highly-paid workers at Port Hedland,” Minister Abetz says.

“Additionally, there are other companies involved that, regrettably, have no say in the matter because the head agreement is with another company. As a result, thousands of workers in Western Australia could lose their jobs.”

AMMA believes the outcome is positive for employers which have been, or could be, an innocent third party to damaging strikes. RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

38

POLICY

IR STILL RANKED AUSTRALIA’S

biggest challenge

The heat has been turned up for workplace reform in Australia after two leading global authorities on business competitiveness and growth singled out labour market inefficiency as the number one challenge facing the nation.

AS THE BUSINESS community encourages the Abbott Government to implement its reform agenda, the World Economic Forum’s (WEF) recent Global Competitiveness Report 2014-15 further illustrates Australia’s declining competitiveness.

The WEF’s scale ranks the competitive performance of Australia’s economy 22nd out of 144 nations surveyed, with data pointing at its industrial relations system as the core factor dragging it down.

According to the WEF, Australia measures strongly on 11 of the 12 competitive ‘pillars’, with corporate governance, tertiary education, market competition, banking stability and scientific research (innovation) all within the top 10.

The nation’s worst performing factors remain flexibility in wage determination (132nd), pay and productivity (125), hiring and firing practises (136) and co-operation in labour-employer relations (109).

Tellingly, the WEF survey shows over one-in-four business leaders in Australia now rank labour relations as the most problematic factor to doing business in the country.

“Since reaching its best rank (of 15th) in 2009, Australia has been dropping continuously in the rankings. The country’s performance is remarkably consistent across the board… (but) the main area of concern remains the labour market,” the WEF report says.

“Indeed, as part of our executive opinion survey, Australian businesses, year after year, have named the restrictive labour regulations the most problematic factor for doing business in their country by a wide margin.”

For the past three years the WEF has pointed to workplace relations as the key priority reform area if Australia is to lift its competitiveness of the global scale. While critics have dismissed the organisation’s

findings as subjective, the WEF is not alone in its concerns.

Just weeks after the WEF report was released, the chief of the International Monetary Fund (IMF) noted more efficient labour market regulation was critical to Australia’s growth prospects.

In Cairns for the G20 finance ministers meeting – at which the world’s 20 largest economics signed a commitment to

Australian businesses, year after year, have named the restrictive labour regulations the most problematic factor for doing business in their country by a wide margin.

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increase global growth by 1.8 per cent over the next four years – IMF managing director Christine Lagarde noted an increased focus on labour market reform would be critical to meeting such a growth target.

“We hope that there will be more commitments in the areas of infrastructure and labour… more focus in general on job-market reforms, and on more opportunities delivered by the job markets, will actually help us with the double objective of both growth and jobs,” says Lagarde, who was France’s trade minister from 2005-2007.

With a Productivity Commissionled review into Australia’s workplace system pending, such commentary continues to reinforce the need for a comprehensive re-think on how Australia’s workplace system could better support the economic, employment and social aspirations of the broader community. RP

POLICY

39

FIFO MENTAL HEALTH

a priority, inquiry told A WEST AUSTRALIAN FIFO inquiry has heard that the mental wellbeing of all resource workers, including FIFO employees, is a top priority for resource employers.

In its submission to the Western Australia Legislative Assembly – Education and Health Standing Committee – Inquiry into mental health impacts of FIFO work arrangements, AMMA says resource employers remain acutely aware of the unique challenges associated with FIFO and proactively implement a range of initiatives to protect the mental wellbeing of their workforce.

“One suicide in the resource sector or broader community is one too many,” says AMMA chief executive Steve Knott.

“Resource employers are committed to

promoting awareness and embedding fit-forpurpose, risk-based policies and procedures to protect the safety of their workforces.”

AMMA’s submission also points to objective data indicating mental illness and self-harm appears to be no more prevalent in the mining workforce than other industries.

“While we note from the experiences of employers and employees that there is no causal link between FIFO work practices and mental illness or self-harm, this is an area where we need to remain forever vigilant and continue to improve awareness, communication and support for FIFO workers,” Knott says.

The Inquiry is examining mental health risks linked to the FIFO lifestyle following

a number of deaths of employees working under FIFO work arrangements in a 12-month period.

Knott says a range of unique factors to FIFO work must be acknowledged and managed by employers as part of their ‘whole-of-business’ mental health and workplace safety policies and initiatives.

“AMMA members support employees through initiatives that include free counselling services, mental health seminars and wellbeing coordinators,” he says.

AMMA is partnering with Beyondblue on a resource industry workplace mental health awareness campaign with workshops delivered on site this year and throughout 2015. RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

40

MIGRATION

IMPROVEMENTS TO 457

visa scheme pending THE INDEPENDENT 457 visa Integrity Review Panel has handed its final report to the Australian Government, recommending a number of changes to remove cumbersome and unnecessary bureaucracy from Australia’s critical skilled migration programs.

Earlier in the year, the government appointed an expert panel to review the temporary skilled migration program, specifically to determine the level of non-compliance by sponsors, evaluate its regulatory framework and report on the scope for deregulation.

Australian Chamber of Commerce and Industry (ACCI) director Jenny Lambert was one of the review panel members and notes the panel found little evidence of ‘rorting’, as claimed by the former Labor government.

“(However), the integrity review was about more than just compliance – it was about actually looking and talking about the objectives of the scheme and ensuring the scheme was delivering on those objectives,” she says.

Based on the evidence of more than 190 submissions, the Review Panel made a number of important recommendations to allow the scheme to better support the international skills needs of employers while also upholding the scheme’s integrity as being both economically responsive and socially responsible.

The most significant recommendations for the resource industry include speeding up the approval processes for skilled migration labour agreements for major resource projects; implementing more realistic English language testing standards; and

reducing the market salary rate comparisons from $250,000 to the previously longstanding $180,000 per annum.

Through its Industry Innovation and Competitiveness Agenda report, released in October, the Australian Government has already outlined its intentions to implement these three recommendations, however indications are that it will not support the Review Panel’s recommendation to remove cumbersome labour market testing (LMT) measures.

This is contrary to the consistent advocacy of the business community, particularly after the Review Panel reinforced the belief that LMT measures introduced by the former government did more to appease union demands than add value to the system. RP

CERTAINTY RESTORED IN

offshore visa challenge IN A DECISION that has restored certainty to the offshore resource industry, the Federal Court has rejected a union challenge to a Coalition ministerial determination that exempted foreign vessels temporarily servicing offshore resource projects from Australia’s migration zone and labour laws.

The Coalition’s determination effectively unwound the former Labor government’s attempts to capture all maritime work in the offshore sector within Australia’s migration zone.

In rejecting the challenge by the Maritime Union of Australia (MUA) and the Australian Marine Officers Union (AMOU), Justice Robert Buchanan held the government’s right to effectively reverse the previous Labor government’s amendments to the Migration Act through a ministerial determination.

The judge notes the concept of a migration zone as set out in the Act was ‘clearly intended to be a starting point, not a fixed or final one. The amendments are capable of contraction and of expansion’.

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The laws and regulations the MUA and AMOU were campaigning against have been in place in Australia since 1982 and are consistent with both international maritime law and resources work around the globe.

AMMA chief executive Steve Knott says the unions’ unsuccessful legal challenge is a significant and welcome development in a longstanding union campaign to have all offshore resources activities captured within Australia’s migration zone and thus within the reach of Australia’s workplace laws and union membership coverage.

“This campaign is simply the maritime unions’ attempt to gain control over areas historically outside their legal reach,” Knott says.

“These small number of international specialist workers actually help create Australian jobs. They travel globally and are paid in accordance with national and international laws.”

The Federal Court will hear an MUA appeal in March 2015. RP

MIGRATION

41

5 minutes with...

AMMA Migration Services Manager, Jules Pedrosa

A typical day’s work for me involves: Working closely with AMMA members, their candidates/nominees/appointees who need visas, consulting with staff members of various levels at the Department of Immigration and Citizenship and Border Protection.

The thing I like most about my job is: The variety. Every day is a different day with different activities. The people I come into contact with also make my day interesting and fulfilling.

The greatest challenge of my role is: Trying to get the Department of Immigration to approve visas in a timely manner, when AMMA members (and their nominees) need them.

My colleagues think I am: Pedantic, grumpy and not at all funny. And those

are the ones that like me.

My alternative career choice would be: MotoGP rider with either the Factory Yamaha or Honda motorcycle companies.

But I’d settle for a seat in World Superbikes.

If I could give my younger self one piece of advice it would be: Keep persisting: you are doing the right thing, no matter how frustrating it seems right now.

If I got a free airfare to anywhere, I would go: Anywhere tropical and (more importantly) cheap! I like my winters to be like mild summers with endless warm sun.

What I like most about living in Sydney is: I’m not going to be clichéd here and mention the breathtaking harbour, the scenic mountains or the engaging people.

Instead, I’m glad that I live within 30 minutes from the best motorbike riding

roads in Western Sydney. This includes Sydney Motorsport Park.

One thing on my bucket list is: To fly in a wing suit (Google it).

I’m inspired by: Everyday people who overcome overwhelming mental, physical or emotional odds without reward or recognition.

My signature culinary dish is: Anything pasta with red or white sauce. I once came second in a company Masterchef competition and beat about 20+ participating employees. I’m pretty sure the victor bought their last dish!

When I’m not at work I’m: Trying to overcome my limitations in being good enough for my alternative career choice (see above). Guess I’ll be at AMMA for a little while longer... RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

42

LEADERSHIP

KICKING GOALS WITH

Aboriginal Maritime

With the involvement of prominent Aboriginal community leaders and AFL football legends, Australia’s first Indigenous-owned marine services provider is kicking goals for Indigenous employment and social outcomes.

LEARNING THE OVERWHELMING majority of Aboriginal Maritime Pty Ltd (AML) employees voted in favour of an enterprise agreement negotiated directly with the marine services employer came as little surprise to managing director, shareholder and Indigenous community leader Wayne Bergmann.

While the mid-2014 vote piqued media interest for its lack of union involvement, Bergmann says implementing an EBA is fundamental to creating industrial relations certainty and supporting the company’s exciting growth plans.

“Having this enterprise agreement in place will provide certainty for the next four years of pay, conditions and responsibilities. The support we receive from our employees shows they feel they are looked after,” says Bergmann, a former head of the Kimberley Land Council.

“We may be called Aboriginal Maritime, but about half of our workforce are non-Aboriginal and all of our workers get treated equally and fairly whether they are black or white.”

While its connections to Indigenous communities in Western Australia and the Northern Territory provide strong advantages for the company, just as critical to AML’s success has been its corporate structure that allows it to offer a range of capabilities to offshore resource sector and commercial shipping clients.

AML, the brainchild of former MD and now chairman Clinton Wolf, and Perth dealmaker John Poynton of Azure Capital, is a non-operating holding company that controls AMSA-approved seafarer recruitment and placement provider Aboriginal Marine Manning (AMM) and iMarine Services, which caters for a range of inshore and offshore work.

AML is also closely affiliated with

the 100 per cent Indigenous-owned Aboriginal Marine Services Indigenous Corporation (AMSIC), which undertakes training, mentoring and job readiness programs for Indigenous candidates.

Another driving force behind AML’s success is the calibre of its shareholders and leadership group.

Along with Bergmann, who is also a member of the Prime Minister’s Advisory Group on Northern Australia, AML’s Indigenous shareholders include a roll call of AFL football legends-turned Indigenous employment advocates, including Essendon royalty Dean Rioli and Michael Long, and 2006 West Coast Eagles premiership player David Wirrpanda.

Nine Indigenous shareholders

currently have a 28 per cent stake in the company, however, funding arrangements will soon see them hold a controlling interest of 51 per cent.

Bergmann anticipates AML’s workforce of 61 to at least double annually as it pursues an aggressive growth strategy building on its current contracts. iMarine Services has recently established a joint venture with international contractor Bourbon Offshore to operate and manage crew transfer vessels in Australian waters.

However the greatest activity remains on the manning and crewing side of its business. AMM provides Indigenous labour for leading offshore services provider Tidewater Marine and exclusively for

Our involvement in Prelude FLNG will be in developing an Indigenous recruitment and employment strategy, staff mentoring and delivering a sustainable community engagement model.

Wayne Bergmann

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LEADERSHIP

43

My message as a footballer was to get a good education and become independent, so it was just a natural flow for me to go from football to helping Indigenous people find employment.

Dean Rioli

Teras Australia, a local vessel operator for Singapore’s Ezion group that holds a 50-year lease on Port Melville in the Tiwi Islands, north of Darwin.

“We’re manning three vessels and two supply bases and expect to fill another 50 positions in 2015,” Bergmann says of the Teras Australia contract.

From 2016, AML will also be the exclusive Indigenous content provider for tugboat operator KT Maritime in a 10-year contract with the Shell Prelude FLNG project.

“Our involvement will be in developing an Indigenous recruitment and employment strategy, staff mentoring and delivering a sustainable community engagement model, but we’re in discussions to increase the opportunity there. We are ready to get more involved in the contracting side as well,” Bergmann says.

Seizing these new opportunities largely comes down to AML’s training efforts.

In the late ‘90s and early 2000s, AML shareholder Dean Rioli was making a name for himself at Essendon Football Club, but these days his focus is on kicking goals in Indigenous employment and education outcomes.

“My message as a footballer was to get a good education and become independent by setting yourself up in a career. So it was just a natural flow for me to go from football to helping Indigenous people find employment,” says Rioli, who played 100 games for Essendon Football Club before retiring in 2006.

Becoming involved with AML a year ago, Rioli spearheads its pre-employment and labour hire activities, working closely with his brother Jeremy Rioli, who is a director of AMSIC and also a shareholder and senior Indigenous mentor with AMM. “We run a 28-day program that gives new

employees the skills to work on a vessel.

That’s when our masters, engineers and crew really step in and mentor the Indigenous guys which is a huge benefit,” he says.

“About 15 Indigenous guys have worked for us for over a year now, with substantial onshore and offshore experience. These employees will also go on to mentor future Indigenous employees.”

Many of AML’s Indigenous staff have cultural connections to the sea, including a group from the Tiwi Islands, who all successfully completed the AMSIC preemployment training.

“We never set anyone up for failure, so for us to have a 100 per cent completion among Tiwi Islanders just goes to show the program works,” Rioli adds.

“No doubt it will be different for every community that we enter, but we feel that

we have the structure in place to make sure the program is set up for Indigenous people to succeed.”

Nationally, AML has maintained a 96 per cent pass and retention rate among program participants. When asked what impact it will make in the offshore resources maritime sector over the next few years, Rioli and Bergmann are equally optimistic.

“For me, it would be fantastic to see a greater number of Indigenous people become engineers and masters in the industry,” Rioli says.

Bergmann adds: “We have a track record now of being able to train a workforce and deliver professionally in this environment.

“Our medium term vision is to joint venture with a number of tier-one companies, but it’s also about finding the right partners who believe in what we are trying to achieve.” RP

Jeremy Rioli (L) mentors Indigenous seafarers

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LEADERSHIP

TORO ENERGY POISED

for new uranium age Targeting emerging energy markets with Western Australia’s first uranium mine, Toro Energy managing director Dr Vanessa Guthrie discusses the company’s ambitious plans to make its mark on the Australian resource industry.

PRIME MINISTER TONY Abbott’s recent signing of a Civil Nuclear Cooperation Agreement with India leaves Australia as a potential leading uranium supplier to a country planning to meet up to 25 per cent of its energy demand with nuclear power by 2035.

Joining the Prime Minister’s business delegation to India was Toro Energy’s managing director Dr Vanessa Guthrie, who is leading the company’s uranium interests.

Its flagship project, Wiluna, is set to be Western Australia’s first uranium mine.

“Australia has a third of the world’s known uranium resources yet supplies only 11 per cent of the world’s supply,” Guthrie tells Resource People from Toro’s Perth headquarters.

“The nuclear cooperation agreement really creates an opportunity for Australia and Toro in particular to provide uranium to emerging markets such as India and China, which have aggressive nuclear energy expansion programs underway.”

Guthrie has an extensive background in

resources and when she talks about the ‘passion for mining’ that led her to become Toro’s managing director in early 2013, it is clear she is the right person for the job.

A career spanning 25 years has seen her work across gold, copper, nickel, alumina, oil and gas, or in her words ‘just about any commodity you can think of’.

Guthrie’s tertiary qualifications in geology and environment served her well as she progressed to leadership roles with recognised organisations such as Woodside Energy and Alcoa, but it was the PhD she completed on radioactive waste

Australia has a third of the world’s known uranium resources yet supplies only 11 per cent of the world’s supply.

Drilling takes place at Wiluna

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disposal that sparked a genuine interest in a sector she is now pursuing with gusto.

“When the opportunity came up to join Toro it was a perfect storm for me. It aligned with my technical, environmental, and government and community relations background which are all very important in uranium,” she explains.

“Toro is a small company with a really big vision to build Western Australia’s first uranium mine and be a producer. I was excited by that challenge.”

Located in the state’s mid-west, Toro’s wholly-owned Wiluna project contains approximately 76.5 million pounds of uranium oxide capable of being mined for 20 to 25 years.

In 2013, Toro received final government approvals to develop two of the project’s six deposits, Centipede and Lake Way, and have applied for approvals for another two deposits, Lake Maitland and Millipede.

The company is now looking for a financing partner for the $315m project while Guthrie analyses the market to determine the

Toro’s Wiluna uranium pilot test plant

LEADERSHIP

return the landscape to as close as possible to what it was before we were there.”

Toro also aims to provide skills development opportunities to local Indigenous people as part of its plan for a mixed local and FIFO workforce. It is anticipated that sourcing 350 employees for construction and 170 for operations will be fairly straightforward.

“People think a uranium project would require very unique and specialised skills, but in reality it is quite a simple mining and processing operation,” Guthrie says.

“The skills sets are similar to that of a gold, nickel or copper operation which also require good hygiene to maintain acceptable occupational exposure levels.

“In some ways we are quite fortunate that many of Australia’s major projects are completing construction and moving into the operational phase. Toro is now in a position where the skills sets we need are more available in the market.

“We look forward to getting on with development and bringing new production to emerging markets.” RP

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“Construction of Wiluna will likely happen once structural changes in uranium pricing have occurred. This could be as early as 2016.”

Guthrie accepts that the strong safety record of uranium mining in Australia is still clouded by some misconceptions. As such, Toro is dedicated to address any community anxieties lingering since beginning the approvals process five years ago.

Acknowledging the local Aboriginal community’s concerns around changing culturally significant landscape, the Vanessa Guthrie company adapted the design of the mine and processing plant. best time to start construction.

“There is a particular area in one of “We have completed our technical the ore deposits that is culturally very studies. Wiluna is a highly developed, highly significant to the local people, so we advanced project,” Guthrie says. agreed to exclude the mining of ore in “The closure of the Japanese nuclear that area,” Guthrie says. reactor fleet after the Fukushima accident “We are also taking a different approach resulted in an oversupply of uranium in to a normal open cut mine. After digging the market, which impacted price. the ore out and processing it, we will put “However, Japan have confirmed nuclear tailings and waste rock back in the hole will be a key part of their future energy mix rather than build a tailings dam and waste and their reactor restarts look imminent. rock dump. That means post-mining, we will

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RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

46

INNOVATION

VIRTUALLY IMMERSED

in safety training

Standardised training in the resource industry could one day involve an electric shock, falling off a ledge or crashing a heavy vehicle. Good news is, it will all take place in the virtual world.

IF RESEARCH BY Deloitte and Curtin University proves successful, the latest generation virtual reality immersion technologies could soon transform safety and training in the resource industry.

“It’s about making someone accountable for their actions and making them experience something that is not allowed on a mine site – failure,” says Coert Du Plessis, Deloitte WA’s advanced analytics lead partner.

Having undertaken extensive research into the link between training and safety outcomes, Du Plessis believes that too often training is done for compliance purposes and doesn’t always translate to positive safety outcomes.

He says utilising new immersive technologies, such as the Oculus Rift VR headset, can provide a real-life experience in different safety scenarios, giving users a full range of vision and the ability to physically move and interact within a virtual environment.

This particular virtual technology was originally developed for the computer gaming world, but is quickly going mainstream. Electronics company Samsung has reportedly partnered with Oculus to develop a smart phone with curved sides that converts into a virtual reality headset.

“Oculus Rift is one example where someone can be fully immersed in an environment such as a mine site or a workshop. We can then present them with a number of incidents and measure their behaviour,” Du Plessis says.

“From our experiments, we know people have a much more emotional training experience. They can experience what would happen if they fell from that platform, didn’t see that electrical fault or look hard enough over their shoulder when operating machinery. It’s a virtual failure, but it has a stickiness and lasting effect.”

Immersive technologies are already used for training purposes in the resource industry to an extent, most commonly for machinery simulators. However, Deloitte and Curtin University’s research promises to take it to the next level.

While still in the experimental stage, Du Plessis is eager to undertake further trials and help resource organisations understand the potential to personalise training, identify gaps in individual learning and reap cost and productivity benefits.

“There is a lot of data generated in each experience. We have the ability to identify, for example, that 80 per cent of a group had a really great learning experience, but 20 per cent of the group didn’t. You can then manage that through additional one-on-one training,” he says.

The research is funded by the federal government as part of Curtin University’s ‘Learning for Tomorrow’ strategy and aims to create authentic environments where students can apply the theory they learn in class to industry.

But Du Plessis sees far reaching

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

potential for the resource industry.

“You can have these immersive environments shared by more than one person. For instance, at a FIFO family day, children can put the headset on and go with dad on a truck or walk into the mine and experience what the work environment is like,” he says.

“It enables families to have a meaningful conversation about work and safety.

“There is also potential to use it in the recruitment and induction process by allowing people to feel what it is like onsite with the noise and buzz of everything, before they begin work.” RP

Coert Du Plessis

BGC Contracting’s mining operations manager Greg Dark experiences the Oculus Rift VR headset

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48

INNOVATION

3D MAPPING BOOSTS

ore extraction

The next phase of Rio Tinto’s Mine of the Future program will utilise world-first 3D image software that retrieves data from automated trucks and drills to identify the size, location and quality of ore.

THE REAL-TIME PROCESS using threedimensional mapping technology, is anticipated to reduce costs and improve the efficiency of mining operations.

According to Rio Tinto, the ‘RTVis 3D’ technology creates 3D images of mine pit activities that previously could not be measured and provides pinpoint accurate

mapping tightly focused on removing high value ore.

Rio Tinto head of innovation John McGagh says the technology has led to greater ore recovery through sharper boundary identification, more accurate drill blasting, reduced explosives, improved waste classification and enhanced dig rates.

“This technology allows us to quickly and easily view, compare and evaluate data to paint a picture of what’s under the ground – it’s like an ultrasound image of the deposit delivered in real time, something that we could never do before,” McGagh says.

“RTVis is a low-cost application that complements existing group-wide data technology in a way previously never available to enhance our mining operations.

“It quickly brings information to a much broader audience – from a single operator in the field to an expert team in the Rio Tinto Operations Centre in Perth.

“Armed with this detailed information, our operations to recover the ore bodies will be significantly more efficient and effective.”

The new 3D technology is deployed at Rio Tinto’s West Angelas iron ore mine in Western Australia and trials are also underway in other Rio Tinto product groups including copper, energy and diamonds and minerals.

RTVis also provides rapid feedback on the impact to equipment while another important benefit is in mine planning, with certainty provided on the nature of ore deposits at an earlier stage. RP

This technology allows us to quickly and easily view, compare and evaluate data to paint a picture of what’s under the ground.

Technology plays a large role in Rio Tinto operations

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INNOVATION

49

INNOVATION ALLIANCE

targets mine productivity AUSTRALIAN-BASED MINING services giant Orica has signed a five-year research alliance with the CSIRO to commercialise groundbreaking technology aimed at improved productivity and environmental performance in the mining sector.

“Over the past five years Orica and the CSIRO have been engaged in a hunt for innovation across the mining value chain and to date our partnership has achieved very pleasing results,” says Orica managing director and CEO Ian Smith.

“The second alliance agreement will allow a number of these ground breaking research projects to continue their progression towards commercialisation.”

Research milestones already achieved during the alliance include filing of a

patent application this year for a new method of ore waste boundary mapping that minimises ore dilution.

CSIRO chief executive officer Megan Clark says the alliance with Orica will continue to

produce many outstanding innovations.

“The new agreement gives us even more opportunity for our science to make a difference to industry and the community,” she says. RP

CSIRO’s Megan Clark with Orica’s Ian Smith

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

50

ECONOMY & FINANCE

MINING WHIZ OPENS FAMILY

focused money school

Lacey Filipich capitalised on her successful resources career with keen financial planning skills learnt from her mother. Now she is helping other resource workers and their families master the almighty dollar.

THE RESOURCE INDUSTRY has been responsible for a huge level of wealth creation over the past decade. The latest Australian Bureau of Statistics data lists resource workers as the country’s highest earners on average, taking home just under $2,500 per week before bonuses and overtime.

Unfortunately for some, entering a highpaying resources role does not equate to financial freedom.

“It’s even riskier for people who earn a high income because they can do some pretty significant investing or make some really bad decisions and create a lot of debt,” says Lacey Filipich, who recently launched financial coaching business Money School.

“I hear plenty of stories about people overcommitting on financial purchases. If they go down to a single income or lose work, it can be a real shock.”

Thanks to her financially savvy mother, Filipich learnt how to manage her money from a young age and began investing in property early.

She graduated as a chemical engineer and went on to forge a successful career in the West Australian resource industry, working in business management and training roles with BHP Billiton Nickel West before becoming a senior business coach with global consulting firm Lodestone Partners.

As Filipich progressed her career and financial goals, she saw plenty of others struggle with money. Before long she acted on a long-held desire to pass on her financial know-how to others.

“Particularly in the mining industry, people were earning lots of money but often didn’t know how to make it work for them,” she says.

“When I had my daughter I started

thinking more about my responsibility to pass on the knowledge that my mum taught me.

“We don’t really cover that anywhere in our education, so Money School particularly aims to address the existing gap in school curriculum by teaching families financial skills.”

Money School coaching sessions are tailored to families, adults or children and cover everything from the very basics of how to save and plan a budget, right through to investing.

“One thing that is really popular with adults is understanding how loans work, how credit works, what’s good debt and what’s bad debt, and how to work out how much you can afford to borrow,” Filipich explains.

“Every course also has a component about how to teach kids those skills. This includes simulations, training and games that you can play with kids to get them learning about money.”

But Filipich doesn’t want to take all the fun away from those earning a high income.

While she advises people to set aside some money and make a list of ways to downsize spending, she also encourages them to create an ‘awesome rainy day plan’.

I hear plenty of stories about people overcommitting on financial purchases. If they go down to a single income or lose work, it can be a real shock.

www.amma.org.au | SUMMER 2014-15 | RESOURCEPEOPLE

Lacey Filipich

“This could be anything from doing a 12 month house swap with a family in Spain to completing an MBA full time at a world-standard university,” she says.

“I have had several mini-retirements in my life, and interestingly they have been the least cost-per-week periods of my life.”

Filipich is also a non-executive director of Consumers of Mental Health WA, a not-for-profit that advocates the voices of people with lived experiences of mental health issues.

Believing financial skills can have great influence on mental wellbeing, she says the success of Money School will be measured by helping people take control of their money and thus become happier in their lives.

“Worrying about money can be very invasive in your life,” she says.

“The better strategies you have in place, the less that becomes an issue in relationships and the better chance you have of success.” RP

ECONOMY & FINANCE

51

RESOURCE INVESTMENT BEHIND

higher living standards

wages by 6 per cent and lowered the unemployment rate by about 1.25 per cent,” the RBA says.

“The combination of the substitution and income effects mean that motor vehicle purchases may have been 30 per cent higher as a result of the mining boom, and durables 25 per cent higher.”

Additionally, those who have bought into mining shares, including through superannuation funds, are said to have benefitted most from the mining boom.

However, the report also notes that other industries had experienced a slight downturn coinciding with the ramp-up of resource investment from 2002.

“The combination of changes in income, production and relative prices [associated with the mining boom] has meant large changes in the composition of economic activity,” the report says.

“While mining, construction and importing industries have boomed, agriculture, manufacturing and other trade-exposed services have declined relative to their expected paths in the absence of the boom.” RP

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RESOURCE ACTIVITIES OF the past decade have underpinned significant improvements to Australia’s standard of living, according to a report on the impact of the ‘mining boom’ by the Reserve Bank of Australia.

In its research discussion paper, The Effect of the Mining Boom on the Australian Economy, the Reserve Bank compared the economic outcomes of Australia’s mining investment surge against projected benefits had the mining boom not occurred.

“The world price of Australia’s mining exports has more than tripled over the past decade, while investment spending by the mining sector increased from 2 per cent of GDP to over 8 per cent,” the report reads.

“This ‘mining boom’ represents one of the largest shocks to hit the Australian economy in generations.”

The research, which circulated primarily around the overarching impact of rising commodity prices, found that income, wages and employment rates had increased as a result of resource investment.

The increases of income, combined with the improved exchange rate associated with the mining boom, led to higher purchases of household goods, food and communications.

“By 2013, we estimate that the mining boom had raised real per capita household disposable income by 13 per cent, real

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ECONOMY & FINANCE

EXPORT EARNINGS SURGE

with resource production The national economic benefits of the resource industry’s transition into a long-term production phase are beginning to reflect in Australian commodity export earnings data.

ACCORDING TO THE latest Resources and Energy Quarterly from the Bureau of Resources and Energy Economics (BREE), commodity export earnings have increased by 12 per cent in the past 12 months to reach a record $195 billion.

Australia is now exporting more than two-and-a-half times the mineral and energy commodities than it was 10 years ago. This is just getting started, however, with an influx of LNG capacity set to increase annual natural gas export value from $16.4bn to $57.1bn by 2019.

“Australia is moving decisively from the investment phase of the mining boom to the production phase,” says BREE deputy executive director Wayne Calder.

“We will continue to see expansions in capacity from the Australian resources and energy sectors with increasing supply of iron ore and coal as well as the commencement of major new LNG

Port Hedland, WA

projects across Australia.

“First LNG shipments from the east coast are expected to start by the end of 2014, rapidly ramping up over the period to 2019 to make Australia the world’s largest LNG producer.”

Over the next 12 months, resource and energy exports may drop by 1.4 per cent in line with softer commodity prices resulting from oversupply in key markets, but a rebound is also expected, with totals likely to reach $274bn in the next five years.

The BREE report also pay homage to the past contributions of the resource industry to the Australian community.

The report notes the past decade’s growth in exports and investment has ‘supported employment, regional development and increased revenues for both federal and state governments’.

It outlines how the Australian mining industry’s gross value added (GVA) to the

national economy increased by $72bn since 2003-04; with its share of GDP up from 7.8 per cent to 11 per cent in the same period.

Calder adds that ‘the prospects for the resources and energy industry remain positive’.

“Continued economic growth in highly populated emerging economies will sustain increased demand for both resources and energy commodities into the future,” he says. RP

Australia is now exporting more than two-and-a-half times the mineral and energy commodities than it was 10 years ago.

ECONOMY & FINANCE

53

COASTAL SHIPPING REFORMS

for a globalised industry IN AN ADDRESS at a recent Shipping Australia conference in Sydney, Minister for Infrastructure and Regional Development Warren Truss reaffirmed the government’s commitment to forthcoming coastal shipping reforms with the release of his department’s Australia Sea Freight 2012-13 research paper.

Speaking on the previous Labor government’s ‘flawed, bureaucratic and protectionist tiered licencing system’, the minister noted that in just two years under Labor’s Coastal Trading Act 2012 the carrying capacity of Australia’s coastal fleet dropped by 64 per cent.

“It is already clear that the operating costs of Australian ships, and particularly labour arrangements, are uncompetitive when

compared with operating costs for foreign ships,” says Minister Truss who is also Deputy Prime Minister and Nationals leader.

“For example, Cristal Mining submitted that the difference between using Australian and foreign ships costs their business an additional $5 million every year.”

Minister Truss pointed to Australia’s workplace relations system as one area impacting the sector’s competitiveness.

“We operate in a global arena.

Global businesses like shipping need labour arrangements that are competitive – both to attract the right people and to ensure the business remains afloat,” he says.

“Labor’s sop to the maritime union is costing jobs and has the

potential to cost a lot more jobs in our manufacturing industries, aluminium and mineral sands processing, gypsum, cement and sugar to name a few.”

Welcoming the Minister’s comments, AMMA chief executive Steve Knott says Australia’s ‘coastal highways’ should be a competitive advantage for the nation, not a major cost drain on local employers.

“More effective and efficient coastal shipping regulation will better support Australian businesses competing in the global marketplace,” Knott says.

“It is another piece to the puzzle in building a domestic policy framework that will see yet-to-be-determined resource projects approved and developed in Australia.” RP

RESOURCEPEOPLE | SUMMER 2014-15 | www.amma.org.au

EVENTS 54

EVENTS

NOVEMBER Wed 19

AUSTRALIAN WOMEN IN RESOURCES ALLIANCE (AWRA) FORUM The 2014 AWRA Forum will explore workforce diversity and inclusion across gender and culture. Resource employers and diversity experts will cover practical solutions to barriers preventing greater attraction, retention and development of underutilised labour pools including women and Indigenous Australians. Held at The University Club of Western Australia, Perth.

More info at: www.amma.org.au/awra

Wed 3 – Fri 5

AMMA INDUSTRY WRAPS These AMMA member-only events provide valuable legislative and operational updates for resource employers. Engage with AMMA specialists on important workplace matters and network with friends and colleagues from across the industry. Upcoming events to be held in Brisbane, Sydney and Melbourne.

More info at: www.amma.org.au

Tues 25 – Wed 26 8TH ANNUAL MINING SOUTH AUSTRALIA Hear the latest insights into South Australia’s project developments, mining operations, exploration, infrastructure, ports and rail and much more. Held at Middleback Theatre, Whyalia.

More info at: www.informa.com.au

Tues 25 – Wed 26 QUEENSLAND GAS CONFERENCE & EXHIBITION This conference is dedicated to the latest developments and issues surrounding coal seam gas and liquefied natural gas in Queensland. The program will explore the technical and commercial drivers to ensure operational excellence and deliver on project goals. Held at Brisbane Convention and Exhibition Centre.

More info at: queenslandgasconference.com.au

DECEMBER Tues 2 – Wed 3

TECHNOLOGY & PRODUCTIVITY IN MINING CONFERENCE In a period of profound technological and cultural change, this conference will analyse the key role played by new technologies to improve mining productivity, with a renewed focus on the critical role played by humans to manage these technologies.

Held at Fraser Suites Perth.

More info at: www.informa.com.au

JANUARY

Wed 29 – Fri 30 WOMEN IN SAFETY LEADERSHIP SUMMIT 2015 This summit will cover practical strategies and innovative solutions to enhance women’s leadership effectiveness for optimal career advancement and success in safety. Held at Fraser Suites Sydney.

More info at: www.liquidlearning.com.au

FEBRUARY

Tues 24 – Wed 25 SUMMER ENERGY BRIEFING This inaugural event will gather the experts to analyse, debate and collectively discuss some of the key issues surrounding the energy market and possible solutions that will help shape the energy future of Australia. Held at Marriott Melbourne.

More info at: www.informa.com

Tues 2 – Wed 3 OFFSHORE SUPPORT VESSELS The Offshore Support Vessels Conference will provide practical examples of successful operational performance and technical capacity in OSV activity. Oil and gas majors, OSV specialists, and technical and operational heads will discuss trends, case studies and the latest information on active and future projects.

Held at Fraser Suites Perth.

More info at: www.informa.com.au

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Wed 25 – Thurs 26 RIU EXPLORERS CONFERENCE The RIU Explorers Conference is a major Australian forum for the junior resources sector, with mineral exploration companies and emerging miners attracting an ever-growing group of brokers, fund managers and investors to hear their presentations. Held at The Esplanade Hotel, Fremantle.

More info at: www.riuconferences.com.au

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BUSINESS PARTNER DIRECTORY

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