RESOURCE PEOPLE Issue 013 | Autumn 2016

RESOURCE Issue 013 Autumn 2016

INNOVATION Technology changing the way we work Resources Minister Josh Frydenberg Tips for workplace investigations and dismissals

PLUS New Acland: working well to live well

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CONTENTS

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26

30

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Editor Tom Reid Tom.Reid@amma.org.au Deputy Editor Kylie Sully Kylie.Sully@amma.org.au AMMA Contacts 1800 627 771 membership@amma.org.au migration@amma.org.au policy@amma.org.au training@amma.org.au

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www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

CONTENTS

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REGULARS

04 05 54 56

From the Editor Chief Executive’s Message Events Calendar Business Partner Directory

COVER STORY

06 The Innovation Imperative INNOVATION

11 12 14 15

Export markets calling Aussie METS providers Mining scientist on verge of new breakthrough Global tech firm brings smart solution to mine villages Appetite for risk to unlock creative thinkers

POLICY

16 Dual IR reports to dominate workplace reform 18 Policy at a glance 19 Falling union membership raises questions MIGRATION

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20 New offshore visa rules offer calmer waters 21 457 obligations clarified for business sponsors 21 Less demand for overseas skills HUMAN RESOURCES

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Evolving role of HR in workplace investigations Time to re-energise skills development Breach of employment standards a warning for HR managers Resources job index holds steady, Queensland falls

OHS & WELLBEING

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New Acland learns to live and work well Share plan linked to safety actions Progress in domestic violence support Coal worker wins job back due to poor safety investigation Government acts to combat black lung

TRAINING

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Weipa training partnership celebrates 10 years Six essential steps to validate a dismissal VTEC gives hope to local mum Interactive mining course wins top US gong

LEADERSHIP

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36 Resources Minister primes north for economic growth 38 Clough maestro takes reins at Santos 39 Origin takes world-first action on climate change DIVERSITY

40 42 43 44

AWRA celebrates 200 e-mentoring pairs Strategies make for loyal working mums Funding to boost women in STEM industries Resource industry tackles gender pay gap

ECONOMY & FINANCE

46 47 48 49

Major project pipeline continues fall, remains ‘resilient’ Competitiveness the key to expansion Gas works to fuel jobs growth Mining productivity on the up

MEMBER NEWS

50 In brief: People and projects

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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REGULARS

Tom Reid Editor

From the Editor INNOVATION. It’s the word on everybody’s lips, from the Prime Minister of Australia to industry bodies, consulting firms, manufacturers, service providers and major mining and energy players. Everybody’s talking about it and everybody wants in.

So, as a new year begins and the resource industry looks for better ways to drive productivity, control costs and outperform the competition, we could not go past an innovation-focused cover story for the first edition of Resource People in 2016.

While there is plenty of talk about innovation, we instead chose to dig a little deeper by meeting the innovators, such as Brisbanebased research institution CRCMining, where we discovered the exciting technologies that will change the way we work and the skills we need.

Continuing the innovation theme, we also learn about the global opportunities opening up to Australian mining, engineering, technology and services (METS) companies, and meet the scientist who is on the verge of trumping his game-changing invention that first revolutionised the mining sector more than 20 years ago.

Of course, as a magazine dedicated to all workforce topics, we also look at the latest developments, success stories and advice across human resources, training, health and wellbeing, and diversity.

Take for instance our page 26 feature on New Acland Coal Mine’s

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

award-winning Live Well Work Well program, which led to 76 per cent of the workforce making positive changes to their health and thus boosting safety outcomes and morale at the project.

HR practitioners will enjoy reading AMMA west coast consulting manager Jeff Mackie’s thoughts on why now, more than ever before, human resources is playing a greater role in employee relations issues such as workplace investigations. Also in HR, Energy Skills Queensland CEO Penelope Twemlow discusses the opportunities at hand to modernise the natural gas skills picture.

With the China-Australia Free Trade Agreement recently taking effect and Australia’s signature inked on the Trans-Pacific Partnership deal, Minister for Trade and Investment Andrew Robb addresses Resource People readers on page 47 to explain the immediate and future benefits for resource employers.

For Leadership, we also caught up with Minister for Resources, Energy and Northern Australia, Josh Frydenberg to discover his key take-outs from the first six months in the job and how he intends to assist the industry through a challenging period for commodity prices and new investment.

With much more workforce-focused news and stories for you to explore within these pages, I wish you happy reading and a successful start to 2016. RP

Steve Knott

Chief Executive’s Message As our industry comes off a long period of high commodity prices and demand, resource employers of all shapes and sizes are sitting up and paying attention to the rapid application, sophistication and deployment of innovative work practices, techniques and technologies.

This edition of Resource People explores many of the new technologies that are shifting the way our industry works and the skills profiles that will form the core of the next generation of Australia’s resource workforce.

As explained by the innovators within these pages, the greater uptake in technologies like automation, drones and remote operating makes the “human” side of the resource industry even more critical to our ongoing success.

Securing the skills to develop and operate evolving technology is proving as important as the technology itself. The capabilities of Australian resource sector employees in areas like data analysis and advanced computing skills is set to deliver Australia a new competitive edge.

While typically linked to technology, innovation can drive productivity and competitiveness in many other ways.

Leadership, for instance, has an extremely important role in driving innovation and productivity. Effectively communicating an organisation’s mission and direction during times of transition assists in driving a culture that encourages and rewards innovative thinking.

Collaboration is also critical for our ability to innovate.

In our cover story we learn how the technologies being developed by Brisbane-based research institution CRCMining come directly from industry funding and involve operator feedback through every stage of the innovation process.

This ensures new technologies can be commercialised and adopted into the mining supply chain much faster than the current average of 15 years.

The Australian and Queensland Governments have also committed to fostering innovation in the resource industry through collaboration, with the launch of a Mining, Equipment, Technology and Services (METS) Growth Centre in Brisbane. The centre will focus on improving coordination between researchers, investors, mine operators and the mining technology and service sectors to bring new innovations to market.

Harnessing such opportunities for innovation will be critical to the longer term capacity of the Australian resource industry to navigate increasingly volatile global commodity markets.

Regulatory reform critical to innovation ambitions With Prime Minister Malcolm Turnbull identifying innovation as a foundation for Australia’s future, we must not overlook the role regulatory reform can play as a driver of innovation.

A key area in which Australian businesses big and small are constantly buried in stifling bureaucracy is our workplace relations laws.

AMMA CHIEF EXECUTIVE

The business community has long complained about poor productivity, regulatory overreach and missed investment and employment opportunities as a result of a workplace relations system more suited to the 1970s than dynamic workplaces of today.

In our industry, employers are forced to shed jobs faster than otherwise necessary because it is too difficult and costly to change roster cycles, adjust production times, utilise contractors, or alter other key terms and conditions to reflect more sombre pricing for the products and services they provide.

Clearly, Australia needs a national debate on transformative workplace reform.

On a positive note, after almost two years of frustrated attempts to improve Labor’s over-regulated and job inhibiting workplace relations laws, the Turnbull Government is now armed with two key pieces of political firepower to build public and parliamentary support for reform.

In the Policy section, we explore how the final reports of the Trade Union Royal Commission and the Productivity Commission’s review of our workplace relations system will be central to the 2016 Federal Election campaign and in kickstarting long overdue reform.

As reported previously, AMMA made the most substantive, evidenced-based submission to the Productivity Commission’s review. While we are delighted the review has picked up many of AMMA’s recommendations, much work and reform is still required.

Through the ongoing support and engagement of our members, AMMA will ensure the resource industry’s priorities are in the thick of it. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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cover story

The innovation imperative How technology and ingenuity is advancing the way we work Australia’s resource industry is entering an exciting new era where traditional manual labour is making way for remote operating centres, automation, robotics, fibre optic sensors and other technology advances ensuring the new generation of miner is working smarter.

Resource People talks to the ‘techsperts’ within our mining equipment, technology and services (METS) sector about what it really means for the Australian resource industry and, most importantly, its people.

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cover story

Working from one of University of Queensland’s Brisbane campuses, industry-run research centre CRCMining is developing and commercialising new technologies that may soon revolutionise everything from employee fatigue monitoring to continuous underground extraction processes.

The team of leading engineers, scientists and researchers aren’t concerned with the size or scale of the innovations, but rather whether it matches the operational, safety and productivity priorities of their funding partners – a ‘who’s who’ list of globally diversified resources companies.

“To truly enable innovation, we believe research needs to be relevant to industry and for that it is best to work directly with mining companies to have industry intimately involved,” says CRCMining chief operating officer Kevin Greenwood.

“This is crucial for two reasons: one is the companies obviously know the priorities for their businesses and research efforts are prioritised accordingly and, secondly, if you include industry in early stage research and involve them along the journey, then the take-up of your research outcomes are much more effective.”

This strict approach to its development programs explains why CRCMining is already seeing its continuous fatigue management technology, SmartCap, which electronically monitors the brainwaves of operators, adopted in the marketplace with exceptional results.

“The SmartCap technology was primarily aimed at manned trucks, however, can apply to any mining operation or shift operation which has challenges with fatigue. Every minute or so, SmartCap provides a reading on the operator’s current level of tiredness,” Greenwood explains.

“The positive thing about this technology is by providing objective information on their tiredness, it allows operators to gauge their ability to carry out their work and potentially make decisions around their lifestyle and what works for

them in reducing the impacts of fatigue.”

While this clever and compact innovation could have an enormous industry impact, CRCMining’s groundbreaking technology does come a lot bigger and much more imposing.

Automation is among the best-known mining tech trend, yet while many people have heard of the driverless trucks adopted by Rio Tinto, BHPB and Fortescue in the Pilbara, there is in fact a broad range of minerals extraction and processing activities being moved to automation technology.

Take for instance, CRCMining’s work on automating large surface digging equipment. The Shovel Load Assist

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Program (SLAP) could soon see shovel operators become control tower operators, managing the flow of machines and monitoring digging performance from a comfortable perch in the sky.

Supported by Australia’s coal industry, the operational benefits would include faster shovel cycle times, lower machine duty, improved material distribution in trucks and fewer impacts between truck and shovel.

“Quite often automation of mining equipment is seen as a negative thing to some people, however, automation technologies are not about replacing operators, what you’re trying to do is assist the operators to do the job better,” Greenwood says. »

“...automation technologies are not about replacing operators, what you’re trying to do is assist the operators to do the job better.”

Kevin Greenwood, CRC Mining

CRC Mining’s automated Shovel Load Assistance Program in action

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cover story The ‘SmartCap’ reads brainwaves to monitor fatigue levels

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“Automation is really important to achieve operator performance levels at optimum levels and to keep that consistent by removing the human variability factor from the mining process.

It takes a lot of the demands off the operators and enables them to carry out and perform higher value tasks.

“The particular technology we’ve been working on, automation of surface digging equipment and semiautomation tools to assist operators of draglines, will dramatically improve both safety and productivity.”

While a huge focus area, CRCMining’s funding partners are by no means investing in automation alone. Other innovations nearing commercial use include fibre optic sensing technology that, when used to monitor and predict failure of the idlers (or rollers) along 10kmlong conveyer lines, can allow for targeted maintenance activities and dramatically decreased downtime.

“That’s a part of the much broader field of sensing technologies, which will provide a massive proliferation of data not just for mining, but every industry around the world,” Greenwood adds.

Another breakthrough solution that has the potential to revolutionise underground mining in particular is CRCMining’s Oscillating Disc Cutting (ODC) technology, which employs a new method for cutting hard rock using lower forces than conventional cutting.

“The nirvana for underground mining is to replace the drill and blast processes with a continuous mining process, where you can mechanically excavate the rock, put it straight on a conveyer, get it straight out of the ground and remove humans from harm’s way completely,” Greenwood explains.

“The ODC technology allows you to basically shave away the surface of the rock – it’s lightweight, clean, produces less disturbance of the surrounding rock mass and has the potential to improve productivity and reduce costs.

“We think that’s going to be the major

Christine Gibbs Stewart, Austime

change to the underground mining process in the next five years and will dramatically impact the industry.”

“The new breed of miner is different, they’re sitting in offices thousands of kilometres away from where the mine site is, and they’re going to need a different skill set that miners haven’t had in the past.”

however, the catch-22 is that miners know they need to get smarter.

“At the height of the ‘boom’ many resource companies weren’t as concerned about saving money and new, more Innovation capital of the world efficient ways of doings,” she says.

That Australian researchers are “There was a lot of investment in rapidly developing new, world class technology, but the focus was on big technologies during a very challenging equipment and moving more dirt. There period for the global resource industry wasn’t necessarily a lot of strategy behind it. is unsurprising to Austmine – the “Now they have to take a look at peak organisation for supporting and representing Australia’s METS providers. everything from a strategic point of view and seek new ways to be competitive, “Australian METS are really well known bring down costs and be more efficient. for their expertise, they have a great So while purse strings are being held reputation internationally and are seen tight, Australian miners are looking at new as problem solvers,” says Austmine CEO technology options and new opportunities Christine Gibbs Stewart. for doing things that weren’t considered a “We like to be recognised as the few years ago.” innovation capital of the world, just as Professional services firm Deloitte New York is the finance capital, Paris is recently released an Innovation state of the fashion capital and Houston is the oil play report for the global mining sector, and gas capital. When people talk about leading edge technologies, leadership and detailing the capabilities and investments in innovation across 19 international great services, they think of Australia.” mining companies.

Gibbs Stewart notes in the current David Cormack is Deloitte’s national constrained market conditions it is difficult mining leader and is preparing to for METS suppliers to ‘get the ear’ of undertake similar Australian research. He procurement managers to talk about innovation and adopting new technologies, expects to see varying definitions about

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cover story

what ‘innovation’ is and where companies are focusing their investments.

“Two years ago the Australian METS sector was a $90 billion industry, so Australia has long been a leader in this space,” says Cormack, also former executive general manager of mining software firm RungePincockMinarco.

“While historically the focus has been on reducing the costs to operate, the industry’s leaders are now looking to innovation to improve productivity overall, not necessarily to drive out costs but to optimise outputs more effectively.

“Different companies are at different stages. The primary innovation focus of mining companies is on technology and methods for better and cheaper extraction as mining deposits become harder to find; generally in more remote places, deeper and of lower grade.

“We’re also seeing innovation in how the mining industry is collaborating with service providers in far greater depth and across a broader spectrum than previously.

“The other important trend is in the mining contracting sector, where out of necessity they’ve had to innovate and bring in more cost-effective ways of delivering a contract. We’re seeing a holistic approach that embraces collaboration and constructive teaming arrangements.”

“The skills required to work effectively in the mining industry now have changed quite considerably from what we’d traditionally call ‘hard core mining skills and knowledge’ to a much greater emphasis to technology-based skills centred on things like data analytics and autonomous machinery,” Harrison says.

“A number of organisations have moved to utilise remote operations centres where they can monitor and operate various aspects of mining activities from a city base, which is changing the workforce dynamics by having less people on remote

“While historically the focus has been on reducing the costs to operate, the industry’s leaders are now looking to innovation to improve productivity overall, not necessarily to drive out costs but to optimise outputs more effectively.”

David Cormack, Deloitte

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mine sites and more in CBD locations.

“The idea of an ‘open talent economy’ will also play a much greater role as organisations look to have fewer employees on their balance sheets but engage more contractors, point solution consultants and even concepts such as ideas-based collaboration across the internet.”

Proving the appetite for new thinking is strong, demand from Austmine’s members has seen them launch a new innovation mentoring program to connect respected innovators with budding young minds and create ‘innovation champions’ within resource organisations.

Gibbs Stewart believes rapid advances in information communications technology (ICT) will drive a massive need for skills in data analytics in particular.

“The new breed of miner is different, they’re sitting in offices thousands of kilometres away from where the mine site is, and they’re going to need a different skill set that miners haven’t had in the past,” says the Austmine CEO. “They will have computer skills, data analytics skills, technical and coding skills. They’ll even have gaming skills.

There are drones and robots that are collecting information that could be better analysed, and there’s a lot of applications to look at equipment and see how it is performing. »

Fostering the ‘new breed of miner’

Anyone involved in innovation will be quick to note that just as important as adopting new technologies in the resource industry is developing the people to operate and maintain them.

Cormack’s colleague at Deloitte Australia, Julie Harrison, is partner and head of the firm’s human capital division.

Among mining clients she has witnessed a strong recruitment trend towards mathematical skills, data analytics and other tech-heavy competencies.

CRCMining’s fibre optic research team in the lab

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cover story

“It’s quite exciting from that point of view, but the next big play is looking at all this data that’s being collected and analysing it so it can be used to make decisions, because a lot of it is currently falling by the wayside.”

Referencing CRCMining’s fibre optic sensing technology, Greenwood agrees the level of data now being captured and stored has fast outrun our human capacity to analyse and interpret it.

In addition to attracting more people into the industry with an aptitude for technology, mathematics and engineering, he believes highly advanced technologies to assist with data interpretation is needed.

“Within the mining network there’s going to be a rich array of data and information.

Intelligently analysing that and predicting failures and problems in your production before they happen is going to generate really significant value for mining companies going forward,” Greenwood says.

“But we can’t expect humans to process and make sense out of this massive proliferation of data on top of everything else we are doing. We have to have artificial analysis of that data, and that’s where the field of predictive data analytics will play a big role.

“But obviously as we get more technologies and different equipment into the mining workplace we will increasingly need different skills and different types of people. For instance, as we increase

the number of automated trucks out there we’re going to need to increase the number of people who understand how an automated truck works.”

Julie Harrison, Deloitte

Overcoming innovation barriers

While innovation in Australia’s resource industry is at the cutting edge, on average, it takes about 15 years for technologies to be adopted and integrated into a mining supply chain.

Gibbs Stewart says this lag comes down to risk-aversion, perceived cost and resistance to change.

“Mining companies will admit that they are very conservative and often individuals don’t want to take it upon themselves to bring in something new that would pose a lot of risk to the company,” she says.

“There’s a whole process of organisational culture, upskilling, information and knowledge expanding that needs to happen in terms of the technologies that are coming in.

“A lot of the mining chiefs are well aware of the issues and are working on it. We can’t wait 15 years to bring a new technology on, we’re going to lose our competitiveness a lot faster than that.”

The Deloitte partners similarly believe innovation success comes down to leadership and culture.

“Innovation is very much about survival now for the Australian mining sector. To

Tight Radius Drilling is a cleaner method for coal seam gas extraction

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“A number of organisations have moved to utilise remote operations centres where they can monitor and operate various aspects of mining activities from a city base, which is changing the workforce dynamics by having less people on remote mine sites and more in CBD locations.” remain competitive, the big challenge is embedding cultural innovation holistically across organisations and to implement frameworks and metrics to foster that,” Cormack says.

Greenwood says now is a ‘great time’ to be in the innovation space, even though funding remains very tight. He reiterates faster adoption of innovation in the mining sector will come from involving the companies from the outset and delivering targeted research of high value through to commercialisation.

“Sometimes the adoption of new breakthrough processes can take time, but I don’t think mining is that different from other industries,” he says.

“Generally it takes a while for new innovations to mature and become completely reliable and a lot of companies are reluctant to invest in technologies that add some risk to their operational processes.

“By making sure we’re developing new technology and equipment which accommodates the input of those mining companies, we ensure they are understanding and thinking about the impacts of the new innovation as it gets developed and matures to become a commercial product.” RP

INNOVATION

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Export markets calling

Aussie METS providers

The changing resource industry marketplace is opening a diverse range of new global opportunities for Australian METS companies, says the government’s export and international trade authority.

ACCORDING to the Australian Trade Commission (Austrade), the nation’s METS providers are increasingly looking to international expansion as global demand for Australian innovation grows and local market conditions ease.

“During the ‘boom’ in Australia, many supply companies were operating at near capacity just within the Australian market. Export and international projects were mainly possible through targeted attention and capacity that was not occupied by the demands of the busy Australian sector,” explains Austrade’s METS team leader for resources and energy, Isaac Court.

“In recent years this has changed.

Those who already had an eye on international work have strengthened their stance in overseas markets, while those who were more domestically focused have an added incentive and drive towards international work.”

According to Court, Australia’s strong reputation for mining technology and innovation has created hot demand for METS technologies that are well proven in the competitive Australian resource industry.

However, given the added challenges facing the sector it is critical to now build on this reputation and promote Australia’s offerings to the world.

“Developing and showcasing Australia’s strengths will continue to drive the competitiveness and attractiveness of Australian solutions to complex but often common mining challenges around the world,” Court says.

“During the next two to three years, Austrade’s role is to work towards opening up greater supply chain access for the Australian mining industry by engaging closely with major foreign mining companies directly in overseas

markets. We can then co-ordinate and share access to these opportunities to suitable companies on a national basis.”

Leveraging Australia’s competitive advantages will, however, take increased collaboration with the private sector, industry bodies, research institutions and government.

According to the National METS Survey 2015, only 17 per cent of respondents considered collaboration as an opportunity for the sector and Court believes this must be addressed.

“To provide the required support to innovation within the mining sector it is important we coordinate the efforts of Australian METS industry bodies, research institutes and the range of government programs,” he continues.

“And while the majority of Australian METS are generally collaborative, more work needs to be done to foster formalised collaboration right across the value chain.”

Better aligned in a ‘Team Australia’ approach to promotion and engagement, Austrade sees a multitude of technology innovations that would make waves at the

international level.

Court says ‘robust technology solutions’ to common safety and cost issues are the key areas where Australian innovators stand out internationally.

“Sensors and remote monitoring systems are becoming more affordable and more common. We are also seeing a lot of innovation around technology for sharing workplace training and safety methods,” he says.

“Virtual reality training has already been applied for a number of years in Australia and is changing the way remote locations are implementing new technologies.

The other area changing the face of the mining sector is in drones and unmanned aerial vehicles that allow for collection of accurate real time data.”

While the big challenge in the future will be to effectively harness this information for productivity gains, clearly both the domestic and global marketplace is rife with opportunity for METS providers using innovative approaches to help companies work smarter, not harder. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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INNOVATION

Mining scientist ON

verge of new breakthrough Twenty-five years ago Professor Graeme Jameson introduced a scientific innovation that revolutionised the minerals sector.

Now, he’s on the verge of doing it all over again.

IF the impact of his invention more than two decades ago is anything to go by, Graeme Jameson AO’s latest scientific endeavour will have the resource industry bubbling with anticipation.

The celebrated University of Newcastle Laureate Professor and inventor of the ground-breaking Jameson Cell mineral extraction process is working on bringing the next step in his technology to commercialisation.

While traditionally mineral particles must be ground to a minute size, Jameson’s new invention, the Nova Cell, has the potential to recover much larger and coarser particles.

Professor Graeme Jameson’s breakthrough inventions utilise bubbles in mineral extraction

The professor anticipates the Nova Cell could reduce the cost of mining by up to 15 per cent by reducing the amount of energy that goes into crushing and grinding mineral ore.

“The problem with fine particles in mining is if you have to grind enormous amounts of rock down to the size of a human hair it takes a great deal of energy and that is the biggest operating cost of a concentrator, and that’s what I’ve been working on lately,” Jameson explains.

“The impact (the Nova Cell) potentially has is enormous. We think we can reduce the running costs of a concentrator by about a half.”

Much like the Jameson Cell, the Nova Cell technology introduces bubbles to a vessel of ground up mineral and water. The bubbles attract the mineral particles and transport them to the surface.

Whereas the older Jameson Cell technology relies on a turbulent agitator to keep the fine particles suspended at the surface in the form of a concentrated froth, the Nova Cell instead uses an upward flow of water. This gentler process ensures the larger particles aren’t knocked off the bubbles before they can be extracted.

Laboratory tests have recovered minerals of up to 1.4mm in size, which no other technology has been able to achieve so far.

While the Nova Cell is soon to be trialled at an operating mine, Professor Jameson’s contribution to the mining sector through the Jameson Cell is still celebrated to this day and is one reason Prime Minister Malcolm Turnbull awarded him the inaugural Prime Minister’s

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Prize for Innovation in late 2015.

Now used in hundreds of mines internationally in the extraction of copper, coal, zinc, nickel, lead, silver and platinum, the Jameson Cell was first adopted by Mt Isa Mines (now Glencore Xstrata) in the 1980s.

Throughout the years the technology has been improved for broader use, including cleaning up waste water and removing suspended solids in the food and wine industries in Australia, and also in Canada, extracting bitumen from oil sands.

“Every now and again, especially when you’re an experimentalist, you’ll come across a really good idea – a ‘eureka moment’. You suddenly see a new world opening up that nobody’s ever thought of before. That happens very infrequently but when it does happen it’s amazing,” Jameson says of the Jameson Cell.

“The biggest difference I’ve made to Australian industry lies in the recovery of fine coal that otherwise would have gone to waste. It has been worth about $36 billion dollars so far to the country, and there’s more to come.”

With an academic career stretching 60 years, Professor Jameson has gained great satisfaction from acting as a mentor and example to his colleagues and students, and has some sage advice for would-be innovators.

“If you’re going to put your heart into something, you may as well tackle a problem that will make a difference because the effort will be the same,” he says.

It’s safe to say Professor Jameson’s devotion to mineral extraction technology has made a very tangible difference to not only mining operations, but also the wider Australian economy. RP

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INNOVATION

Global tech firm

brings smart solution to mine villages International technology services firm Vix Technology is getting acquainted with the Australian resource industry through a new offering that promises to overcome logistical and cost challenges of managing remote workforces.

A MINE employee flies into site to commence his two-week roster. Already armed with an email containing his room number, he bypasses the accommodation village reception where he would normally have to queue to receive his room key.

He taps a smartcard on an electronic pad to unlock the door to his room at which point all the services he will require onsite are enabled – in-room air-conditioning, access to recreational facilities, purchasing power and transport to and from site.

If shift times change unexpectedly, cleaning rosters are altered and staff know to service the employee’s room at a different time, creating efficiency for the village operator with the benefit of the employee not being disturbed while sleeping.

All data accumulated at the accommodation village, from room occupancy, maintenance and welfare visits, and electricity use is sent to a central depository to be analysed for cost,

Vix SmartSite cards are used to optimise operations and improve the user experience

efficiency and productivity gains.

For Vix Technology’s Asia Pacific managing director, Peter Bouhlas, this is the future of managing logistics and costs of remote mining villages.

“We’ve demonstrated, for example, remote sites relying on diesel generators can save up to 40 per cent worth of diesel costs just by managing when air-conditioning is powered in a room,” Bouhlas lists as one of the many cost benefits.

Piloting the technology called Vix SmartSite for almost two years at an accommodation village in Gladstone owned by Homeground Villages (a wholly owned subsidiary of the Decmil Group) is Vix Technology’s first foray in the resource industry.

For the past 25 years the company, which has offices scattered across Europe, the Americas and the Asia Pacific region, has been delivering ticketing and payment technology solutions in the transit and major event sectors.

“We’re applying the same type of view from the transit industry to mining and resources. Particularly now, people want access to big data for efficiency gains,” Bouhlas says.

“It’s been a great partnership with Homeground Villages, so much so we are progressively rolling out across the site in full operation. We now have a site we can take prospective customers to and demonstrate the capability in real time.”

In November, Vix Technology further bolstered its capability by acquiring its

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

Vix Technology has piloted its SmartSite technology at a Gladstone accommodation village

developer for the SmartSite technology, Osmotion. The small Queensland-based software solutions firm is already a market leader in FIFO travel and accommodation software utilised by major resource companies including BHP Billiton, Woodside, Rio Tinto, FMG and QGC. “We identified an opportunity to provide the full suite of services to optimise operations. By connecting the travel and accommodation profile with working rosters, we can ensure the FIFO or DIDO worker’s experience is frictionless,” Bouhlas says.

Bouhlas is often asked why he sees the industry as an area for Vix Technology’s expansion at a time when the sector is perceived to be contracting.

“Feedback we’ve received is resource companies see investment in innovative technology is lagging because people react rather than think ahead, mainly because of budgetary constraints,” he says.

“The technology we have and the way we access these new innovative tools is resonating with the market.” RP

INNOVATION

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Appetite for risk

to unlock creative thinkers MINING and energy companies that are not risk-averse stand a greater chance of prospering through innovation, according to CSIRO researchers.

In its report Unlocking Australia’s resource potential, the CSIRO draws upon the insights of 26 senior resource leaders and analysis of past innovations to offer a framework for how companies can better capitalise on their innovation potential.

The interviews with resource leaders uncovered that, particularly in the mining sector, there is a widespread attitude that projects must be ‘de-risked’ to avoid costly failures.

The new report shows a difficulty in attracting and retaining creative thinkers, with many business leaders believing

there are too many ‘fixed mindsets focused on doing things the way they had always been done’.

“This culture of risk avoidance contradicts the very nature of innovation, which carries inherent risk, and can stifle innovation ideas from even the most capable employees,” the report warns.

“The industry’s risk-averse culture presents another ‘catch 22’ situation: it needs an innovative culture to attract creative thinkers; but to build an innovative culture, it needs those creative thinkers in the first place.”

The CSIRO believes to foster innovation, resource companies need to weigh up the benefits of long-term investment in building technical and creative capabilities

in-house or sourcing them through external bodies.

The latter may be preferred by CEOs nervous about regulatory changes impacting market conditions or who are focused on short-term deliverables for shareholders. However, the CSIRO believes a failure to address cultural barriers to innovation can result in projects being stifled early on.

“Innovation achievements should be celebrated internally and externally with appropriate recognition and reward provided at both an individual and team level. A mature attitude to risk awareness and management ensures new ideas are constantly developed and explored,” the report says. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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POLICY

Dual IR reports to

dominate workplace reform After extensive debate and anticipation, the Turnbull Government enters the 2016 federal election year armed with two reports critical to building public and parliamentary support for workplace relations reform.

While the Royal Commission into Trade Union Corruption has delivered an emphatic case for more effective union regulation and transparency, the business community is hoping the Productivity Commission’s underwhelming final report on the performance of Australia’s workplace relations framework can yet become a foundation for the workplace reform the nation so desperately needs.

Michaelia Cash

Cash to consult on Productivity Commission recommendations

Minister for Employment Senator Michaelia Cash has embarked on a series of roundtable discussions over the 70 reforms recommended by the Productivity Commission (PC) and, judging by the reactions following the report, may expect robust debate.

Despite being 1229 pages in length and offering an opportunity for ‘fundamental, comprehensive’ reform, the business community’s largely unanimous response was that the recommendations fall well short of what is needed.

Resource industry employer group AMMA was among the leading voices publicly criticising the overall effort of the PC as ‘underwhelming’.

“The review has not properly considered the foundations on which the Fair Work Act was created – one of a by-gone era where Australian workplaces were heavily unionised, not the modern workplaces of today where 89 per cent of private sector employees choose not to be union members,” says AMMA executive director, policy and public affairs, Scott Barklamb.

AMMA was the only submitting party to fund and present independent economic analysis to support its recommendations for workplace reform. While disappointed more of the research wasn’t reflected in the final recommendations, Barklamb says there are

a number of areas in which the proposed changes are positive and will be actively supported by the resource industry.

“Our members welcome Minister Cash opening this period for further input and will consult and encourage the government to adopt those recommendations that support jobs, investment, productivity, growth and our future living standards,” he continues.

Specific recommendations to be supported by AMMA address enterprise agreement content and duration, greenfield (new project) negotiations, union entry powers, industrial action, unfair dismissal remedies and removing ambiguity around workplace rights and adverse action claims.

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On behalf of the resource industry, AMMA also secured a significant recommendation for a ‘project proponent’ agreement option, which was not present in the earlier PC draft report.

Minister Cash is quick to remind the community this report is to the government, not by the government, and will be widely consulted on before any policies are decided.

“We will carefully consider the final report and its recommendations and, if there is a good case for sensible and fair changes to the workplace relations framework, these will be clearly outlined and taken to the next election to seek a mandate from the Australian people,” the minister explains.

“I am confident the Australian people

POLICY

will see through the entirely predictable and misleading scare campaign by Labor and the unions…(and) I look forward to a mature and constructive discussion in the coming months over what the Productivity Commission has recommended and what we as a nation need to do to promote the best interests of all Australians.”

Immediate action to address ‘thugs, thieves, perjurers’

In a move strongly supported by the resource industry, the Australian Government is wasting no time taking action to address the systemic illegality outlined in the final report of the Royal Commission into Trade Union Corruption.

After receiving evidence from more than 500 individual witnesses, Justice Dyson Heydon’s report delivers a scathing criticism of behaviours across a wide range of industries and unions, alleging multiple examples of bribery, extortion and blackmail.

“It is clear in many parts of the world constituted by Australian trade union officials, there is room for louts, thugs, bullies, thieves, perjurers, those who threaten violence, errant fiduciaries and organisers of boycotts,” the report says.

“The misconduct exhibits great variety.

It is widespread. It is deep-seated. It

would be utterly naïve to think what has been uncovered is anything other than the small tip of an enormous iceberg.”

The report made 79 recommendations to improve the governance and transparency of registered organisations and to improve the management of construction work sites across the country.

The Royal Commission’s recommendations strengthen the case for two key Coalition policies repeatedly rejected by the federal Opposition, the Greens and crossbench senators throughout 2014-15.

In a joint statement, Prime Minister Malcolm Turnbull, Employment Minister Michaelia Cash and AttorneyGeneral George Brandis expressed the importance of the Australian Building and Construction Commission legislation being passed by the end of March 2016.

“This corrupt and illegal conduct will not stop unless there is immediate and effective parliamentary intervention, meaningful reform and strong leadership,” the ministers said. “(The ABCC legislation) is to reestablish respect for the rule of law in the construction industry. Leadership is required among unions, employer groups and political parties to ensure these

17

important reforms are put in place.

“In addition, the Royal Commission has recommended stronger legislative reform to improve transparency and accountability in registered organisations.

“These recommendations go further than the government’s Registered Organisations Bill that has been rejected by the opposition. The government will, therefore, introduce additional legislation to further strengthen the Registered Organisation Commission.”

Speaking on behalf of resource employers, AMMA’s Scott Barklamb says the Australian Parliament can no longer ignore that some elements of the trade union movement have been infiltrated by illegality and must be better regulated.

“For too long, the ALP, Greens and some of the senate crossbenchers have dismissed evidence of serious wrongdoing by officials of some trade unions and refused to support legislation introduced by the government to uphold a higher level of governance and accountability within all unions,” he says.

“As the government progresses these important reforms, AMMA will be calling on those in our parliament who were previously apologists for such behaviour to urgently change their stance.” RP

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POLICY

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

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

Progress on Fair Work changes

AMMA is urging the Australian Parliament to support workplace reforms contained in the Fair Work Amendment (Remaining 2014 Measures) Bill 2015. This is a second attempt by the Turnbull Government to deliver important changes that were removed from the Fair Work Amendment Act 2014 before it was passed by the Senate in November last year. While the legislation passed last year included positive changes on greenfields agreements and protected action ballot orders, reforms removed from the legislation and subsequently reintroduced into parliament in the new bill address key concerns for AMMA members in areas such as union powers to enter workplaces, employment obligations where there is a transfer of business, the requirement to pay annual leave loading upon termination, and ensuring individual flexibility arrangements are more useful and relevant for employers and employees.

Extended long service leave portability opposed

AMMA has advised the Senate’s Education and Employment References Committee against any extension of long service leave (LSL) portability in Australia, arguing LSL should remain contingent on extended service with a single employer.

AMMA also expressed disappointment with the narrow focus of the inquiry when there were broader questions that should be asked about the future of LSL in Australia, including moving towards a genuinely national LSL standard that offers greater flexibility in the accrual, taking and use of LSL by agreement between employees and employers.

Dismissal upheld over failed medical exam In Grant v BHP Coal Pty Ltd, the Federal Court held an employee whose

employment was terminated after refusing to attend a company medical examination had not been unfairly dismissed as he failed to comply with a reasonable and lawful direction from his employer. The decision reinforces that an employer, so long as it complies with its policies and procedures and relevant legislation, has authority to require an employee to attend a medical examination.

Fair Work Commission appointments welcomed

Minister for Employment Michaelia Cash has appointed two new deputy presidents and two new commissioners to the Fair Work Commission. The new appointees include Melanie Binet, principal of Perth law firm Gregor & Binet (deputy president); Richard Clancy, former director of workplace relations at the Australian Chamber of Commerce and Industry (deputy president); experienced employee relations consultant and former member of AMMA’s Board Reference Group Katrina Harper-Greenwell (commissioner); and former Toll Holdings employee relations manager Jennifer Hunt (commissioner).

All appointees are highly experienced, respected practitioners and AMMA welcomes their appointment.

Greater penalties for secondary boycotts

The Turnbull Government has responded to the Harper Competition Policy Review and accepted the recommendation to increase maximum penalties for illegal secondary boycotts from $750,000 to $10 million. The new proposed maximum penalties would see fines for secondary boycotts equivalent to those applying to other breaches of competition law, such as illegal collusion between businesses or market manipulation. Legislation giving effect to this is expected to be introduced shortly.

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

Scott Barklamb

Shipping amendments voted down

It is unclear whether the government intends to push ahead with its proposed amendments to Australia’s coastal shipping regime after its package of changes was voted down in the Senate.

The amendments sought to replace the existing three-tiered licensing system for coastal trading with a single permit system and a new workplace relations framework for seafarers on foreign vessels.

CFMEU wins right to access dragline crib rooms

In what marks the first occasion a Full Bench of the FWC has been called to examine the contentious ‘default lunchroom’ sections of the Fair Work Act’s right of entry provisions, the CFMEU has successfully appealed an earlier decision that prevented its access to cabins attached to dragline machinery at BMA’s Caval Ridge coal mine. Previously, FWC Deputy President Asbury found despite some workers taking meals in the cabins, they are primarily work areas and not ‘default’ locations at which unions could exercise right of entry. However, the Full Bench believed this was a misinterpretation that the area must be for the ‘primary’ or ‘single’ purpose of taking a meal or break and instead found the cabins fulfil the requirement that it is an area employees ‘ordinarily’ take their break. RP

POLICY

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Falling union

membership raises questions THE number of Australians choosing to be members of trade unions continues to fall with private sector unionisation now comprising just 11 per cent of employees, raising questions about whether our employment laws reflect the needs of modern workplaces and the choices being made by contemporary employees.

The ABS’ Characteristics of Employment report, released in late 2015, shows trade union membership declined significantly in the 12 months to August 2014, continuing a sustained decline in union membership since the mid-1980s.

Mining industry trade union membership declined from around 16 per cent 12 months earlier to 12 per cent in the most recent figures. Coal mining union membership, which was previously

around 40 per cent, declined to around 28 per cent in August 2014.

National resource industry employer group AMMA’s chief executive Steve Knott says the continued decline in the number of Australians who choose to be trade union members must prompt further efforts from national policy makers to reform outdated employment laws.

“Not only is union membership in the mining industry at an all-time low, but across the board in both the private and public sectors we are seeing a continued decline in Australians choosing to be members of a union,” he says.

“This is despite the fact that since 2009, Australia has had a workplace relations system that deliberately provides unions with a privileged position in workplace

bargaining that is more suited to a 1970s industrial environment.

“Australians are no longer working in an economy where one-in-two people belong to a trade union. The longer our workplace relations system ignores this fact, the longer it remains a barrier to employment and economic growth in this country.”

Following the release of the ABS data, the ACTU counter-claimed that its data from 46 affiliated unions shows union membership in October 2015 stood at 1.8 million members, however, on either data set, unions continue to be in a sustained decline in Australian workplaces.

In terms of a substantive response, the ACTU has held a symposium to discuss how unions can better represent members. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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MIGRATION

New offshore visa

rules offer calmer waters Certainty has been restored in the offshore resource sector after the government implemented new regulations exempting foreign vessels from Australian visa requirements when temporarily servicing resource installations.

IN a move welcomed by Australia’s resource employers, Minister for Immigration Peter Dutton implemented arrangements in December 2015 that exempts workers on international vessels from requiring an Australian working visa when temporarily undertaking resource contracts.

(SPV) that provides Australian work rights for their intended activities.

The new regulation heralds a practical return to the long-standing definition of the migration zone that was in place in Australia between 1982 and 2014.

foreign vessels temporarily undertaking offshore resources activity to be in Australia’s migration zone; requiring appropriate Australian working visas.

New regulation welcomed by industry

High Court challenge in question The peak employer group representing

At the time of publishing, it was uncertain whether a High Court challenge brought by the Maritime Union of Australia and the For foreign workers undertaking activities Australian Maritime Officers Union against on ‘resources installations’, which include previous visa rules would still be relevant. fixed or moveable structures, nothing has The unions had been challenging changed. They will continue to require either a 400 (short stay), a 457 (temporary the validity of two instruments issued in March 2015 by then Assistant Minister for skilled) or a permanent residence visa in Immigration Michaelia Cash for the provision order to perform work within Australia’s of SPVs. However, these instruments were exclusive economic zone (EEZ).

However, as of 14 December 2015, non- essentially revoked by Minister Dutton’s December 2015 regulation. resource installations operating offshore, SPVs were implemented by the such as vessels that enter Australia’s Coalition government after the EEZ to temporarily service resource former Labor government’s Migration installations are no longer considered to Amendment (Offshore Resources Activity) be within Australia’s migration zone.

Act 2013 (which took effect in 2014) These foreign workers are no longer unconventionally deemed workers on required to obtain a special purpose visa What has changed?

The government has implemented new offshore visa arrangements

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the majority of offshore resource employers, AMMA, says the new regulation is consistent with international practice and hopes it will put an end to the ‘misguided industrial campaign’ pushed by Labor and the maritime unions.

“It was always a misguided move by the former Labor government, at the behest of trade unions, to tamper with these established international rules, creating great uncertainty for not only the specialist operators but also the nationally significant projects they service,” says AMMA executive director, policy and public affairs, Scott Barklamb.

“No other nation in the world would attempt our former Labor government’s move to shift international maritime practices and seek international crews working in international waters to be subject to visa arrangements appropriate for those entering our country to work onshore.

“The small number of vessels concerned with this issue have traditionally been exempt from Australia’s migration law because they aren’t attached to the Australian seabed, and don’t cross into our traditional territorial waters.

“AMMA welcomes the government’s sensible regulation and hope it signals an end to Labor and its union affiliates attempting to upset well-established practice for their own membership and coverage benefit.” RP

MIGRATION

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457 obligations

clarified for business sponsors AN amended regulation has taken effect that clarifies a range of obligations for all employers who are seeking to sponsor 457 visa holders into Australia.

Outlining obligations that have long been in place, the amendments were implemented to reinforce overseas workers will only be recruited under work agreements in circumstances where suitably qualified local workers are not available.

The amendments to the regulation were prompted by concerns the union movement had in relation to the passage of non-citizens into Australia under the now-in-effect China Australia Free Trade Agreement (ChAFTA).

According to Minister for Trade and Investment Andrew Robb the amendment prescribes ‘the existing requirement under policy that employers seeking to sponsor

skilled workers on 457 visas under work agreements will have to demonstrate they have made recent and genuine efforts to recruit local Australian workers first’.

The provision applies to all work agreements, including those under the Investment Facilitation Arrangement (IFA), linked to ChAFTA. In order for Labor to support that passage of the ChAFTA the government also agreed to make minor amendments to guidelines for companies seeking a work agreement to incorporate additional criteria for the minister to consider before approving the agreements.

After taking effect on 20 December, the ChAFTA immediately abolished and introduced the phasing out of tariffs on a number of resource commodities exported from Australia. RP

Less demand for overseas skills THE mining industry has recorded a 45.3 per cent fall in primary subclass 457 (temporary skilled) visa applications granted during the last recorded 12 month period.

The Department of Immigration and Border Protection’s latest statistical report on 457 visas shows there were 570 primary 457 visa applications lodged for the mining industry in the year to 31 December 2015 compared to 1,050 in the previous year.

The data suggests the 457 visa program is being utilised for its intended purpose; to be responsive to skills shortages during times of high demand.

Mining accounted for 2.5 per cent of all 457 visas granted during the period.

The construction industry accounted for 6.9 per cent of visas granted in year, while the electricity, gas, water and waste services sector accounted for 0.9 per cent.

The top three sponsor industries for primary applications granted in the year to 31 December 2015 were ‘other services’ (15.3 per cent), information media and telecommunications (14 per cent) and accommodation and food services (13.2 per cent).

Across all industries, there was a 1.2 per cent decrease in the number of 457 visa applications lodged in the year, while the number of visas granted (22,870) decreased by 10.4 per cent.

90,040 subclass 457 primary visa

holders were in Australia on 31 December 2015, a decrease of 4.6 per cent on the previous year.

Mining the highest paying industry

According to the report, skilled overseas workers granted visas in the mining industry are paid the highest average nominated base salary of all industries, at $169,200. This figure increases to $217,500 when considering total remuneration for the same period.

Visa holders based in Victoria earn the highest average total income of $252,200, compared to the lowest average income of $138,300 in New South Wales. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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HUMAN RESOURCES

Evolving role of HR

in workplace investigations Human resources has long been a dynamic and evolving profession, however, changes in the corporate structures of Australia’s mining, oil and gas businesses are driving demand for practitioners with ‘generalist’ skills across all workplace functions.

EXPERIENCED employee relations consultant Jeff Mackie has seen a noticeable shift in the internal resources of mining organisations during the past two years.

“In this current economic environment, many resource companies can no longer afford to have specialised HR staff and specialist ER staff – the distinction between the skills sets in an internal environment is diminishing,” says Mackie, manager of west coast consulting for resource industry employer group, AMMA. “This has added pressure on human resources managers in particular, with most now classified as generalists and required to have some knowledge of employee relations processes.”

This trend is also driving an increasing demand for third-party specialist services to plug capabilities gaps. A common area of assistance, says Mackie, is in conducting workplace investigations.

This is particularly prevalent when concerning the Fair Work Commission’s (FWC) new anti-bullying jurisdiction, implemented in 2014.

“Workplace investigations have become quite common, particularly now bullying is treated as a national workplace relations issue, as opposed to a workplace health and safety issue,” Mackie explains.

“HR practitioners need to make a judgement on whether a formal investigation is required because not every complaint needs to get to that stage. However, in cases involving serious allegations, it must be carefully considered if someone internally can carry out a formal investigation in an unbiased and balanced fashion.”

Mackie’s caution is not without merit.

Since the FWC has assumed jurisdiction over workplace bullying and workplace

Jeff Mackie

grievances there have been a number of test cases where the employer’s process has been found wanting.

For instance, in Boal vs BHP, it was found two truck drivers sacked for using their mobile phones during shift were unfairly dismissed because the mobile phone use was not the only reason for their termination, however, it was the only issue they were afforded a chance to respond to.

In Cannon vs Nyrstar, which involved two employees being dismissed for repeated bullying of their supervisor, the Commission agreed with the employer there was a valid reason for their termination.

However, the dismissals were later overturned on procedural grounds as the employees’ longstanding behaviours were never previously addressed nor did they have a chance to respond to any specific allegations.

“There have also been many cases where an employer’s investigation and decision making was found to be fair, valid and upheld before our tribunals and courts,” Mackie continues.

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

“Quite often, those cases have involved HR managers, which recognised the issues around potential bias early and sought to eliminate them through some form of third-party involvement.

“This can also help when HR staff are put in a difficult situation where they have existing relationships with the people involved and would be required to maintain those relationships after an in depth and, in some cases sensitive, investigation is complete.

“The other factor is the HR department can potentially be implicated in an allegation where the complainant believes their grievance wasn’t adequately dealt with at the workplace level.”

Whether HR professionals decide to tackle employee relations processes alone or with external support, there are steps that can be taken to safeguard the process from scrutiny.

“You will want to decide on an investigation protocol, things like who is going to see the results of an investigation and who’s going to act on it, and communicate that to all parties involved,” Mackie says.

“Ensuring the confidentiality of an investigation is critical, as is being impartial and equally fair and transparent to both parties.

“Importantly, the fairness of this process should not be assessed from the perspective of the HR manager, but rather whether an investigation will be viewed as independent, unbiased and valid by a third party like the FWC – because that’s where these incidents ultimately end up when handled poorly.”

Want to learn more? Turn to Training (page 33) to read Bill FitzGerald’s Six Steps for Validating a Dismissal. RP

HUMAN RESOURCES

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Time to re-energise

skills development

As production ramps up across Queensland’s natural gas sector in 2016, employers must seize opportunities to develop new world-class skills for long-term growth, writes Energy Skills Queensland chief executive officer Penelope Twemlow.

AS a new year begins, the CSG/ LNG industry continues to face strong headwinds. The volatility in the resources sector, drop in oil price and the expansion of gas production across the globe has made long-term planning of workforce skills in the Queensland CSG/LNG sector difficult to predict.

These brute economic realities, and the austere outlook for the industry, have the potential to catalyse new forms of competitive advantage and modernise the skills profile of the industry. The squeeze on price and productivity may lead to novel business models and unshackle new ideas and strategies to ensure long-term workforce growth.

Quarter three of 2015 saw Queensland’s oil and gas extraction workforce hit its highest total yet of 12,900 workers; a fourth straight quarter increase.

Interestingly, this figure followed a sharp contraction in mid-2014 of 25

There are opportunities to modernise the skills profile of the Queensland CSG/LNG sector

per cent (approximately 2,500 workers), culminating in an additional 5,700 jobs in the past 12 months. The female participation rate is also the highest it has been since 2012, with nearly one in six workers being women.

From a training perspective, in 2014, Queensland had 2,940 student enrolments in the Certificate II in Drilling Oil/Gas (On-shore). Considering cost rationalisation conditions that have occurred within the sector in the past 18 months, this is a positive sign.

Also positive is the continued growth in the well-servicing sector, which is showing stronger employment figures than originally forecast by Energy Skills Queensland in 2013. In a difficult economic environment, should the industry seize the opportunity to direct more investment in its internal training capability, Queensland will possess a world class gas workforce and will also been seen as a world class destination for training workers in the CSG/LNG sector.

All three major CSG/LNG projects are in operation, which provide the industry with an opportunity to focus on long-term workforce requirements. A mandatory requirement will be skills deepening to ensure safety is prioritised and efficiencies are gained. Strategic and operational management skills will be a strong focus as senior managers transition an inexperienced workforce to subject matter experts.

The CSG/LNG industry is also clearly poised to benefit from new technologies, innovation and automation. However, an all too often overlooked priority, absolutely essential to fortify our future position, is to understand the workforce implications, skills needs and labour market enablers required for this technology-led transformation.

Penelope Twemlow

New technology will transform work practices; alter the types of roles required in the industry and the nature of what it means to work at the centre or periphery of gas-field operations. It shifts demand for skills to new areas and even brings non-traditional skills and teams to the forefront of a company’s strategy. These technologies will increase the need for data analysis workers who are able to synthesise and interpret large amounts of data, and workers who are skilled in remote automated operation of vehicles and equipment will also be highly sought after.

Where there is a challenge, there is also opportunity, and even new forms of prosperity. In order to prosper in today’s economic reality, deeper collaboration is essential. Forming alliances and consortia arrangements with pre-established innovators is critical to locate skills and capabilities, and begin the wider process of transformation and the strategic search and development of 21st century talent.

Energy Skills Queensland is a leading, independent, not-for-profit organisation providing innovative solutions to enable a skilled and safe energy industry. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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HUMAN RESOURCES

Breach of employment

standards a warning for HR managers

The Federal Circuit Court recently penalised an employer and its human resources manager for failing to provide the requisite notice of termination to an employee.

Here, AMMA employee relations lawyer Lindsay Carroll explores what led to the HR manager receiving a penalty and how it could have been avoided.

WHILE it is common for courts to penalise organisations that break the law, internal human resources professionals are in the unique position where they can also receive penalties if they provide lacking or inaccurate advice that leads to a breach of the Fair Work Act 2009 (Cth).

In Cerin v ACI Operations Pty Ltd & Ors [2015] FCCA 2762, the employer provided notice of termination to an employee of 16 years that was two days short of the minimum period prescribed by the National Employment Standards.

The background is three years before his termination the employee sustained a work injury that then saw him receive workers’ compensation and, upon return to work, perform modified duties in accordance with rehabilitation and return to work plans.

In terminating the employee, the employer relied upon advice from the state workers’ compensation authority, WorkCover SA, that the company would no longer be required to provide work for the injured employee in accordance with the workers’ compensation legislation.

This was on the basis of its assessment that there was no longer suitable employment available at the company that fits the employee’s injury limitations.

under the national employment laws, the Fair Work Act. The Court found the contravention by the company and the HR manager was deliberate and intentional, specifically that the HR manager had many years of experience and was aware the Fair Work Act includes minimum employment standards, known as the National Employment Standards, which ordinarily would apply to all of the employees.

The court also concluded the HR manager was aware those standards include requirements about the amount of notice to be given on the termination of employment and that the amount of notice varies dependent on the length of service of the employee concerned.

Both the company and the HR manager were ordered to pay a penalty of $20,400 and $1,020 respectively. In determining the penalty, the court intended to ensure the penalty was high enough to serve as a warning to employers of the need to ‘comply with the legislation to the letter’. Penalties imposed, in this case and others, are often substantial so as to deter employers from seeking to unlawfully avoid their obligation to provide the correct notice of termination.

What can employers

What went wrong?

learn from this decision?

While the employer relied on the advice of WorkCover SA and the requirements under the state workers’ compensation legislation that allowed for 28 days’ notice of termination of employment, it was found the employer did not give consideration to further requirements

Despite the requirement to comply with various state legislations, employers and HR managers should always refer to the Fair Work Act to ensure they are also complying with minimum standards at the national level.

In no circumstances are employers waived from complying with Fair Work’s

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

AMMA employee relations lawyer Lindsay Carroll

National Employment Standards, with the court noting ‘compliance with minimum standards is an important consideration in all industrial disputes such as this one’.

Similarly, employers should seek external advice before affecting termination. Had the HR manager in this case sought external guidance, the penalties and costs associated with the litigation could have been avoided.

This was highlighted by the court, which stated ‘the Applicant suffered the loss of $181.66. This miniscule sum pails into insignificance when compared with the time and expense that must have resulted from this litigation… [from] the court’s point of view, it would seem to be a storm in a tea cup that should have been resolved at a very early stage’.

For assistance with any matters relating to termination of employment, contact an AMMA Legal Services or Workplace Consulting professional. RP

HUMAN RESOURCES

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Resources job index

holds steady, Qld falls AFTER a volatile year, the resources job market is showing signs of stability, according to the DFP Mining and Resources Job Index that fell just 0.7 per cent to 48.96 in January 2016.

Although advertised vacancies are down 28 per cent compared to the same time last year, they are actually 2.3 per cent higher than the previous six months.

“In light of the traditional lull in recruitment during the Christmas and New Year holiday period, combined with continued commodity price volatility, the result can be seen as positive,” says DFP Recruitment Services CEO, Robert van Stokrom.

“Seasonal factors make it difficult to draw conclusions on market activity in the short term, however, medium term trends

are encouraging.”

Western Australia recorded its fifth consecutive monthly rise in vacancies, backing up a 2.1 per cent increase in December with an, albeit small, rise of 0.9 per cent to 58.81 in January.

However, on the opposite side of the country, the jobs picture isn’t as encouraging.

“Queensland has not fared well with vacancies falling a further 5.4 per cent in January. After the first month of 2016, the Queensland index has established a new record low of 35.31,” van Stokrom says.

“Queensland’s market is performing far worse than WA and vacancies are down 35.3 per cent in a year and still trending lower.”

While it remains the weakest sub sector for hiring, oil and gas extraction demonstrated some resilience with a three per cent rise in January, however, the index is still 47.3 per cent lower than January 2015.

Looking to occupational groups, van Stokrom notes in just over two years, employers have reduced their external hiring by approximately 60 per cent across the board.

“All areas of employment – management, professional and support have been hit relatively equally,” he says.

“The notable exception to this has been trades and operators of which demand hit rock bottom in August 2015, and has since recovered strongly, growing 15.2 per cent in the last three months.” RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

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OHS & WELLBEING

New Acland learns

to live and work well Three years ago, half of New Acland’s coal miners were found to have serious health risks due to poor diet and exercise, but through the employer’s awardwinning Live Well, Work Well program, the workforce is turning over a new leaf.

LOCATED 50km north-west of the major Queensland rural hub of Toowoomba, the New Acland open cut coal mine makes for an attractive employment option for 300 personnel who live in the surrounding Darling Downs region.

However, since production commenced in 2002 the mine’s mostly male workforce has increased steadily in its average age, prompting owner/operator New Hope Group to undertake a site-wide check-up in 2013.

“We ran a voluntary Health Expo, which 78 per cent of the workforce attended,” explains New Acland’s safety and training coordinator, Stewart Sherrington.

“The health measurements we obtained indicated up to 50 per cent of the workforce had risk indicators for chronic

disease, including high blood pressure, high cholesterol, high blood glucose and high waist circumference.”

With management convinced improving the health and wellbeing of the workforce would provide a boost to safety and productivity outcomes, the mine partnered up with corporate wellness program provider LiveWell Australia to develop the New Acland Live Well, Work Well program.

“The Live Well, Work Well program is a testament to how our employees live our core value of safety, where we share a mutual responsibility to prevent harm and promote wellbeing,” Sherrington says.

Now in its third year and with a 2015 Queensland Safe Work Award for Best Workplace Health and Wellbeing Initiative

New Acland employees have embraced its health program

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under its belt, the program has succeeded on the premise employees must take ownership of their health.

“We knew success would only come from employees wanting to make a change themselves. Having the majority of the workforce participating in that initial health expo shows deep down they were probably contemplating making changes to their health,” Sherrington says.

In the first 12 months of the program, a Health and Wellness Committee was established and met bi-monthly to direct the program. Committee ‘champs’ volunteered to spread the word about health and wellness and drive engagement in activities including a weight loss challenge that saw 40 employees lose a combined 100kg in three months.

OHS & WELLBEING

27

New Acland employees participated in a community fun run

76 per cent of employees have made positive changes to their health

Allied health professionals visited the site monthly to deliver ‘toolbox talks’ on health topics of interest identified by the workforce and committee.

Prior to the program commencing, many New Acland workers didn’t exercise and made poor food choices – a bad combination when sitting for long periods while driving trucks or operating machinery. So when requests came through for a dedicated place for employees to walk, Sherrington and his team did their best to accommodate.

“Some of the guys wanted to go for a walk on their breaks to exercise, so we created a walking track in a safe location.

It’s not like walking through the Brisbane Botanical Gardens, but it gives them an opportunity to stretch their legs,” he says.

“We also reviewed the site vending machines and now they include healthy options like muesli bars.”

In its second year, the Live Well, Work Well program was ramped up.

After delivering the toolbox talks to a group, health professionals would sit with individual employees in machine cabins or on their crib breaks for one-onone discussions, something Sherrington describes as a ‘masterstroke’.

“They sit in the trucks where there is no peer pressure, and if the guys have something on their mind they can have a confidential conversation, whereas they may not put their hand up and ask questions in front of their mates,” he says.

“One month we had an exercise physiologist here to talk about stretching

and movements. Afterwards he was approached by an employee in the crib hut who had been suffering in silence with severe pain. The employee was extremely anxious about how his health issue would affect his work and livelihood.

“That employee was offered a free off-site consultation with a health professional, which is something we introduced for the entire workforce, and was put on an intensive exercise program that got him on the mend.

“That may not have happened if we did not have the one-on-ones in the trucks and crib rooms.”

New Acland employees also became more engaged in corporate health challenges, with 103 employees and their families participating in Toowoomba’s annual Peak2Park fun run, compared to five employees the year before.

A number of light-hearted activities also helped build a workplace culture that embraced health, including a ‘Fashion on the Fields’ event to raise money for the Movember Foundation.

A survey of 200 employees conducted in that second year delivered promising results, with 76 per cent making positive changes to their health and almost half in better shape than 12 months prior.

The program looks to have also played a part in improved safety outcomes.

It’s probably no coincidence that at the end of November 2015, New Acland’s Total Recordable Injury Frequency Rate (TRIFR) has dropped to 12.46 from 16.85 the previous year and below the mining

industry average of 15.3.

While Sherrington modestly says the program is “one of a combination of factors” that led to a reduced TRIFR, he is proud of the recognition it has received.

“To be a finalist for a Queensland Safe Work award in a category open to all industries was a tremendous recognition, but I thought there was no way we’d actually win,” he says.

“Here we are three years later with a program that’s actually having an impact and changing people’s lives. So we must be doing something right and we want to keep it going.”

With the program now in its third year, New Hope is coaching supervisors to deliver bimonthly health presentations and has introduced weekly on-site physiotherapy treatment for all New Acland employees.

The fun and engaging activities will also continue, with Sherrington particularly enthusiastic about a My Tuckerbox Rules challenge, modelled on the popular television show My Kitchen Rules.

Some employees, most of which had never participated in an organised walk or run prior to the Live Well, Work Well program, have even expressed interest in walking the gruelling Kokoda Track in Papua New Guinea.

Following New Acland’s success, New Hope’s management have begun rolling out similar programs at its other sites, something that will surely serve the company well in the long term. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

28

OHS & WELLBEING

Share plan

linked to safety actions FULL-TIME Origin Energy employees who contributed to achieving the organisation’s safety targets in the 2015 financial year have each been allocated $1000 in Origin shares.

Part of an Employee Share Plan, the initiative recognises employees who helped Origin exceed its target of closing 80 per cent of ‘actions’ recorded in a Health Safety and Environment (HSE) database.

“HSE actions are those we identify through activities such as observations, incident reviews, audits and risk assessments, that when completed, can help to reduce a risk or prevent an incident,” Origin says in its 2015 Sustainability Report.

“Our closure rate for the 2015 financial year was at 85.3 per cent and, as a result, the Board has approved an award to eligible employees under the Share Plan.

All eligible full-time employees will be allocated $1000 of Origin shares.”

HSE actions are created through an Observations Program, introduced in 2011 to encourage all employees to record safety issues in a database regardless of their level or work area.

“Managers have the additional responsibility of coaching their teams in how to make quality observations and for sharing lessons learned,” Origin reports.

“For the 2015 financial year, 81,703 observations had been raised and 80,456

closed, against a target of 45,000.”

Origin also saw a 24 per cent improvement on its Total Recordable Injury Frequency Rate (TRIFR) to 3.8, ahead of a target of 4.5 for the financial year.

It says this can be attributed to a continued focus on processes and communications, such as the Observations and Actions Program, and others including: • Increased visibility of front line and leadership team members in the fields; • Emphasis on engaging toolbox talks and pre-start meetings; • Development of risk reduction strategies and tools; and • Additional training to upskill front-line managers. RP

Progress in

domestic violence support ONE-THIRD of major private sector employers have a policy or strategy in place to support employees experiencing family or domestic violence, while the release of a new guide aims to push that figure higher.

Data from the Workplace Gender Equality Agency (WGEA) reveals 34.9 per cent of employers in the 201415 reporting period had a policy or strategy in place to support employees experiencing domestic violence, representing an increase from 32.2 per cent of employers in 2013-14.

Around three-quarters of employers (76.1 per cent) offer measures that may not be specific to domestic violence but can be accessed by employees experiencing domestic violence, including employee assistance programs

and access to leave.

Equipping human resources staff to manage cases where employees experience domestic violence also increased, with 13.5 per cent of employers providing specific training, up from 12.5 per cent.

While progress is being made, WGEA director Libby Lyons says support for employees experiencing domestic violence is not yet the norm in Australian workplaces.

“Every workplace is potentially impacted by domestic and family violence,” Lyons says.

“Employers can make a real difference to employees experiencing domestic violence through targeted and appropriate support.

“There is still a long way to go

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until support for people experiencing domestic violence is embedded in Australian workplaces, but it’s very encouraging to see measurable progress being made.”

The new findings come as the Male Champions of Change group calls on businesses to adopt its new Australian-first guide Playing Our Part: Workplace Responses to Domestic and Family Violence.

“Playing Our Part is significant because this is the first time a group of leaders – including some of the nation’s most powerful business leaders – have come together to acknowledge domestic violence as a workplace issue,” says Male Champions of Change chair and former Sex Discrimination Commissioner Elizabeth Broderick. RP

30

OHS & WELLBEING

Coal worker wins job back

due to poor safety investigation A BHP Coal employee has won his job back following a vehicle rollover after evidence failed to convince the Fair Work Commission his poor decision-making caused the incident.

THIS unfair dismissal case arose following an incident at BHP Coal’s Goonyella Riverside Mine near Moranbah, and holds valuable lessons for employers regarding their ‘evidentiary burden’.

The background

Mr Kenny, an employee of 28 years with BHP Coal, was on shift in 2014 when the Toyota Landcruiser Ute he was driving rolled over.

Commissioner Susan Booth heard prior to the rollover, Mr Kenny had failed to complete two mandatory safety requirements: a fitness for work test called an Occupational Safety Performance Assessment Technology (OSPAT), and the remainder of a pre-start check of the vehicle.

Mr Kenny said his failure to undertake the safety requirements was an omission due to disruptions in his routine caused by multiple storms bringing winds, rain, hail and dust.

Analysis of the rollover site identified a 25m long soft spot known as ‘bull dust’ on the unsealed road. According to Mr Kenny, the prior weather conditions had made the soft spot undetectable and caused the vehicle to turn sharply to the left when he drove into it.

Following several investigations, BHP Coal concluded Mr Kenny’s ‘poor decision to sharply turn the vehicle at speed’ was the overriding cause of the incident and that his driving was inconsistent with BHP Coal’s requirements.

Mr Kenny was dismissed due to BHP Coal’s lack of confidence in his ability to work in a safe manner.

or unsafe, or that Mr Kenny made a sharp left turn ‘either deliberately or negligently’. Therefore, BHP Coal’s assertion it had lost confidence in Mr Kenny was not supported.

“I conclude on that basis, relating to the rollover, the conduct stated as the reasons for the dismissal did not take place as alleged and there was not a valid reason for the dismissal,” she said.

She added Mr Kenny’s omission to under the two safety requirements was ‘not sufficient’ to cause BHP Coal to lose confidence in his ability.

The decision

Commissioner Booth did not believe the evidence adequately showed the speed and driving line were dangerous

The vehicle rollover occurred at a BHP coal mine

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In ordering Mr Kenny’s reinstatement and continuity of employment, Commissioner Booth noted his ‘unblemished’ 28-year work history with BHP Coal, however, did deduct two month’s salary to reflect the two breaches of safety requirements.

Evidentiary burden key to reinstatement

Under Section 387 of the Fair Work Act 2009, the criteria for the commission to consider the harshness of a dismissal is very broad, potentially exposing employers to successful unfair dismissal claims even when at first instance the action seems justified.

Further, the evidentiary burden to prove there was a valid reason for dismissal, and this action was not harsh, is placed on the employer, not the applicant to an unfair dismissal claim.

In this case, an expert independent report backed BHP Coal’s interpretation of the incident, however, this was criticised by the commissioner for its lack of detail and short turnaround.

AMMA employee relations lawyer, Lindsay Carroll says this finding, and the commission’s decision to reinstate the employee, reinforces the need for employers to conduct thorough, well-documented investigations into workplace incidents.

“It is also critical the employer is seen to have as little influence as possible in framing the context of an incident when commissioning a report from an independent expert,” Carroll says.

“Adequate time must be allocated for an investigation to be thorough and to be perceived as fair and balanced to both parties so ultimately, there is substantial evidence to support any disciplinary action in case of a claim.” RP

OHS & WELLBEING

31

Government acts to

combat black lung with six confirmed cases of black lung disease in Queensland, the state government has released a five-point plan to tackle the issue.

The condition, called pneumoconiosis, is caused by long-term inhalation of coal dust in underground coal mining projects.

Fearing there may be more identified cases of the disease, Natural Resources and Mines Minister Dr Anthony Lynham has ordered more research while preventative measures are put in place.

“We have confirmed five cases of coal miner’s pneumoconiosis in Queensland and I have asked for Queensland Health data on any other possible cases,” Dr Lynham says.

“There’s still research to be done on

the medical and workplace records, but I suspect there are more cases to come.

“I am determined to get on top of this issue to protect workers now and into the future and to be open and transparent as we progress.”

The government’s five-point plan includes: • A review to improve the existing screening system, where coal mine workers have chest X-rays when they start work, at least every five years, and when they retire.

• Taking action on coal mines exceeding regulated limits on dust levels. Dr Lynham confirmed that of Queensland’s 12 operation coal mines, only one is exceeding dust limits now.

• Improving how information is collected and used to ensure cases aren’t missed.

• Investigating regulatory changes as part of the mine safety legislation review already underway.

• Placing the issue on the agenda for the national council of mining ministers.

“Coal mine operators have offered their workers new chest X-rays and specialist analysis since this issue emerged,” Dr Lynham says.

“All the stakeholders on this issue – miners and their families, the unions, employers, and the medical profession – are working together in the best interests of workers past and present.” RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

32

TRAINING

Weipa training

partnership celebrates 10 years Michelle Radlof is living proof collaboration between industry and local communities can have positive life-changing impacts.

Radlof is one beneficiary of a partnership between Western Cape College and Rio Tinto’s Weipa bauxite mine located in Far North Queensland.

The partnership, which celebrated its 10-year anniversary in November 2015, was named the winner for Excellence in Industry Partnerships at the Queensland Government Showcase Awards for Excellence in Schools. The award recognised the delivery of strong education outcomes and creation of career pathways for local Indigenous and non-Indigenous people on Cape York.

Radlof now works as a civil and environmental engineer at Rio Tinto’s Weipa mine after graduating in 2007 and studying at university through a scholarship offered by Rio Tinto.

“The partnership provided me with opportunities I wouldn’t have received elsewhere, including work experience and graduate placement,” Radlof says.

“Students studying at the Western Cape College are truly not disadvantaged by living in a remote location, they are actually better off because of the partnership.”

Around 1,070 students are currently enrolled at the college, with 54 per cent identifying as Indigenous. Since the partnership began there has been increases in senior certificates awarded, increases in students eligible for an OP (used to rank Queensland students for university selection) and more than a doubling of retention of Year 10-12 students.

When Rio Tinto and Western Cape College first embarked on a partnership

Michelle Radlof, civil & environmental engineer at Rio Tinto’s Weipa bauxite mine in Far North Queensland

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

it was known students could not see any employment options or positive career pathways available to them.

According to Western Cape College former principal Leon Proud, 10 years on the partnership has delivered meaningful outcomes for students and broader business benefits for both organisations.

“The partnership was formed in 2005 following a shortage of skilled local workers and a perception a quality education wasn’t available in Weipa,” Proud says.

“Ten years on, we have built a partnership that provides much more than that. Our partnership is certainly a world class example of a successful industry partnership with outcomes spanning from individual students, to an entire region.”

Rio Tinto has mined and shipped bauxite from Weipa since 1963 and has a workforce of about 1,100 people.

Indigenous employment is a key focus area for the business, with more than 22 per cent of the workforce representing local Aboriginal and Indigenous Australians.

Rio Tinto general manager, Gareth Manderson says with around 30 per cent of the Western Cape population under 14 years compared to a state average of 20 per cent, there is a ‘real opportunity’ to support the development of the region through education.

“Recognising our organisations are stronger as one, we leverage our resources to create a sustainable pipeline of local talent that benefits all Western Cape communities,” Manderson says.

“We look forward to continuing to build on the already strong foundation, and strengthening tertiary pathways through linkages with James Cook University and Central Queensland University to promote outcomes beyond mining.” RP

TRAINING

33

Six essential steps to

validate a dismissal

In his 40-year career as an employee relations adviser and trainer, AMMA principal consultant Bill FitzGerald has assisted countless employers in workplace disciplinary matters. In this article, Bill provides his six-step method to ensure remedial actions are appropriate and terminations are defensible. It may just protect you from an unfair dismissal claim in 2016.

WITH the Fair Work Commission receiving almost 15,000 claims for unfair dismissal each year, and additional exposure to the range of general protections also available to employees, this is an area of our workplace relations system creating unwelcome risk and costly intrusion for employers.

These areas of our employment laws pose a particular threat to businesses with ineffective or inappropriate disciplinary or recruitment policies and procedures, or the inept application of these particularly by supervisors. In 2016, you can protect your company from an unfair dismissal dispute by following these tried-andtested steps to validating a dismissal: Step 1: Clear and

Step 5: Fair and transparent interview

Any lawful dismissal process must provide the subject adequate notice of the termination interview so he/she has an appropriate chance to respond to your investigation’s findings. Further, allow a support person in the interview and clearly explain why you think termination is the most appropriate course of action. This demonstrates you have considered if lesser penalties are appropriate.

Bill FitzGerald

Step 6: Consider employee response

shortfalls of your employees. The objective is to nip the problem in the bud and thus avoid potentially expensive and intrusive tribunal proceedings.

communicated policies

Firstly, ensure your framework for lawful and effective dismissals is in place before you need it. This must include a ‘plain English’ and well-communicated workplace policy which is referenced when offering a contract of employment and throughout induction.

Including clear behavioural standards ensures your employees understand what type of breaches may lead to disciplinary action or termination. The policy should not be too prescriptive, but provide for at least one formal warning before termination is initiated.

Step 2: Trained and effective supervisors

A critical next step is to ensure your front-line supervisors are well-versed in your workplace policies and/or code of conduct and are trained to effectively handle performance or behavioural

Step 3: Quick and decisive leadership

As a HR manager or other type of workplace leader, you must act quickly and decisively when a behavioural issue or breach of company policy is first notified.

Procrastination or indecisiveness not only displays weak leadership but also make it easier to poke holes in your investigation and dismissal process if a claim reaches tribunal level.

Step 4: Thorough investigation

Too often, this is where employer processes come up short. Ensure you expeditiously investigate breaches and provide adequate opportunity for all witness accounts. And don’t forget to clearly document investigation outcomes with supporting evidence and warnings, especially if the offence isn’t deemed worthy of a dismissal in the first instance.

Following the termination interview it is important to consider the employee’s responses to their alleged breach of conduct. If you haven’t already engaged external advice from a specialist like AMMA (and we recommend you do before step 1), do so now to have an independent eye cast over your findings. But don’t take too long – always summarily terminate in cases of serious misconduct and ensure consistency where the company may previously acted in previous similar circumstances.

Experienced HR advisers within AMMA’s members may consider these six steps as the essential, and perhaps even basic, processes to undertake. However, in my four decades in the ER/IR field I’ve seen many employers be unnecessarily exposed to unfair dismissal claims through a failure on as little as just one of these steps.

Remember, you can never be too safe, overdo or over-document your procedures. These steps may not prevent an employee lodging a claim but will give employers the best chance to avoid reinstatement or costly compensation. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

34

TRAINING

VTEC gives hope

to local woman

As Fortescue celebrates the latest graduates of its acclaimed Vocational Training and Employment Centre, one successful trainee speaks of how the program changed her family’s fortunes after tragedy.

VALMA Papertalk graduated from Fortescue’s Vocational Training and Employment Centre (VTEC) with more than just new skills; she had new hope for the future.

The Port Hedland local credits Fortescue with guiding her on a journey to be able to support her three children following the tragic loss of her partner, a valued Fortescue employee in 2014.

“I remember worrying about what I would do, as I had never worked before. Fortescue provided me with an opportunity to gain work experience and earn an income through VTEC’s landscaping business, VTEC Services, and also helped me to seek counselling for my grief,” Papertalk says.

“I saw that I had two choices – to go to

Centrelink and apply for financial support or to work and be a good role model for my kids and give them a brighter future.

I chose to work and it’s one of the best things I’ve done.”

A keen learner and motivated to succeed, Papertalk applied the skills and experience she gained with VTEC Services to complete VTEC’s 12 week course for local Aboriginal people.

After celebrating her graduation with 11 other trainees in late 2015, she commenced full-time employment at Fortescue’s Herb Elliott Port in a civil operator role and sees this as just the beginning of her career, once again excited for what the future holds.

“I would never have thought that a leadership position with Fortescue

VTEC graduate Valma Papertalk (centre) pictured with group manager Fortescue People Linda O’Farrell and general manager port Fernando Pereira

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

would be possible, but now I definitely believe I can achieve that one day. I want to tell my story to others and prove anything is possible if you put your mind to it and work hard,” she says.

“It means so much to me to be part of the Fortescue family. I look at the company’s values and think that all families should live by these. The VTEC team were there for me in my darkest hour and, along with my mum and sister, helped me get to where I am today.”

In recognition of her potential, Papertalk was recently selected to shadow Fortescue CEO Nev Power for a day as part of the quarterly CEO for a Day initiative open to promising Aboriginal people working across the business.

Power commends Papertalk and all her graduating classmates on taking a major step towards changing their lives.

“At Fortescue we value our unique culture and our people’s determination to never, ever give up. Every VTEC graduation is a testament to the hard work and determination of our trainees and our long-standing belief the best way to end Aboriginal disadvantage is by providing opportunity through training and employment,” he says.

Onsite the graduates will continue to receive mentoring and support from Fortescue’s Aboriginal development coordinators, dedicated to helping the graduates succeed and progress their careers.

Fortescue’s VTEC program provides guaranteed jobs for Aboriginal people and the training and support to succeed in those jobs; a model it says is putting an end to training for training’s sake.

More than 1,000 Aboriginal people work at Fortescue’s operations, and the personal success stories like Papertalk’s are a testament to the program’s success. RP

TRAINING

35

Interactive mining

course wins top US gong AN online mining course developed in Western Australia has won an award for excellence in website design, content and functionality in the United States.

The Business of Mining is a Massive Open Online Course (MOOC) hosted by edX – an online provider of free universitylevel courses launched by Harvard University and The Massachusetts Institute of Technology in 2012.

The course, developed through Curtin University’s WA School of Mines, the Curtin Business School and state and federal government expertise won the ‘Best in Class’ award in the university category at the 2015 Interactive Media Awards.

Western Australian Mines and

Petroleum Minister Bill Marmion says the success of the course reflected the state’s innovation capacity and helped promote its mining and education excellence worldwide.

“Resources and education services are both important exports,” Minister Marmion says.

“So far, more than 1,100 students from almost 170 nations have completed the course, with top participation from the US, Australia and India.”

The course’s four online modules provide a high-level introduction to the resources sector for non-operational staff, government employees, suppliers and contractors.

Students discover how new mineral

deposits are found, learn how to plan the complete life cycle of a mine, experience how extraction and processing of minerals is adjusted to suit market conditions, and investigate the decisions that come with closing a mine.

“This is a product of Curtin’s partnership with the acclaimed edX education platform and plays an important role in promoting WA as the best place in the world to do mining business,” Minister Marmion continues.

“Student feedback has been excellent, with well over double the average completion rate for similar online courses.”

Opened in July 2015, The Business of Mining will continue throughout 2016. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

36

LEADERSHIP

Resources minister primes

north for economic growth Almost six months into his first senior ministerial role overseeing the resources, energy and northern Australia portfolio, Josh Frydenberg has hit the ground running on a mission to create a northern hub of project construction and economic growth.

SINCE being sworn in as Minister for Resources, Energy and Northern Australia in September 2015, Josh Frydenberg has become familiar with the most remote parts of our vast country in the pursuit of initiatives to stimulate greater economic activity in the north.

He speaks to Resource People after a busy few days of launching a Major Projects Approval Agency in Darwin – billed as a ‘one-stop-shop’ to assist investors in navigating Australia’s laborious approvals process – and releasing draft legislation on a Northern Australia Infrastructure Facility, which will provide $5 billion in loans to stimulate infrastructure construction during the next five years.

“In my first couple of months in the job, I’ve tried to visit as many resource and energy projects in Australia while also spending time in our north. This has included trips to Western Australia, Queensland and the Northern Territory,” Minster Frydenberg says.

“Northern Australia already produces more than two-thirds of Australia’s resource exports, and holds 70 per cent of Australia’s known iron ore, lead, zinc and silver resources. Further, the region holds a staggering 90 per cent of Australia’s gas reserves, which have led to massive investment and construction, particularly through the Gorgon, Ichthys and Wheatstone LNG projects.

“Developing our north remains a longterm commitment for the government, and the resources and energy sectors will be central to this.”

Taking on the portfolio as the resource industry faces challenging terms of trade and a transition out of the investment and construction boom, Minister Frydenberg understands the industry is looking to the government to help lift Australia’s

Minister Frydenberg visits Port Dampier with Rio head of iron ore, Andrew Harding and the Member for Durack Melissa Price

competitive ranking among the global investment and business community.

“There is no doubt the sector currently faces challenges. The government’s focus remains on implementing initiatives to create an investment and operations-friendly environment to ensure these vital sectors remain strong going forward,” he continues.

“As the minister, I will personally be a passionate advocate for these important Australian sectors, including pursuing initiatives to cut the cost of doing business in Australia through deregulation, tax and industrial relations reform, and through developing key economic infrastructure to see Australia catch the next wave of investment.”

The minister insists, however, collaboration on innovative technologies is critical to capturing future investment dollars.

“The success of such a committed

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approach has been proven time and again. For example, a joint CSIRO-AMIRA geoscience collaboration led to two gold deposits worth $12 billion, two lead-silverzinc deposits and two copper-gold deposits being discovered in Australia,” he explains.

“Innovation will (also) result in more agile companies that are able to respond quickly to the next upswing in prices, and that will be even more resilient to future shocks.”

As Australians prepare to head to the polls in this federal election year, Minister Frydenberg will no doubt continue demonstrating his commitment to strengthening the long-term prospects of an industry he describes as representing a ‘sense of pride’ for Australians.

“The resource sector remains integral to the prosperity of our nation. We will all continue to benefit from this resilient sector for many generations to come,” he says. RP

38

LEADERSHIP

Clough maestro

takes reins at Santos Former Clough CEO Kevin Gallagher has commenced the top job at Santos in a hotly anticipated move for the ASX listed oil and gas producer.

WITH the benchmark crude oil price dipping to $US30 in the first weeks of 2016, Santos shareholders are no doubt looking to Kevin Gallagher to inject some fresh insight and sound business acumen in his new role as the oil and gas producer’s CEO and managing director.

Gallagher’s appointment by Santos’s board and subsequent move from engineering group Clough was one of the most talked about industry hires of late 2015. Officially starting at Santos’s Adelaide headquarters on 1 February, he joins the company as it embarks on $3.5 billion of capital initiatives to strengthen its balance sheet.

During his time at Clough from 2011, Gallagher was widely lauded for transforming business performance, turning around a stagnant share price, and establishing system and people capabilities to drive growth; earning him CEO Magazine’s 2013 CEO of the Year award.

He earlier spent 13 years with Woodside, serving in a number of executive roles across the business including overseeing the production of the North West Shelf project.

Santos executive chairman, Peter Coates, says Gallagher’s track record makes him the ideal candidate to lead Santos as it focuses on driving operational performance.

“Kevin has nearly 25 years’ experience in managing oil and gas operations in Australia, the US and North and West Africa,” Coates says.

“He is ideally suited to lead Santos as we move from a focus on major strategic developments to delivering strong operational results in a continuing low oil price environment.”

While Gallagher is yet to speak publicly in detail about his plans for Santos, his recent comments give insight into his focus.

“We’ve got to be prepared for it to be

Santos CEO Kevin Gallagher

a tough environment for a few years,” Gallagher told News Corp on the sidelines of an Australian Chamber event in December.

“We’ve just got to accept this is the reality for the next few years and make sure our strategies and our operations are set up to maximise value in that environment.

“To me, it’s culture that’s at the centre of that, which will drive the technology, processes, people, all of those things, to get the best outcome for your organisation.

“That is what I believe we have to focus on if Australian businesses are to be competitive.”

Gallagher’s appointment follows a strategic review of Santos’s operations which resulted in a new $3.5bn equity raising strategy. The strategy includes a new share entitlement offer expected to

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

raise $2.5bn, and the placement of $500 million worth of shares in international private equity firm, Hony Capital.

It will also raise $520m from the sale of a 35 per cent stake in the Kipper gas field.

Coates says Santos has to take action to become a more agile, low cost producer delivering attractive shareholder value.

“The company has made good progress towards that goal through the year with a $900m reduction in capex and circa $370m per annum in cost savings through headcount reductions of some 770 positions, together with meaningful supply chain savings,” he says.

“However, the strategic review we have completed has shown we can further simplify the business and enhance financial discipline.” RP

LEADERSHIP

39

Origin takes world-first

action on climate change ORIGIN has demonstrated a world-first commitment to climate change action by becoming the first energy company to adopt all initiatives under the global We Mean Business coalition.

We Mean Business describes itself as a coalition of organisations that ‘recognise the transition to a low carbon economy is the only way to secure sustainable economic growth and prosperity for all’.

More than 400 companies have committed to take action through the initiative, however, Origin is the first energy company to sign up to all seven that cover: transparent reporting; engagement in climate policy; the

adoption of an emission reduction target; factoring costs of carbon into investment decisions; leading in renewable energy; reducing climate pollutants; and reducing forestation.

Origin has invested strategically in a power generation portfolio with an emissions intensity lower than the national average, but managing director Grant King says the company ‘can always do more and better’.

“Aligning with the We Mean Business Coalition demonstrates not only are we serious about these issues, but we are prepared to be open and transparent about our efforts,” King says.

“Origin believes natural gas has an

important role to play as a cleaner, safely transportable fuel that can help economies around the world to decarbonise. With abundant natural gas resources and strong gas production expertise, Australia is well-placed to lead in this area and is expected to overtake Qatar to become the world’s largest exporter of LNG around 2018.

“Australia’s Renewable Energy Target and the 2030 Emissions Reduction target will also create significant opportunities for growth in renewable energy, with utility scale solar most likely to drive the country’s next boom in energy investment. Origin intends to build a leadership position in solar.” RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

40

DIVERSITY

AWRA celebrates

200 e-mentoring pairs As the Australian Women in Resources Alliance (AWRA) celebrates a milestone 200th pair in its innovative e-mentoring program, Resource People caught up with six participants about the benefits of this modern take on mentoring.

WHEN AWRA first partnered with the Australian Government to launch an online mentoring program for the resource industry, the goal was to provide women with quality mentoring regardless of their

location, travel commitments or nontraditional work schedules.

Three years on and 200 mentoring pairs later, the value of looking outside the square to address the underrepresentation

of women in a male-dominated and regionally dispersed industry is clear to see.

Here’s what three AWRA e-Mentoring Program pairs had to say about their experience.

Catherine and Lana

Catherine Bruneton

Lana Van Wyk

As a recent graduate and first-year engineer with project services company Technip, Catherine Bruneton was matched with Lana Van Wyk, a business analyst with an extensive background in engineering.

West Australian-based Bruneton and Queensland-based Van Wyk communicated via phone, email and video chat software while using online tools and information kits to assist their progression.

“A large plus was the ability to gain a mentor outside of my work group, this allowed me to broaden my network and learn about other areas within the resources industry,” Bruneton says.

“The program allowed me to catch up with my mentor without having to leave the office or site. It was a great opportunity to learn, ask questions and to reflect on my own choices. Most of all, it was an opportunity to talk candidly with another female engineer.”

Van Wyk, who works with blasting

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services and explosives provider Dyno Nobel, agrees the ability to interact with her mentee without being in the same location made her involvement as a mentor easy.

“Catherine was very motivated to establish and maintain our relationship.

It truly felt like a two-way street and we interacted quite easily over Facetime and phone calls. The technological interface provides great flexibility for busy executives who may not have a lot of time available in their schedules,” she says.

Van Wyk believes a good mentor must have ‘found joy’ in their careers and bring enthusiasm and passion to the table.

Her mentee also has advice for women wondering whether mentoring is for them.

“Think of the positive outcomes you can achieve. You’ll find that giving yourself the time to place attention on your career and to think about what you really want from your working life is motivating and empowering,” Bruneton says. RP

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Holly and Caoilin

Holly Withington

Caoilin Chestnutt

A database and modelling geologist with New Hope Group since 2011, Holly Withington stepped up to act in the additional role of senior exploration geologist in 2015.

“I had been looking for a fresh perspective from an external mentor for a long time. As I’m not based in Brisbane city, I can’t physically meet with people all that often,” says Ipswich-based Withington.

“The program taught me the importance of setting many achievable goals over a smaller timeframe. By recognising these milestones you can gauge your development and keep track of meeting each step in the path to success.

“Having a mentoring partnership that’s focused on your development allows you to progress very quickly. I learnt a lot about myself and have a refreshed view on where I want to take my career in the future.”

Withington says she couldn’t have asked for a better mentor in Brisbane-based Caoilin Chestnutt, a business development

manager for Anglo American who has equal praise for her mentee.

“Mentoring Holly was easy. She’s motivated, positive, hard-working and smart. I look forward to seeing where she lands in five years,” says Chestnutt, whose commercial experience and technical background as a geologist has seen her in-demand as a returning AWRA mentor.

Although the program was designed to benefit women in the early stages of their careers, Chestnutt is quick to point out mentors also have much to gain.

“I think for many of us, after reaching the midway point in your career it can be easy to plateau or the momentum eases in terms of learning or career progression,” she says.

“But interaction with this new wave of successful women lifts the motivation and inspires me to stretch further. With every mentee I’ve learnt something new and made friendships along the way.” RP

Jenet and Joanne

Jenet Hwende

Joanne den Engelse

Living and working more than 2,500km apart was no obstacle for mentee Jenet Hwende and mentor Joanne den Engelse, both professionals in quality control.

Den Engelse is a Perth-based quality director with Alstom Signalling Solutions and, having been mentored early in her own career, believes the key to mentoring is being a good listener.

“While as mentors we are keen to share our advice, you need to listen to first understand what is required,” she says.

“You must also be honest in your feedback and challenge the mentee to take chances and embrace their newfound confidence.”

As a technical quality manager with

testing and inspection services provider Bureau Veritas Minerals based in Adelaide, Hwende wanted guidance on how to formulate a path to achieve her career aspirations.

“Joanne was patient in guiding me without telling me what my goals should be. I learnt it is important to have a baseline of goals to build on, and our fortnightly conversations help me achieve key milestones,” Hwende says.

“She showed me that when I see a roadblock there will always be a way around it. I’ve come away with this experience knowing that it’s up to me to achieve my career goals and I now have the tools to do it.” RP

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DIVERSITY

Strategies make

for loyal working mums Innovative workplace initiatives launched by Caltex and Alcoa have led to increases in the number of women successfully transitioning back to work and developing their careers after having a baby.

LEADING energy supplier Caltex Australia launched its BabyCare package in 2012 in response to a common trend of female employees who, while very well-supported during their parental leave, found the practical and financial challenges when transitioning back to work made it too hard to achieve a realistic career and family balance.

The initiative, which includes a three per cent quarterly bonus (12 per cent total per annum) and assistance with finding appropriate childcare, has helped Caltex record an increase from 80 per cent to 100 per cent of new mums returning to work after parental leave.

“Our analysis shows new mothers are not only returning to work at Caltex but also choosing to stay with us once they do, confirming once again the importance of focusing on the transition back to

work just as much as providing parental leave,” says Caltex’s head of capability, performance and reward Alena Mackie.

The BabyCare package was just one of many initiatives that had contributed to Caltex receiving a Workplace Gender Equality Agency (WGEA) Employer of Choice for Gender Equality (EOCGE) citation for the first time in 2015.

Resource People first reported on Caltex’s mission to achieve greater gender balance in 2012. At the time the company was two years into a strategy to increase the number of women in leadership positions after it was found they comprised just 18 per cent of departmental leaders.

“Caltex has taken some big strides in terms of improving its gender equality over recent years, but our journey continues,” Mackie explains.

“We are particularly pleased with our negligible gender pay differential of 1.1 per cent on a like-for-like basis and the significant progress that we’re making towards our goal to increase the number of female senior leaders across our organisation.

“In 2013, one in every five senior leaders at Caltex was female – we reached our goal of improving this to one in four last year and are now on-track to make it one in three in 2016.

“To continue increasing the representation of women in senior positions, we are strengthening our senior female talent pipeline by providing appropriate development and promotion opportunities, continuously monitoring key gender metrics and committing to innovative initiatives such as the BabyCare package.”

Long-time EOCGE citation holder Alcoa is another one of a select group of

Alcoa of Australia’s chairman and managing director, Michael Parker (centre) with employees from the Alcoa Women’s Network Mums n Bubs support group

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DIVERSITY

Caltex’s BabyCare package is assisting women to return to work

resource organisations to be recognised for diversity and inclusion initiatives that assist women to remain in the workforce.

Receiving the citation for an incredible 14th year, Alcoa has also achieved a 100 per cent success rate with women returning to work after maternity leave.

Alcoa offers women 16 weeks of fully paid maternity leave and a part-time return to work option of a minimum 14 hours per week – which makes the issue of childcare an easier one for mums to

navigate. Through the Alcoa Women’s Network, a ‘Mums n Bubs’ support group has also been initiated, which keeps women on maternity leave connected to the workplace.

Maria Davey has been with Alcoa for 14 years and successfully returned to work after having each of her three children.

“It’s been great for my career development and balancing family life,” says Davey, who works as a treasury credit analyst.

“Not only was I able to ease back into work and take on different roles each time, but I can also drop off and collect my children from school each work day.”

Alcoa cites its flexible work arrangements policy and leadership commitment as critical to its status as an employer of choice. The company provides job share and working from home arrangements, part-time options, and technology to assist with remote

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access, roster flexibility, leisure days and extended sick leave.

“A culture that embraces diversity of experience, skill, thought and background is best placed to attract and retain the best talent into the future,” says Alcoa of Australia’s chairman and managing director Michael Parker.

“And that is exactly the kind of culture Alcoa continues to build, though we still have a way to go on our journey.

“As a predominantly male-dominated, blue collar workplace, I am proud our culture has evolved to better support women in the workplace. It all comes down to leadership – it’s got to be part of our DNA and integrated into everything that we do.”

Resource organisations among the 90 companies nationwide to also receive a 2015 EOCGE citation include gold miner St Barbara, Shell Australia and Origin Energy. RP

Funding to boost

women in STEM industries THE Australian Government is investing $13 million across five years in programs designed to boost women’s careers and entrepreneurialism in the science, technology, engineering and mathematics (STEM) industries.

“We need a concerted, national effort to overcome the cultural and organisational factors that discourage girls and women from studying STEM and which subsequently limits their career opportunities,” Minister for Employment and Women Michaelia Cash says.

“We will help address this challenge by encouraging greater gender equity in STEM organisations and STEMbased industries.”

Despite the Australian Bureau of Statistics showing men, on average, earn 18.8 per cent more than women, a study conducted by The Centre

for Entrepreneurship surprisingly found female business owners in the technology sector took home twice as much pay as their male counterparts.

The research also shows women-led private technology companies are more capital-efficient and achieve a 35 per cent higher return on investment than companies that are led by men.

Entrepreneurship generally is on the rise in Australia across all business areas, with a 1.4 per cent rise in new business owners in 2015.

In particular, the volume of business owners in the professional, scientific and technical services experienced a 2.9 per cent increase in the year to February 2015, part of a 22.5 per cent change during the preceding 10 year period.

The government is hoping to further this encouraging trend through

funding growth for women in STEM fields. Included in the projects to be funded this year is the expansion of the Science in Australia Gender Equity (SAGE) pilot to cover more Australian science and research institutions.

Launched in 2015, the pilot has involved 32 institutions applying for an Athena SWAN Bronze Institutional Award that demonstrates a solid foundation for eliminating gender bias and developing an inclusive culture that values all staff.

The funding will also establish a new initiative under the Male Champions of Change project to focus on STEMbased and entrepreneurial industries, and partner with the private sector on initiatives to celebrate female STEM role models and foster interest in STEM among girls and women. RP

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DIVERSITY

Resource industry

tackles gender pay gap Australian resource employers are making headway in improving workforce gender equality across a range of national indicators including remuneration and return-to-work bonuses for mothers.

A Workplace Gender Equality Agency (WGEA) analysis of 12,229 Australian employers shows the gender pay gap in mining is a low 17.6 per cent, compared to the average 24 per cent across all industries.

Similarly, 34.3 per cent of mining employers have conducted a pay gap analysis compared to the all industries average of 19.1 per cent, and 17 per cent offer return-to-work bonuses for new mothers compared to the 9.7 per cent for all Australian employers.

Tara Diamond, spokesperson for the resource industry’s national gender diversity initiative, the Australian Women in Resources Alliance (AWRA), says the data is promising for Australia’s mining, oil and gas employers.

“These findings are encouraging for the resource industry as we continue to address our male-dominated culture and ensure our workforces more accurately reflect the demographics of the broader Australian community,” Diamond says.

“As a high-paying industry, it is particularly valuable for miners to focus on remuneration equality and return-to-work incentives. This will see the industry have a positive impact on average incomes and wealth distribution as we build on the number of women employed in mining.”

Despite the data’s positive results, the WGEA report also confirms there is much to be done if AWRA is to achieve its goal of women representing 25 per cent of the resource industry workforce by 2020.

“With women holding just 2.6 per cent of CEO roles and 12.3 per cent of key management positions, it is critical resource employers improve their internal policies, practices and cultures to better support women in leadership,” Diamond says.

“Our industry must also shake-up its recruitment practices and focus on

attracting, developing and retaining more women in non-traditional trades and technical roles. Currently, the vast majority of women in the sector hold administrative or clerical positions.”

WGEA director Libby Lyons believes the data leads the world in providing a comprehensive picture of what’s happening for women and men across all industries and all levels of the workforce, but urged employers to identify where action could be taken in their own workplaces.

“I’m encouraged to see pay gaps inching lower, women’s representation in leadership roles inching higher and leading employers start to dismantle the structural and cultural barriers to women and men’s equal participation at all levels of the workplace,” Lyons says.

“While the national data gives us a snapshot of what’s happening around More mining employers have conducted a pay gap analysis than the all-industries average

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Australia, it’s up to each organisation to take action to build inclusive, diverse and successful businesses.

“Understanding their own performance on gender equality is an essential first step.”

To explore the data, visit data.wgea.gov.au. RP

This will see the industry have a positive impact on average incomes and wealth distribution as we build on the number of women employed in mining.

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ECONOMY & FINANCE

Major project pipeline

continues fall, remains ‘resilient’ Australia’s major resources and energy project pipeline fell in value by a further $10.5 billion in six months last year, prompting questions about whether this downward trend can be turned around.

THE latest Resources and Energy Major Projects report, released by the federal government in November, revealed of the 223 major projects in the investment and construction pipeline, 35 worth more than a combined $220 billion were ‘committed’ while 127 projects worth $180bn were in the feasibility stage.

Extending the comparison over 12 months (to October 2014), there were 23 fewer major projects with a declined pipeline value of $21.9bn; and during the course of two years, 112 fewer projects and a declined pipeline value of $159.6bn.

AMMA senior industry policy adviser Tristan Menalda says the reduction in the project pipeline can be attributed in part to more than 80 projects completing construction and transitioning to production, however, there is a more concerning issue at play.

“The elephant in the room is more than 150 projects (many announced prior to Oct 2013) have been scrapped in the past two years, with a combined conservative value of $160bn-plus,” Menalda says “Previously announced projects have not proceeded after being determined unviable given changed circumstances or

removed from the major project listing as they have deferred/stalled for an extended period and are considered unlikely to proceed into the construction phase.”

In the short-term (six to 12 months), with investment dollars curtailed and access to capital markets restricted for borrowing, Menalda forecasts the current pipeline of resource and energy major projects to remain relatively stable.

“However, we are concerned in 12 to 24 months’ time, the damage caused by critically low levels of exploration will materially impact the pipeline of growth as fewer new resource and energy projects are identified and pursued,” he says

Tristan Menalda

Many potential new resource projects aren’t passing the feasibility stage

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“Turning to the more positive stage of the cycle, while it is extremely unlikely the next cyclical up-swing will be of the same magnitude as the previous ‘commodity price boom’, history looks probable to repeat itself to some extent – on the proviso Australia remains an attractive place to invest.

“When the upswing comes, we may see a re-emergence of competition for labour, equipment and inventory as investors and operators with renewed confidence seek to construct currently stalled projects at the same time.”

Minister for Resources, Energy and Northern Australia Josh Frydenberg (see story page 36) says the figures show the ‘resilience of the resource and energy sector’, but acknowledges the government was focused on a number of initiatives to help offset challenges that still exist.

This includes: one-stop shops for environmental approvals to minimise project delays and costs; progressing free trade deals; encouraging exploration through tax offsets; expanding the Major Projects Approvals Agency and facilitating infrastructure investment; and establishing two Industry Growth Centres.

“Our energy and resources industry is a great Australian success story,” Minister Frydenberg says.

“Australia is the world’s largest exporter of iron ore, the world’s second largest exporter of coal, and we are projected to become the world’s largest exporter of Liquefied Natural Gas by 2020. The government is committed to capturing the next wave of investment to ensure Australia continues to be a world leader in these sectors.”

For more analysis on investment, economic and financial matters relating to the resource industry, download the AMMA Resource Industry Market Outlook via amma.org.au. RP

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Competitiveness

the key to expansion Despite the downturn in global commodity prices and the ebbing of the mining boom investment phase, there is still much cause for optimism in our resources and energy sector, writes Minister for Trade and Investment, Andrew Robb.

LATEST medium-term forecasts project average annual earnings growth of six per cent for our resource and energy commodities between 2014-2015 and 2019-2020, when they’ll reach A$240 billion in current terms.

And by 2020, Australia is projected to become the world’s largest exporter of LNG, iron ore and coal.

Long-term demand for resources and energy will undoubtedly continue on account of the rising middle class in Asia, while our competitiveness – driven by lower operating costs, streamlined approval processes and continued innovation through our world-leading METS sector – will ensure Australia remains a key energy superpower.

The enormous levels of investment we have seen in the sector in the past decade mean we are extremely well placed to produce volume and we will have a significant infrastructure edge on many competitors when the next upturn inevitably arrives.

The government’s recently concluded trade agreements will also certainly play a big role in underpinning the next phase of expansion.

In particular the China-Australia Free Trade Agreement (ChAFTA) – that came into force late last year – enhances the competitive position of our resources and energy sector in the rapidly growing AsiaPacific region.

China is Australia’s largest resources and energy market, with exports worth more than $67 billion in 2014-15.

ChAFTA provides greater certainty for our exporters by locking-in current zero tariffs on iron ore, gold, crude petroleum oils, and liquefied natural gas.

Importantly, it has also resulted in the immediate elimination of tariffs on our

coking coal, with exports worth $4.8 billion in 2014-15, while the phased elimination tariffs on non-coking coal are also well underway.

For other major resources and energy products, tariffs of up to eight per cent will be eliminated by 1 January, 2019, with most having already been eliminated on entry-into force, which took place on 20 December, 2015.

Under ChAFTA, China will allow Australian services suppliers to provide technical consulting and field services in certain sectors, and has also guaranteed access for Australian suppliers to provide a range of services relating to utilising resources, in cooperation with Chinese partners.

The conclusion of negotiations for the transformational Trans-Pacific Partnership Agreement – or TPP – also heralds a new era in potential growth in the region for the resources and energy sector.

Encompassing 12 nations – accounting for around 40 per cent of global GDP – the TPP will deliver greater certainty and significant new market access for Australian resource sector exporters of goods and services.

The TPP will lock in duty and quota-free access for exports such as coal, iron ore and LNG. The TPP will also support and facilitate the expansion of exports by Australian METS and oilfield service providers.

Notably, tariffs of up to 15 per cent on Australian exports of mining equipment to Mexico will be eliminated.

There are also new rules on large State-Owned Enterprises that will help Australian goods and service providers compete fairly for contracts with large SOE competitors in the resources and energy sector.

Among the investment outcomes, Canada

Andrew Robb

will allow Australian investors an exemption from the caps on ownership of uranium mines, and the requirement to seek a Canadian partner. For the first time Vietnam is opening its mining investment regime while Mexico will allow foreign companies to participate in their energy sector.

Streamlined processes will help propel investment by Australian companies in TPP countries, while the agreement will promote foreign investment in our resources and energy sector by increasing investment screening thresholds for TPP countries.

Australia is a resources and energy power and we are determined to remain so. Our recently concluded trade agreements, including ChAFTA and the TPP, are key elements of the government’s trade and investment strategy and together will help fuel growth, job creation and innovation in this sector, well into the future. RP

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ECONOMY & FINANCE

Gas works to

fuel jobs growth The announcement of two new gas projects will deliver a welcome injection of construction job opportunities in a transitioning sector.

A NEW billion-dollar investment in Queensland is expected to create up to 1,600 construction jobs in a much-needed boost for the sector as the three landmark Curtis Island LNG projects transition to the operations phase.

QGC and its joint venture partners are investing $1.7 billion in the development of its natural gas tenements in the Surat Basin.

The development, known as Charlie1, involves the construction of up to 400 wells, a large field compression station and associated pipelines and facilities to feed into existing gas processing and water infrastructure.

“This is a vote of confidence in the secure, long-term future of Queensland’s natural gas industry, which will employ Queenslanders for many years to come,” says QGC managing director Tony Nunan.

“The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1,600 construction jobs and business opportunities during the two-year project.”

QGC, which has appointed Leighton Contractors as the main works contractor last year, has already begun development and construction.

Queensland premier Annastacia Palaszczuk described the announcement as a ‘shot in the arm’ for the LNG industry.

Northern Territory with Mt Isa in Queensland.

The project (to be later renamed the Northern Gas Pipeline) will create 900 jobs including 560 in construction, while 100 local business contracts worth $112m will be up for grabs.

A 10-year contract is already in place to supply Incitec Pivot with gas for its fertiliser processing plant in Mt Isa once construction is completed in 2018.

“Building the NEGI will drive commercial exploration and development of currently untapped gas reserves, unlocking the next phase of economic growth for the territory and helping build a stronger Northern Australia,” Minister Adams says.

“The pipeline is cost-effective and relatively quick to build, so it will support a strong gas industry for the Territory by getting gas to market at a competitive price, accelerating development of NT QGC’s natural gas operations in Queensland’s Surat Basin supply gas to domestic and international customers.

Northern gas pipeline to create 900 jobs

While not all state governments agree with Northern Territory Chief Minister Adam Gilles’s decision on a 622km gas pipeline connecting NT gas reserves to northern Queensland, no one can deny the positive employment benefits it will deliver.

To be constructed by part Chinese and Singapore-owned company Jemena, the $800 million North East Gas Interconnector (NEGI) will connect Tennant Creek in the

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gas fields and helping create jobs and opportunities in the gas industry.”

The decision, however, drew criticism from the South Australian Government which would have preferred the pipeline to run further south to existing infrastructure at Moomba in the Cooper Basin.

“The economic benefits of a southern route far outweighed the Queensland option, which requires costly, additional processing facilities to be constructed before Northern Territory gas can access markets,” argues SA Minister for Mineral Resources and Energy, Tom Koutsantonis.

Minister Giles stands by his view that routing the pipeline to Mt Isa is the most efficient way to get gas to the east coast as it will reduce potential construction risks and required lower volumes of gas to be contracted to be viable. RP

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Mining productivity on the up THE resource industry’s efforts to enhance productivity levels during a commodity price downturn and wavering investment is reflected in recent Australian Bureau of Statistics data on multifactor productivity (MFP).

According to the ABS Estimates of Industry Multifactor Productivity 201415, the mining industry recorded the most significant MFP growth (+5.5 per cent) of 16 market sector industries.

This is the largest growth for mining MFP since 2000-01 and the first positive MFP growth since 2006-07.

It was influenced by the strongest recorded decrease in labour input of all industries (-12.0 per cent), together with a significant rise in gross value added growth (+7.6 per cent).

Overall, the ABS reports nine market

sector industries recorded positive multi-factor productivity growth on an hours and quality adjusted worked basis. The second highest MFP growth was found in the information, media and telecommunications industry, at +4.5 per cent.

Nationally, on an hours-worked basis, market sector multifactor productivity grew 0.3 per cent in 2014-15 reflecting a 2.2 per cent increase in gross value added and a 1.9 per cent increase in total labour and capital inputs.

“Without doubt, a priority of resource companies has been to increase labour and capital (multi-factor) productivity levels as the resource industry endures survival-of-the-fittest market conditions,” comments AMMA senior industry policy adviser, Tristan Menalda.

“This has been led by suppressed and falling commodity prices, such as iron ore, which has traded at decade rate lows.

“To help protect and safeguard their margins, mining companies have spent considerable time and capital assessing, changing, implementing and embedding productivity improvement initiatives. This includes use of automation, adoption of ‘Lean and Kaizen’ principles such as cutting non-essential tasks and focusing on continued improvement, right-sizing, and optimising life-of-mine models.

“With volatile market conditions set to continue throughout 2016, the mining sector will continue to lead the way in enhancing multi-factor productivity growth, on an hours and quality adjusted worked basis.” RP

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MEMBER NEWS

In Brief: People and Projects A snapshot of recent news and milestones across the Australian mining, oil and gas sectors.

Roy Hill celebrates first shipment THE decades-long dream of Gina Rinehart and her late father Lang Hancock has finally been realised with the first shipments of iron ore from the $10 billion Roy Hill project steadily leaving Port Hedland harbour.

“The Roy Hill mega project is the culmination of hard-work from the dedicated small executive and technical teams at Hancock and more recently by the entire Roy Hill team,” says Rinehart, who is chairman of Hancock Prospecting that holds 70 per cent ownership of Roy Hill Holdings.

“Given that the mega Roy Hill project was a largely greenfield project that carried with it significant risks and considerable cost, it is remarkable a relatively small company such as Hancock Prospecting has been able to take on and complete a project of this sheer size and complexity.”

“The Roy Hill Project has recorded many achievements already and with the

first shipment it will also hold one of the fastest construction start-ups of any major greenfield and resource project in Australia.

“The performance of the construction gives great confidence we can achieve performance as a player of international significance in the iron ore industry.”

According to Roy Hill’s leadership, the project delivered a lost time injury frequency rate performance 10 times higher than the WA mining industry average. RP

The performance of the construction gives great confidence we can achieve performance as a player of international significance in the iron ore industry.

Roy Hill’s first shipment departing Port Hedland harbour

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The existing North Rankin Complex of the North West Shelf Project

$2 billion invested in new North West Shelf Project NORTH West Shelf Project operator Woodside and its joint venture partners will invest an additional $US2 billion to develop the Greater Western Flank Phase 2 (GWF-2) Project off the north-west coast of Australia.

The new project will develop 1.6 trillion cubic feet of raw gas from the combined Keast, Dockrell, Sculptor, Rankin, Lady Nora and Pemberton fields using subsea infrastructure and 35km of pipeline connected to the existing Goodwyn A platform.

The fourth major gas development for the North West Shelf Project in the past seven years, GWF-2 is described by Woodside CEO Peter Coleman as ‘economically robust’.

“The GWF-2 Project continues a series of North West Shelf Project subsea tiebacks that are commercialising its gas reserves in a timely and efficient manner to extend plateau production,” Coleman says.

Shell, Chevron, BHP Billiton, BP and Japan Australia LNG all hold a stake in the project, which is expected to start up in 2019. RP

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Sandra Van Der Gaag is Australian Trainee of the Year

Woodside tech named Australia’s top trainee WOODSIDE employee Sandra Van Der Gaag has represented the oil and gas sector on the national stage by scooping the award for Australian Trainee of the Year at the Australian Training Awards.

Announced at a glittering ceremony in Hobart, the awards are run by the Australian Government to recognise the achievements of business, registered training organisations and individuals in vocational education and training across 18 categories.

Although already a qualified engineer when she decided to undertake a Certificate III in Process Plant Operations at the Challenger Institute of Technology in Western Australia, Van Der Gaag wanted to gain the technical and handson experience required to work in process plant operations.

Her study involved a traineeship with

Apprenticeships Australia and hosted by oil and gas producer Woodside, where she was a process operator at its Karratha Gas Plant.

During her traineeship, Van Der Gaag received the Woodside Safety High Achiever Award in recognition of her contribution to safety in the workplace and in 2014 was a finalist in the Group Training Western Australia Awards.

The knowledge and practical experience she gained through her traineeship saw her eventually gain a permanent, full-time position at Woodside where she is now an operations technician.

Although a little overwhelmed by her award win, Van Der Gaag says she is an example of how traineeships provide an important bridge between theory and practice that will remain vital as more major gas projects begin production in Australia.

My manager and co-workers have continued to motivate me to learn and grow in the industry.

“For someone like me who is new to the industry, the traineeship allowed me to learn hands-on skills and come out as a professional upon completion,” she says.

“My manager and co-workers have continued to motivate me to learn and grow in the industry.” RP

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MEMBER NEWS

Svitzer in 10-year Ichthys partnership SVITZER Australia’s workforce will be expanded to accommodate a new 10-year contract to provide towage and other marine services to the INPEX-operated Ichthys LNG Project.

Under the contract, Svitzer will supply four high-power escort tugs to assist vessels carrying gas in and out of the Port of Darwin once onshore processing begins in late 2017.

To support the expected increase in operational activity within the Port of Darwin, Svitzer will build a new tug base at the East Arm Wharf and expand its local Darwin workforce.

“Having already secured contracts

with Chevron and PNG-based Oil Search, we are very pleased to add INPEX to the list of global energy suppliers that rely on us to keep their vessels moving,” says Svitzer Australia managing director Mark Malone.

“Indeed, our concerted efforts in recent years to take advantage of new opportunities in the off-shore oil and gas industry are paying dividends.”

Svitzer will also provide emergency and incident response services, support for maintenance on Inpex’s marine infrastructure, and salvage operations within the port.

The contract comes with the option to extend it up to a maximum of 19 years. RP

Svitzer will provide towage services for the Ichthys LNG project

Report unveils benefits of Chevron investment AN independent analysis of Chevron’s world-leading investments in Australia has put some hard figures around the direct and indirect economic and employment benefits it is delivering.

Economic consulting firm ACIL Allen states in its report A snapshot of Chevron’s realised and forecast economic benefits in Australia, that from 2009-2014 investment in the Gorgon and Wheatstone projects committed more than $45 billion to Australian goods and services, while

almost 1,000 contracts were awarded to Australian companies and almost 19,000 workers directly employed.

Research and development in Australia has already received a $1bn boost thanks to Chevron’s investment, including significant investment in local universities and research institutions.

Local communities have also benefited from direct investment, including $250 million to critical and social

infrastructure in Onslow associated with the Wheatstone project.

ACIL Allen forecasts by 2040, Chevron’s total investments in Australia will have delivered $1 trillion to Australia’s Gross Domestic Project and $338bn to federal government revenue.

Australians will also feel a direct benefit through more than $320bn added to real incomes, with the report saying “for every Chevron job, another job will be created in Australia”. RP Under construction: Chevron’s investment in the Wheatstone project will benefit Australians for decades to come

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First APLNG export makes three THE three side-by-side CSG-LNG facilities on Curtis Island in Queensland are all now in production with the first shipment of LNG exported from the $24.7 billion Australian Pacific LNG (APLNG) project on the Methane Spirit on 9 January.

It follows the 2015 start-up of Santos’s GLNG project and BG Group’s Queensland Curtis LNG (QCLNG) project.

Grant King, managing director of joint venture partner Origin Energy, says the shipment was ‘a landmark moment’.

“Together with our partners, ConocoPhillips and Sinopec, we have been working towards this milestone for more than seven years,” King says.

“It is important to acknowledge the contribution of more than 15,000 workers, as well as the support of our customers, landholders, communities, suppliers and governments at the local, state and federal level, without which we would not have reached this milestone today.”

QCLNG is the only project to have its two LNG trains in full operation, with head

The first LNG cargo from the Australia Pacific LNG project has been exported

construction company Bechtel expecting both remaining trains for APLNG and GLNG to come online this year.

“The simultaneous work on the three giant plants constitutes the greatest concentration of greenfields construction for Bechtel anywhere in the world,”

says general manager of Bechtel’s LNG business line Alasdair Cathcart.

“With all three plants now producing LNG, we are proud of the significant role Bechtel colleagues are playing in bringing Queensland’s cleaner energy resource to the world.” RP

Thiess wins contracts topping $2 billion MINING contractor Thiess has been awarded two domestic contract extensions worth more than $2 billion combined.

Jellinbah Group has awarded Thiess a contract extension worth $1.3bn to continue operations at Lake Vermont Coal Mine, near Dysart in Central Queensland, which it has constructed

Thiess will continue operating the Mt Owen Coal Mine

and managed since 2007.

“This extension at Lake Vermont reflects the strong performance of our operational and technical teams, and their daily commitment to working with our clients in a safe and productive manner,” says Thiess managing director Michael Wright.

The announcement followed another

contract extension worth $760 million awarded to Thiess to continue operating Glencore’s Mt Owen Coal Mine. The agreement extends on Thiess’ 20year involvement at the mine, which is located near Ravensworth in the Hunter Valley, NSW. Wright says the Mt Owen deposit is renowned for its complexity, consisting of multiple seams of coal dipping at angles of up to 45 degrees.

“Thiess’ focus on providing innovative technical solutions and operational efficiencies, including the through-seam blasting approach we developed, is key to the ongoing value that we offer at Mt Owen,” he says.

Thiess’s winning streak has continued overseas with a four-year, $1bn extension awarded by Energy Resources LLC to continue delivering mine operations and maintenance at the Ukhaa Khudag coal mine in southern Mongolia. RP

RESOURCEPEOPLE | AUTUMN 2016 | www.amma.org.au

EVENTS 54

EVENTS CALENDAR

AMMA 2016 INDUSTRY BRIEFINGS

Wed 30 – Thurs 31

The resource industry’s workforce specialists, AMMA, is continuing its successful regional industry briefing series in 2016, bringing the latest updates, advice, trends and development on all employment matters to resource industry hubs across the country.

Don’t miss the opportunity to engage with AMMA’s employee relations and policy experts at one of the following regional and CBD locations.

18 February – Toowoomba and Karratha 25 February – Strahan 2 March – Dubbo 3 March – Adelaide and Townsville 8 March – Brisbane 9 March – Perth 10 March – Melbourne and Darwin 15 March – Gladstone 16 March - Bendigo 17 March - Broome

WORKPLACE WELLNESS CONFERENCE

FEBRUARY Wed 24 – Fri 26 AOG 2016 CONFERENCE

The Australasian Oil and Gas Exhibition and Conference (AOG) program will explore key areas impacting the industry, with a major focus on subsea developments and industry foresight. Don’t miss the AMMA Oil and Gas Employment Outlook Breakfast on Day 1 where a panel of industry leaders will discuss the future of the Australian oil and gas workforce.

Held at the Perth Convention Centre.

More info at: www.aogexpo.com.au/conference

There is ample evidence suggesting that good employee health and wellbeing leads to increased performance, productivity, and boosts organisational health. This twoday case study-driven conference will examine strategies to enhance the wellbeing and productivity of the Australian workforce. Held at the Novotel on Collins Melbourne.

More info at: www.informa.com.au

APRIL Mon 11 – Fri 15 LNG 18

The International Conference and Exhibition on Liquefied Natural Gas (LNG) is held once every three years and is widely recognised as the world’s largest and most prestigious LNG conference. It attracts up to 5,000 participants from over 70 countries, including high-level delegates, such as energy ministers and senior executives from key LNG companies and organisations. Held at the Perth Convention Centre.

More info at: www.appea.com.au

MAY Mon 9 – Wed 11 MASSMIN 2016

The Seventh International Conference and Exhibition on Mass Mining will bring together researchers, engineers and practitioners to present the latest accomplishments, innovations and potential future direction in mining and its applications around the world.

Held at the Australian Technology Park, Sydney.

More info at: www.massmin2016.com

Wed 24 – Thurs 25 RIU EXPLORERS CONFERENCE

The RIU Explorers Conference is a major Australian forum for the junior resources sector, with mineral exploration companies and emerging new miners attracting an evergrowing group of brokers, fund managers and investors to hear their presentations. Held at The Esplanade Hotel Fremantle.

More info at: www.riuconfernece.com.au

MARCH Tues 8 – Wed 9 GLOBAL IRON ORE AND STEEL FORECAST CONFERENCE

Now in its 19th year, this congress 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, Roy Hill and many more. Held at Hyatt Regency Perth.

More info at www.informa.com.au

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE

Save the date East Coast: Thurs 28 July West Coast: Thurs 4 August AMMA’s National Conference is going bi-coastal

Resource industry employer group AMMA has announced a new format for its 2016 National Conference – splitting the event into two single-day unique conferences on the east and west coasts of Australia (see advert inside front cover).

The new format, in which both conferences will explore national and local issues covering the whole gamut of workforce topics, has been developed to offer members flexibility to attend one or both events, depending on budget and program preference.

The events will feature keynote presentations from resource industry leaders, practical sessions for HR/IR professionals and industry networking and celebrations at dual AMMA Gala Dinners and Awards ceremonies. Specific program announcements will be made during the course of 2016.

The AMMA National Conference – East takes place at Sea World resort on the Gold Coast on 28 July, while the AMMA National Conference – West takes place at Frasers, Kings Park in Perth on 4 August.

More info at: nationalconference.amma.org.au

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BUSINESS PARTNER DIRECTORY

www.amma.org.au | AUTUMN 2016 | RESOURCEPEOPLE