Issue 016 | Autumn 2017

RESOURCE Issue 016 Autumn 2017

OUR EMPLOYMENT SYSTEM IS BROKEN

Roy Hill recruits leave no stone unturned Fortescue directors lead change

PLUS Oz Minerals' new copper windfall, digital skills

revolution and the latest in workplace relations

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CONTENTS

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EDITOR Tom Reid tom.reid@amma.org.au DEPUTY EDITOR Heather Stewart heather.stewart@amma.org.au GRAPHIC DESIGNER Cassandra Wood cassandra.wood@amma.org.au AMMA CONTACTS 1800 627 771 membership@amma.org.au www.amma.org.au

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

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CONTENTS

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REGULARS

04 05 46 48

From the editor Chief executive’s message Events calendar Business partner directory

COVER STORY

06 Our employment system is broken HUMAN RESOURCES

10 Seek and employ: How Roy Hill's recruitment is leaving no stone unturned 14 Study compares 'drivers' of work motivation 14 HR managers face challenge to be 'future-ready' OHS & WELLBEING

16 18 18 19

On board with better knowledge transfer Bluescope launches workplace safety app No permits for safety-related union visits - Fed Court Truckie's health concerns no excuse for abusing nurse

TRAINING

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20 Young women embrace regional QLD mining apprenticeships 21 Australians seek training for tech skills 22 Premier Coal traineeships support Collie youth DIVERSITY

24 26 27 27

Fortescue's female board directors lead cultural change Alcoa achieves 15 years as 'Employer of Choice' for women GHD pushes to change diversity cultures Mining reduces gender pay gap

MEMBER NEWS

28 In brief: People and projects POLICY

30 31 31 32 33

Policy at a glance Griffin coal defends EBA termination MUA wins Barrow Island representation dispute Government fixes agreement making compliance issue 10-year vision for globally competitive METS sector

LEADERSHIP

34 35 37 37

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Q&A: Legal eagle takes on AMMA role Programmed sets goal of 5,000 Indigenous jobs New Broadspectrum boss tackles innovation AMMA chief recognised for national contribution

INNOVATION

38 Skills revolution unlocking the digital age 39 METS collaboration takes national award 40 Funding fast-tracks mining research ECONOMY & FINANCE

42 National energy debate fires up 44 Oz Minerals edges closer to new copper windfall 45 Call to arms as resource project pipeline falls

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

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REGULARS

Tom Reid EDITOR

From the editor AT RESOURCE PEOPLE we aim to celebrate the excellence and innovation within the ‘human side’ of Australia’s resource industry, as well as explore the important policy, political and economic issues that impact on our ability to operate and employ.

We last ran a serious policy feature as our cover two years ago when AMMA, on behalf of our national membership, provided a comprehensive, evidence-backed submission to the Productivity Commission’s much anticipated inquiry into our workplace relations system.

At the time there was strong optimism that the inquiry would unveil the true economic and social impacts of our uncompetitive workplace laws and provide a real roadmap for reform.

This optimism proved short-lived.

Not only was the PC’s final report underwhelming, but in well over 12 months since its release, the Coalition government is yet to provide any meaningful response to what little reform it did recommend.

During this period, our nation has only narrowly avoided recession, our AAA credit rating has come under threat by all ratings agencies and our international reputation as a place to invest and do business has badly deteriorated.

For these reasons, our first cover story for 2017 explores just how broken the Fair Work system really is.

We’ve included the views from workplace relations thought leaders including former Howard-government Treasurer Peter Costello and former Vice President of the Fair Work Commission Graeme Watson, on what needs to be done to fix the system. We’ve also explored key elements of the resource industry’s 2017 campaign for workplace reform which Steve details further on the corresponding page (see right).

There are plenty of gems in this edition, demonstrating that now more than ever Australia’s resource employers are adopting new strategies, employing greater leadership and striving for success, despite ongoing market difficulties.

In our major features, we catch up with Roy Hill as the mine works toward full production and talk with Fortescue director Sharon Warburton on the company’s success in boardroom gender diversity. This and the latest human resources, leadership, training, workplace policy and OHS news is to be found within these pages.

If you have a successful company initiative or inspiring individual that would suit our next edition, get in touch via tom.reid@amma.org.au. RP

REACH RESOURCE INDUSTRY EXECUTIVES Directly mailed to more than 5,000 subscribers nationwide, Resource People is Australia’s only source of quality workforce news for professionals, managers and executives operating in Australia’s dynamic resource industry.

As the official magazine of Australia’s resource employer group AMMA, Resource People is an unrivalled opportunity to get your brand in front of the industry’s key decision makers.

Download the Resource People media kit at amma.org.au/mediakit to find out about affordable advertising options.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

Covering the latest on: • Recruitment • Training and Development • Workplace Relations • Migration • Leadership • Plus more workforce topics

Steve Knott

Chief executive’s message IT IS OFTEN discussed by our national policy makers how new skill sets, emerging industries and the application of new technologies is changing the way we work. What is too often missed, however, is that the way we regulate work also needs to become far more agile and responsive to change.

To put into context the importance of the themes covered in our cover story, consider that it has been two decades since the last transformational economic and labour market reforms were delivered with Australia’s future prosperity, and future ways of working, in mind.

It’s true that AMMA’s advocacy, with the support of our national membership across Australia’s resources and related sectors, has been highly successful in influencing change that has seen real benefits for employers in Australia’s resources and related sectors.

Such outcomes include improvements to new project (greenfields) agreement making, protected industrial action rules and restoring the ABCC with the extension of its powers to the offshore resources sector and related supply chains - an addition directly the result of AMMA's advocacy.

While these changes are important, AMMA and our members remain deeply concerned that our parliament appears unable or unwilling to address fundamental workplace relations reform.

Reform priorities identified by our 2016 survey of more than 100 member companies – a highly representative cross section of our industry which directly and indirectly employs 1.1 million Australians - are yet to be acted upon or even debated.

This is despite many of these reforms lining up with changes recommended by the Productivity Commission and Australia’s deteriorating economic and employment conditions highlighting the urgent need for change.

AMMA’s new 2017 workplace relations campaign, launched in March, is prosecuting the need for political action on fundamental workplace relations reform. We are building public awareness by simplifying the practical impacts our unbalanced, prehistoric workplace relations system has on Australian employers on a daily basis.

To do this, AMMA is focusing on “Five Urgent Reforms”, which include the following priorities:

AMMA CHIEF EXECUTIVE

AMMA’s new 2017 campaign is prosecuting the need for urgent political action on fundamental workplace relations reform.

coordinated advocacy activities dedicated to each of these unique reform priorities.

Independent KPMG research commissioned by AMMA indicated that if these five priorities were addressed, the benefits through the resources sector alone would be a $30.9 billion boost to national GDP and 36,000 additional jobs.

This campaign involves a number of government relations, mainstream media, social media and other public affairs activities. We are also releasing short animated videos throughout the year on each of these reform priorities of which our first, related to union site entry laws, is available now.

This video, and other information related to our reform priorities, can be found at amma.org.au.

We look forward to sharing with you key successes and milestones as we collectively make the case for a workplace relations system that properly supports the resource industry in attracting investment, creating employment and contributing significantly to our national wellbeing. RP AMMA chief executive Steve Knott was recently appointed a Member in the General Division of the Order of Australia (AM), recognising, among other things, his contribution to workplace relations in Australia over nearly four decades (see page 37).

1. Restore balance to union workplace entry laws; 2. Focus enterprise bargaining on employment matters; 3. Expand agreement making options for employers and employees; 4. Return to balanced termination of service laws, where a valid reason exists; and 5. Replace the Fair Work Commission with modern, balanced institutions.

This campaign is a continuation and refinement of our established reform themes, guided by the ongoing feedback of our industry, and will see six-week periods of various RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

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OUR EMPLOYMENT SYSTEM IS BROKEN RESOURCE EMPLOYERS LEAD THE CRUSADE FOR CHANGE From an agreement-making process that fails to support job creation, to a national workplace tribunal divided and dysfunctional - Australia’s employment system is broken and in need of an urgent overhaul.

In this special Resource People feature, we investigate key workplace relations events of recent months and explore how the resource industry – through its employer representative AMMA – is leading the crusade for change.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

“The industry in which we operate has changed considerably while the labour institutions and regulatory framework has been very slow to respond.”

– Mining employer.

COVER STORY

THE IMMENSE DIFFICULTY for employers navigating Australia’s workplace relations laws was on full display late last year when mine services provider Thiess required a live enterprise agreement before bidding for a major new Hunter Coal contract.

If successful, the contract would employee hundreds of coal miners in a region struggling for jobs.

But without a contract how could the employer satisfy the Fair Work Act’s overly-complex agreement making system?

The simplest solution appeared to be drafting an agreement that met the National Employment Standards, passed the better-off-overall-test (BOOT) and was endorsed by a small group of employees who would potentially be employed at the mine.

There is a real disconnect between modern, flexible workplaces where unions are fast becoming a thing of the past, and our workplace relations system that is stuck in 1970s.

The services provider would later discover that not involving a union would bring it undone when the CFMEU successfully had the agreement thrown out of the Fair Work Commission.

Under a workplace relations system that represents arguably the biggest

increase in union powers and privileges since federation, Thiess is far from the only employer to have made a fatal error in not involving unions in every discussion and negotiation.

In February, Broadspectrum had approval of its new agreement overturned on appeal by United Voice which, despite not being a party to bargaining, convinced a Fair Work Commission full bench that being left out of email exchanges between the employer and the single commission member denied it procedural fairness.

In December 2016, there was wide outrage when a small drilling contractor to the mining sector had approval of its new enterprise agreement overturned on application by the CFMEU, despite the union conceding it had no members covered by the agreement.

"These are just a handful of examples of how Australia’s workplace relations system is failing employers and employees by creating significant barriers to productive employment outcomes," explains Steve Knott, AMMA chief executive.

"A common frustration is the insistence by the current laws and those who administer them, that unions be inserted into the employer-employee relationship at every possible junction.

“Employers who wish to bargain directly with their own employees must now also negotiate with a trade union, even if the majority of employees are not union members and/or do not want unions involved.

“There is a real disconnect between modern, flexible workplaces where unions are fast becoming a thing of the past, and our workplace relations system that is stuck in 1970s.”

Even where employers have successfully persuaded their workforce to vote up non-union endorsed agreements, it is never smooth sailing.

Vessel operators servicing Australia’s offshore oil and gas industry had been negotiating for new agreements with three maritime unions, including the militant MUA, for more than three years when they grew tired of the unions’ intransigence and misconduct.

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“Unions have disproportionate influence in agreement making given their membership is about 11% of the workforce.”

– Minerals employer

A number began taking non-union endorsed agreements directly to their employees with voting largely supporting the employers’ approach to put sustainability and job security ahead of union ‘wish lists’ of unsustainable claims.

Those employers with watertight agreements would sustain challenge after challenge by the unions. But coming out on top doesn’t quarantine companies from the costs, delays and uncertainty that come with months of legal and tribunal proceedings.

Other vessel employers would see their agreements overturned on technicalities by a Fair Work Commission either unwilling or unable to overlook or correct minor procedural errors in the interest of providing certainty and stability to Australian firms and their employees. » 2016-17 AGREEMENT MAKING OUTCOMES: • Mining employer losing new work after union intervenes on agreement.

• Services employer agreement overturned on appeal by union not a party to bargaining.

• Drilling contractor agreement overturned by union which had no members covered.

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

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»

COVER STORY

VICE PRESIDENT’S EXIT VALIDATES EMPLOYER CONCERNS The increasing tendency for members of the FWC to reject agreements based on technicalities or minor defects was just one of several major issues raised by the recent high profile early retirement of tribunal Vice President Graeme Watson.

CHIEF CONCERNS OF FORMER FAIR WORK COMMISSION VICE PRESIDENT, GRAEME WATSON: • Unpredictable outcomes of unfair dismissal cases.

• Confusion, complexity and cost of ‘adverse action’ laws.

• Enterprise bargaining giving rise to adversarial behaviour.

• Unduly complexity of agreement approvals.

• Ineffective remedies for unprotected industrial action.

• The Fair Work system is undermining the Act’s intention.

VP Watson, a longstanding and highly regarded Howard government appointee, is one of three senior members to exit the tribunal well before their statutory retirement date in the past five months.

Unlike senior deputy presidents Peter Richards and Matthew O’Callaghan, however, VP Watson ensured his views on the current

“The workplace relations system has allowed negotiations to be based on a lagging indicator… hinged on ‘resources boom’ levels.” – Oil and gas project operator.

workplace relations system were well heard upon his departure.

“It is increasingly clear to me that the operation of the workplace relations system is actually undermining the objects of the Fair Work legislation,” VP Watson stated in a letter to Minister for Employment Michaelia Cash notifying of his resignation.

“I do not consider that the system provides a framework for cooperative and productive workplace relations and I do not consider that it promotes economic prosperity or social inclusion. Nor do I consider that it can be described as balanced.”

The vice president goes on to identify specific areas of the Fair Work laws which continue to lead to adverse outcomes for employers and employees.

He noted the unpredictability of unfair dismissal outcomes and lamented people being awarded compensation or given their jobs back despite theft, misconduct and breaches of safety and other workplace policies.

He was concerned the adverse action provisions of the act – a new function of Labor’s legislation that leaves employers unscrupulously exposed to claims – ‘remain complex and confusing’ and serve no ‘social or economic purpose’.

He further described the current enterprise bargaining process as being extremely limited and ‘giving rise to adversarial behaviour’.

“By operation of the system, an agreement made directly with employees is more difficult to make, and more difficult to have approved, than an agreement with the support of a union,” VP Watson continues.

“Inconsistent approaches to approval and illogical technical requirements have caused significant frustration for parties, undue costs and further discouraged the use of enterprise agreements.”

Ultimately, VP Watson described Australia’s workplace relations system as a ‘danger zone’ for business and one which ‘discourages employment and investment’.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

AUSTRALIA ‘LIMPING’ INTO RECESSION Despite VP Watson’s controversial resignation receiving mainstream, national media attention, outside of legislation to fix technical issues with agreement approvals (see page 32) the federal government is yet to respond.

Former Treasurer of Australia Peter Costello, an influential thought-leader on national policy, was quick to express disappointment with the ‘notable silence’ from the current government.

I do not consider that the (Fair Work) system provides a framework for cooperative and productive workplace relations, (nor) that it promotes economic prosperity.

“Here, we have a situation where one of the most senior members of an expensive and powerful government body, an insider, has blown the whistle on the failure of that organisation to serve the purposes for which it exists, in particular its failure to promote economic prosperity (and) no member of the government apparently feels the need to respond,” Costello says.

Speaking at an event for progressive industrial relations reform organisation, the HR Nicholls Society, Costello offers two alternative explanations for the government’s non-response.

“One is that the government believes that the system is working well and

COVER STORY

needs no change. The second is the government knows the system is not working well but since it has no intention of changing it, sees no point in admitting it,” he says.

Lamenting a ‘bipartisan agreement’ in the current parliament that there should be no fundamental change to Australia’s workplace system, the former Treasurer and now chair of the Commonwealth Future Fund believes reform will only come when forced by a forthcoming recession.

“Australia is limping along at the moment with a budget deep in deficit, low productivity growth (and) with higher unemployment than we would like,” Costello says.

Australia is limping along at the moment… Our political class is not focused on this, but if things continue as they are, it will be forced by crisis to refocus.

“These days there is little debate about structural reform or micro-economic reform. We do not focus on enhancing the drivers of productivity growth.

“To change things requires a diagnosis of the problem and then hard work to cultivate an appetite to change it. Our political class is not focused on this at the moment, but if things continue as they are, it will be forced, by crisis, to re-focus on it.”

RESOURCE EMPLOYER CAMPAIGN TO DRIVE CHANGE Concluding his address, Costello urges the ‘ideas people’ in Australia to stand up and ‘challenge’ the political class.

“Somebody needs to keep the flame alive for policy because we will have to come back to these issues – how to make our economy more productive, how to improve economic growth, how to develop economic prosperity,” he says.

According to Knott, this is where resource employers will drive real influence for change in 2017.

The AMMA chief says that since the election of the Coalition Government in 2013, the campaigning of AMMA and its members has arguably been the most successful of any group in achieving amendments to Labor’s Fair Work system (see page 5).

“These changes have all been important improvements to the existing system, but the time has come for more transformational reform that will put our nation back on the pathway to growth and prosperity,” Knott says.

“We need to be asking the tough questions that were not asked by the Productivity Commission in its 2015 review – questions like why is Australia’s workplace system governed by layers-upon-layers of regulation, and what impact is this having on innovation and growth?

“We must consider what our workplace relations system would look like if we were to start fresh and build it from the ‘ground up’.”

Throughout 2017, AMMA is ramping up its campaign for “Five Urgent Reforms to restore balance to Australia’s workplace relations.

At the same time, the employer group

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“Our current workplace relations environment encourages combative behaviour and panders to special interest groups.” – Maritime employer

is campaigning for greater political vision to undertake fundamental, transformational workplace relations reform that will not only keep our heads above water, but restore Australia’s competitiveness within a rapidly evolving global economy.

Visit amma.org.au to join the resource industry’s campaign for workplace relations change. RP

A SURVEY OF MORE THAN 100 AUSTRALIAN RESOURCE EMPLOYERS REVEALED: • Concerns at the frequency and costs of unions entering workplaces (86%).

• Belief that the Fair Work system does not reflect the modern workplace (95%).

• Workplace restrictions and regulation is an impediment to business growth (89%).

• Unions are seeking excessive claims with no productivity improvements (87%).

• The government must go further with workplace reform (87%).

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

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HUMAN RESOURCES

SEEK AND EMPLOY:

How Roy Hill's recruitment is leaving no stone unturned It’s an exciting time for the Pilbara’s newest multi-billion dollar iron ore mine.

Roy Hill has reached practical completion and its eponymous operating company has taken the reins and is gearing up toward full capacity by the middle of the year.

The real story, however, is in the unique approach the company is taking to recruiting the right workforce for the operation’s long-term future, and the positive impacts the project is having on livelihoods.

JUST EIGHTEEN MONTHS ago the Roy Hill mine was in peak construction, bursting at the seams with engineers, tradespeople, labourers and sub-contractors.

Today, 95 per cent of the construction teams have demobilised and project testing of the 55mtpa capacity mine is now complete.

“It’s a big milestone for us. It’s as if we’ve finally been given the keys to our new car and we now have to drive and make it work,” Giles Lenz, Roy Hill’s general manager of organisational effectiveness and improvement, says.

“But there are many challenges in this phase. Firstly, we've got to identify and unblock the bottlenecks. We're running quite a lean ship, so the biggest challenge is to have the right capacity and capability

to problem-solve without unnecessarily loading our cost base.”

At the corporate level, Roy Hill is also reshaping itself to ensure its structures and strategies are ‘fit for purpose’ in its operating phase.

“We settled on a design, but it's not until you start operating and looking at how things are running that you think, ‘I'm not sure that's the right structure’,” Lenz explains.

Giles Lenz, Roy Hill's general manager of organisational effectiveness and improvement

STEPPING-UP ON TRAINING AND RECRUITMENT Roy Hill has invested significant time and resources into its training structures, mostly centralised in Perth, and focusing heavily on supervisory and production management roles, and future shutdowns.

Roy Hill is investing heavily in supervisor training

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

“I've seen a restructure in mining where the good operators are putting on more superintendents. So we are focusing heavily on having the right amount of leadership to run the gear that's starting to come online,” Lenz says.

“The people that are really good at their craft are the people that are difficult to find. Organisations are making sure that they keep a hold of their good people, and I’ve heard anecdotally that many are now looking to their future recruitment requirements.

“I believe we’re likely to see some upward pressure in the labour market for good quality skills in the next 12 to 24 months as the industry picks up a little bit.”

To counter this Roy Hill’s HR team is pursuing a number of resourcing strategies including upskilling those within its ranks to targeting ‘green’ jobseekers

HUMAN RESOURCES

new to the industry.

A conversation between Lenz and Roy Hill chief executive Barry Fitzgerald led to the creation of a new initiative, the ‘Step Up Program’, which is seeing the mine partner with the University of Western Australia and Curtin University to employ engineering graduates straight out of their schools.

“Barry and I talked about the fact that, in a fairly profound way, the current set of mining engineering graduates has kind of been deserted by the industry, at least over the past two or three years,” Lenz explains.

“The industry promised a dream and said ‘come for a career in mining’. A lot of people invested in that and then four or five years later when they were finished their studies there really wasn’t anything there."

The Step Up Program is a three-year fixed-term contract with a focus on the skills required to be a good pit boss and mining engineer. Participants learn about phase positions, bench rates, blast patterns and pre-starts.

Roy Hill employed around 15 people through ‘Step Up’ last year and is expecting similar numbers in 2017.

Acknowledging that many may well move on to work with Roy Hill’s competitors, Lenz says it is ultimately an ‘industry play’.

“All of those people are coming in with pretty open minds and they're pretty grateful for getting an opportunity in mining. We're proud of the fact that we've come up with something that retains these people in the industry because otherwise they probably would have been lost to the industry,” he says.

SHOOTING GOALS WITH NEW RECRUITS Another major strategy for Roy Hill’s human resourcing is bringing new people into the industry.

Lenz, who has 25 years’ HR experience across multiple sectors, believes emphasising behaviours and attitudes in the recruitment process correlates with stronger performance.

This has seen the company roll-out unique campaigns, ranging from open information nights for ‘clean skins’ through to sponsorships designed to attract new applicants from ‘outside the box’ areas.

“We've been specifically targeting new-

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After reaching practical completion, Roy Hill is ramping up production

to-the-industry people. For example we’re very open-minded to people that have had a small business and who want to come in, have a steady income for a while and try something new,” Lenz says.

“People who've run small businesses tend to understand what it means to deal with cash flow, customer demands and the general challenges of running a small business and getting up and selfpropelling.

“Through these campaigns we’re attracting a lot of people who are really keen and who really value the work. That type of employee is much more desirable

than someone with 10 years’ experience but is difficult or has the wrong attitude.”

THINKING OUTSIDE THE SQUARE Roy Hill’s major sponsorship of Western Australian Netball is a unique recruitment strategy.

Roy Hill already has 21 per cent female representation in its workforce, well above the industry average of 15, but recruiting more women goes beyond diversity goals alone.

“To be a good netballer you've got to have good hand-eye coordination and »

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

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HUMAN RESOURCES

Roy Hill is actively recruiting women in operational roles

»understand the benefits of being in a

Attitude is more important than experience for Roy Hill's recruiters

team and how you can achieve more as a team than you can as an individual,” Lenz explains.

“Often we’ll turn up to the netball and people will ask why we are there. And I say, ‘well we want team-oriented women working at Roy Hill. It’s just another unique aspect to our wider campaign of thinking about where we find the type of people who we want to join our team.”

Such campaigns offer just a flavour of the many initiatives Roy Hill is pursuing to build a suitable workforce for a new, world-class mining operation.

Of course the mammoth size of the project lends itself to some pretty impressive numbers – the company has 300 people in various traineeships, 200 more enrolled in surface extraction courses and still has another 600 roles to fill this year.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

Nonetheless, what sticks most in Lenz’s mind is how Roy Hill is changing people’s lives for the better.

“One lady who I know in particular - her parents own a roadhouse. She was in her mid-twenties, desperate to get away and try something new, but didn't really know what to do. She saw our ad and came along to one of our open nights,” Lenz recalls.

“She understood all of the things that we value: self-propelling in a small business, the true value of money and where it comes from, looking after equipment, being accountable for yourself and getting to work early and being safe.

“We ended up employing her and she's probably on her fifth swing now.

Six months ago she was the daughter of a roadhouse owner down south thinking she'd like a change and now she's driving our trucks.” RP

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HUMAN RESOURCES

STUDY COMPARES

'drivers' of work motivation AN INTERNATIONAL STUDY on workplace performance and motivation has found Western country workers are not highly driven by a competitive attitude to work, a willingness to serve and working speed but these factors do influence performance in Asian workplaces.

The study, published in an article in the International Journal of Contemporary Hospitality Management, examines what drives an individual worker’s performance and compares this between emerging, newly developed and developed markets around the globe.

Four thousand workers from eight countries including the US, UK, China, Japan and Korea were included in the study which combines established behavioural theory with new ‘competitive drivers’ of workforce performance.

The paper’s lead author, Macquarie University Associate Professor Chris Baumann, says the findings can be used to inform workplace recruitment and management, business locations and outsourcing.

“As well as providing a framework for modelling workforce performance, particularly in Asian countries, the findings indicate that workforce performance should be incorporated in performance indexes,” Baumann says.

Importantly, this study addresses for the first time the anomaly between economic growth and development experienced by Asian countries and their relatively low rankings in global competitiveness indexes.

“Asian countries such as China, India and Korea have experienced economic growth and development over the past

few decades beyond that of Western economies and yet, global rankings of economic indicators rank them behind Western economies,” Baumann, says. RP

HR MANAGERS FACE CHALLENGE

to be 'future-ready' ARTIFICIAL INTELLIGENCE, ROBOTICS and cognitive computing are triggering a global workplace revolution but Australian HR practitioners are less-prepared to manage digital disruption, according to a new international study.

Only 11 per cent of respondents from 10,000 businesses surveyed globally understood how to build a ‘future-ready’ organisation and in Australia, that drops even lower to nine per cent, according to the 2017 Global Human Capital Trends report, Rewriting the rules for the digital age.

HR professionals from the 197 participating Australian businesses were most focused on ‘fostering a better employee experience’, with 85 per cent

rating this as ‘important or very important’.

While 84 per cent of Australian respondents ranked ‘organisation of the future’ as the second most important priority, less than one-in-10 believed they had the tools to drive that change.

“At present Australian HR professionals are closely focused on retention through improving the employee experience, such as setting up systems to help employees deal with the volume of communication and level of administration in their lives,” David Brown, Leader of the Deloitte Human Capital Consulting Practice, says.

“If employees are happy, a company will see better productivity, greater collaboration, less turnover and greater retention of

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

corporate knowledge.”

Brown says digital disruption has affected business models, work practices and staff lifestyles.

"Effective management of this change will be critical to business growth in the short term, so Australian companies must understand and elevate digital HR as a priority,” he says.

“Australian companies are not moving fast enough to adapt to the needs of the workforce of the future. Companies must embrace the speed of change, learn how to rewrite the rules or risk losing the game.”

The full 2017 Deloitte Human Capital Trends report is available online. RP

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OHS & WELLBEING

ON BOARD

with better knowledge transfer An analysis of Western Australian Department of Mines and Petroleum data has shown a strong correlation between fatal accidents in the workplace and time spent on the job, leading one workforce productivity software provider to tackle a major contributor - poor knowledge transfer.

IT WOULD come as little surprise to experienced occupational health and safety practitioners that in the first year of employment any resource sector worker is most at risk of incurring a serious workplace injury.

However many would be shocked at how damning the statistics really are.

According to iHandover’s study of state department data, 46 per cent of all fatalities in Western Australia’s resource sector occur within the first two years of starting a role, and almost one-third (31%), occur in the first 12 months.

“It is a shocking fact that the risk of fatality is nearly three times higher in the first year in a resource industry role than in the third year,” explains Ross McDowell, iHandover chief executive.

“There are many possible reasons behind the risk being so high in the first

year and a great deal of them directly relate to the ‘onboarding’ during that initial period where an employee is familiarising themselves with their environment and the associated risks.

“I don’t think we really give enough credence to how long it takes somebody to be fully productive and operational in a role. We have assumptions that people go and have their induction, then some sort of brief on-boarding curve and then they’re out on-site and supposed to be fully knowledgeable about all the nuances of that role.”

The steep learning curve facing managers and supervisors is a particular risk to resource operations, given the high number of ‘knowledge worker’ roles that have a direct responsibility for upholding safe practices on site.

McDowell cites research published

Activate - the relationship map

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

Ross McDowell

in the Harvard Business Review which shows managers and supervisors take an average of 6.2 months to be fully competent in their roles.

“This creates quite a risky situation and it is reflected in the statistics,” he explains.

“44 per cent of all on-site fatalities occur under supervisors who have been in their

OHS & WELLBEING

17

iHandover is seeking to improve knowledge transfer processes

role for less than a year, and 66 per cent of all fatalities occur under supervisors who have been in the role for less than three years.

“Supervisors hold a critical role in safety management and therefore require robust onboarding systems. These are roles where you have to be certain that your new supervisor or manager has actually acquired the site-specific knowledge, not just having the training or the skills on paper.”

To address these issues, the UKheadquartered iHandover has entered the Australian market with a suite of software solutions aimed at improving the

Effectively capturing knowledge from someone who is leaving their position is more challenging than people think.

efficiency and effectiveness of ‘transfer of knowledge’ processes.

One of its popular products, Relay, aims to make crew and shift rotations seamless and could have a big impact in the fly-in, fly-out (FIFO) environment.

It seeks to solve common FIFO/DIDO challenges around knowledge transfer that can contribute to project delays, poor communication, high operational risk and a general lack of ownership.

Another iHandover software product, Activate, is making waves in its application to new supervisors and managers. McDowell explains that Activate ‘provides the answer to formalising knowledge retention and transfer from experienced team members to emerging talent’.

“Effectively capturing knowledge from someone who is leaving their position is more challenging than people think,” he says.

“To use the iceberg analogy, our explicit knowledge in a role is the first 20 per cent that sits about the water and is easy to capture and relay to the next

person in that role.

“It is the 80 per cent that sits below the water, that tacit knowledge, that is really difficult to capture because people don’t know how to communicate that.

“One of the more difficult tasks is ensuring that we truly understand the relationships with others, ranging from key team members to external stakeholders in the local community, that a person has within their role and that they can convey the importance of them.

“Activate provides users with a simple approach to codify what they know and prepare it for handover in the future. It creates a roadmap to ensure when the next person comes in, the knowledge is all archived, structured, transferred and accessible.”

Early adopters of the Activate software are reporting reduced time in producing handover notes by at least 40 per cent.

McDowell says market response to both iHandover’s software solutions has been positive and discussion are underway with several large resource employers on its implementation. RP

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

18

OHS & WELLBEING

BLUESCOPE LAUNCHES

workplace safety app AN AWARD-WINNING mobile app, ‘SteelDrive’, is improving health and safety methods for BlueScope Steel’s 15,000 employees and contractors by countering potentially high risk working environments.

Truck drivers use the app to document the restraining and transportation of steel, through photo-taking, GPS-tracking, and cloud-based storage.

The digitally-efficient documentation method provides critical transparency in the case of an incident investigation by providing a point of reference for the manufacturer, transporter and driver.

Digital versions of load restraint guidelines and a repository of despatch site location details are also accessible via the app.

The app was developed through a partnership with BlueScope Steel, TOLL, K&S Transport and Buzinga App Development to enable the business to become more adaptable to change.

“We have an obligation to our employees, our partners and our communities to work safely each and every day and SteelDrive represents the first steps in enabling a collaborative, mobile approach to safety for our logistics operations,” Ben Scollary, IT Innovation Business Analyst at BlueScope, says.

“The app gives us peace of mind because it reflects the safety mindset and culture that we have here at BlueScope.” RP

NO PERMITS FOR SAFETY-RELATED

union visits - Fed Court THE FEDERAL COURT has ruled that a CFMEU official entering a construction site under Victorian OHS laws to ‘assist’ a health and safety representative does not require a federal entry permit.

The CFMEU organiser entered a Kane Constructions worksite four times between May and October 2014.

Later, the Fair Work Building Industry Inspectorate (now the Australian Building and Construction Commission) attempted to prosecute the union alleging the union official’s entry was unlawful because he did not hold a federal entry permit under the Fair Work Act. In rejecting the Inspectorate’s application to prosecute, Federal Court Justice Mordy Bromberg concluded that Part 3-4 of the Fair Work Act did not intend to regulate all

the ways that entry onto premises by union officials could occur.

He found that s70 of the Victorian OHS Act was concerned with a right of the health and safety representative to request assistance from a person and have the employer facilitate that assistant’s access to the site.

“The fact that the exercise of a right of entry by an assistant may advance the interests of the employees represented by the HSR is not sufficient to enable the right to be sensibly characterised as industrial or even as representational,” Justice Bromberg says.

“Entry is facilitated…for the purpose of the assistant providing occupational health and safety expertise to the HSR and not representational services to the employees.

“For characterisation purposes, it matters

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

not whether the provision of that expertise is given by a trade union official or, for example, an occupational hygienist.”

According to AMMA director of industry services, Tara Diamond, this jurisdictional cross-over represents an industrial risk to employers.

“This highlights the risk of state OHS laws being manipulated for industrial purposes by allowing largely unrestricted and unregulated entry to union officials under the guise of providing assistance to HSRs,” she says.

“AMMA will continue to highlight to state and federal governments that such entry should not be able to freely sidestep the right of entry requirements under the national workplace laws.” RP

OHS & WELLBEING

19

TRUCKIE’S HEALTH CONCERNS

no excuse for abusing nurse A ROY HILL employee has had his unfair dismissal application rejected after the Fair Work Commission heard of his ‘aggressive, threatening and insulting’ behaviour towards a nurse.

Working on a fly-in, fly-out basis at the Pilbara iron ore project, the employee was terminated from his position as a truck driver in June 2016 following an investigation into his behaviour toward a registered nurse based at the accommodation village medical centre.

The employee was alleged to have verbally abused and bullied the nurse after he was unhappy with her diagnosis and treatment of his breathing difficulties, which the nurse believed to be related to anxiety and not a pre-existing asthma condition.

The employee’s behaviour was witnessed by someone who was invited into the treatment room by the nurse after she grew increasingly uncomfortable with the employee’s behaviour.

The matter was subsequently reported to Roy Hill human resources personnel and, six days later, he was stood down with pay while a formal investigation was undertaken.

Following two ‘show cause’ notices and discussions with management over the allegations, the employee was terminated after Roy Hill found his behaviour was inconsistent with the values expected by the company.

The employee later lodged an unfair dismissal application, which was rejected by the Fair Work Commission after it found

his health concerns were no excuse for his ‘unreasonable’ behaviour, and, that the investigation process was fair and comprehensive. RP

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RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

20

TRAINING

YOUNG WOMEN EMBRACE

regional QLD mining apprenticeships YOUNG WOMEN WILL comprise half the mining apprentices taking part in a unique work readiness program in central Queensland.

Thirty-one apprentices have started a four-week BHP Billiton Mitsubishi Alliance (BMA) Work Readiness Program, which is run by the Queensland Minerals and Energy Academy (QMEA), learning trade skills in an environment that replicates practices on mine sites.

Moranbah State High School’s Coalfields Training Excellence Centre will host the program before the apprentices – 16 who are female – then embark on their fulltime roles at six (BMA) sites across Central Queensland.

Sean Milfull, general manager at BMA Peak Downs Mine, says the health, safety and wellbeing of its people is central to

the organisation and the program.

“This program ensures that from day one our new apprentices will work safely and be productive members of their maintenance teams,” Milfull says.

“BMA is excited to be investing in the future, with the induction of 31 trade apprentices in 2017. In partnership with the QMEA we look forward to collectively providing a supportive learning and mentoring environment for our new apprentices, with the Work Readiness Program offering the perfect starting point.”

QMEA is an education partnership between the resources sector represented

by Queensland Resources Council and the Queensland Government through the Gateway to Industry Schools Program.

QMEA Director Katrina-Lee Jones

31 Moranbah apprentices will undertake work readiness on BMA sites

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

says the initiative, in its second year, is breaking new ground in the education and training sector, ensuring a safe, seamless transition from school to regional sites.

“The BMA Work Readiness Program was a logical extension to our schools program with a number of BMA apprentices participating in QMEA experiences over the past few years,” Jones says.

The QMEA finds it significant that all of the apprentices in the program come from regional towns, which is a measure of the support and engagement that QMEA has with the local communities.

“This initiative to quickly integrate apprentices to add value for their employers almost from day one, is of enormous benefit,” she says. RP

TRAINING

21

AUSTRALIANS SEEK TRAINING

for tech skills MORE THAN HALF of Australia’s workforce believe they will require training for new digital and technology skills in order to secure their future employability, according to a study by recruitment firm Randstad.

The latest quarterly Randstad Workmonitor study revealed two-thirds of respondents believe the increasing digitisation of the workforce requires a different skill set to those emphasised by their current employer.

The study was across multiple sectors however made particularly reference to the rise of career opportunities in the STEM (Science, Technology, Engineering and Maths) sector, driven largely by the evolving demands of Australia’s resource industry.

With many existing jobs set to become

more digitally focused, Randstad Australia and New Zealand CEO Frank Ribout believes there is more pressure than ever on employers to upskill their workforce.

“Organisations are adopting increasingly sophisticated digital strategies to maintain a competitive edge and deliver a superior customer experience, but the workforce is not feeling confident their employer is keeping them up to speed with the pace of change,” he says. “(Employers) across many industries are snapping up talent with these digital skills, but not necessarily upskilling their existing workforce.

“People are obviously crying out to be upskilled and offering the right kind of training and development will be key to

employers attracting and retaining top talent moving forward.” RP

KEY RANDSTAD STUDY POINTS: • 85% of Australians believe every company should have a digital strategy.

• 67% agree that digitisation requires different skill sets than currently available with at their organisations.

• 55% believe they personally need to acquire more digital skills to guarantee their future employability.

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+61 (0)403 654 968

© iHandover Ltd. 2016

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

22

TRAINING

PREMIER COAL TRAINEESHIPS

support Collie youth COLLIE MINE OPERATOR Premier Coal’s ongoing commitment to local youth has seen three trainees from the West Australia town kick-start their careers in open-cut mining.

Tabitha McKay, Corey Backhouse and Chloe Ugle have been part of the company’s program with the children’s education charity The Smith Family to provide traineeship opportunities for young people across all areas of its opencut operations.

For 17-year-old Tabitha, the opportunity to undertake a school-based business administration traineeship in Premier’s health, safety and training department has allowed her to follow her career aspirations.

“I want a career in safety, where I can help make sure people get home after every shift,” Tabitha says. “My dad works in the mining industry, so if I can help make sure people like him go home to their families every day that would be a good thing.”

Sixteen-year-old Corey Backhouse says his time on site provided an opportunity to learn about IT through his schoolbased traineeship, while also gaining the experience of a large workplace.

“I’m learning a lot of skills I wouldn’t have got in a normal workplace like communicating with lots of different people and problem solving,” he says. “If anyone else gets a chance like this, go for it.”

Both Tabitha and Corey will continue their traineeships until the end of next year as part of their Year 12 studies at Collie Senior High School.

Chloe Ugle recently started a 12-month, full-time business administration traineeship with Premier Coal after finishing her Year 12 studies at CSHS. Having never been to a mine site prior to commencing her traineeship, Chloe initially found the environment slightly daunting.

“It’s been very challenging but I am up to it,” Chloe says. “I have adapted quickly, I am learning a lot and I would love to

work for Premier in the future.”

Sereena Pas of The Smith Family in Collie, says Premier’s traineeships provide a great opportunity.

“The trainees have all been part of our Learning for Life scholarship program, which supports them with the tools needed to participate fully in their education,” she says.

“The traineeships provide an opportunity to train and earn an income at the same time as working toward a nationally-recognised qualification.”

Premier Coal general manager, Glenn Burlinson, says the mine is proud to be working with The Smith Family in support of employment and training initiatives for local young people.

Premier Coal has a workforce of more than 400, 70 per cent of whom live in the Collie area and about 95 per cent within 70km of the town. RP

Premier Coal school-based IT trainee Corey Backhouse shows fellow trainees Chloe Ugle and Tabitha McKay some of the skills he has learned in his new role.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

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24

DIVERSITY

FORTESCUE'S FEMALE BOARD

directors lead cultural change Already renowned for its Indigenous employment and corporate social responsibility initiatives, Fortescue Metals Group is leading the charge for diversity in the boardroom after becoming the first ASX20 company with a majority of female directors.

The achievement is even more outstanding considering just three years ago it was the last of Australia’s 50 largest firms to have an all-male board.

In this Q&A, Fortescue non-executive director Sharon Warburton, a highly accomplished mining executive and chair of the Northern Australia Infrastructure Facility, discusses Fortescue’s transformation and gender diversity in the broader sector.

Resource People: This milestone is another great achievement for Fortescue.

As someone who’s worked in the mining industry for more than 20 years, what does it mean to be part of this?

Sharon Warburton: I first joined the resources sector in the mid-nineties as a junior manager and there has incredible change just in that time. It is very exciting to see organisations embracing diversity in the industry and I’m particularly delighted to see changes at leadership levels. This helps drive broader changes in thinking, which can drive cultural change

Fortescue director Sharon Warburton.

throughout every layer of an organisation.

RP: Chairman Andrew Forrest and CEO Nev Power often speak about the importance of Fortescue’s ability to innovate and ‘do things differently’. How have these principles supported a rapid improvement in Fortescue’s leadership diversity?

SW: A key part of cultural change is empowering people to create opportunities and ideas. Nev and the team have done a wonderful job in challenging the mindset of our organisation to build greater and more diverse talent pools

Removing barriers for gender diversity in operational roles is a focus

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

including for example by providing solutions for new and existing parents in the workplace. That in turn unlocks more innovation among our people and helps us work smarter. Achieving greater participation across all categories of the workforce is a wonderful result of that.

We’ve invested a lot of effort in attracting parents to return to work and creating a culture of greater flexibility for everybody in the workplace. I deliberately use the word 'parent' because that's a gender-neutral term.

RP: Do you feel that building diversity

DIVERSITY

25

Fortescue is investing significantly in returnto-work programs for parents

is a bigger challenge in operational or site-based roles as opposed to the management and director levels?

SW: Creating diversity through a range of initiatives drives the way we think about work at Fortescue, and that leads us to having an open mind to overcoming barriers that have proven difficult in the past.

In the resource sector, location is a particular barrier that comes to mind. If we continue to apply new ways of thinking to the way we work and overcome those barriers, including through the use of communications technology, there is a massive opportunity to change the way roles are done within an organisation, who can do them and where they do them.

RP: You participated in AMMA’s diversity round-table with Minister for Employment and Minister for Women, Michaelia Cash. What did you take away from that experience?

SW: I was delighted to represent Fortescue at that round-table. It was really wonderful to see the government embracing discussion with leaders like myself and my peers. We can always do more in all parts of the business community, whether it's the corporates, the government, the local community

around supporting parents and families and providing opportunities and options for family members to work flexibly.

I continue to think that government can play a role in that area. I see the government embracing the way that they resource their functions and striving to achieve that greater gender diversity among other things and I think that will have a very positive effect for corporate Australia too.

I’m extremely proud and look forward to continuing to help improve diversity within Fortescue and across the industry.

RP: You were recently appointed Chair of the Northern Australia Infrastructure Facility, how are you approaching this role and what synergies are there in your passion for Northern Australia and your directorship at Fortescue?

SW: I spent most of my childhood in

Northern Australia. I consider myself a Northern Australian and it’s a wonderful part of the world that's very dear to my heart. So it was an absolute honour to be asked to chair a board whose position is to help unlock economic and population growth in Northern Australia.

It’s not surprising that whether it’s through Fortescue and its Pilbara operations, or with the NAIF, I’m very much enjoying all the different roles I’m doing at the moment.

RP: After a cracking 2016 where Fortescue cut operating costs, recorded a profit increase of more than 200 per cent and paid out a record dividend, how do you see 2017 playing out for the company?

SW: It's always an exciting time for Fortescue. We have relatively young infrastructure, so there's still plenty of scope to continually improve the way we use that infrastructure and increase returns to shareholders. Every day we're driving sustainable improvements in productivity and efficiency across the business through innovation, through the way we resource our business, and how we encourage greater diversity of thought across every aspect of our operations. RP

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

26

DIVERSITY

ALCOA ACHIEVES 15 YEARS

as Employer of Choice for women

Alcoa of Australia has again been recognised as having best practice gender equity policies by the Workplace Gender Equality Agency (WGEA) – achieving an incredible 15 consecutive years as one of the agency’s Employers of Choice for Gender Equality.

WHEN KYLIE HAINES arrives for work each day at Alcoa’s Pinjarra alumina refinery, 85km south of Perth, she takes pride in knowing her employer appreciates the quality of her work, and treats people for their performance and not their gender.

Currently working as a residue production maintenance coordinator with a team of 30 people, Haines has racked up 22 years of service for Alcoa and is still excited by the challenge.

“I love my job at Alcoa because I can get out in the field, connect with people, I’m constantly challenged and I know I can step up in my career,” Haines says.

“I felt a bit intimidated when I stepped into the new role but I just kept remembering the advice I received from the Alcoa Women’s Network mentoring program where they said, ‘Women often think they have to be 100 per cent qualified and confident to apply for a new role, but no one ever steps into a role with 100 per cent knowledge’.

“I also knew that at Alcoa if you are willing to put in the effort and learn then you will always be supported.”

Haines was in her twenties when she started at Alcoa and still remembers when men would say ‘Wow, there’s a female’.

“Now the guys don’t bat an eyelid when they see a woman – we have female tradies and operators when historically people would say a woman couldn’t do those jobs," she continues.

Alcoa’s leading approach to gender equity has been long acknowledged

by WGEA in naming it an ‘Employer of Choice’. The citation acknowledges

employers across all sectors which actively encourage, recognise and commit to achieving gender equality in their workplaces.

Despite its best practice policies, with a workforce comprising just 13 per cent women, Alcoa has created a call to action initiative - Catalyst for Change (C4C) – to improve the organisation’s overall retention of women.

The initiative is being led from the top, with Alcoa of Australia chairman and managing director Michael Parker, taking the pledge to be a ‘catalyst for change’.

“At Alcoa this means actively reviewing

Kylie Haines on site at Pinjarra alumina refinery

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

your everyday work actions in the context of gender equity, and taking steps to do things differently to get the balance right,” Parker, also a proud member of the ‘CEOs for Gender Equity’, says.

“As a leader, one of my key actions was adding a diversity and inclusion agenda item to every lead team meeting, in much the same way as we have standing items for health and safety. It’s that important, and we all need to be accountable.”

Parker is proud of Alcoa’s 15 years of being a WGEA ‘Employer of Choice’, but says there is still much work to do to close the gender gap. RP

DIVERSITY

27

GHD PUSHES TO CHANGE

diversity cultures

Engineering firm GHD has been recognised as one of the Workplace Gender Equality Agency (WGEA)’s ‘Employers of Choice’ for its proactivity in changing its workplace culture to promote women in leadership.

GHD IS ONE of only a handful of companies in the engineering, architecture and environmental consulting sector to achieve WGEA’s sought-after recognition.

Women in GHD’s senior leadership roles increased by 16 per cent in Australia making up 38 per cent of the company’s Australian leadership team and 33 per cent of its board. More than 40 per cent of the company’s new Australian starters were women, up from 36 per cent in 2015/16.

A concerted effort to evolve culture has been pivotal according to Phil Duthie, GHD’s Australia’s general manager.

“It is relatively easy to introduce a diversity strategy, and flexible working policies. What’s much harder is shifting

the culture — for both men and women — so real change actually happens,” Duthie, who is also a WGEA Pay Equity Ambassador and a member of Consult Australia’s Male Champions of Change group, says.

“This was also driven by my personal experience of how diverse teams enrich the strategic conversations and team dynamics. So this Employer of Choice recognition from WGEA is something we really cherish.”

Duthie’s senior leadership team work flexibly on a regular basis, to give others the confidence to ask for non-traditional arrangements.

He has seen women at GHD gain the confidence to express interest in

leadership roles and greater acceptance that client and business outcomes can be delivered without following the traditional full-time, office-bound model. RP

MINING REDUCES

gender pay gap THE AUSTRALIAN MINING industry has improved on its gender pay gap in 2015-2016, down to a gap of 15.8 per cent from 17.6 per cent the year prior, according to this year’s Gender Equality Scorecard recently released by the Workplace Gender Equality Agency (WGEA).

According to WGEA’s data, ‘mining’ now does better on gender pay than 10 other industry categories including retail, IT, real estate, financial services and many more.

Other categories include ‘Electricity, Gas, Water and Waste

Services’, which has a gender pay gap of 20 per cent – also an improvement on last year; and manufacturing which is one of the best performing industries with a gender pay gap of just 14.2 per cent.

‘Construction’, however, remains the third poorest Australian industry in terms of its gender pay gap, with a disparity of 29.3 per cent – slightly worse than its result on the year prior.

In addition to the gender pay gap, WGEA’s Scorecard includes a range of other measures of workplace diversity success that resource employers can

learn from and benchmark to.

For instance, in the categories of ‘Percentage of women in management’ and ‘Gender Composition by Industry’, mining and construction employers remain the bottom two performers.

The Australian Women in Resources Alliance (AWRA), facilitated by AMMA, is your best resource for all gender qualityrelated tools and information in the resource sector. RP

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

28

MEMBER NEWS

IN BRIEF: People and projects A snapshot of news and milestones across the Australian mining, oil and gas sectors.

ADANI SET TO BUILD TOWNSVILLE BASE Construction is expected to start shortly for Adani’s Carmichael coal project, with the company also choosing Townsville for its regional base.

The $22-billion-dollar project, expected to be the nation’s largest coal mine, includes a $16.5bn, 60-million tonnes per annum (mtpa) thermal coal mine, as well as a 388-kilometre rail line to Abbot Point and a new 35-mtpa coal terminal at the port.

Up to 600 jobs are required in the pre-construction phase with the project projected to require 10,000 direct and indirect jobs as it rolls out. RP Adani Carmichael Coal Project

TERRA DRONE ESTABLISHES BRISBANE BRANCH Drone technology

An exciting Japanese start-up has chosen Queensland for its regional office after being inspired by the Palaszczuk Government’s drive to advance innovation and entrepreneurship across the state with its drone-friendly policy.

Japan’s leading unmanned aerial vehicle (UAV) provider Terra Drone has set up office in Brisbane, made possible through an Advance Queensland initiative with the state government.

The company is setting up in Brisbane’s River City Labs innovation precinct.

“We are bringing our cutting edge and innovative technology to Queensland and are looking to expand our business to a broader global market,” CEO Toru Tokushige, says.

Queensland’s Deputy Premier and Minister for Trade and Investment Jackie Trad says the collaboration will further drive innovation and create mining jobs. RP

DOWNER SCOOPS $476 MILLION IN CONTRACTS Downer has scooped nine significant contracts since September last year.

Most recently the company was awarded the $190 million engineering, procurement and construction (EPC) and a two-year operations and maintenance contract by Fotowatio Renewable Ventures (FRV) to develop the Clare Solar Farm.

Downer’s electrical construction and maintenance team also secured two contracts worth $36m from Horizon Power Downer has won five new contracts

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

for the design and construction of a power station, zone substation and transmission line on the Onslow Distributed Energy Resource (DER) project in Western Australia.

Five contracts worth more than $250m were awarded to the company in September last year for mining services at Newmont Asia Pacific’s Boddington Gold mine in WA, the Karara mine site in WA, with an option for two, two-year extensions; and a five-year contract extension at Grange Resources’ Savage River site in Tasmania. RP

MEMBER NEWS

INDIGENOUS FIRM WINS ROY HILL CONTRACT

GUMA ICRG has been awarded the contract to carry out the contract to Roy Hill Port Sump Installation Project at the company’s operations south of Port Hedland.

The project includes the construction and installation of four concrete evaporation sumps at the port, which will provide greater protection against potential environmental impacts of transported materials.

The works include the redirection of conveyor effluent, excavation for the sump; formwork installation and associated concrete pours and earthworks to accommodate permanent drainage. RP

29

SANTOS LODGES NARRABRI CSG PROJECT EIS Australian energy company Santos has lodged its development application and environmental impact statement to the NSW government for the new billion-dollar proposed Narrabri CSG gas field in the Pilliga State Forest.

In its submission Santos says the project could create about 1300 jobs

during the initial construction phase and around 200 ongoing jobs and it will generate around $1.2 billion in State royalties.

The project has been caught up in substantial legal and community challenges and it could take up to two years for the government to assess the submission. RP

Santos GLNG employees

YANDI MINE ACHIEVES ONE BILLION TONNES BHP Billiton's Yandi mine achieved an historic milestone last month - one billion tonnes Ore for rail produced in the mine’s lifetime.

The operation located 178 kilometres

northwest of Newman on Flat Rocks Road, off the Great Northern Highway in Western Australia has five open-cut pits and includes mining, processing and railing.

When the Yandi mine was commissioned 26 years ago, it produced just over five million tonnes in its first year. In FY16, the mine produced over 78 million tonnes Ore for rail. RP

Locomotive leaves Yandi mine

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

30

POLICY

POLICY AT a glance A wrap-up of recent resource industry and employment policy developments by AMMA Director, Industry Services, Tara Diamond.

EMPLOYER LIABLE

FIFO CASUAL ENTITLED

FOR ON-SITE ASSAULT

TO LEAVE PAYOUT

A case involving the sexual assault of a female hotel worker by the site’s night caretaker has highlighted important safety considerations for employers providing on-site accommodation for their employees, such as resource employers operating fly-in, fly-out villages.

The matter involved a great deal of argument as to whether the employer was vicariously liable for the assault.

Ultimately, the Queensland Civil and Administrative Tribunal (QCAT) rejected the defence that the assault did not occur in the course of employment, and awarded the victim more than $313k in total damages.

In a ruling with implications for all employers who engage casual employees on compressed or continuous roster cycles, the Federal Circuit Court has found that a casual employee was entitled to annual leave during his employment with a labour hire employer.

The employee was engaged by WorkPac as a casual truck driver, working a 7/7 roster in a Queensland coal mine. Upon his termination, the court agreed with the employee that under section 86 of the Act, he should be seen as ‘other’ than a casual employee for the purposes of his annual leave entitlements.

TRADE UNION GOVERNANCE MEASURES

Tara Diamond

REGISTERED ORGANISATIONS COMMISSION ESTABLISHED

The Australian Parliament has voted to establish a new Registered Organisations Commission dedicated to improving the governance, transparency and management of trade unions and registered employer organisations. Among its tasks, the new Commission is now strengthening requirements for financial accounting, transparency and disclosure by officers of registered organisations of material personal interests.

Employers are awaiting the introduction of new measures to ‘ensure fairness and transparency in workplaces’ through the government’s next iteration of its union governance and corruption changes. The Coalition’s policy stated that a re-elected Turnbull Government would adopt the recommendations of the Heydon Royal Commission in regard to registered organisations and the building industry. The PEABODY’S NEW PAY METHOD UPHELD measures are expected to be introduced to A Full Bench of the Fair Work Commission has upheld a decision supporting parliament during the 2017 sitting period.

Peabody Energy Australia’s method NEW BUILDING CODE NOW IN EFFECT for calculating pay for revised rosters Employment Minister Michaelia at its Coppabella mine, undertaken in Cash has issued a new Code for the response to falling coal prices. The Full Tendering and Performance of Building Bench dismissed the CFMEU’s appeal of Work 2016 which is now in effect and Deputy President Asbury’s initial decision, for the most part replaces the Building in which she found that ‘Peabody’s Code 2013. According to the minister, (payment) model was consistent with complying with the code includes the terms of the Enterprise Agreement ensuring compliance with right of entry and with the intent of the parties as laws for union officials, freedom of ascertained from the relevant objective association provisions and work health background facts’. This is a welcome and safety and security of payment development for employers seeking laws. Non-compliance will see firms risk to make structural changes to their losing Commonwealth-funded work. workforces and/or labour costs.

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

CFMEU LOSES APPEAL IN BHP ENTRY DISPUTE

The CFMEU has lost its appeal of an important union ‘right of entry’ decision that clarifies that union permit holders can only enter a premises to hold discussions with employees during their allocated work breaks, and not before or after. The matter involving BHP Billiton’s Nickel West mine initially drew attention due to the union’s challenge of the term ‘other breaks’ under the Fair Work Act 2009.

MINER’S REINSTATEMENT ‘PLAINLY UNJUST’

A Fair Work Commission (FWC) member has heavily criticised a decision of his tribunal colleagues to reinstate a mine operator who made homophobic and anti-Muslim remarks, labelling the ruling ‘plainly unjust’ and ‘irrational’. The miner was initially sacked by Mt Arthur Coal after he was found to have made offensive comments over a two-way radio channel. After his FWC colleagues supported the man’s unfair dismissal claim, Commissioner Leigh Johns was heavily critical, saying they failed to consider the mental health impacts of workplace discrimination. RP

POLICY

31

GRIFFIN COAL

defends EBA termination WEST AUSTRALIAN MINER Griffin Coal has told the ‘Corporate Avoidance of the Fair Work Act’ Senate Inquiry the Fair Work Commission’s termination of the company’s 2012 EBA was crucial to its viability.

Griffin’s chief operating officer Terry Gray, told the committee hearing in Collie that the company had to ‘reset’ after incurring a $300-million loss since 2011.

He says the old agreement would have brought the employer to its knees and labour costs had to be reduced to bring it sustainability.

“The company was concerned that they would not be able to continue going forward if they were not able to get an outcome with the commission,”

Mr Gray says.

“Not getting some consideration on the salaries would mean that Griffin Coal would have to continue operating at a significant loss.”

In what was seen as a watershed moment for employers seeking to address inflated wages and conditions, Griffin Coal made an application to terminate its old agreement last year after 47 bargaining meetings in 2015 failed to reach an agreement.

As a result of the FWC decision terminating the agreement on 9 June, 70 maintenance workers at the Griffin coal mine in Collie, took a 40 per cent pay cut along with reduced working conditions.

Griffin Coal and the CFMEU continue

to seek a new deal for the mine under the Fair Work Commission’s ‘New Approaches’ program.

Key bargaining issues include rosters, annual and long service leave provisions, training, preference of residential employees and redundancy entitlements. RP

MUA WINS BARROW ISLAND

representation dispute THE FAIR WORK Commission (FWC) has found in favour of the Maritime Union of Australia (MUA) in a dispute with a Gorgon LNG contractor over whether it could represent the industrial interests of a logistics and operations team.

The decision confirms that in deciding whether employees are classified as ‘waterside workers’ such that the MUA is entitled to represent their industrial interests, the FWC will look at whether their dominant purpose of employment is the loading and unloading of vessels in the vicinity of a wharf.

Commissioner Danny Cloghan responded to an MUA claim for entry rights to hold discussions with three groups of workers on Barrow Island in October 2016, including the Off Loading Facility (OLF) team; the Shore Base (SB) team; and the Logistical Operations (LO) team.

Employer Toll Logistics opposed the application, arguing most of the OLF team were not waterside workers and with the exception of crane operators, team members spent no more than 30 to 35 percent of their working time at the materials offloading facility (MOF).

Cloghan found that the employer might have had the intention of having a flexible workforce, the evidence demonstrated

there was limited movement of some employees, particularly those in the OLF team.

He therefore found the MUA had representational rights on the evidence that the OLF team was comprised of employees engaged in the occupation of ‘waterside worker’. He did not provide the union with access to members of the SB and LO teams. RP

Gorgon LNG's first shipment leaving Barrow Island

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

32

POLICY

GOVERNMENT FIXES AGREEMENT

making compliance issue

Employment Minister Michaelia Cash

IN RESPONSE TO concerns from Australia’s resource employers, Minister for Employment Michaelia Cash has amended the Fair Work Regulations to address a recurring compliance issue with the Notice of Employee Representational Rights (NERR) form.

The amendment to the NERR – an

important first step in the agreement making process – means employers are no longer required to manually fillin the phone number of the Fair Work Commission hotline on the form.

The change comes after multiple cases where confusion between the FWC and the Fair Work Ombudsman (FWO) saw the wrong phone number written on the form, leading to agreements being rejected for non-compliance.

The amendment to the regulations aligns with a letter sent by AMMA to the minister in January, in which the resource employer group called for urgent reform to application of the NERR, through the regulations, to address increasing instances of the FWC rejecting or overturning agreement approvals for minor technical or procedural defects.

“AMMA welcomes the Minister moving to correct issues with the application of the NERR form, which are widespread in

impact,” director of workplace relations, Amanda Mansini, said.

“The regulation change confirms that an employee should receive appropriate advice, consistent with the intent of the NERR, from either the Fair Work Commission or the Fair Work Ombudsman. It also highlights that the Commission’s recent decisions to overturn agreements for providing the FWO number in the NERR are at odds with the intent of the legislation.

“These changes are important to get the system functioning as it was intended and would benefit employers, employees and unions alike.”

The minister has also introduced to parliament a legislative amendment to the Fair Work Act which would provide members of the Commission with more discretion to overlook other minor technical defects in the NERR in the agreement approvals stage. RP

AMMA INTERVENES ON MUA

power expansion bid AMMA MEMBERS HAVE overwhelmingly endorsed an objection to the Maritime Union of Australia’s (MUA) latest play to expand its influence in the resources sector.

In response to an application filed the day before the Christmas break, AMMA with the backing of its membership has urged the Fair Work Commission not to entertain a disruption to settled union demarcations which seriously threatens the stability of the national economy.

The MUA’s application to the Fair Work Commission is scant in detail but

appears to be a clear attempt to expand its influence across a range of industry sectors, and particularly in stevedoring and logistics operations, by increasing its coverage to classifications historically covered by other unions.

The implications include the potential for a newly merged union having the means to attempt to exercise unparalleled control of the resources supply chain. Further concerns include demarcation disputes between union members which in turn would disrupt current ways of working.

Since becoming aware of the application

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

AMMA has been in discussions with its members in the oil and gas, maritime, stevedoring, logistics, ports and mining sectors, about the impacts of this application and a united strategy to demonstrate it is not in the public interest. RP

POLICY

33

10-YEAR VISION FOR

globally competitive METS sector THE PEAK REPRESENTATIVE body for Australia’s burgeoning mining equipment, technology and services (METS) industry has released a 10-year vision for the competitiveness of the sector, seeking to optimise economic and employment opportunities.

The 10-Year Sector Competitiveness Plan was developed by industryled ‘growth centre’ METS Ignited in consultation with federal and state governments, industry peak bodies, and AMMA. “The plan is a long-term view of how the Australian METS sector needs to be competitive, skilled and forwardthinking to respond to future industry

demands and to strengthen its position as an integral part of the global mining innovation ecosystem,” Ric Gros, METS Ignited CEO says.

The framework contains five work programs to effect change within the context of the evolving needs of mining, as well as the impact of industry and global megatrends including technologies, innovation and business.

A range of initiatives have been identified across three distinct phases, the first of which will see a focus to 2019 on laying the foundations for success and to propel initiatives outlined in subsequent phases. RP

FIVE STEPS FOR METS GROWTH 1. Ensure an aligned strategy with a vision for growth.

2. Create a global brand for premium METS services.

3. Focus on making the entire supply chain internationally competitive.

4. Support the industry to be collaborative and innovative.

5. Ensure the workforce will be skilled for 2026.

Q How can you manage the impacts of industrial relations changes on your business?

AMMA. The world of industrial relations is complex and fast moving. Not only do we have a ensures there is always someone by your side to tackle the operational impacts.

If you’ve got questions about policy, strategic or operational IR matters, the answer is AMMA. Call 1800 627 771 or visit AMMA.ORG.AU

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RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

34

LEADERSHIP

Q&A:

Legal eagle takes on AMMA role Well-respected employment lawyer David Parker, known to Perth employers for his 14 years as a partner at Ashurst Australia, has joined resource industry employer group AMMA as head of its West Coast operations.

With a strong industry and policy background, in addition to his legal expertise, Resource People catches up with David on his new role and learns his views on a range of industry and workplace matters.

Resource People: The resource industry has been a tough marketplace over the past few years, what made you take up a new role with the industry’s peak employer association?

David Parker: It has been a challenging time in the resource industry, particularly in Western Australia, but at the same time, the changes have presented some exciting opportunities. Companies are looking hard at all aspects of their businesses, including their workplace arrangements. As a lawyer, I’d worked alongside AMMA in assisting various employers in the resource industry to meet these challenges and make the most of the opportunities. It seemed like a good fit.

RP: In this next phase for Australia’s resource industry, what do you see as the key value being offered by AMMA in the workplace relations space?

DP: I believe everyone in the resources sector would like a workplace relations environment that is easy to understand and enables people to achieve their business objectives. Just as careers have constantly changed in recent decades, the workplace relations system must be flexible enough to enable the industry to meet changes in the market. AMMA has long been a strong and consistent advocate for building a sustainable framework for the industry,

to ensure longevity of employment in the sector.

RP: In a globally competitive marketplace, how have client demands evolved or shifted?

DP: The challenges facing employers have brought similar challenges for advisers. Fundamentally, it’s about helping clients identify and implement sustainable solutions. However, business environments are increasingly volatile and more complex. It’s important to be able to work with clients who are seeking to innovate and drive change in a way that is consistent with the nature of their particular organisation - becoming a trusted ‘partner’ in achieving their longer term workplace objectives, rather than just being a transactional resource for a crisis.

RP: You have held roles with industry bodies and government in the past.

Do you enjoy policy and advocacy in addition to consulting? What policy issues do you look forward to tackling?

DP: I think I’m attracted to problem solving. While that often involves being pragmatic in a given context, there are many occasions where at least part of the solution lies in seeking to influence the broader environment. I’ve worked with employers over many decades and most simply want a WR framework that encourages investment and employment and doesn’t detract from

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

David Parker

flexible and competitive workplaces.

RP: You’ve spent the majority of your career in Western Australia. What is it about the state and its capital that endears you to it?

DP: I’ve been lucky enough to travel widely, but I was born and grew up in Perth, and I’ve spent most of my working life here too. I know that most people have a special place in their heart for their hometown, but I find it hard not to believe that there really is something special about the combination of factors that makes WA what it is.

Part of that is that the resource industry is never far away, and it’s been the same for a number of generations of my family who have lived here and contributed to their communities and the state. RP

LEADERSHIP

35

PROGRAMMED SETS GOAL

of 5,000 Indigenous jobs PROGRAMMED GROUP, A significant employer in the oil and gas maritime industry, has signed the largest ever single-company contract for Indigenous employment opportunities.

Joined in Canberra by Prime Minister Malcolm Turnbull and GenerationOne founder Andrew Forrest, Programmed managing director Chris Sutherland announced the deal pledging to provide 5,000 employment opportunities to Indigenous Australians through the Australian Employment Covenant initiative.

The contract between Programmed and GenerationOne will be supported by organisations such as VTEC, the Employment Parity Initiative, jobactive and other government initiatives.

“We are delighted that both the Prime

Minister and Andrew Forrest totally support our new First Australians employment commitment. It is important that our workforce reflects the communities we operate in,” Sutherland says.

Forrest, the Fortescue chairman renowned for his work in promoting job opportunities for Indigenous Australians, says Programmed’s pledge for 5,000 jobs for Indigenous people sets a ‘new benchmark for the private sector’.

“I am incredibly grateful and inspired by their pledge. I call on the Australian Government and business community to continue to reflect on their own capacity to increase Indigenous participation in the workforce," Forrest says.

“Employment is a fundamental part of closing the gap and every opportunity

counts. We thank the government for their continued support of Indigenous job seekers and employers through the VTEC program and the Employment Parity Initiative. Parity can be achieved in our generation if we do this together.” RP Programmed is a major maritime employer

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37

NEW BROADSPECTRUM BOSS

tackles innovation INNOVATION WILL BE a primary focus for new Broadspectrum resources chief, Tom Quinn, with nurturing the company’s ‘Centre for Excellence’ top of his agenda.

Quinn brings 30 years of global experience to the role, having most recently been group vice president of Jacob’s North American Upstream and Midstream business in Canada, managing 7,000 employees.

He looks forward to tackling the next phase for Broadspectrum, one of Australia’s most diversified asset, facilities and project management service suppliers.

“Broadspectrum’s Resources sector

is underpinned by more than 2,000 people supporting large, complex and demanding projects across Australia and New Zealand,” Quinn says.

“Through our new Centre of Excellence for Resources, I look forward to working with the team to continue to develop and implement innovation in our contracts, using data analytics to optimise maintenance, shutdowns and brownfield productivity and costs.”

Broadspectrum’s longstanding clients include Arrow Energy, BHP Billiton, BlueScope Steel, ExxonMobil, QGC and Woodside Energy.

Through its wholly-owned subsidiary, Easternwell, the company delivers well

servicing and camp management services across Australia.

Quinn is known for his track record for delivering strong financial results and strategic growth. RP Broadspectrum resources chief Tom Quinn

AMMA CHIEF RECOGNISED

for national contribution IN RECOGNITION OF his services to the resources and energy sectors, workplace relations and the advancement of women, AMMA chief executive Steve Knott has been appointment as a Member in the General Division of the Order of Australia (AM).

Knott has lead Australia’s resource industry employer group, AMMA, since 1998, overseeing national policy development, workplace consulting services and employment support programs.

Recognised as one of the country’s preeminent industrial relations specialists, he has consistently advocated for policy and industry outcomes during a period where direct employment in the industry grew from 85,000 to 228,000 Australians.

Knott’s contribution to industrial relations in Australia extends to multiple

advisory councils and board positions including being a member of the International Labour Advisory Council, representing sector and Australian employers generally at International Labour Organisation forums in Geneva and the Asia Pacific Region.

He has been a member of the National Workplace Relations Consultative Council since 2006 and the Ministerial Advisory Council on Skilled Migration since 2015.

His is also a director of the Australian Chamber of Commerce and Industry (ACCI) (since 2014), and a member of the ACCI General Council since 1998.

Knott’s citation also marks his significant service to the advancement of women primarily in the last five years through leadership of the Australian Women in Resources Alliance (AWRA), an Australian Government-backed initiative

aimed at increasing the number of women working in the sector.

“Being appointed a Member of the Order of Australia is a proud and special moment,” Knott says.

“I wish to offer my sincere gratitude to the mentors and colleagues who have helped me work in an industry that provides prosperity here in Australia and abroad. It is an absolute privilege.” RP

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

38

INNOVATION

SKILLS REVOLUTION UNLOCKING

the digital age

CEOs are being urged to lead the charge in reskilling their people to be relevant in the future and ready to adapt to a rapidly changing digital landscape.

A NEW REPORT Harnessing Revolution: Creating the Future Workforce by Accenture Strategy cautions CEOs to put their people first and at the centre of change to create the future workforce.

Job losses due to total automation could be reduced with development of human skills such as leadership, critical thinking, creative skills and emotional intelligence, the global survey of 10,527 working people has shown.

The online survey was conducted in the US, Brazil, UK, France, Germany, Australia, Italy, India, Japan and Turkey of employees across all skill levels and generations.

“Even with the rapid growth of automation, there will always be human skills like leadership, empathy and creativity that will never cease to be relevant,” Luca Martini, managing director of Accenture Strategy, Australia and New Zealand, says.

“As we enter a new age of the workforce, leading organisations will be those that leverage the best of technology to elevate, not eliminate their people.

“In Australia, workers are optimistic but realistic and understanding of the fact that staying ahead requires learning new skills. Employers can accelerate learning opportunities by embedding digital training

seamlessly into daily work, so learning becomes a way of life, helping workers and organisations remain relevant.”

Australia, along with the six other major countries surveyed, recorded surprisingly positive responses to the impact of digital technology on the workplace.

The majority of Australians surveyed (78 per cent) expect parts of their job to be automated in the next five years.

Interestingly, of those who expect automation in the next five years, 77 per cent anticipate more opportunities than challenges when it comes to the impact of automation on their work.

Overall, the majority of Australian employees (84 per cent) have a highly optimistic outlook concerning the impact of digital on their job.

Globally, more than two-thirds of those surveyed (74 per cent) believe technologies such as robots, data analytics and artificial intelligence will help them be more efficient, 73 per cent believe technologies will help them learn new skills and 66 per cent believe they will help to improve the quality of their work.

Further Accenture research indicates artificial intelligence alone has the potential to double the annual economic growth rates and boost labour productivity Automation technologies, such as the CRC shovel, are changing the skills landscape

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

globally by up to 40 per cent by 2035 in the 12 developed countries examined.

The study concluded work leaders will need to respond with a different range of rewards, benefits and support. Nonfinancial factors, such as well-being, engagement, quality of life and status are equal, if not more important to workers than income and benefits.

The study recommends companies scale reskilling by using digital technology.

Reskilling people to be adaptive and relevant will create the future workforce.

“This can include wearable technologies, such as smart glasses that provide technical advice and information as workers carry out tasks. It can also include intelligent software to personalise training that offers recommendations to support an individual’s life-long learning needs,” Martini says.

“80 per cent of Australian workers are ready to invest their free time in the next six months to learn new skills.”

“Fostering the future workforce is the mandate of every responsible and forwardthinking organisation. Business leaders must take charge and empower employees to achieve more by adopting new strategies, particularly reskilling their people at scale and at speed,” Martini says.

“Those that understand the urgency of this challenge will be the ones that make the greatest gains in growth and innovation,” Martini says.

The study also recommends employers co-create role-based, gig-like employment opportunities to satisfy workers’ demands

INNOVATION

for more varied work and flexible arrangements.

“This would include developing platforms through which a range of resources and services can be offered to employees and freelancers alike in order to create a compelling community that keeps top talent loyal,” Martini adds.

Industry should support long-term solutions to address industry-wide skills shortages.

One such way to do this would be to address industry-wide skills shortages by supporting longer term, collective solutions.

“These include public private partnerships designed to create a broad adoption of skills training. Work with the education sector to design curricula that develop relevant skills at the beginning of the talent supply chain,” Martini says. RP

39

CEOs to lead digital skills

METS COLLABORATION

takes national award

Brisbane’s Core Resources and Glencore Technology have been jointly awarded the inaugural METS Ignited Collaboration Award for their innovative ore processing technology.

‘THE ALBION PROCESS’ is a technology collaboratively developed over 30 years which enables the valuable minerals microscopically encapsulated in non-reactive waste, not extractable by conventional technologies, to be processed.

"It is a highly effective technology for the treatment of complex and refractory ores and it offers users a commercially viable way of developing projects which would not otherwise be viable,” Ric Gros, METS Ignited CEO, says.

“Companies mining gold are looking for efficient processes to treat lower grades and more complex refractory ore. The Albion Process plant turns the problem into an opportunity.”

Gross says the project between Core Resources and Glencore Technology is also an excellent example of the opportunities that collaboration between an innovative Australian METS supplier and mining company create.

“This demonstrates the value of METS and miners working together to commercialise innovative solutions for industry,” he says.

Jon Loraine, Chairman of Core Resources, says the companies formed the partnership whereby Core provided test work and process design and Glencore provided detailed engineering, equipment supply and project delivery, thus offering users a seamless service all the way from test

work to start up.

"This has been well demonstrated at the recent development of the GPM Gold Project in Armenia which was delivered on time, on budget and is currently running at 30 per cent above projected gold production levels,” Loraine says.

Glencore and Core Resources offer the technology under licence to clients globally.

"It's a testament to the collaboration in the Australian mining sector where we look to build on the long-term relationships with partners we trust, such as Core Resources," Mike Hourn, general manager technology, Glencore Technology, says. RP

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

40

INNOVATION

FUNDING FAST-TRACKS

mining research SEVERAL RESOURCE EMPLOYERS are collaborating in four new federally-funded research projects this year to improve mining sector efficiency and boost railway track strength.

The Australian Government has allocated $1.875 million to three Linkage Projects at the University of Queensland and one at the University of Wollongong.

Each program involves collaboration with resources and engineering firms to achieve fast, practical industry outcomes.

The University of Wollongong has received $675,000 for its joint project with Infra Tech, the Australasian Centre for Rail Innovation, Geoharbour Group, Coffey Geotechnics and SMEC Australia.

The rail track stability project will examine causes of ‘mud pumping’ and effectiveness of drainage.

The University of Queensland has received $450,000 for a joint project with coal seam gas (CSG) companies QGC; Australia Pacific LNG; Santos; Arrow Energy and Wastewater Futures.

The project will develop strategies to reduce mineral scaling at CSG water treatment facilities and has the potential to reduce chemical waste and increase water recovery.

Separately, Newcrest Mining, Vega Industries and Sierra Gorda will collaborate with UQ researchers on a $555,000 project to make

QGC is one of several LNG employers collaborating with the University of Queensland

mineral separation more efficient and economical.

The project has the potential to halve the operating costs of mineral concentrators and reduce harmful emissions.

The final of UQ’s research grants will see BHP Billiton’s innovative arm work with the university on a $195,000 iron ore extraction and utilisation project.

The research will investigate technical information on the behaviour of ores during iron ore sintering and resulting mineral structures to assist with the use, marketing and sale of iron ores.

The Linkage Projects scheme is facilitated by the government’s Australian

Newcrest mining is investing in innovation

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

Research Council (ARC). Acting CEO Leanne Harvey says the continuous initiative delivers on key objectives of the National Innovation and Science Agenda.

“These new Linkage Projects involve significant collaboration between higher education researchers and other parts of the national innovation system—with matching cash and in-kind contributions provided by the Partner Organisations,” Harvey says.

“The ARC is proud to have delivered on this key NISA measure to boost the innovative capacity of the nation by supporting research collaboration.” RP

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42

ECONOMY & FINANCE

NATIONAL ENERGY DEBATE

fires up

National energy policy is set to dominate the political discourse in 2017, with the Prime Minister taking a stand against Green/Labor policies to instead back continued investment in coal-fired power stations. Meanwhile, resource employers urge caution, noting a fast transition to renewables has many risks.

MALCOLM TURNBULL PUT a ‘technology agnostic’ national energy policy on the top of the agenda at Canberra’s National Press Club, using a highly anticipated address to spruik the ongoing role of coal in stable and low-cost electricity generation.

“Nothing will more rapidly deindustrialise Australia and deter investment more than more expensive, let alone less reliable, energy,” the PM says.

“States are setting huge renewable targets, far beyond that of the national Renewable Energy Target, with no consideration given to the baseload power and storage needed for stability.

“Australia should be able to achieve the policy trifecta of energy that is affordable, reliable and secure, and that meets our substantial global emissions reduction commitments as agreed in the Paris climate change treaty.”

Turnbull says all governments and industry must ‘work together to achieve that trifecta’.

While increasing gas supply and lifting

the capacity of renewables is vital, he says the next incarnation of national energy policy must be ‘technology agnostic’.

He notes Australia has invested more than $590 million into ‘clean coal technology’ since 2009, yet does not have a single modern High Efficiency Low Emissions (HELE) coal fired power station.

“It is security and cost that matter most, not how you deliver it. Policy should be ‘all of the above technologies’ working together to deliver the trifecta of secure and affordable power while meeting our emission reduction commitments,” the PM says.

“Here’s the current picture - old, high emissions coal fired power stations are closing down, reducing baseload capacity.

They cannot simply be replaced by gas because it’s too expensive - or by wind or solar because they are intermittent.”

Following the PM’s address, Resources Minister Matt Canavan made available $5 billion to fund new so-called ‘cleancoal’ power stations through the Northern Australia Infrastructure Fund.

The closure of coal power stations must not be hastened

Prime Minister Malcolm Turnbull

He dismissed concerns that new power stations will be expensive to build and require significant public funds, stating he’d prefer to see competition between gas providers and new coal energy providers, leading to lower consumer prices.

While welcoming the government’s support for continued coal investment and not ‘picking winners’ when it comes to national energy policy, resource industry employer group AMMA has urged some caution in the future closure of existing ‘old technology’ coal stations.

“Such closures need to be properly planned, notified well in advance and based on facts and informed discussion to

Australia should be able to achieve the policy trifecta of energy that is affordable, reliable and secure, and that meets our substantial global emissions reduction commitments. www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

ECONOMY & FINANCE

avoid risking Australia’s long-term energy security,” director of industry services, Tara Diamond, says.

“It may not be wise to implement policy mechanisms designed to speed up the closure of existing coal power stations, as is currently being investigation by a Senate Environment and Communications References Committee.

“Australia requires genuine and constructive policy discussions on our energy future, including on the emergence of renewable sources and ensuring we meet our international obligations such as those agreed in Paris.

“The key challenge for governments is implementing energy transitions predictably and transparently, while minimising losses of existing jobs, maintaining energy security and positioning Australia’s energy sector as an attractive and globally competitive place to invest and do business.

“We look forward to seeing constructive political discussions on our national energy future as the year progresses.” RP

43

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44

ECONOMY & FINANCE

OZ MINERALS EDGES CLOSER

to new copper windfall

Oz Minerals’ new Carrapateena mine has edged closer to construction following the official opening of a 5.5 kilometre underground tunnel to access the undeveloped copper deposit.

THE OPENING COMES as the $965 million project completed its feasibility studies with a final board review and approval now the only remaining step before construction starts.

Oz Minerals managing director and CEO Andrew Cole says the timing within the resources cycle is ‘ideal’ to invest in bringing Carrapateena to life.

The project is estimated to create around 400-500 jobs during construction and about the same during its production lifecycle.

“As we ramp up the project, we will be able to give our employees more opportunities so they can experience different operations and environments.

That helps with their personal development as well as skills transfer across the company,” Cole says.

“We are also considering introducing some innovative design criteria looking at remote monitoring and operating at Carrapateena. So there is going to be a real mix of skills needed.”

PROMINENT HILL EXTENDED Oz Minerals has also announced that Prominent Hill will continue operating until at least 2028 – an extension of up to 10 years beyond when analysts predicted the mine would close.

“This is a long-life asset that will continue to deliver revenue as proposed new projects come on stream,” Cole says.

“The mine life extension to at least 2028 directly benefits local communities and shareholders. It will boost the region’s economic development and refutes any perception that Prominent Hill faces a

Prominent Hill

short-term future.”

Prominent Hill is located 130km southeast of Coober Pedy and employs about 1200 mine workers on an entirely FIFO basis. The mine first came on-stream in 2009. Its underground production of around 2.2 Mtpa is expected to lift to 3.54.0 Mtpa by 2019. RP Media attending the opening of the Carrapateena decline

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

ECONOMY & FINANCE

45

CALL TO ARMS AS

resource project pipeline falls While Australian Government data is forecasting a positive uplift for energy and resource export earnings in 2016-2017, industry analysts warn the figures are damning for major project investment in the longer term and call for urgent policy reform.

ANALYSIS OF FIGURES from the government’s leading commodity forecaster, the Office of the Chief Economist, continue to focus on short-term earnings from Australia’s resource exports.

“While a 30 per cent increase in 201617 commodity earnings will be positive for national incomes, the indicators for the long-term health of the Australian resource industry should alarm current and future Treasurers, resources and employment ministers”, independent industry analyst, Tristan Menalda, says.

“Looking beyond the benefits of a temporary surge in commodity prices, the fact Australia’s major resources and energy pipeline has contracted by more than $54 billion in 2016, is a potentially critical blow to future government income streams.”

Menalda says only 37 major resource and energy projects were identified in 2016, compared to 53 in 2015 and 59 in 2014.

He also notes major resource and energy projects are stalling in the key feasibility stage when project viability is assessed and approvals are required to

move into construction and production.

“History tell us that the longer a project remains idle in the feasibility stage, the more likely it is that the project will be scrapped,” he says.

The data shows exploration spend has fallen to critically low levels and Australia’s three key commodity exports – iron ore, coal and LNG/Gas/Oil (which contribute about half of the value of all Australian exports) have deteriorating project pipelines.

“The ramifications of this should not be understated, as it will materialise in the form of subdued government revenue streams, fewer job opportunities as well as having a future devaluation effect on Australia’s foreign exchange rate,” Menalda says.

Resource industry unemployment levels are forecast to escalate in the next five years due to an average 2.4 to three construction jobs from every one operational job in the mining industry, and on average 10 construction jobs for every one operational job in the

Tristan Menalda

hydrocarbons industry.

“Given that the current overall health of Australia’s economy is awry at best, evidenced by favourable monetary conditions associated with contracting/ fragile economic growth and weak CPI levels, these aforementioned negative long-term leading indicators add significant cause to concern,” Menalda says.

“2017 must be the year of transformation, progressive and smart regulatory change to better support ongoing investment in Australia’s resource industry and the contribution our sector makes to the nation’s long-term prosperity and living standards.” RP AUSTRALIA'S DECLINING RESOURCE PROJECT PIPELINE

•

59 new projects in 2014

•

53 new projects in 2015

•

37 new projects in 2016* *Contraction of $54bn

RESOURCEPEOPLE | AUTUMN 2017 | www.amma.org.au

EVENTS 46

EVENTS CALENDAR

MARCH

JUNE

Wed 29 - Thurs 30

Wed 7 - Thurs 8

20TH GLOBAL IRON ORE AND STEEL FORECAST

AMEC CONVENTION 2017

CONFERENCE

Organised by the Association of Mining and Exploration Companies (AMEC), this convention brings together industry leading presenters to address key issues and find solutions to mineral exploration and mining in Australia.

Held at Crown Perth Convention Centre More info at: www.amec.org.au

Now in its 20th year, this conference is attended by senior executives looking for vital information on the current and future status of the global iron ore and steel sectors. The program features presentations from BHP Billiton, Rio Tinto, Anglo American, Atlas Iron and many more.

Held at Crown complex, Perth More info at: www.informa.com.au

MAY

AMMA REVAMPS ITS MEMBER EVENTS

Mon 1

Renowned for hosting the leading resource industry events for all workplace relations, human resources and other ‘people’ topics, AMMA has re-vamped its 2017 events program in-line with member demand for more topic-specific, shorter-format and regional-based events.

AHRI DIVERSITY & INCLUSION CONFERENCE

Inclusion and diversity drive creativity, innovation and agility within organisations. Learn how you can integrate inclusion and diversity in your organisation at AHRI's Inclusion and Diversity Conference.

Held at Sydney, venue TBA More info at: www.ahri.com.au

Mon 1 - Tues 2 MINESAFE INTERNATIONAL 2017

“Our members have been telling us that in the current environment, they get the most value from shorter, sharper format events focusing specifically on the topics and issues that matter most to them,” Samantha Edmunds, AMMA’s head of member services, says.

Organised by the Australasian Institute of Mining and Metallurgy in conjunction with the Chamber of Minerals and Energy of Western Australia and the WA Department of Mines and Petroleum, the Minesafe International 2017 conference provides a key platform for discussion about the resource industry’s health and safety issues.

Held at Perth Convention and Exhibition Centre More info at: www.minesafe.ausimm.com.au

“We are very pleased to bring our members a new-look calendar of events which reflects this feedback as well as wider trends in corporate events delivery. Our 2017 calendar includes regional roadshows, special interest group meetings, half day conferences and free-of-charge member networking forums.”

Sun 14 -Wed 17

The first half of 2017 includes AMMA member forums in Brisbane and Melbourne, as well as multiple regional briefings in various areas.

APPEA 2017 CONFERENCE AND EXHIBITION

APPEA’s 2017 conference program features international experts and Australian industry leaders providing up-to-date analysis, case studies and technical know-how on the big issues facing the oil and gas industry.

Held at Perth Convention and Exhibition Centre More info at: www.appeaconference.com.au

Tues 23 - Wed 24 SOUTH AUSTRALIAN RESOURCES AND ENERGY INVESTMENT CONFERENCE

This conference will feature the success stories and emerging players in the state from both minerals and oil and gas and will also tackle thorny industry issues such as infrastructure, corporate social responsibility and the future of the Woomera Prohibited Area.

Held at Hilton, Adelaide More info at: www.saresourcesconf.com

www.amma.org.au | AUTUMN 2017 | RESOURCEPEOPLE

AMMA's 2017 annual Gala Dinner and Industry Awards evening will take place in Perth in August. The full events calendar is available at amma.org.au.

Gender diversity webinars hosted by the Australian Women in Resources Alliance (AWRA) are running monthly. More information available at awra.org.au.

4 REASONS TO BECOME AN AMMA CORPORATE PARTNER Corporate Events AMMA offers an exciting event calendar for companies seeking to further their brand recognition and network with other leaders in the resource industry.

Exclusive Offers Extend your market reach through exclusive offers to AMMA members.

Direct brand, marketing and product exposure to key decision makers through a range of different channels.

Networking Share information and develop important contacts across the resource industry.

For unrivalled connections to decision makers in the resource industry, the answer is AMMA. Visit amma.org.au/partnership or call 1800 627 771

48

BUSINESS PARTNER DIRECTORY

Only dedicated corporate health provider for the resource sector www.guhealth.com.au

Employee Rewards & Recognition Programs www.hwholdsworth.com.au

Leading vocational education and training assessment provider www.vetassess.com.au

Tailored insurance solutions www.coverforce.com.au

Value added superannuation for Australian Resource Industry www.resourcesuper.com.au

Working to reduce the impact of prostate cancer www.prostate.org.au

Resources specialists and recruitment specialists www.dfp.com.au Leading occupational health service providers

Industry health & safety testing, training & prevention www.medvet.com.au

www.amma.org.au | AUTUMN 2017| RESOURCEPEOPLE

National initiative to raise awareness of anxiety and depression www.beyondblue.org.au

Real jobs for industry employers www.miningoilandgasjobs.com

The Australian Women in Resources Alliance www.amma.org.au/awra

Together, we are better equipped to face the challenges and opportunities that lay ahead for Australia’s evolving resource industry.

ENGAGEMENT

INFLUENCE

ADVOCACY United industry voice

EMPLOYEE RELATIONS

WORKFORCE ADVICE

Supporting you to develop & execute strategies

SUPPORT

There when you need us

WORKFORCE DEVELOPMENT

EXPERTISE

Experts in people & skill development

AMMA membership.

When you need expert support for your business challenges, the answer is AMMA.

Visit amma.org.au/AMMA-membership to find out more or contact us on 1800 627 771 or membership@amma.org.au

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