RESOURCE WHAT IT TAKES
BORAL’S JOURNEY
Issue 018 Summer 2017
Age no barrier for leadership
Industry moves to close gender pay gap
PLUS Industry tackles skills challenges
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September 2017
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CONTENTS
RESOURCE WHAT IT TAKES BORAL’S JOURNEY
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Issue 018 Summer 2017
Age no barrier for leadership
Sector moves to close gender pay gap
PLUS Sector tackles skills challenges.
EDITOR Heather Stewart heather.stewart@amma.org.au GRAPHIC DESIGN Cassandra Wood cassandra.wood@amma.org.au AMMA CONTACTS 1800 627 771 membership@amma.org.au www.amma.org.au
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
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26
38
56
CONTENTS
20
3
REGULARS
04 05 66 67
From the editor Chief Executive’s message Save the Date AMMA Centenary Gala Dinner Business partner directory
COVER STORY
06 What it takes: Boral's journey WORKFORCE
12 14 16 18 20
Mining infrastructure projects in 'mini boom' Questions raised over representation rights before the FWC To merge or not to merge Silly Season – preparing your workplace Australia modernises IR legislation
OHS & WELLBEING
24 Innovative offshore mental health support 26 Convoy sparks important chat with WA miners TRAINING
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28 30 31 32
Students set sights on sector jobs Support for NT mine workers Alarm raised on industry skills shortage VET system drives training and skills for resources industry
DIVERSITY
38 39 40 41 42
Viva Energy take super approach to inequality Fortescue shines diversity light Celebrating Eastern Guruma and Yindjibarndi culture Eliminating everyday sexism AWRA e-Mentoring
INDUSTRY NEWS
46 In brief: people and projects POLICY
48 A new year in workplace policy LEADERSHIP
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54 56 58 59
A global perspective on HR Age no barrier to leadership Real time platform for managing frontline work plans wins METS award Adani represents Australia at ILO meeting of safety experts
INNOVATION
60 Safety technology for mine-site data 61 Pilbara solar study shines light on jobs 62 How drones are changing operations ECONOMY & FINANCE
64 Future mine discovery boost for junior explorers 65 Clever kids turn entrepreneurs to celebrate mining
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REGULARS
Heather Stewart EDITOR
From the editor IT IS ONLY fitting that for AMMA’s final edition of Resource People for 2017 – a year that has seen front-page workforce relations headlines, sector innovation and improved gender diversity – that we explore the successes and initiatives of resources and energy employers that continue to strengthen our industry’s contribution to the nation. People are the backbone of our industry, and the leadership employers demonstrate in utilising their teams to improve operational performance is what keeps our industry strong. AMMA’s National Industry Awards were a celebration of those who have excelled in key workforce areas. The calibre of the entries shows there is an industry-wide commitment to improving workplace practices, this
year AMMA received a record number of award nominations. The 2017 AMMA Industry Award winners are: • Indigenous Employment & Retention Award: Heathgate Pty Ltd. (p. 28). • Young Professional Award: Hannah Campbell Incitec Pivot Pty Ltd. (p. 56). • Health & Wellbeing Award: Macmahon Contractors. (p. 24). • Training & Development: Morris Corporation (p. 25). • Australian Women in Resources Alliance Award: Fortescue (p. 39). Keep an eye out for the special AMMA Awards Seal identifying each story. As the only magazine for workforce professionals in the mining, energy and
related sectors, RESOURCE PEOPLE Summer 18 also brings you the latest analysis of key human resources and workplace relations issues, including lessons from the right to represent following FWC decisions, (p. 14), the timeline and implications of the move to merge two Australian unions, (pp.16-17) and a special feature on how our VET system is driving skills training (pp. 32-37). We also feature Adani's Wayne Reilly (p. 59) who represented the sector on the global safety stage. We enjoyed discovering the many stories within this edition. If you have an inspirational company initiative or individual that you would like to see within these pages, please get in touch: heather.stewart@amma.org.au. RP
REACH RESOURCES AND ENERGY INDUSTRY LEADERS Delivered to more than 5,000 subscribers nationwide, Resource People is Australia’s only source of quality workforce news for professionals, managers and executives operating in Australia’s dynamic resources and energy industry. As the official magazine of Australia’s resources and energy group AMMA, Resource People is an unrivalled opportunity to get your brand in front of the industry’s key decision makers.
Download the Resource People media kit at amma.org.au/mediakit to find out about affordable advertising options
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
Covering the latest on: • Workplace Relations • Human Resources • Policy and Advocacy • Workforce Diversity • News and Events • Leadership, and more
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Steve Knott AM AMMA CHIEF EXECUTIVE
Chief executive’s message AS WE APPROACH 2018, it is time to reflect. With many items on the legislative agenda having a significant impact on our resources and energy industry, we are in the midst of crucial times. You will see from the articles within this Resource People edition, legislation and regulation in Australia is an ongoing barrier to competitiveness and employment growth. AMMA continues to present to the Australian Government the critical importance of our nation's resources and energy industry projects and operations. Promoting contributions and the threat of business disruption of our industry which is at the forefront of business leaders’ minds and also at the core of AMMA’s efforts was highlighted at AMMA’s 2017 Resources Industry Forum, earlier this year, in Perth, and is showcased in this edition. International experts shared practical advice and insights to industry case studies and human resources management strategies illustrating how technology and innovation is shaping ‘the future of work’. With many of these stories detailed within, as you peruse these pages, I encourage you reflect on the talent and ingenuity of Australia’s resources and energy people. This edition explores the latest in workplace relations issues, diversity and inclusion, and skills. Story highlights include just how innovative employers are approaching a new era of work. Re-skilling and up-skilling for automation and digital transformation is a new focus and as evidenced in these stories. In 2018, we will pause to reflect on the significant milestone
We will pause to reflect on the significant milestone of AMMA’s Centenary, supporting and enabling resources and energy industry employers for 100 years.
Steve Knott AM AMMA CE
of AMMA’s Centenary, supporting and enabling resources and energy industry employers for 100 years. Simultaneously, we will use the opportunity to look forward to the changes in workforce and operations whilst navigating the political and economic climate we continue to adjust to and plan for. AMMA’s Centenary will be marked with a special edition of Resource People in 2018 featuring the history and future vision for many companies that make up Australia’s resources and energy industry. Save the date for the 2018 Gala Dinner, Centenary Celebration, Wednesday, 1 August, in Melbourne, where AMMA was founded, and a mid-way point for East and West coast travellers. Whether it be politicians, policy makers, industry stakeholders or the media, AMMA is and will continue to amplify the message that the resources and energy industry supports the prosperity of all Australians. RP
SAVE THE
DATE
AMMA GALA DINNER 2018 C E N T E N A RY C E L E B R AT I O N W E D N E S DAY, 1 A U G U S T 2 0 1 8 REGENT THEATRE, MELBOURNE R E G I S T E R YO U R I N T E R E S T T O DAY
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COVER STORY
BORAL'S JOURNEY Boral Australia’s Executive General Manager HR & HSE Bill Fisher shares the company’s journey during challenging times.
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COVER STORY
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COVER STORY
Bill Fisher Executive General Manager of Human Resources, Health, Safety & Environment for Boral Australia
IN 2013, BORAL Australia invited its employees to respond to a newly introduced biennial employee survey to measure its ‘organisational health’. The benchmarked score against a worldwide index left Boral Australia languishing in the third quartile compared to 1500 other global companies. The index measured how aligned Boral was, could Boral execute against this alignment, and could they renew and grow. Needless to say this score called for a re-think in the way Boral communicated, set strategy, recognised and developed its people. Two years on, Boral achieved a second quartile score, as improvements had been achieved in strategic direction, motivation, accountability, culture and
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climate, and innovation and learning. Most recently, in September 2017, the Boral Australia team could see clearly where their journey had taken them – into the top quartile of companies. According to Boral Australia’s, Executive General Manager of Human Resources, Health, Safety, and Environment, Bill Fisher, it has been a tough but rewarding journey. Mr Fisher joined Boral six years ago, right at the start of Boral's transformation. The Boral business is an international building products and construction materials group with three strong divisions: the high-performing, wellpositioned materials business of Boral Australia; the fast-growing USG Boral
COVER STORY
In FY2017, Boral delivered underlying profit after tax of AU $343 million, a significant 28 per cent Two courageous staff members increase on the prior year. “There was a lot of disruption, are publicly discussing their uncertainty and change that had been mental health issues for the taking place in Boral at that time. benefit of the organisation in There was also a lot of excitement about our new CEO, Mike Kane, taking conjunction with a general over in late 2012 and soon after, Joe awareness campaign Goss joining to run the largest division Bill Fisher, Boral Australia Construction Materials & Cement, which has since combined with the smaller Building Products division to create Boral Australia,” Mr Fisher says. “Alongside Joe, I could see there was interior linings joint venture in Asia, a lot of work needed to transform the Australia and the Middle East; and Boral organisation into something great." North America, a scaled and growing One of the earliest areas of focus was building products and fly ash business.
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to ensure everyone understood and was committed to delivering a Zero Harm safety culture, and with a five-month year-to-date lost time injury frequency rate of 1.7, Boral has delivered a solid improvement over the past five years. Mental Health Awareness The company’s focus includes working with beyondblue and rolling out a national mental health initiative. “Two courageous staff members are publicly discussing their mental health issues for the benefit of the organisation in conjunction with a general awareness campaign,” Mr Fisher explains. “We share a very courageous individual’s emotional but highly articulate interview.
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COVER STORY
We embrace flexibility. We embrace diversity. We think of it as a business advantage. Bill Fisher, Boral Australia
"It's one of our cement tanker truck drivers, who had been working for us for over 26 years and then suffered depression for almost 20 of those 26 years. It’s a very moving story. “You have to be prepared, because a number of people in the room who have also personally, either directly or indirectly experienced it, have to have support mechanisms out there. It has been a very emotional experience for a lot of people. “If you're unaware of how to spot the signs of mental health issues in the workplace, you'll incorrectly diagnose issues such as poor performance, lack of interest or aggressive behaviour.” In reality people might be showing the tell-tale signs of their suffering some sort of mental stress or depression or other mental illness, but in the past colleagues just did not know what to do. The difference now, Mr Fisher says, is Boral has a nation-wide program in place. He notes the program triggers an awareness about mental illness for some people, from incidents in their past or currently. “When you think that one-in-five people over a 12-month period will
suffer some form of mental health issue to various degrees, you realise it's not an isolated problem. It's a common problem. It's not an obvious problem, like if someone walks in with a cast on their broken arm it's obvious to all that they've suffered an injury," he says. Because of the stigma around mental health issues, which we're trying to remove, often people suffer in silence. "It affects them. It affects their peers. It affects their families. We are not only encouraging people to come out and deal with their mental health issues, but encouraging all of our managers and senior leaders to recognise where someone might need a hand or a bit of support, instead of treating it as a performance or judgement issue." Mr Fisher describes the unwavering determination of the Boral leadership team to follow through with the litigation as they felt it was the right thing to do, to stand up against a bully acting illegally. He was full of praise for the way the leadership team spoke to Boral’s people and were consistent in their communications. While the physical and mental safety
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of their people has been a main priority for Boral, the transformation of people systems and programs to support this has also been underway. Leadership and Support Boral’s senior HR team has been visiting various promising, high potential younger people as part of the company's leadership pathways program. This program has leadership
COVER STORY
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development programs at all levels designed to create mature and agile leaders. The “Working Together” program works on creating vulnerable trust in a team so all necessary conversations can be had to ensure the best solutions are discussed. Boral team members are also encouraged to gain technical certification through Boral’s registered training organisation. “Our organisation traditionally has been one of being reliable, conservative and relatively slow moving and we realise in the modern world, unless you're willing to take educated and appropriate risk, because of the pace of change, you'll be left behind,” Mr Fisher says. “We had also traditionally been risk averse. Do you say to a risk-averse organisation, 'Suddenly take a whole bunch of risks?' Well obviously, you don't, because either they won't take risks or they'll take the wrong risk. You do need to take balanced risk taking. That is a part of the training that we're providing to people now. It’s helping to build what we describe as a transformative culture – a culture where we are continually transforming and responding to a changing world.” RP
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WORKFORCE
MINING INFRASTRUCTURE
projects in 'mini boom'
Mining infrastructure projects across Australia are preparing for a mini-boom according to Amanda Mansini, AMMA’s Director of Workplace Relations.
AFTER A NUMBER of tough years, our industry has now seen some green shoots emerge with new mines and expansions entering construction phases and a number set to complete feasibility next year. In her role as AMMA’s Workplace Relations Director, Ms Mansini regularly works with mining projects from feasibility through to construction and operations, setting strategy and commercial arrangements. Ms Mansini recently presented an update on mining infrastructure projects across Australia, recognising the projected growth in demand for infrastructure in mining regions that will fuel opportunity for Australian industry, governments, investors and individuals alike. She highlighted major local and international infrastructure developments supporting the mining sector, as well as the latest pit to port transport and logistics innovations, and leading edge developments in water supply and removal, energy and community infrastructure. “Australia is getting ready to bounce,” she told the International Mining and Resources Conference (IMARC) in Melbourne. “While waiting for the storm to blow over, key players in the industry have buckled down.” “This period of self-evaluation has resulted in many industries reviewing current practices, resetting and preparing for the future, both at existing and new sites.” She says many construction and mining contractors had reset rates and other industry terms and conditions in response to market pressures and moderating employee expectations. “In the most part, the downturn period has resulted in a moderation of wages and other conditions like rosters as large scale de-mobilisations created labour
availability like we hadn’t seen in some years. The industry is also increasingly implementing flexible work approaches in response to individual lifestyle choices.”
Amanda Mansini
CHANGE IN 2018
Despite a number of projects coming off in the past 12 months, it is an employees’ market and particularly a 'NextGen' employees’ market, according to Ms Mansini. This means employers need to look to the next generations to fill the gap and supply the skills needed for the miniboom and future projects. “Traditionally, a mini boom would place upward pressure on wages and conditions but what we know from the mega boom is we cannot afford to just pay more money to attract the right people,” she says. “In an already high paying environment, that would make our projects uncompetitive, unable to meet key financial goals as we know that demand for employment in the last boom cost our made the most of that mega boom and projects an estimated additional 20 per are not wanting to return to FIFO roles. cent of operations cost. “They want to be able to FaceTime their families. Preferably at the same time as THE PROBLEM OF CHOICE everyone else, and we know what pressure Employees want to pick and choose that places on a regional communications when they come to work and increasingly network. They don’t need a beer in camp, like to have multiple jobs and vocations, but they do want a bulletproof coffee and a according to Ms Mansini. personal trainer. Such are the demands of This means employees do not want or the next generation.” need to be tied to a rigid roster and will be happy with a non-traditional pay structure RED TAPE IS HOLDING US BACK rewarding effort and allowed flexibility. Compliance is holding projects to “They want a purpose,” she says. ransom and is a key issue impacting the “They want to be engaged in their job, sector according to Ms Mansini. feel a part of the outcome, recognised for “Enterprise agreement making is so their achievements. They want a greener, difficult and costly. It is hindering our cleaner future. They want to address the productivity. In fact, 93 per cent of AMMA FIFO problem. members recently told us that enterprise “Contractors are reporting that the 30 agreement negotiations would be the per cent of mining infrastructure workers biggest workplace issue facing their that were in their 30s four years ago have organisations in the next 18 months. This
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WORKFORCE
hours per mobilisation spent on completing paperwork alone,” Ms Mansini says. Historically, automation has not changed the number of jobs required but instead what those jobs are. Employers need to look to This workforce of the future will be the next generations to fill able to adapt to construction work the gap and supply the skills as it evolves with innovation and technology, transferring skills to needed for the mini boom projects across Australia. and future projects. With that in mind, employers Amanda Mansini must look at methods to retain their AMMA Workplace Relations Director investment in people by enhancing overall productivity and cost competitiveness through attraction and retention of a flexible, future-ready is significant,” she says. workforce, with desired quantity and “The productivity impact of third quality of skills. party rights is out of control. Only nine “Historically, the mining and resources in 10 Australians are union members industry has been a driver of technological yet unions have increasing power and innovation and development in Australia,” visibility in our sector, created by our Ms Mansini says. workplace laws. This is evident in right “This innovation should be applied of entry laws. One project recently had to how we treat and develop people 17 right of entry visits in 24 hours; and strategies, ensuring the industry and another site had 300 visits in 90 days.” workforce are ready for the future.” The degree of project hours spent on Amanda Mansini is AMMA’s a multiplicity of tasks directed at box Workplace Relations Director and ticking rather than genuine outcomes a trusted advisor to the resources such as ensuring safety and driving and energy industry, specialising productivity, is another key issue. in building major project and “One project recently estimated 120 campaign strategies. RP
HOW COMPANIES ARE LOOKING AT OTHER WAYS TO INNOVATE, STREAMLINE PROCESS AND AVOID WASTE: 1. Contingent Workforce – attracting
3. The Digital Administrator – rosters,
the future workforce through
employee communications and
flexibility, removing barriers
record keeping managed through
imposed by legacy conditions in
a smart phone app – reducing
enterprise agreements, reducing
administrative personnel, paper
leave liabilities, reducing accrued
wastage and complex payroll
liabilities, access to live market
systems. Also ensuring employees
rates, partnering with labour hire
have autonomy and are engaged
suppliers to access the best talent,
with the workforce.
reducing pre-employment costs and potential to reduce admin. 2. VR Induction – virtual reality induction procedures enable workers to be inducted away
4. Digital Meetings – employees can connect to their manager and team through online forums, conferences and video calls. 5. Changing Commercial Models –
from site. This is engaging, cost
learning from the public sector and
effective, and reduces risk by
incentivising supply chain participants
having less people on site.
to take risk and access reward.
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DESIGNER ROLES: 1. Innovative – employees are to work beyond their traditional demarcations to reduce labour costs but ensure productivity and efficiency. 2. Flexible – employees may nominate their preferred roster pattern to suit family and personal needs. 3. Local – looking to the local area for recruitment and training builds local support, engages communities, and reduces FIFO-related risks and costs. 4. Transferable – multi-skilled, expert employees can be used to advise and work on new infrastructure projects, assisting with short term need and bringing their expertise to new projects across the country. 5. Provide recognition – innovative pay and remuneration structures gives employees incentive to succeed and recognition for their achievements. 6. Rewarding – non-monetary rewards and can include leadership awards, innovation awards, team activities and events, as well as genuine engagement with management. For example, the employee of the month has a breakfast meeting with the leadership team. 7. Engaging – employees are challenged and engaged through further education, training, and peer to peer learning ensuring skills are developed, transferrable, and handed down within the workforce. 8. Well equipped – high quality accommodation with amenities such as reliable WiFi/Internet and telecommunication ensures people feel connected to family and friends on site. Quality catering assists not only with employees’ comfort but also with their physical and mental health and wellbeing. Gym facilities and nutritionists also assist with this. Traditional entertainment such a Foxtel may be replaced by newer streaming services such as Netflix and Stan, providing a more affordable option for employers and a more up to date and modern service for employees. Recreation rooms and sporting programs are other initiatives that can be considered.
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WORKFORCE
QUESTIONS RAISED OVER
representation rights before the FWC
the Fair Work Act, to limit the use of lawyers and paid agents in matters before the Commission. In the Explanatory Memorandum to the Fair Work Bill 2008, the then Minister for Employment and Workplace Relations, Julia Gillard, noted people dealing with Fair Work matters would generally represent themselves. It should be noted that section 596 of the Fair Work Act gives the right of a party before an FWC matter to be represented without the need to obtain permission from the Commission if they Peter Cooke are being represented by a union or, if TWO RECENT DECISIONS of the Fair they are an employer, by one of their Work Commission have re-opened issues employees or an employee or officer of of whether a party to proceedings before an employer organisation. the Commission may be represented by a Given the increasingly legislative lawyer or paid agent. and anti-lawyer framework of the Fair Section 596 of the Fair Work Act sets Work Act, a practice had developed out that, for a party to be represented by over time for parties to matters before a lawyer or paid agent in most matters the Commission to utilise lawyers in before the Commission, they need to non-advocacy roles. In such cases be granted permission to do so by the an employer may have been formally Commission. The main exceptions are represented by a member of their human written submissions made in award or resources staff, who would formally minimum wage matters. conduct the case for the employer but The Fair Work Act goes on to set out that person would be assisted by a lawyer. that the Commission can only grant The lawyer may prepare the submissions permission for a party to be represented in for the company employee to read and matter if: provide advice regarding the conduct of • It would enable the matter to be the matter and the cross examination of dealt with more efficiently, taking witnesses. In such cases the employer into account the complexity of the typically did not seek permission for the matter, or external lawyer to assist them given the • It would be unfair not to allow the lawyer was the coach, not the employer person to be represented because advocate, in the matter. the person is unable to represent This practice came under the spotlight themselves effectively, or in a recent FWC Full Bench decision in the • It would be unfair not to allow the matter of Stephen Fitzgerald v Woolworths person to be represented taking Limited [2017] FWCFB 2797. This matter into account the fairness between was an appeal against a decision in an the person and other persons in the unsuccessful unfair dismissal application same matter. by Mr Fitzgerald. It was always the intent of the Rudd In the initial hearing, Mr Fitzgerald had Labor Government, when they enacted represented himself whilst Woolworths
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had been represented by an in house employee relations specialist. Woolworths had also engaged external lawyers to assist them in the matter including attending the hearing before the FWC, but not to conduct the actual advocacy for Woolworths. Commissioner Cambridge who was hearing the matter at first instant, held that it was beyond his power to rule that the external lawyer could not sit next to the Woolworths employee and that he had no power to say that any particular person could not be present in the courtroom. When Woolworths were successful in having Mr Fitzgerald’s unfair dismissal application dismissed, they sought to pursue a costs application against him. The costs they sought to recover included $6,500 for their employee’s time in dealing with the matter and nearly $26,000 for the costs of their external lawyers. Mr Fitzgerald lodged an appeal against the dismissal of his application and included one of his grounds of appeal was that he was misled by the FWC in relation to the role of Woolworths’ external lawyers in that he understood that the external lawyers were not going to represent Woolworths yet they did just that when they assisted the Woolworths employee at the hearing.
AMMA members do have the option of utilising AMMA lawyers and consultants to either represent them in matters before the FWC or assist them in the FWC without the requirement to seek the permission of the FWC. Peter Cooke
AMMA Principal Consultant
WORKFORCE
In their reasons for decision, the Full Bench of the FWC took a much more expansive view of the concept of “representation” in proceedings. The Full Bench took the view that representation as set out in section 596 extended beyond just advocacy at a FWC hearing but rather included all aspects of representation in connection with the matter. The impact of the Full Bench decision, which is effectively binding on single members of the FWC when they are sitting alone, was shown in a decision of Commissioner Cambridge in the matter of Michael Taylor v Startrack Express [2017] FWC 6083, which deals only with the issue of the representation of the parties in Mr Taylor’s unfair dismissal application. The substantive application alleging unfair dismissal has yet to be heard. In this matter Mr Taylor was represented by a legal officer of the Transport Workers’ Union (TWU). Startrack Express was seeking to be represented by a barrister who would be instructed by an external law firm. The TWU opposed Startrack being granted leave to have legal representation in the proceedings. The submissions put forward for Startrack in support of being permitted external legal representation raised all
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Given their size and sophistication, most operating resources companies will struggle to demonstrate they cannot adequately represent themselves in FWC proceedings. Peter Cooke
three supporting grounds noted above. They argued that the hearing of the matter would be more efficient if assisted by legal representation due to the complexity of the application. The Commissioner noted in his decision that the matter was in his view a “fairly straight forward misconduct case”. Startrack also argued that they would not be able to represent itself without the assistance of external lawyers. The TWU noted that Startrack was a part of Australia Post, which had a human resources department with staff trained in employment law and industrial relations. Given this, the Commissioner decided that he was not convinced that Startrack could not effectively represent itself. Startrack also submitted that as a matter of fairness, they should be permitted legal representation given the Applicant was represented by the TWU. The TWU noted that the person representing the applicant was not a qualified lawyer and that it was
AMMA Principal Consultant
the intent of the Fair Work Act that as a general rule, parties to a matter would represent themselves. The TWU also noted that should Startrack not be given leave to have external legal representation then this would extend to the lawyers for Startrack not being able to sit in the courtroom and assist a Startrack employee to conduct their case. The Commission determined that there would be little unfairness if Startrack were not permitted to have external lawyers. He noted the situation may be different in the circumstance of a small employer that did not have human resources staff. Given their size and sophistication, most operating resources companies will struggle to demonstrate they cannot adequately represent themselves in FWC proceedings. Similarly unless the other party is represented by an external lawyer, the fairness test will also tend to operate against larger employers obtaining permission to be represented by external lawyers. RP
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WORKFORCE
TO MERGE OR NOT TO MERGE risk of these particularly militant unions combining to hold a monopoly of the supply chain would translate to millions of dollars of foregone revenue for both State and Federal Governments, in turn affecting all Australians. The two unions have made it very clear the intention of the merger is to ramp up national industrial and economic vandalism. In recent weeks, industry has observed a noticeable escalation of unlawful activity organised by these unions, some saying not seen since the days of the 1998 waterfront dispute. This year, Australian Courts have even indicated that existing penalties are not acting as a sufficient deterrent, a trend which industry is observing in practice. Yet some pockets of the trade union AUSTRALIA’S PEAK RESOURCES movement seem intent on repeatedly and energy group AMMA has confirmed growing sector concerns that the stability breaching Australia’s laws. AMMA welcomes the December 2017 of the supply chain, from pit to port, is at risk if the CFMEU/MUA/Textiles merger is High Court ruling confirming an incentive for unions to comply with Australian allowed to go ahead. laws if planning strikes and providing an In Australia, we have clear rules to important test case decision. promote competitive business practices This decision shows you don’t get to and the same rules should apply to unions who might otherwise restrict trade through wreak havoc on a business if you’re not complying with the law. If the unions unlawful conduct. Unfortunately some unions persist in want the protection of our laws to organise a strike in support of bargaining lawless noncompliance with the nation’s workplace laws and wear it as a badge of claims, then the unions must comply with honour. This not only impacts company and Australia’s laws until an agreement is government revenues, but also drives away struck, not just when it suits them. future investment opportunities in droves. The High Court made the ruling under AMMA is increasingly concerned at the the provisions from the former Labor Amanda Mansini
Government’s legislation to the appeal: “A majority of the High Court held that the requirement in s413(5) for compliance with orders is not confined to orders that are in existence or may still be complied with at the time of the proposed protected industrial action, or which relate to that action. The majority held that s 413(5) applies to past contraventions of orders that applied to the relevant persons and that related to the relevant subject matter,” the High Court summary stated. Trade unions are not above the law and if they want the important right to strike, with all of its serious consequences for business and Australian jobs, then this decision reinforces they must always comply. We need investment, we need jobs and we need projects. A power-heavy, lawless union is only going to detract from this. This is why Australia needs the public interest test in the Ensuring Integrity Bill. There is nothing contentious about a public interest test to incentivise unions to comply with the law if they want to become more powerful, especially where the usual incentive of civil penalties is not working effectively. In AMMA’s 100 years of operations no stone has been left unturned to promote and protect resources and energy employers’ interests. It’s still unclear if any FWC determination on the CFMEU takeover will be subject to Federal and possibly High Court review. RP
AMMA LEADS SECTOR MESSAGING MEDIA COVERAGE SKY NEWS – CREDLIN (30 NOVEMBER 2017)
AMMA’s Director of Workplace Relations Amanda Mansini is featured in a 15-minute television interview with the Master Builders Association’s Chief Executive Denita Wawn outlining the implications of the merger and the need for the public interest test.
We need investment, we need jobs and we need projects. A power-heavy, lawless 'BASIS FOR DIVORCE' - SUPER union is only going to detract from this. This UNION WON'T PAY CFMEU'S FINES is why Australia needs the public interest test in the Ensuring Integrity Bill. There is AMMA expresses concerns, nothing contentious about a public interest “the merger would threaten the stability test to incentivise unions to comply with the of the supply chain, from pit to port. The two unions have made it very clear the law if they want to become more powerful, intention of the merger is to ramp up especially where the usual incentive of civil national industrial and economic vandalism. penalties is not working effectively." MEDIA COVERAGE - SMH (29 NOVEMBER 2017)
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
WORKFORCE MEDIA COVERAGE AUSTRALIAN (28 NOVEMBER 2017) BUSINESS ALARM AS VOTE BRINGS ON MERGER OF MILITANT SUPER UNION AMMA says “there was ‘no doubt’ the stability of the supply chain, from pit to port, is at risk if the CFMEU/MUA merger is allowed to go ahead”. AMMA MEDIA RELEASE (17 OCTOBER 2017) COMPLAINTS AGAINST CFMEU FURTHER EVIDENCE PUBLIC INTEREST TEST LAWS ARE ESSENTIAL AMMA's CE Steve Knott AM asks, “What more evidence do we need to toughen our laws when the alleged behaviour of the CFMEU at Glencore’s Oakey North mine site has seen police investigating five separate complaints and the anecdotes of the incidents have dominated the Queensland Parliament? “Being law abiding is not a behaviour seen demonstrated by the CFMEU and MUA across construction sites and on the waterfront of Australia. Enough is enough. The resources and energy industry is renewing calls on our federal politicians to support the Public Interest Test on union mergers. Simply put, if unions comply with the laws of the land the resources and energy industry has no issue with them merging. At the end of the day union members can decide this. If unions, like the CFMEU and MUA don’t, they shouldn’t be given greater capacity to recklessly inflict greater pit to port economic damage in our sector, something that would ultimately see less investment, jobs and government revenues. All that is being sought here is for unions to have a period of compliance with the nation’s industrial laws before creating a super union with increased powers. Consider what giving more powers to those already breaking our laws will do to the Australian economy and to Australian workplaces.”
has taken a positive step toward protecting the Australian economy and Australian jobs growth against the imminent threat of lawless, militant union mergers. “On Monday 16 October 2017, the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill (Bill) passed the Lower House of Parliament. The Bill includes a number of measures to improve governance arrangements within registered organisations. The matter of most critical importance for those operating in the resources and energy industry is the restoration of a public interest test which must be satisfied before registered organisations can merge.”
AUSTRALIAN (17 OCTOBER 2017) CFMEU SPLIT OVER MERGER BID TO CREATE SUPER-UNION “A senior construction union official has broken ranks to criticise a planned merger with the MUA, questioning the espoused benefits and timing of the proposed militant super-union. The public criticism by Michael Ravbar, the Queensland construction division secretary of the CFMEU, will not be welcomed by the national leadership of the two unions, which are already facing a legal bid by the Turnbull government to torpedo the merger.”
MEDIA COVERAGE – AFR (17 OCTOBER 2017) NO LAW IS GOING TO STOP PRESIDENT “Outgoing construction union boss Joe McDonald declares, ‘no law, nothing is going to stop us’ ahead of a planned merger with the MUA. He offers his thoughts on the merger between the MUA and the CFMEU arguing it would bring together the ‘venom of a cobra and the weight of an anchor. “Nothing is going to stop us. No law. Nothing,” Mr McDonald says. According to the ABCC, Mr McDonald — who spent 33 years in the union movement — holds the record for the highest total penalties awarded against an individual in matters prosecuted by the watchdog and its predecessors.”
MEDIA COVERAGE – AUSTRALIAN
MEDIA COVERAGE - AUSTRALIAN
(17 OCTOBER 2017)
(15 &16 OCTOBER 2017)
CFMEU SUPER-UNION PLAN
SENATOR BAULKS AT TURNBULL
ATTACKED
UNION BILL AND NICK
“Employment Minister Michaelia Cash criticises current workplace laws allowing the construction union to pursue a merger with the maritime and textile unions without a ballot of CFMEU members. The FWC granted a CFMEU application to be exempted from a ballot given the number of members from the other two unions did not exceed 25 per cent of the CFMEU’s membership.” MEDIA COVERAGE – AFR (17 OCTOBER 2017)
(17 OCTOBER 2017)
MICHAELIA CASH BLASTS
WHY AUSTRALIA NEEDS THE
'DEFICIENT' MERGER LAWS AS
AMMA announces in this update to members the lower house of Parliament
prevented CFMEU members from voting on whether they amalgamate with the MUA, despite evidence of internal opposition. Fair Work deputy president Val Gostencnik granted the CFMEU's bid to be exempted from requirements to ballot its members over the proposed 'super union' because the number of members to be admitted into the union was lower than 25 per cent. He says the law won’t allow him to reject the CFMEU's exemption bid as there were no special circumstances”
MERGER - DEPARTING CFMEU MEDIA COVERAGE –
AMMA NEWS UPDATE
PUBLIC INTEREST TEST
17
CFMEU MEMBERS DENIED BALLOT “Employment Minister Michaelia Cash blasts union merger laws that have
XENOPHON CONCERN CASTS DOUBT ON GOVERNMENT'S UNION MERGER BILL
Ewin Hannan reports attempts by the Turnbull government to get more power to deregister unions, disqualify union officials and torpedo union mergers are in doubt after key Senate crossbencher Nick Xenophon expressed concerns about the proposed new laws to be debated by federal parliament. AMMA’s CE Steve Knott AM says the two unions have, “made it very clear the intention of the merger is to ramp up national industrial and economic vandalism”. “We need investment, we need jobs and we need projects. A power-heavy, lawless union is only going to detract from this.” RP
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
18
WORKFORCE
SILLY SEASON
not the seedy season Preparing your workplace for this festive season
Alexis Agostino
IN THE WAKE of the Harvey Weinstein scandal, which shone a spotlight on sexual harassment in Hollywood and inspired a spate of #MeToo complaints, workplaces globally are reviewing practices to MeToo-proof their operations. “The international #MeToo movement has heightened awareness, a timely and important reminder for employers preparing for end of year festivities.” Soon after the Weinstein story made headlines, actress Alyssa Milano took to twitter to encourage those who had been sexually harassed to comment #MeToo. Within 24 hours of Milano’s #MeToo tweet the hashtag appeared in over 12 million posts worldwide. Statistics are sobering for Australian workplaces: • According to the Australian Bureau of Statistics 2016 Personal Safety Survey, one in two women and one in four men will experience sexual harassment in their lifetime; • The Australian Human Rights Commission found that one in four women had been sexually harassed in the workplace, with only 20 per cent of victims estimated to report incidents of sexual harassment (indicating that this rate may indeed be higher).
While a person’s actions are their own, an employer has a duty to its employees to limit risk to their health and safety. An end of year party is a great way to celebrate a business’ successes throughout the year and employees’ contribution to those successes. Unfortunately, if not managed carefully, work-related social functions present a higher risk environment for sexual harassment and other inappropriate and unwanted behaviour. Higher risk because the end-of-year party coincides with a period where work and personal pressures are high, everyone is frantically trying to finish work and meet deadlines before wrapping up for the end of the year. Fuelled with inhibition-reducing aides such as alcohol and dress ups, this can be a recipe for disaster.
While a person’s actions are their own, an employer has a duty to its employees to limit risk to their health and safety.
Alexis Agostino AMMA Consultant
Specifically in the #MeToo context, the Sex Discrimination Act 1984 (Cth) defines sexual harassment as occurring when; “A person sexually harasses another person if the person makes an unwelcome sexual advance, or an unwelcome request for sexual favours, to the person harassed; or engages in other unwelcome conduct of a sexual nature in relation to the person harassed, in circumstances in which a reasonable person, having regard to all the circumstances, would
TIMELY REMINDER: WHAT BEHAVIOUR
have anticipated the possibility that the person
IS APPROPRIATE IN THE WORKPLACE
harassed would be offended, humiliated or
ANYWAY?
intimidated”.
As workplace advisors, we are regularly asked to clarify the fine line between what is considered appropriate workplace behaviour and a contravention of the various and relevant laws. A topical question this festive season, no doubt prompted by the international #MeToo movement, is whether the line has shifted. “We are regularly asked – ‘Has the line shifted?’” It hasn’t. But the preparedness of complainants to speak out is gradually increasing. Appropriate workplace behaviour is behaviour that complies with applicable laws and company policies and makes others feel comfortable and safe to come to work. It involves subjective and objective elements, meaning it is far from black and white and often involves a cocktail of behaviours, emotions and events.
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
Whilst a range of behaviours can contribute to a breach, employers and individuals in the workplace are able to set clear boundaries to protect from inappropriate workplace behaviours. HOW DO EMPLOYERS AVOID THE SILLY SEASON BECOMING THE SEEDY SEASON THEN?
We’ve prepared a list of the top do’s and don’ts when it comes to the end of year party to assist you in safeguarding employees from inappropriate behaviour during what should be a festive time. When planning the event... • Pick an appropriate venue and consider creative ways to have fun such as mini-golf, go karting, cooking classes, scavenger hunts and escape rooms. These offer a way to relax without involving alcohol.
WORKFORCE
•
Carefully select the right time to hold the function. A function in daylight hours is less likely to encourage unruly behaviour as people feel more visible and are more likely to self-monitor. • Keep it professional by having a dress code that reflects this. Avoid a casual dress code or themes that require employees to dress up. When employees are dressed in clothes they would not ordinarily wear to work, or disguise their real identity, they are more likely to lose their inhibitions which can lead to inappropriate behaviour. Just prior to and at the event… • Keep your team members up to date about appropriate workplace behaviour and ensure they are clear about the company’s policies and expectations,
•
•
•
including that the end of year function is a work function and could impact their employment. Ensure alcohol is served responsibly and consistent with your workplace policies. Alcohol decreases inhibitions and in turn, may lead to inappropriate behaviour. Alcohol should therefore, be served to supplement food, not the other way around. You may consider drink tokens and serving light alcoholic drinks to help manage this. Provide transport home, to assist in discharging your duty to ensure everyone gets home safely. Cut off times for employees using vouchers are also advisable to prevent a “kick-on”. Don’t forget your own personal duty of care. While you too may want to have a couple of drinks, ensure that you are in control and can monitor
19
festivities carefully. It is also a good idea to appoint a responsible person who will deal with any issues that arise during the function. After the event… • Follow up on any complaints, immediately, and consistent with your workplace investigation, disciplinary, code of conduct and complaints procedures. • Avoid rumours by disseminating information where a public breach or incident has occurred. An end-of-year party is something that employees look forward to. Set the tone for appropriate behaviour from the outset by ensuring employees are aware and accountable, and assist employees to make choices that limit the possibility of inappropriate behaviour. This way everyone can enjoy themselves in an environment free of harm and celebrate a year of hard work and achievements. RP
Q How can you manage the impacts of workplace relations changes on your business? AMMA. The world of industrial relations is complex and fast moving. Not only do we have a long history of influencing legislative and policy outcomes, but on AMMA membership ensures there is always someone by your side to tackle the operational impacts. If you’ve got questions about policy, strategic or operational WR matters, the answer is AMMA. Call 1800 627 771 or visit amma.org.au
• Policy & Advocacy • Workplace Relations • Human Resources • Training • News & Events
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
20
WORKFORCE
AUSTRALIA
modernises IR legislation As Australia’s resources and energy industry transforms within challenging times, US global activism and social license to operate expert Clark Herman shares his thoughts on how companies can manage the changing landscape.
AMMA Resource Industry Forum 2017 Keynote Speaker Clark Herman
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
SPECIALISING IN THE development and implementation of labour relations strategies, Mr Herman has worked around the world developing strategies for numerous large businesses, including the negotiation of a record number of agreements. He draws on his longstanding relationship with the main labour unions and professional organisations in Europe and North America when providing advice. Mr Herman spoke to RP shortly after delivering his keynote at AMMA's 2017 Resource Industry Forum in August, about the intersection of the workforce, industrial relations and employee engagement, including tactics for addressing global anti-corporate campaigns. “The atmosphere is very confrontational in the US and in most of Europe,” he says. “I know a lot of multinational companies, who do everything they possibly can to avoid investing in France, which is quite hostile to external investment and management in general. "To date, I’ve not seen Australia falling into that category.” Mr Herman went on to acknowledge that the global landscape is changing. Having worked with a global company with Australian operations undergoing a targeted global union campaign, he reflected on his experiences and how that translates in an Australian context. “It became so intense that they targeted [one particular] company throughout the world with a coalition of NGO's, including environmentalists, indigenous groups, trade unions,” he says. “The company I was working for had experienced a number of strikes and lock-outs in a variety of countries on allegations of the overuse of subcontractors and precarious work.” Mr Herman attributes strategies to his
WORKFORCE
success including making sure companies are aligned organisationally to address being attacked across global jurisdictions and institutions and making constructive employee engagement a priority. “Companies need to prioritise the objective of employee engagement, irrespective of whether they have trade union representation at a particular site or not,’ Mr Herman says. He advocates the adoption of a parallel strategy to “deal with labour problems on a decentralised basis”, referring to 120 global framework agreements signed by multi-national companies. His approach was to scrutinise the agreements which we were “adamantly opposed for a variety of reasons.” Instead he elected to take a more localised, regionalised approach to improving employee relations. Mr Herman has also formed steering committees which adopt a set of general principles on employee relations and are designed to facilitate better relations. Typically, a steering committee would meet twice-a-year. The meetings are used to discuss specific issues without signing any global framework agreement or making any of the commitments implicit in the agreements.
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He notes there are lessons to be learned from this process for Australian companies. “I think the number one priority is you need the commitment of senior management and the executive committee of the company to buy in to whatever strategy is formulated.
“There has to be a commitment towards employee engagement, whether there's a trade union or not.” “To pursue a policy of having a dialogue with those trade unions and NGO's that you can work with, because believe it or not, there are some out there.” “You have to identify those, and try to work with them, but avoid any global conversations with any of these organisations because that can only lead to ongoing, top-down scrutiny, which will We identified which local last for incredibly long periods of time and unions and national unions accomplishes very little.” we could work with to Mr Herman says Australia has a try to prevent a repetition reputation as being an “incredible land of opportunity”, in terms of its resources, of strikes and lock-outs mining and metal sectors, but it had a at various locations. We reputation for “somewhat antagonistic engaged in constructive industrial relations”. dialogue with our employees He says Australia is ahead in terms of at both the site and national updating industrial relations legislation in level. contrast to the US where the current law Clark Herman dates back to 1935. He noted positive Employee relations expert movement in the robust debate to modernise labour legislation. “The strategy has to be formulated on “I know there's some struggles along internal alignment, communications, and the way, but I have every reason to believe interaction between the communications that those problems in Australia are going function and HR.” to be ironed out.” RP Damian Cronin with Clark Herman
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
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OHS & WELLBEING
INNOVATIVE OFFSHORE
mental health support A unique health and wellbeing program has led the way in supporting Ichthys LNG Project construction and maritime workers working offshore in north-western Australia.
AMMA INDUSTRY AWARD WINNER 2017 CATEGORY: Health and Wellbeing Award WINNER: McDermott Australia
workout programs and advises on healthy physical lifestyle topics on-board the vessel focusing on the link between physical health and its importance in attaining a THE ‘FIFOCUS Offshore Wellness focused and positive frame of mind. Program’ jointly initiated by the INPEXThe program includes regular visits operated Ichthys LNG Project and from a clinical psychologist, along with McDermott, caters for the unique needs of 24/7 services such as the offshore medic, offshore workers aboard two construction and one-on-one phone counselling and vessels servicing the Ichthys LNG Project. helpline contacts. The program focuses on four pillars: It also targets family members of the Mental Health; Emotional Stability; Social workforce, bringing them all together Engagement; and, Physical Wellbeing. as a unit to ease the feeling of isolation, It is designed specifically to cater to including the development of a family event the needs of the company’s workforce calendar with ideas of community events offshore and delivered in their workplace. for when they were home and access to “Participation in the holistic, inclusive counselling support and assistance. and contemporary program was voluntary, A family calendar competition but absolutely promoted to all personnel encouraged participation by family on-board a McDermott facility, direct members and helped the family AMMA Chief Executive employees and contractor personnel understand the job their loved one does Steve Knott AM with Steve McMahon and alike,” Hugh Cuthbertson, McDermott’s while they’re away. Melanie Edwards of McDermott Vice President for Asia, says. Initially implemented as a six-month “The program aims to engage, focus pilot program, FIFOcus has now been and raise awareness of personal wellbeing in operation for one-and-a-half years • Supervisors speaking up to their crew among workers by improving the support members about personal mental and is now more of a culture among systems available to people offshore. crew members that they are proud and health issues and difficult times; “Often these workers are portrayed • Individuals losing up to six kilograms enthusiastic about promoting. as bold and brave men which in weight as part of the structured Some of the success stories from discourages them from showing weight loss challenges; FIFOcus include: emotional or mental distress.” Championed by the offshore medic, the program includes regular visitors to the vessels to deliver presentations, quiz nights, exercise/relaxation, meditation classes, nutrition and health and wellbeing information packages, fitness competitions, flu vaccinations and a variety of other services all tailored at the key areas that the McDermott offshore workforce viewed as most relevant. The support services are easily accessible with program content determined by the workforce. Quiz night A physical fitness coordinator provides
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
OHS & WELLBEING
Pilates session
•
Personnel utilising the quit smoking campaign aids, and one who quit a 25-year habit; • Regular attendance at social events held on board like quiz/trivia sessions; and, • The participation of crew’s children/ loved ones in activities offered to engage the wider offshore community which made a great positive impact on the health and wellbeing of team members working offshore. The program is supported by an engaged and connected offshore team contributing to the successful and safe delivery of McDermott’s offshore operations in Australia. “Going forward, McDermott Australia will be seeking to expand its work in the health and wellness area, with a
25
FIFOcus Gym
“In McDermott Australia, we have some fundamental values that have guarded our operations and our projects. The importance of people to our operations, Often these workers those in the office, those offshore, all are portrayed as bold contribute to a full project life cycle.” and brave men which The INPEX-operated Project has been proud to co-fund and actively support the discourages them from award winning program that aligns with showing emotional or INPEX’s commitment to safety above all else, mental distress. INPEX Director HSEQ, Craig Haymes says. Hugh Cuthbertson “The program complements INPEX’s Vice President for Asia holistic approach to supporting workforce health and safety that includes extensive mental health and wellbeing initiatives.” Morris Corporation was highly continuing focus on the wellness of our offshore workforce in particular, given commended in AMMA's National Awards in the Mental health and wellbeing category they are to remote working conditions,” for the Morris Health and Lifestyle Program Nathan Rowden, the HR Director for Asia at McDermott, says. – Strong Mind Body and Spirit. RP
Vessels in Ichthys field
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
26
OHS & WELLBEING
CONVOY SPARKS IMPORTANT
chat with WA miners MINERS IN WESTERN Australia have been urged to overcome the stigma around mental health issues by doing something as simple as having a conversation with a colleague. The R U OK? Conversation Convoy recently reached the state’s mining centres, visiting the town of Kalgoorlie, along with Pilbara mining districts Wickham and Dampier. The convoy consists of four yellow SUVs, full with mental health advocates spreading the R U OK? message to mining communities to help overcome the pressures of isolation and separation from loved ones. The journey was also joined with Rural and Remote Mental Health (RRMH) – an organisation delivering mental health programs and services to people living and working in rural and remote Australia. With help from Byrnecut Australia, who contributed a jointly-branded 4WD vehicle to enable RRMH to join the R U OK? ConvoConvoy, the organisation was able to bring further awareness to the mental health challenges facing Australians, particularly in rural and remote regions. One of RRMH’s three key programs is ‘Resource Minds’ – an initiative supporting the mining, quarrying, resources and remote construction sector. The convoy, which started its journey at Yulara in Uluru, is progressively making its way around Australia to host a series of regional, remote and metro events within schools, parks, workplaces and significant locations within communities. The convoy rolled into Pilbara mining districts Wickham and Dampier to encourage Rio Tinto's workforce and the local community to check in with workmates and loved ones or anyone who might be struggling. Upon arriving in the next stop at Kalgoorlie, R U OK? CEO Brendan Maher spoke to Evolution Mining staff about the need for colleagues to check in and
Conversation Convoy in Kalgoorlie
support each other particularly given the nature of Fly-in Fly-out work. He also noted that 75 per cent of Australians who take their lives were men and reinforced the need to stay connected with family and friends given they were the people who generally acted as our support network when we were doing it tough. “There are plenty of ways to keep our social circles tight, especially as we get older. Women seem to be a bit better at maintaining their connections than men,” Mr Maher says. “If we haven’t spoken to a mate in a while, we can normally go back to where we left off, but the longer we leave it, the harder it can be to make that call.” “If you’re travelling in a car put your mate on speaker and have a chat, make an effort to keep those friendships active.” “We often forget we have the resources within us to support a mate who might be struggling, these are our eyes, ears and mouths and being prepared to ask the question if we notice someone doesn’t seem their usual self.” Mr Maher says everyone has the ability
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
It’s important that we give people the skills to notice the signs that someone might be doing it tough and to know what to say if someone says “No, I’m not OK”.
Brendan Maher, CEO, R U OK?
and skills to check in with anyone they were worried about and broke down the four steps to starting what could be a lifechanging and life-saving conversation. “It’s important that we give people the skills to notice the signs that someone might be doing it tough and to know what to say if someone says “no, I’m not ok”. That’s why we developed the four steps to starting a conversation: Ask, Listen, Encourage action and Check in”.
OHS & WELLBEING
27
Rio Tinto miners embrace the discussion in the Pilbara and Dampier mining districts
Rio Tinto has recognised that keeping employees safe extends beyond the workplace by introducing a package aimed at protecting and supporting Australian employees affected by family and domestic violence. As part of the comprehensive package offered to its almost 20,000-strong workforce in Australia, Rio Tinto employees directly affected by family or domestic violence will be eligible for emergency accommodation, short-term financial assistance and up to 10 days additional leave to seek legal assistance, court appearances, relocation and counselling. Safety plans to protect at-risk employees at work will also be offered, including security, new telephone numbers, screening or blocking calls and email protection. For those needing immediate assistance, short-term financial help and emergency accommodation can also be provided, along with a range of other specialised support services. Rio Tinto managing director Australia Joanne Farrell says the initiative is in line
with its number one priority of safety. “Sadly, family and domestic violence is a widespread issue in society and one that Australian businesses across the country need to take steps to address,” she says. “As part of our commitment to zero harm, Rio Tinto is taking a stand against family and domestic violence by offering a broader package of additional support for employees across Australia. “As a major Australian employer, we recognise our broader community responsibility to help address this issue, which is too often ignored.” Leaders and human resources teams will continue to be trained at Rio Tinto to equip them with the skills to recognise and respond to issues of family and domestic violence in the workplace. The August announcement of the package comes after 18 months of development and training from Rio Tinto to create policies, processes and resources to support employees affected by family and domestic violence. The company is also working towards becoming an accredited White Ribbon
workplace, recognised as one taking active steps to stop violence against women. As Western Australia's biggest employer, the state’s Prevention of Family and Domestic Violence Minister Simone McGurk called on the private sector to follow the lead of Rio Tinto. In June this year, it was announced that public sector workers, including casual employees, experiencing family and domestic violence would have access to 10 days leave as well as specialised support. Nationally, one in four Australian women have experienced physical or sexual violence by an intimate partner and Western Australia has the second highest rate of reported physical and sexual violence perpetrated against women in Australia, second only to the Northern Territory. In Queensland, a report found 95 per cent of victims who were stalked by a violent partner were subject to the harassment at work. It also found that between a quarter and half of women subjected to domestic violence reported had lost a job at least in part to that violence. RP
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
28
TRAINING
STUDENTS SET SIGHTS
on sector jobs
A program designed to improve the retention and success of Indigenous students in South Australia is changing future generations’ attitude towards school and careers.
AMMA INDUSTRY AWARD WINNER 2017 CATEGORY: Indigenous Employment and Retention Award WINNER: Heathgate Resources HEATHGATE RESOURCES HAS a target of 20 per cent Adnyamathanha employment embedded in its major service provider contracts. “Many students were dropping out of school, were not driven to focus on a career within the resources sector, and often finding it easier to stay home with mum and dad,” Jacquie Dealtry Heathgate's Senior Human Resources Advisor, says. Working with the Port Augusta Secondary School, the Nature's Foundation and Career Employment Group, Heathgate identified a shortage of potential candidates if the trend continued and are now proactive in ensuring sustainability and longevity of its workforce.
Our aim is to really broaden awareness for what career pathways are available in the resources and energy industry. These students will see what it's like to become a geologist, or an environmental specialist, or maybe even an engineer. Jacquie Dealtry, Senior Human Resources Advisor, Heathgate Resources
The Aboriginal School Mentoring Program (ASMP) was developed to provide a dynamic educational experience offering young Aboriginal school students the belief and confidence to finish school
Students with Vince Coulthard
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
along with the skills to identify and pursue future career opportunities. “The program focuses on improving the chances of Aboriginal students finishing school and gaining a greater understanding of the opportunities available for them by working in the resources and energy industry,” Ms Dealtry says. “It’s important to have these types of programs which provide opportunities for students to work on their own land, whilst gaining vital and interchangeable skills for the future. “We have formed this wonderful program for students to be able to work and learn new skills on their country.” The program partners with Career Employment Group (CEG), Pt Augusta Secondary School (PASS) and Nature Foundation SA, with Heathgate developing a robust and well-rounded program to help facilitate students’ future careers in the resources sector.
TRAINING
Career guidance and mentoring, on-site work experience opportunities, training and career opportunities all form part of the program. The first year of the program also includes a camp for year 8 and 9 students developing life skills and land management including GPS tracking, flora and fauna identification and basic fence repairs. Heathgate offered five trainee/ apprenticeships during 2017. The program aims for all Adnyamathanha/Aboriginal students involved to increase awareness of career opportunities within the resources and energy industry during early high school years, assist to increase the years 10 and 11 participation rates and in turn year 12 completion rates and increase admission rates into Tertiary Education pathways, for professional careers within the resources and energy industry. “Once they reach that Year 12 pathway, they actually come on to the Beverley mine site where they do some work experience to see what it's like to actually work in the real life of the resources industry, in the mining setting, living away from home, flying in and flying out, so that's exciting for them,” Ms Dealtry says. The local community and student benefits include offering hands-on experience and developing skills required for life beyond school, giving the opportunity for parents to support their children to finish school and pursue a career in the resources and energy industry. “Our long-term game is to sign people up to that university pathway and see them grow and become something that's quite meaningful for their life,” Ms Dealtry says. “There's a lot of local community children that just don't see school through because they don't have a purpose or an end goal, so it's really nice to see that we can try and impact the student's life by completing Year 12 and looking to greater their skills by going on to further career pathways and developments” The program aims to change the future generations’ attitude towards school and career and assists in lifting the region's social-economic status RP
29
Heathgate's Kerie Chalker and Jacquie Dealtry with their award
Vince Coulthard Traditional Owner
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
30
TRAINING
SUPPORT FOR NT
indigenous mine workers A Northern Territory Bauxite mining operation and training centre are encompassed within a newly-opened hub for Indigenous people.
THE GUMATJ CORPORATION established the Gulkula Regional Training Centre and Gulkula bauxite mining operation on the Dhupuma Plateau in North East Arnhem Land. The multi-million dollar operation has an expected 15-year life, with the on-site mining component of the mine set to create sustainable jobs for the region and produce 500,000 tonnes per year in the first four years of operation. With the support of Rio Tinto, the centre is 100 per cent owned by the Gumatj clan, and aims to deliver sustainable economic benefits for local Yolgnu people. Rio Tinto committed to purchase bauxite produced from the new mine at the official opening and signing ceremony, held in August during the 19th Annual Garma Festival. The $2.4 million regional training centre is adjacent to the Gulkula mine, a smallscale bauxite operation which will deliver on-the-job training for participants. Rio Tinto, the Gumatj Corporation,
the Northern Territory and federal governments contributed funding to the project. The Gumatj Corporation currently employs 65 Yolgnu people through small business and builds sustainable local industries that benefit the traditional landowners and the clans of the local region. Gumatj Corporation’s CEO Klaus Helms says the local Yolgnu people and those from nearby Indigenous communities benefit from the project. "The commencement of a 100 per cent Indigenous-owned training centre and mining operation is a testament to what Indigenous people can achieve working in partnership with business and government,” he says. “This a major step forward in building a sustainable future for our local people. “With Rio Tinto’s support, Yolngu people can now receive on-the-job training through Gumatj mining operations. “The skills they develop will open up
Aerial view of the Gulkula Regional Training Centre accommodation facility
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opportunities for them to build careers in the mining industry in the Northern Territory and beyond.” Mr Helms says the bauxite sales agreement signed with Rio Tinto signifies their commitment to ensuring the success of the new mine. Rio Tinto’s Aluminium Pacific Operations managing director Bruce Cox was pleased to see projects driven by the local Yolgnu people come to fruition. “As a result of this training centre even more local Indigenous people will be able to build long-term careers in the mining industry,” Mr Cox says. “We hope to see increased Indigenous participation at our own Gove bauxite mine as participants move on from the centre and into the workforce.” The development is the first Aboriginalowned mining operation and training centre on land scheduled under the Aboriginal Land Rights Act. RP
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ALARM RAISED
on industry skills shortage A shortage of new graduates in critical parts of the resources and energy industry has attracted calls for more to be done to avoid a potential skills shortage.
THE RECENT DOWNTURN has seen the departure of some skills, leaving a worrying hole for the future pipeline of work for the industry. Mining bosses have raised concerns about the dearth of graduates emanating from mining schools and colleges across Australia. Mining engineers and drillers have been branded as particular occupations of concern, with many identifying a need for more encouragement to prompt students to come out of high school and pursue a career in mining.
Considering that mining engineering and metallurgy enrolments have dropped to their lowest levels since 2000, resulting in a significantly decreased number of graduates in the coming years, we all recognise that encouraging students to take up a mining discipline at university has never been more important than it is today. Kirsty Danby, WA Mining Club President The labour market pressures have been compounded by many leaving the industry during the downturn and gaining employment in other sectors. Curtin University’s student enrolments in geology, survey, mining and metallurgy have continued to fall across Australia,
with numbers at its Kalgoorlie-based WA School of Mines reported to have fallen from 1457 in 2016 to 1282 this year, with 153 students in fourth year. However, in a positive move for the next generation of sector employees, eight of Western Australia’s brightest minds were awarded scholarships in geology, mining engineering, metallurgy and environmental science by the WA Mining Club. WA Mining Club president Kirsty Danby hopes the scholarships counter the dwindling levels of interest in the industry from school-leavers. “Considering that mining engineering and metallurgy enrolments have dropped to their lowest levels since 2000, resulting in a significantly decreased number of graduates in the coming years, we all recognise that encouraging students to take up a mining discipline at university has never been more important than it is today,” she says. “With this in mind, the mining industry has supported us to make this year’s scholarship program the biggest since it first began, with a record $80,000 in eight scholarship categories covering technical disciplines and promising female and Indigenous students up for grabs.” Now in its 15th consecutive year, the WA Mining Club’s scholarship program aims to encourage students to continue their tertiary studies in mining related disciplines to ensure the sustainability of talent within the sector and develop the next generation of leaders. The WA Mining Club offered just one scholarship in 2003. In 2016 that grew to six, and this year that number increased again to eight scholarships. Each winner will receive a $10,000 grant. Winners will also benefit from mentoring, career
Victoria Arrowsmith from the Western Australian School of Mines
support and increased visibility within the industry. Winners were selected by a panel from the scholarship co-sponsor and a representative of the WA Mining Club, which considered factors such as academic and work history, personal circumstances, financial need for a scholarship, and commitment to their chosen career. The eight winners were chosen from almost 250 applicants from a diverse range of backgrounds and educational institutions including Curtin University, Edith Cowan University, Murdoch University, the University of Western Australia and Esperance Senior High School. “Our goal is to ease the financial burden of obtaining a higher-level education while also giving them unparalleled access to some of the biggest names in the industry,” Ms Danby says. “We are a big believer in investing to build a generation of intelligent, strong, and confident miners who will continue to innovate and change the industry with new technology, fresh ideas and boundless energy and enthusiasm.” RP
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VET SYSTEM DRIVES
training and skills for resources industry www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
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Tara Diamond AMMA DIRECTOR INDUSTRY SERVICES AUSTRALIAN INDUSTRY AND SKILLS COMMITTEE MEMBER
TWO YEARS IN and the Australian Industry and Skills Committee (AISC) is making headway with simplifying and demystifying Australia’s vocational education and training (VET) system. Established by the COAG Industry and Skills Council in May 2015 to give industry a formal, expanded role in policy direction and decisionmaking for the vocational education and training sector, the AISC is an industry/government collaboration focused on amplifying the voice of industry and building employers' confidence in VET qualifications. AMMA’s Director of Industry Services Tara Diamond has been on the AISC for two years and seen a marked improvement following the change in structure of the Vocational Education and Training (VET) system. “The resources and energy industry has been assisting with valuable insights into direction and decisionmaking for the vocational education and training sector,” Ms Diamond says. “Placing Industry Reference Committees (IRCs) with broad and deep representation from the resources and energy industry at the heart of training package development has been a crucial and positive step.” Ms Diamond says the industry knows it is in the driving seat of the skills and competencies that are required now and in the future. “The appetite of the IRCs to inspect and interrogate, not just training package content but what industry deems is appropriate in how the content is delivered and assessed, is refreshing and
important,” she says. Each IRC develops a substantive four year schedule of work that is aggregated into a National Review Schedule which is available for all stakeholders. It helps to understand the developments and changes applied at any sector and training package level. “This schedule removes the sudden changes stakeholders may have experienced in the previous system,” Ms Diamond says. “It focuses on the new skills and competencies identified by industry to capitalise on advancement in technology and to keep pace with new ways of working.” Synergy in sector issues The fact the system allows for and was developed with cross system considerations in mind, has allowed IRCs to leverage work undertaken in other sectors and adjust and implement accordingly. This development is particularly appropriate for the resources and energy industry where fundamentals such as safety can be adjusted and applied to suit different contexts but synergies can be realised by having foundations across all packages. This has informed the direction Australia is heading in terms of VET. “As research into the future of work indicates, the ability to continuously improve, learn on the job and update skills and competencies is crucial,” Ms Diamond says. “Many are calling the direction of education as ‘the rise of vocational education’ as the flexible and practical nature of VET provides this framework.” RP
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COAL INDUSTRY Darryl Cooper
CHAIR OF THE COAL MINING IRC
A work plan to deal with automation and remote operations has started and this includes a project about packaging qualifications and skill sets to manage a fluid workforce. What are some of the challenges the coal mining industry faces regarding skills? • New and emerging technologies. • Regulations. • Industry cycles. • Labour mobility. • Emergence of automation and remote operations. • Trend towards contract labour with the potential for a highly fluid workforce. • Tracking skills of all employees and contractors for a fluid work force. • Focusing on productivity gains reducing available time for upskilling and development. The IRC was finalised this year, what are some of the activities it has undertaken since formation? A Mining, Drilling and Civil Infrastructure Industry Skills Forecast and Proposed Schedule of Work has been developed which outlines a four-year plan to review all of the Resources and Infrastructure Industry (RII) training package. This report identifies key trends shaping the sector and how this will impact skills requirements. This information has been used to help develop the four-year plan. Current review of the Units of Competency: • Mobile plant operations and materials handling • First emergency response • Shotfiring units • Tyre Fitting • Supervisors • Traffic Management New projects relevant to coal mining: • Underground coal operations • Drilling equipment and methods • New and emerging technologies • Underground service location and vacuum systems
Looking to the future, what do you see the coal mining industry and its employers having in place for developing skills ongoing? Our industry will be establishing internal capability frameworks to manage fluid workforces and to quickly pull together work teams. Do you see any strategies from the industry or training providers to attract more females to the traditionally male coal mining industry? Given the high proportion of males in the sector, the sector can seem very daunting to females looking to enter the workforce. This obviously represents a challenge to the coal mining industry. We have changed the way we: • Describe roles to be more attractive. • Promote flexible working. • Challenge actual role requirements to be more inclusive. • Promote the organisation differently. • Set targets for recruitment. • Look for capability and transferable skills not what we always have (experience). How does Australia compare globally in regards to its skills and training in the coal mining industry? The Resources and Infrastructure Industries Training Package is recognised globally for developing a skilled workforces within the Coal Mining Industry. We have hosted members from various government to provide an overview of the VET system in Australia, where there is often a specific focus on the resources industries. How is the industry upskilling the existing workforce to keep up with the demands of changing technology? We are currently reviewing the RII Training Package to ensure it reflects this skills required within coal mining
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and other mining, drilling and civil infrastructure occupations. As part of each project, we constantly ask: what technologies or methods are being used in the field that aren’t reflected in the training package; and what emerging technologies are we being used overseas that we think will be implemented in Australia? This allows us to be proactive and ensure we have a training package that reflects contemporary practices. We have one project specifically aimed at new and emerging technologies so we can address any large skills gaps created by changing technology. We are also establishing internal capability frameworks to manage fluid workforces and to quickly pull together work teams and update the training package to be more focused on skill sets. How is the Coal Mining IRC currently facing the implications of automation? The sector more broadly recognises the implications of automation, particularly with the introduction of new equipment/machinery and methods being used on mine sites. For example the use of drones and remote operating centres. This is being addressed through the new and emerging technologies project. There is also a cross sector project on Automation Skills which is looking at what common skills are being used, with regards to automation, across all industries. Developing a common set of skills will assist in the movement of people across industries, creating more job opportunities for people in Australia. We are commencing a work plan to deal with automation and remote operations. The work plan includes a project about packaging of qualifications and skill sets to manage a fluid workforce. RP
METALLIFEROUS INDUSTRY Mark L Knowles
CHAIR OF METALLIFEROUS MINING IRC
We have a very good and robust training system compared to other countries. Our VET programs and systems are being sought after and replicated in a number of burgeoning economies. What are some of the challenges the metalliferous mining industry faces regarding skills? The biggest challenge we have as an industry and particularly in the metalliferous mining sector is the transportability of skills. Our sector covers every state and territory and I find with a lot of employees moving between states, particularly in the mining area, their skills are not being recognised effectively which means for the employer it is a lot of time and money in verifying their current competence or retraining them. What strategies has the metalliferous mining IRC put or plans to put in place to address these challenges? The plan is to try and lift the profile of our sector particularly in the training and assessment areas. Our committee is spread across the nation and we are trying to drive that what is being done in one state should be recognised in another. It’s about building the confidence within the sector that the skills and knowledge acquired is a satisfactory entry for those employees to move from one organisation to another. There are still areas of familiarisation employees will be expected to do and this is part of the regulation of our industry across the nation. The IRC was finalised this year, what are some of the activities it has undertaken since formation? We first met in April 2017, and we have had four really productive meetings. There are five major pieces of work coming to an end. The biggest one for the mining sector is the review of the mobile plant operation and the material handling units in the RII Training package. We have reviewed about 75 units and ensured they are fit for purpose.
Looking to the future – what do you see the metalliferous mining industry and its employers having in place for developing skills ongoing? The sector has employers ranging from multi-nationals right down to small 30-40 person mines scattered throughout the Goldfields and the regions on the east coast. One size does not fit all, but we are focusing on ensuring that units of competence within the RII training package are relevant and useable across the sector. Automation, remote operation of equipment and dealing with autonomous mining systems are having an impact across the sector and we have to respond to those technologies. Do you see any strategies from the industry or training providers to attract more females to the traditionally male metalliferous mining industry? We are sitting nationally at around 19 per cent which isn’t really good but if I look at the iron ore big four in WA their female participation rate is fairly high and that is having a very positive impact on the rest of the industry. Those female employees, although they may not stay long with an organisation, do tend to stay within the industry, so hopefully those trained female and Indigenous employees will move onto other operations. One of the iron ore companies in WA has a female employment rate of 40-45 per cent which is pretty high. They have achieved this by targeted programs. How does Australia compare globally in regards to its skills and training in the metalliferous mining industry? We have a very good and robust training system compared to other countries. Our VET programs and systems are being sought after and replicated in a number of burgeoning economies. How is the industry upskilling
the existing workforce to keep up with the demands of changing technology? Within the last decade the four major iron ore miners, Rio Tinto, BHP, Fortescue and Roy Hill, have moved control of their equipment from site-based to their headquarters in Perth. The Remote Operations Centre controllers in Perth control the respective mining operations, 1,6001,700kms away. That in itself has forced the demand for skills in this area. We are not only looking at the operation of equipment, but how we communicate from our operations centres to our people on the ground on our sites and that is a set of skills and competencies we are looking to bring into the training package. How is the metalliferous mining IRC facing the implications of automation? It’s massive. One particular operation will go to an automated core truck fleet and drilling fleet within the next four to five years so what do we do with our current drivers, operators and maintainers? We are looking at how we upskill employees to work with this technology and if need be, prepare them for redeployment. There is a lot of work being undertaken to deal with the automation of those mines. What is the big picture benefit? We are looking at around 60 IRCs across the whole of the VET sector. The committees are industry-led, and while we have had industry training councils before, they weren’t always industry focused. What we have now is good for the industry and the VET sector as a whole. We have made a great deal of headway in the short time the new system has been in place. RP
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GAS INDUSTRY Karen Polglaze
CHAIR OF THE GAS IRC
THE GAS industry is experiencing skills shortages in a number of areas. Several factors contribute to this including the ageing of the workforce, competition from other industries, high staff turnover in some sectors, and issues related to remuneration and employment conditions. Some sectors of the industry are cyclical, such as in the construction of infrastructure and production facilities. Other positions require an increasing level of multiskilling, and this is predicted to spread even more widely in future. What plans has the Gas IRC put in place or plans to put in place to address these challenges? The process of developing the annual Gas IRC Skills Forecast includes a survey of the industry and asks participants to detail areas where they are experiencing skills shortages, where technologies are changing that may require the development of particular skills and where work practices are changing that may impact on skills development. The industry associations in this sector also work closely together, and this assists in the identification of current and potential areas where skills development may need adjustment. Gas IRC members have also participated in two of the cross-sectoral projects initiated by the Australian Industry Skills Committee: the Environmental Sustainability Skills Project and the Automation Cross-sectorial Project. These projects examine common skills needs across sectors and reduce duplication of units, but they also had a focus on future needs. We have also recently completed transitioning all the units of competency in the gas training package to the required format. This required a quite detailed review of all the units by technical specialists from the industry and has generated a number of suggestions on units that require further adjustment to ensure they meet current and future industry requirements. The IRC was finalised this year. What are some of the activities it has undertaken since formation? Our major task in 2017 was to transition all of the units of competency in the national gas training package to the required format. While there are still a few steps left in the process – mainly review by the state and territory authorities – the majority of that work is
now completed. We are also developing a new unit of competency for fusion welding of polyethylene pipes larger than 180mm in diameter. This has been required by industry for almost a decade, so we are looking forward to delivering that unit next year. Looking to the future – what do you see the gas industry and its employers having in place for developing skills ongoing? The oil and gas industry has a significant interest in workforce development and there are a number of avenues being explored for current and future needs. In addition to participation in the Gas IRC, the industry is deeply involved in the energy resources industry growth centre, National Energy Resources Australia which has workforce development as one of its areas of focus. There are also a number of specialist training centres for the industry, notably the Onshore Petroleum Centre of Excellence at TAFESA and the Australian Centre for Energy and Process Training at TAFEWA. Do you see any strategies from the industry or training providers to attract more females to the traditionally male gas industry? This is probably one of the most difficult issues facing the industry and one which I believe we have yet to tackle effectively. I am disheartened to hear that the issues raised as barriers to women’s participation are the very same as those raised when I began an apprenticeship in a male dominated trade in 1973. I am aware of a number of different strategies that have been put in place in the past, and these have helped some women into the industry, but not in significant numbers. There is some change taking place at the top of the industry, so that should make a difference in the longer term. I think this is something that we could consider in
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collaboration with the other energy IRCs. How does Australia compare globally in regards to its skills and training in the gas industry? The industry certainly has a solid reputation for public safety, and this is based on a rigorous incorporation of Australian Standards into the training package and into work practices. The industry has a significant focus on competency as the most important determiner of individual skill and expertise, and this is underscored in the units of competency in the training package as well as in other skills and training in the industry such as in engineering areas. How is the industry upskilling the existing workforce to keep up with the demands of changing technology? We are introducing new units of competency, or adjusting existing units, in areas where technological developments mean that existing units no longer meet industry requirements. An example of this is in the coal seam gas industry where the introduction of thousands of kilometres of gathering lines and transmission lines using polyethylene pipelines revealed that new skills and work practices were required. Through close engagement with our industry, including through the Energy Pipelines CRC, we are looking at research and trials under way that are likely to result in new technologies and whether these will require new skills. There are a couple of trials under way in Australia testing the possibility of injecting hydrogen into the natural gas network as a way of reducing carbon emissions. If the trials suggest that a significant amount of hydrogen could be used in distribution networks, this may require changes to appliances and meters and this might need additional skills. (RP: The Energy Pipelines CRC was
DRILLING INDUSTRY Tim Westcott
CHAIR OF DRILLING IRC
The biggest challenge at the moment is finding skilled people to operate the drills that are now starting up, in the downturn we lost up to 50 per cent of the skilled workforce and are unable to attract them back to the industry.
established in early 2010 for the purposes of providing research and education to support and benefit the energy pipelines industry in Australia. It is a user-led CRC with its industry participants represented by the Australian Pipelines and Gas Association Research and Standards Committee (APGA-RSC). The research participants are the University of Adelaide, the University of Wollongong, Deakin University and RMIT University.) How is the Gas IRC currently facing the implications of automation? We took part in the Automation Cross-sectorial Project to gain a deeper understanding of the implications for our industry and we are actively considering the possibilities and probable consequences of automation in developing our skills forecast. The gas industry is forecast to generate $3.62 billion for the Australian economy through FY2016-17 and employs more than 16,000 people with forecast employment growth at 4.7 per cent over the next five years which means there is a steady demand for a skilled workforce … how are you factoring this in to planning? The Gas IRC members are in close consultation with the industry and with the industry associations in the gas industry to ensure that the national gas training package includes units of competency that are relevant to the gas supply industry. The package provides a solid basis for training across the breadth of the industry and we plan to ensure that its future development is in lock-step with evolving needs through maintaining and strengthening our pathways into industry. RP
What plans has the IRC or plans to put in place to address these challenges? We are using this forum to try to get the message through to the government by utilising PWC as our SSO to lobby on our behalf on the issues we face. As chair of the IRC I have written a couple of letters to the federal ministers with our concerns on the 457 visa cancelation of the driller role. I also have stated that we require more assistance to upskill existing and new workers to come into our industry. The IRC was finalised this year, what are some of the useful activities it has undertaken since formation? We have put together the project plans for the next two years and have also been involved in the supervisor case for change.
Looking to the future – what do you see the Drilling industry and its employers having in place for developing skills ongoing? The step into technologies that will affect the drilling Industry on the way that we currently operate and train. The cross sector on supply project that AISC has established has identified areas that are critical for numerous industries and should be approached collaboratively across all of the IRC’s and training packages. Do you see any strategies from the industry or training providers to attract more females to the traditionally male Drilling industry? There has been no definitive strategies as yet but with the change in how the drilling rigs are operated I feel that more opportunities will start to occur especially in the production based drills (blast hole). RP
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VIVA ENERGY TAKES SUPER
approach to inequality
In a welcome step to addressing inequality, resources company Viva Energy has made the ground-breaking move of initiating policy to help part-time parents accrue a fairer portion of superannuation.
VIVA ENERGY, the exclusive licensee to the Shell brand in Australia, will pay full super benefits to part-time parents for five years, leading the way towards equality, as the first company in Australia to address the superannuation gap between men and women. According to the Association of Superannuation Funds Australia, a woman's average superannuation balance at retirement is 52.8 per cent lower than a man. A study titled Not So Super, For Women, also shows that by the time of retirement, a woman’s accrued average superannuation figure is $80,000, more than half the figure amassed by a man of equivalent age. In a move sure to make headway in the gap, Viva Energy will offer employees a full-time superannuation payment of 12 per cent base salary for up to five years during unpaid parental leave and parttime work periods. Viva Energy CEO Scott Wyatt is proud of the new policy and calls on corporate Australia to look at ways that they can help parents – particularly women – to overcome systemic financial disadvantage in retirement as a result of taking time out of the workforce to have children. “While the new policy applies equally to men and women, we know it will make a lifetime’s difference to the retirement savings of female employees who traditionally take extended time off to have children and often return to work part time,” Mr Wyatt says. As a Workplace Gender Equality Agency (WGEA) Pay Equity Ambassador, Mr Wyatt is committed to encouraging other business leaders to recognise the importance of pay equity. “I hope our new policy inspires other businesses to be innovative in working on
the challenge within their own companies if a gap exists,” he says. “Besides being the right thing to do, investing in the future of employees also makes sound business sense as it provides another incentive to attract and retain high-performing staff while enabling them to manage work-life responsibilities across an extended period. “Our company has always taken a leading position on superannuation as an important strategic element of our remuneration and have paid 12 per cent of base salary for nearly 20 years, well above the government mandated rates.” Viva Energy’s policy initiatives will assist employees later in life, Workplace Gender Equality Agency (WGEA) Director, Libby Lyons, says. “Taking time out of the workforce to
Viva Energy CEO Scott Wyatt (middle second row) with colleagues
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care for children should not have any impact on an employee’s economic security in retirement,” she says. “As women still carry the disproportionate share of society’s caring responsibilities, the statistics tell us that they also accumulate significantly less retirement savings.” Viva Energy is to be congratulated for taking these positive actions to substantially improve the retirement balances of their employees who are also working parents.” The Workplace Gender Equality Agency is an Australian Government statutory agency created by the Workplace Gender Equality Act 2012 and is charged with promoting and improving gender equality in Australian workplaces. RP
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FORTESCUE SHINES
diversity light
In an industry where women comprise just 16.4 per cent of the total workforce, Fortescue Metals Group is leading the charge to make inroads to the diversity gap.
AMMA INDUSTRY AWARD WINNER 2017 CATEGORY: Australian Women in Resources Alliance (AWRA) Award WINNER: Fortescue Metals Group FIVE KEY THEMES are embedded into a diversity plan aimed at bridging the gap when it comes to women in the workforce at a global leader in mining. Fortescue Metals Group (Fortescue) wants 25 per cent of its workforce to be women by 2020 and it has a plan to reach what seems an ambitious target. The miner’s plan focuses on strengths and opportunities to further boost diversity, and was developed following business-wide consultation sessions with over 250 employees. Measurable diversity objectives were identified and developed around five key themes, zeroing in on practical ways to support women in the workforce. The themes centre on continuing to increase the female participation rate, building talent pools, creating a workplace supportive of diversity, providing childcare options so families can balance work and family responsibilities, and, supporting and promoting opportunities for aspiring female leaders. The company’s commitment to change in the most male-dominated industry in Australia is outlined by its belief the sector has a responsibility to ensure as many women as possible have an opportunity to participate and make a strong contribution to Australian mining. By providing women with sustainable career opportunities which has a positive ripple effect on the community, Fortescue’s approach is far removed from the outdated way of thinking when it comes to the challenge of diversity. It is this mentality to diversity commitment that landed Fortescue the
AWRA – Australian Women in Resource Alliance category at the 2017 AMMA Industry Awards. Outgoing Fortescue Chief Executive Officer, Nev Power says the company is very proud to be recognised for its commitment to building a diverse workplace by receiving the Australian Women in Resources Alliance (AWRA) award. "We are focused on providing practical solutions to ensure women can grow professionally and have the support and flexibility to have a career and family. We want to make a real difference by creating a welcoming, supportive and encouraging
Fortescue doesn’t simply implement ‘tick the box’ initiatives to meet a quota. Instead, they have meaningful and practical policies such as flexible working arrangements, child care support, career development and training opportunities that support women at work. Tara Diamond, AMMA Director Industry Services
environment for women,” Mr Power says. Fortescue female participation rates increased to 17.3 per cent in June 2017 and since November 2016, five women have been on the board. “We are aiming to have 25 per cent of
Linda O'Farrell receiving the AWRA Award from Steve Knott on behalf of Fortescue
our workforce be women by 2020. We still have a task in front of us, but we're very pleased with how we are progressing” Linda O'Farrell, Group Manager Fortescue People for Fortescue Metals Group, says. In a practical approach the company opened its on-site Fortescue Family Room, and is also offering opportunities to women to develop their relationship skills. “Everything we do is based around making real change to enable women and parents to balance those responsibilities of work and family, rather than just ticking the box and feeling good about initiatives that sound great but actually don't deliver real practical change,” Ms
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DIVERSITY
CELEBRATING EASTERN GURUMA
and Yindjibarndi Culture IN A SCHEME celebrating Indigenous culture, Thiess collaborated with Fortescue Metals Group in welcoming 10 art students from Roebourne District High School to Fortescue’s Solomon operation in August, 2017, to create an Indigenous mural. The mural depicts Roebourne’s Mount Welcome lookout and the rivers and streams running through the Western Australian town. “We’re proud to be partnering with
Fortescue and the local community to deliver this incredible piece of moveable art,” Thiess General Manager in Australia & Pacific, Spencer Jose says. “The murals on the truck work together to represent the past, present and future generations of Roebourne. “This innovative initiative is enhancing student’s studies, allowing them to apply their research, technical skills and creative ideas to a real-life project.” Thiess, CIMIC Group’s global mining
High School Students Paint Aboriginal Murals on Mining Haul Trucks
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services provider, has been delivering mining services at Solomon Hub since 2011, including the maintenance of mobile and ancillary plant, autonomy solutions and non-process infrastructure management. The Solomon Hub is located on the traditional lands of the Eastern Guruma and Yindjibarndi People. It produces in excess of 70 million tonnes of iron ore annually from the Firetail and Kings Valley deposits. RP
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ELIMINATING
everyday sexism Industry Leaders are featured in a new report We Set the Tone: Eliminating Everyday Sexism released by the Male Champions of Change coalition in October, 2017.
MORE THAN 100 chiefs of some of Australia’s largest employers and most influential organisations are taking practical steps to identify and eliminate everyday sexism in the workplace, inviting all leaders to join them. James Fazzino leads global explosives and fertiliser company Incitec Pivot in a traditionally male-dominated industry and has seen the direct benefits of a changed approach. The company is a signatory to the report. “Men in our industry clearly don’t experience everyday sexism in the way that many women do,” he says. “We found that assumptions about the roles that were suitable for women and men in our organisation influenced everyday decisions about advancement and promotions and were reinforced by our talent management systems. “By understanding and addressing the problem we have enabled more women to take up non-traditional leadership roles in areas such as chemical facilities management, engineering and distribution.” The coalition consulted more than 6,000 employees across a range of sectors to understand what everyday
sexism looks like; its impact on employees, career advancement and productivity; and actions that can be taken to address the often insidious and harmful workplace dynamic. According to the report, there are six common manifestations of everyday sexism: • Insults that masquerade as jokes; • Devaluing women’s views or voices; • Role stereotyping; • Preoccupation with physical appearance over competence; • Assumptions that caring and careers don’t mix; and, • Unwarranted gender labelling such as when women are diminished for being ‘too aggressive’ or men because they ‘lack competitive edge’. Kate Jenkins, Sex Discrimination Commissioner says while sectors respond decisively to more explicit forms of sexual harassment, everyday sexism is still evident in workplace interactions, systems, policies and decisions that affect both individual careers and organisational cultures. “Typically people don’t raise it because it can be seen as too small to make a fuss about and few want to be seen to be ‘rocking the boat’. But consistently in my
work we hear that these things do matter. They are outdated at best, harmful at worst. Unless we tackle everyday sexism, the most innovative policies and initiatives designed to advance gender equality and inclusive and effective organisations will not deliver the change we need.” Having developed a framework and language to identify and respond to everyday sexism, the Male Champions emphasise the importance of open discussion, goodwill and leadership in taking steps to eliminate it. The Australian Women in Resources Alliance (AWRA) is a national workforce gender diversity initiative facilitated by Australia’s resources and energy industry employer group, AMMA. AMMA built AWRA in response to the growing aspirations of AMMA members to increase the representation of women at all levels in their organisations. AWRA assists employers on their gender diversity journey with the overarching goal to increase women’s participation in the resources, allied and related construction sectors to 25 per cent by 2020, thus delivering a diverse mix of skills and talent to drive productivity and innovation. RP
FORTESCUE’S VTEC CELEBRATES first all-female class In June, 2017, Fortescue Metals Group’s (FMG) Vocational Training and Employment Centre (VTEC) celebrated a significant milestone, with the graduation of the program’s first all-female class. The nine female trainees from the South Hedland centre will join eight other graduates from Roebourne to start their careers at FMG’s Christmas Creek and
Solomon operations. is life changing. If it wasn’t for the support of my family, I would not be graduating today.” Once on site, graduates will continue to receive mentoring and support from Aboriginal Development Coordinators, dedicated to helping the graduates succeed and thrive in their career. RP
FMG CEO, Nev Power with graduates
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DIVERSITY
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AWRA
e-Mentoring The Australian Women in Resources (AWRA) e-Mentoring program continues to build upon its reputation as an effective, flexible and unique approach to improving gender diversity outcomes within Australia's resources and energy industry.
The federally-funded initiative pairs female mentees with mentors from the industry. Program Manager Elspeth Jeffery has run the program since its inception in 2013. More than 250 pairs have worked together workshopping goals, career blocks and strategies for professional and personal development. "The highlight for me is watching people grow," Mrs Jeffery says. "It's very rewarding to be involved in a cuttingedge scheme that can really make a difference." Participants are from across Australia and multiple male-dominated industries. During the time of the project, female participation rates have increased to 16.4 per cent. "This is indicative of the growing awareness of gender diversity in our sector," Mrs Jeffery says. "There is such a long way to go though and our industry really needs to consider its recruitment and retention strategies." AWRA is calling for new participants in the final round of the program which concludes in June 2018. RP
Elspeth Jeffery
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AWRA e-Mentoring
DIVERSITY
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RESOURCE PEOPLE's Amity Bailey explores the stories of a mentor and mentee - by delving into their backgrounds and experiences within the resources and energy industry and highlighting the benefits of AWRA’s e-mentoring program.
diversity, equality, initiative, and the PROGRESSING FROM A junior advancement of administration role on a dusty South women. Australian mine to an executive Her rich position at ASX-listed resources experience company, St Barbara Limited, in just 10 years is an achievement many have paired with her incredible state found difficult to fathom. and national However, record-breaking career achievements progression is just one of the many in 2014 led to accolades Katie-Jeyn Romeyn has collected during her 15 years within the her speaking at an AWRA event, and following this she was approached to resources and energy industry. become a mentor. Katie-Jeyn remained at an executive Katie-Jeyn highlights the importance level for five years before 2014 saw her of what AWRA represents, saying she establish her own Melbourne-based 'believes the work they’re doing to bring coaching firm, Coach on Collins. the resources sector together is vital'. “I was at a junction where I could She worked closely with her mentee either do the work to become a CEO arming her with skills to improve mindset of a mining company, or have my own and remove self-imposed barriers. business,” Katie-Jeyn says of the “She transformed. The main thing we career crossroads. worked on was her mindset, because As founder and career acceleration I think mindset is 80 per cent of it,” expert, she works in assisting leaders Katie-Jeyn says. to elevate their careers and eliminate “Once your mindset is in the right self-deprecating behaviours. place, strategy comes into play.” “People who had seen me as this Katie-Jeyn says she regularly receptionist on the mine site and then encourages individuals and companies saw me as an executive were asking to get involved in the AWRA e-Mentoring me how I did it,” she says. program due to the balance of freedom “Because I got asked that a lot, I and structure the program imposes. thought what better business than “I actually suggested to one coaching.” committee that I’m a part of that they Recently co-authoring a best-selling book with renowned author Brian Tracy in use the AWRA program instead of 2016, titled The Success Blueprint, Katie- creating their own,” she says. “The great thing is there’s a lot of Jeyn’s chapter tells of her success in a leverage to be made and the time personal and professional capacity. Her chapter also encourages others to commitment is very minimal compared to do the same in breaking through industry the opportunities that arise from it.” Katie-Jeyn believes her certainty about barriers, and establishing credibility and leadership within current and future roles. her own ability to motivate others is one of her greatest strengths, 'as believing in Katie-Jeyn says that those in the yourself is often easier said than done'. sector cannot afford to, 'sit back and She also has great aspirations to further wait for corporate culture to shift,' and must take initiative in becoming their own both herself and her firm, with hopes to expand her tailored individual coaching quintessential business leaders. and her seminars on an international scale. This attitude and ability to put her “Five years from now I’ll be living passion into action, has seen Katieoverseas, and my practice will be fully Jeyn receive multiple nominations and awards for her work surrounding international,” she says. RP KATIE-JEYN ROMEYN
CONNA WILSON
BEGINNING HER CAREER 15 years ago in a business administration capacity at Western Australian energy company, Woodside, Conna Wilson has since established herself as a key player within the resources and energy industry. Her most recent move to join oil and natural gas giant, INPEX, four years ago, has seen Conna manage and execute the company’s day-to-day onshore and offshore activities. While her current role as industrial and employee relations advisor allows her great responsibility in minimising industrial problems, Conna joined the AWRA e-Mentoring program in the hopes of furthering her career and establishing industry contacts. Conna’s Diversity Advisor initially encouraged her involvement in the program, and Conna describes her matching with a female mentor in Rachael Frizzo as “extremely motivating” in a typically male-dominated market. “Rachael had a similar attitude and perspective on life as me, and gave me strategic advice to handle situations I faced,” Conna says. Rachael’s mentoring proved invaluable in furthering Conna’s career and eliminating self-imposed restrictions, particularly in terms of career planning, self-confidence and strategic thinking. Further, Rachael’s 'hands-on approach to learning' resonated with Conna in a bid to improve upon her confidence in her own abilities, and 'personally grow within'. “Having an unbiased opinion and advice coming through in this industry is always helpful,” Conna says. “Rachael gave me different ways to approach a situation that had arisen in the workplace regarding a promotion and really prompted me to go for it when I had self-doubt. “A lot of time Rachael asked me to draft something in my words and email it through to her, and then we would discuss areas for improvement over the phone.” Having previously participated in mentoring in both a formal and informal capacity, Conna says she is keen to eventually pass on her own knowledge and experience once she has a 'few more years under her belt'. RP
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INDUSTRY NEWS
IN BRIEF: People and projects A snapshot of news and milestones across the Australian mining, oil and gas sectors.
PURSUIT MINERALS DRILLING PROGRAM UNDERWAY
ROY HILL WINS ‘GOLDEN GECKO’ CERTIFICATE OF MERIT
PURSUIT MINERALS HAVE hit the ground running, with drilling programs already underway at their Bluebush Project in the Mt Isa Super Basin. They are looking to identify a significant zinc resource at Bluebush, which, at 120km2, is one of the largest areas of zinc mineralisation in the Mt Isa Super Basin, and possibly the world. Pursuit’s management has an established track record in resource project development, having previously developed zinc projects through Meridian Minerals – delivering a 700 per cent return to investors. RP
ROY HILL’S INTEGRATED iron ore operation has been awarded a 2017 Golden Gecko Certificate of Merit at Western Australia’s most prestigious awards ceremony for environmental excellence in the resources industry. The company was recognised for an innovative and best practice approach to using its existing mining technology to track and manage rehabilitation materials at the Roy Hill mine site 340km south east of Port Hedland. Judges acknowledged the company demonstrated environmental excellence in managing topsoil, weeds and potentially hostile waste materials. The environment team used the existing fleet management system, WENCO, to accurately track and trace top soil movements which to help maximise future rehabilitation successes. “I am extremely proud of what we have been able to accomplish at Roy Hill that can now be adopted by other mining companies with an existing fleet management system at negligible cost to them,” Roy Hill CEO, Barry Fitzgerald, says. “From the start of early construction, the requirement to undertake progressive rehabilitation has been integrated into the Roy Hill project work program. “Using this technology Roy Hill has already completed over 2,500 ha of rehabilitation to date over the Mine, Rail and Port areas. “We are proud to be an industry leader in sustainable mine site rehabilitation practices, and this award recognises our innovative approach to environmental practices. It underscores our people’s hard work and is a shining example of our core values of Lead, Care, Think, Perform to deliver innovative success.” RP
GOLD EXPANSION PROJECT IN NT
ONE OF THE largest and most successful gold producing operations in Australia has undergone a multimillion dollar expansion. The US$120 million (A$154 million) expansion of Newmont’s Tanami Operations at Granites Gold Mine was made official at an opening in early October, allowing the miner to produce up to an additional 80,000oz of gold per year. About 120 jobs were created during construction of the expansion and up to 18 additional jobs will be generated as a result of the expanded operations. Newmont’s Tanami expansion includes the construction of a 3.2km second decline to underground workings and an increase in the size of the processing plant and mill, including the addition of a ball mill, thickener and gravity circuit to improve recoveries at the mill. The mine has a 4.5 million ounce gold reserve and has produced around 8 million ounces of gold since it commenced in the early 1990s. It is located 540km west of Alice Springs, in the remote Tanami Desert, on the border of the Northern Territory and Western Australia. RP
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INDUSTRY NEWS $3B NT COALTO-GAS PROJECT
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MONADELPHOUS SECURES MULTIMILLION DOLLAR CONTRACTS
A $3 BILLION coal to gas project has been announced in Central Australia. Ebony Energy’s proposed Andado Project located about 270kms southeast of Alice Springs in the Pedirka Basin on the edge of the Simpson Desert is tipped to create 2000 jobs during construction and another 200 during operation. The project involves an underground coal mine; coal-to-gas conversion technology and a 670km pipeline to Moomba in SA. The pipeline is predicted to cost $900 million pipeline. Once in operation, up to 50PJ of gas per annum could be shipped for more than 25 years from as early as 2022. RP
MAINTENANCE AND CONSTRUCTION work in mining and oil and gas projects worth $220 million has been secured by Monadelphous Group. The work includes a two-year contract to supply fixed plant maintenance services for Rio Tinto in the Pilbara and a 12-month extension at the Woodside-operated Karratha Gas Plant life extension program through a joint venture. Monadelphous will also perform electrical and instrumentation works at surface facilities for the Oyu Tolgoi underground copper-gold project in Mongolia. RP
ICHTHYS LNG PROJECT COMBINED CYCLE POWER PLANT FIRES-UP
THE INPEX–OPERATED Ichthys LNG Project is a step closer to becoming the world’s first liquefied natural gas (LNG) plant to use combined cycle technology, having successfully initiated the start-up of its gas turbine generators at its onshore power plant near Darwin, Northern Territory, Australia. The milestone is a significant step towards power generation
at the Project’s onshore combined cycle power plant (CCPP). The waste heat from the gas turbines will be used to create steam for the nearby steam turbine system, which generates extra power. Power and Water Corporation in the Northern Territory provided the initial gas to fuel the GTG start-up process. RP
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POLICY
A NEW YEAR in workplace policy WHEELS OF CHANGE SLOWLY TURNING
Ingrid Fraser POLICY ADVISOR
2017 HAS SEEN some small yet important areas of movement in the workplace relations sphere. A number of welcome policy initiatives have now been instigated by the government since its return to power after the double dissolution election in 2016. We have seen some key pieces of legislation pass the differently constituted senate that have addressed recommendations arising out of the Productivity Commission and Royal Commission into Trade Union Governance
and Corruption. In taking this piecemeal approach, the government appears to be adjusting to the political realities of a difficult senate, with the largest crossbench on record. There also appears to be an increasing trend of government looking to steer away from the more controversial wholesale changes to the Fair Work Act and instead, address structural frameworks of the organisations bestowed significant power under it. Namely, regulatory deficiencies in registered organisations and employers in almost equal measures. RP
REFORM NEEDED AT THE BEGINNING of 2017, AMMA’s workplace relations campaign continued to focus on ‘Five Urgent Reforms'. These priorities had been pursued as ‘immediate’ since 2015, formulated from member feedback and surveys, and included: 1. Restore balance to union workplace entry laws; 2. Focus enterprise bargaining on employment matters; 3. Expand agreement making options for employers and employees; 4. Return to balanced termination of service laws, where a valid reason exists; and, 5. Replace the Fair Work Commission with modern, balanced institutions.
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Throughout 2017, AMMA continued to advocate for change in these areas, which affect the day-to-day operations in the resources and energy sector. However, AMMA has kept an eye to the future. As industry leaders in workplace relations, we must recognise the challenges and opportunities for the future of the resources and energy sector and embrace the change that is already upon us. AMMA’s current focus is to advocate for our political leaders at both a state and federal level to develop a workplace relations system that accommodates change, encourages innovation and entrepreneurial activity and promotes investment in our nation and its people.
RP
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POLICY
A NEW YEAR in workplace policy REGISTERED ORGANISATIONS CHANGES IN THE REGISTERED organisations space, the government has introduced the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2017. The Bill implements important recommendations of the Royal Commission into Trade Union Government and Corruption (Royal Commission) and delivers on coalition election promises. It contains four key measures concerning registered organisations: • The ability for an officer of a RO to be disqualified from office by the Federal Court • The ability of the Federal Court to deregister ROs in certain circumstances • The ability to send dysfunctional ROs into administration, and • The requirements the Fair Work Commission (FWC) must consider whether deciding whether a merger is in the public interest. AMMA has advocated for amalgamations to be subject to a public
interest test since 2015. This is critically important to ensure that the public interest is taken into account when the FWC considers the pending merger involving two of the most militant unions in the country, the CFMEU and the MUA. AMMA appeared before the Senate Committee giving evidence in support of the Bill, including explaining why it is important to the resources and energy sector. Amanda Mansini, Director Workplace Relations, addressed the public interest test element of the Bill. “There are concerns within our membership that this merger, in the CFMEU and the MUA’s own words, would facilitate their proud and notorious lawlessness through giving them greater power,” she stated. “We say this is not an anti-union law; unions that honestly and lawfully comply with workplace laws and do so consistently should have no problem meeting this sort of public interest test.” The Bill has passed the House of
Representatives. AMMA urges the government to act to ensure these important measures are in place as soon as possible. The government has also introduced the Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 which will implement further recommendations of the Royal Commission. It is designed to ensure that money that is paid into funds for entitlements such as sick leave and redundancy are held for the benefit of workers and not spent for other purposes. This Bill is the latest in a series of legislative reforms aimed at improving internal governance and accountability measures for registered organisations. Earlier this year, Parliament passed legislation outlawing the payment or receipt of corrupting benefits, and placing obligations on bargaining representatives to disclose any benefits received from mandating the use of certain products within enterprise agreement terms. RP
Registered Organisations Commissioner, Mark Bielecki
POLICY SCORECARD SINCE 2016: REGULATION OF CORPORATIONS V REGISTERED ORGANISATIONS SINCE 2016 WE have seen the government introduce a suite of legislation aimed at regulating unions and employer associations, and a suite of legislation aimed at regulating corporations and employers – in what appears to be a strategic positioning of government. Parliament passed legislation to re-establish the Australian Building and Construction Commission. This legislation, importantly for elements of the resources and energy industry, now extends to offshore facilities largely due to AMMA’s advocacy efforts. The Turnbull Coalition Government and those crossbenchers who voted in support, made a statement they will not be bullied by union militancy and has put in place a platform to stand up to the damage lawless disruption causes our economy. Parliament also passed legislation to establish the Registered Organisations Commission, an important initiative also aimed at improving the transparency and accountability of unions and employer associations. In a move aimed at regulating employers, the government introduced legislation to protect vulnerable workers by increasing penalties on employers who systematically underpay workers and fail to keep proper employment records. It was introduced in response to high profile inquiries such as the 7-Eleven underpayments scandal. These inquires discovered systemic issues of underpayment and exploitation of vulnerable workers, particularly migrant workers and those in the franchise sector. The legislation passed the Senate in September. Impacting both employers and registered organisations, the government secured the passage of legislation to outlaw ‘secret deals’ between unions and employers, making it an offence to dishonestly give or receive a ‘corrupting benefit’. Minister Cash said: “For too long some union officials have been paid private kickbacks used for personal expenses, to bolster union coffers or bolster their own status and power, all at the
expense of workers.” The legislation will ensure Australian workers are the first priority in negotiations between unions and employers. Equally important reforms are on the horizon, including the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2017 which would introduced a much needed public interest test for union mergers. The Bill has passed the House of Representatives but with Parliament not resuming until February, we will not see any further movement until the New Year. Likewise, the Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 is stalled until the New Year. This legislation is aimed at ensuring further transparency and protection for employee entitlements where they are held in funds controlled by registered organisations. Targeting employers, the government has announced that it intends to introduce legislation to stop the misuse of the Fair Entitlements Guarantee (FEG) scheme. This scheme provides financial assistance for certain unpaid employee entitlements to eligible employees who have lost their jobs due to the insolvency of their employers. It is known as a ‘scheme of last resort’ to support redundant workers. The government has also flagged proposed reforms to the corporations and tax laws to crack down on illegal phoenixing activity. The government has made clear that it wishes to minimise any unintended impacts on legitimate businesses and honest restructuring. RP
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LABOUR HIRE UPDATE BUSINESSES IN QUEENSLAND and South Australia will have to undertake labour hire licensing in the New Year and Victoria is set to follow. A difficulty for businesses is that the legislation in both states has purposely been drafted very broadly. There remains a great deal of uncertainty about whether the licensing scheme will capture arrangements for supply of workers to a third party which would not commonly be understood as labour hire arrangements, such as genuine contracting arrangements. Despite extensive concerns raised by industry during the Queensland Parliamentary Inquiry, only one concession of any substance was made, with the transition date being increased from 28 days to 60 days. This means labour hire providers will have 60 days from 16 April 2018 to lodge an application for a licence. South Australia’s scheme will take effect in March 2018, with a transition period of six months. Victoria has followed the trend of the Labor-led states and introduced a Bill of similar broad application on 13 December 2017. This is despite the Inquiry into the Labour Hire Industry and Insecure Work recommending any such scheme should be targeted at industries where labour hire providers have demonstrated records of noncompliance with Australia’s workplace laws. All three states have indicated that there may be scope to refine the scheme in the regulations, so AMMA will be continuing its efforts to ensure that regulation in this space does not encroach into legitimate contracting and other commercial arrangements not traditionally thought of as labour hire. That the many legitimate labour hire operations in these states will have their administrative burdens added to is disappointing, particularly as the schemes were introduced to target rouge operators already in breach of the law. The regulation will most likely not stop here. There is increased pressure from the Labor-led states to introduce a national scheme, and Shadow Minister for Workplace Relations and Employment, Brendan O’Connor, has reiterated that it remains Labor policy to introduce a national scheme should Labor be successful in the next federal election. RP
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POLICY
POLICY AT a glance NEW FIFO LAWS IN QUEENSLAND
UPDATE ON NERR CHANGES
IN THE LAST EDITION of Resource People, AMMA reported on the recommendations in the Queensland Parliament Infrastructure, Planning and Natural Resources Committee’s final report, which contained a number of recommendations with respect to the state’s FIFO operations. The Strong and Sustainable Resource Communities Act 2017 (SSRC Act) is now a reality. A staged implementation of its provisions is underway, with most due to commence on 30 March 2018. Large resources projects with more than 100 employees, based 125 kilometres from a regional centre with at least 200 residents will be affected because companies will not be allowed to use a 100 percent FIFO workforce for large resource projects located near regional communities. The Coordinator General has been given a raft of additional powers, including to set, monitor and enforce compliance with conditions on new large resource projects through their environmental
IN THE LAST edition of RESOURCE PEOPLE, AMMA reported that the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017 had passed the House of Representatives and was anticipated to pass the Senate this year. The Bill includes provisions which, among other things, would allow the Fair Work Commission (FWC) to overlook minor procedural or technical errors, including in the Notice of Representational Rights (NERR) when approving an enterprise agreement. The legislation has not yet passed, enabling quicker approval and greater certainty for business. AMMA considers these changes are largely noncontroversial and generally supported by most stakeholders. Despite this, the debate in Parliament has centred on attempts by the opposition and others to amend the Bill to protect penalty rates. In the last parliamentary sitting week of the year, Labor and crossbench Senators succeeded in passing an amendment to the Bill to include provisions to overturn the FWC’s February 2017 penalty rates decision. The opposition did not succeed in having the amendments considered in the House of Representatives immediately. Debate has been adjourned, and Parliament is not scheduled to resume sitting until 5 February 2018. Unfortunately the delay largely caused by the opposition’s since the Bill was first introduced in March 2017, political point scoring, means that a number of enterprise agreements have or are likely to be rejected due to a minor NERR deficiency which had absolutely no impact on the bargaining process. Evidence at a Senate Estimates hearing revealed that as at August 2017, over 115 applications had been withdrawn due to this very reason, with a further 75 held in abeyance. AMMA will continue to watch the progress of this Bill closely when Parliament resumes in 2018. RP
impact statements, which will need to comprehensively assess social impacts. The SSRC Act also amends the AntiDiscrimination Act 1991 (Qld) to prohibit companies discriminating against locals in the recruitment of workers and allow FIFO workers to move into the local community if they want to. This change also includes an effective reverse onus of proof, so that if a complainant alleges they were refused work or their employment was terminated because they live in a nearby regional community, it is presumed the action was taken for the alleged reason unless the project owner proves otherwise. A recruitment hierarchy within the SSRC Act prioritises recruitment from local and regional communities, followed by recruitment of workers who will live in a regional community. These laws were introduced despite criticism from the resources industry that they are yet another disincentive to do business in Queensland. RP
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CHANGES TO SKILLED MIGRATION AS PART OF the government’s reforms to Australia’s temporary and permanent skilled visa programs, the skilled occupation lists that underpin the temporary and permanent skilled visa programs will be updated every six months. As a result of changes that occurred in April 2017, two lists currently underpin Australia’s skilled migration programme; the Short-term Skilled Occupation List (STSOL) and Medium and Long-term Strategic Skills List (MLTSSL). As this is the first substantive consultation process since the April changes, it is occurring in two stages. The Department of Employment has asked
for feedback on the draft methodology for providing advice on the composition of the skilled occupation lists. That methodology will then be used to gather labour market information to make an assessment of which occupations should be eligible for skilled migration. The Department has indicated that it intends to publish a list of occupations and identify whether they are under consideration for a proposed change in their status. Stakeholders will be invited to give evidence in relation to the specific occupations identified for possible change, or on the occupations more generally. It is the
Department of Employment’s role to make recommendations as to which occupations should be eligible, and the terms on which they should be accessible for the purposes of both independent and employer nominated visas. Ultimately, the final decision is made by the Minister of Immigration and Border Protection. AMMA will be working hard to ensure the both the STSOL and MLTSSL meet the genuine skill needs across the resources and energy sector, and reflects the dynamic and specialised nature of job roles that are being performed. The next update to the lists is slated to occur with effect from January 2018. RP
GREENFIELDS AGREEMENT REVIEW AMMA HAS BEEN advocating long and hard for efficient and effective agreement making for new projects or business undertakings - known as "greenfields". AMMA’s comprehensive submission to the Productivity Commission highlighted the need for reform in this area. The investment environment in Australia had shifted markedly since the end of the mining boom, investment decisions were being delayed and capital projects already under construction were entering production phase. The Fair Work Act 2009 was amended in 2015 to include the capacity to break a bargaining impasse. The amendments permit employers to notify a six-month
negotiation period. If an agreement cannot be reached with a union or unions within that period, the employer can take the agreement to the FWC for approval. In making an agreement under these circumstances, the FWC must consider the prevailing pay and conditions for the relevant industry for equivalent work. The amendments also extended good faith bargaining rules to greenfields negotiations. Parliament required an independent review of the provisions to take place within two years of commencement in order to assess the effectiveness of the changes. The review was conducted by former
Fair Work Commission Senior Deputy President Matthew O’Callaghan. The review is considering the effect of the current provisions on greenfields agreement making, taking into account submissions from interested parties and other publicly available information. The review was due to be completed by the end of November 2017. The outcome is not yet publically available. While we have seen a lull in greenfields agreement making, it is critically important for the resources and energy sector that this be a legitimate and functional option for employers within the broader suite of agreement making options. RP
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LEADERSHIP
A GLOBAL PERSPECTIVE ON HR Dave Ulrich, University of Michigan Professor and RBL group partner, explores how to capture the heads, hands and hearts of employees.
IN THE PAST 15 years, Dave Ulrich has visited 88 countries and consulted with half of the global 100 biggest companies in the world. He spoke to Resource People about Australia’s future of work and implication for HR trends, and talent, leadership, and culture. “As industry leaders you are already dealing with automation and this changing skills dynamic and impact on the culture of an organisation,” Mr Ulrich says. “You are changing your processes, systems and are a driving force driving force in your organisation to manage and mitigate and navigate this period of change.” The employee of the future is very different and the need to connect with each other and to individuate and to help employees find a sense of purpose from the work they do is now what matters, according to Mr Ulrich. “I am passionate about how to help organisations deliver value in the marketplace,” he says. “I want to help design talent, leadership, and cultural systems that help organisations serve their customers and meet investor and community expectations.”
compensation benefits, and, the emergence of the ‘social and emotional’ contracts designed to build a company enabling employees to find a sense of meaning and a sense of purpose. “Australia is exploring, ‘How do we capture not just the head, that's the mind, and not the hands and the feet, that's the body, but the heart and the soul of an employee?’ I think there's some principles that might be adapted to an Australian company to do that,” he says. “Mental health, and employee well-being is the word that often gets used and is an issue across many companies in many industries because it gets exacerbated in an isolated place. “The biggest cause of mortality, things that lead to death, is not smoking, it's not drinking, it's not obesity, it's not depression and anxiety. It's emotional isolation. “What the psychologists are finding in many big companies is that the technology and digital world that should connect us, Facebook could connect us, but it actually isolates us. “Our emotional well-being gets distracted. That gets exacerbated in a resource industry where we work in isolated places.” Ulrich notes it is therefore a challenge for ENTERPRISE BARGAINING THE KEY companies to find ways to bring employees Ulrich notes there is a pattern in Enterprise together. Bargaining contracts becoming more “How do we find ways when employees legalistic outlining hours worked and work in isolated places to still work as a L-R: Kerie Chalker, Heathgate; Steve Batterham, MMG; Elaine Taylor, Northern Star; Dave Ulrich; Nicole Irvine, Subsea 7 Australia and Colin Purves, Sodexo
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community, to be good teammates with the folks with whom they work, to feel like they have some degree of control over their work conditions, even though it's isolated, to do everything possible to avoid that social isolation?” DIGITISATION TRIGGERS DIVERSITY FOCUS Environmental stresses, publicity, government regulation, deregulation, the new entrance in the industry and globalisation, has centralised HR strategy on diversity initiatives. “With diversity, it's not just about the demographic of the individual, but it's the diversity of ideas. It's the diversity of approaches and that diversity creates a creative tension that enables us to manage change that enables us to respond to that external environment. “Diversity is not just the social, ‘let's get more women in the workforce from 13 to 20 per cent’, but let's get more people in the workforce who have the capacity to disagree without being disagreeable. “Who can have tension without contention so that we bring new ideas that enable our firms to move forward? “In a world of incredible volatility and change organisations have to have equal agility because if the organisation can't change as fast as the world around it, it will get lost.
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“It will be living in the past, not the present and the future and it won't be creating what's ahead.” In a world of change, organisations have to have agility, Mr Ulrich says. “To have organisational agility you need tension. You need difference of opinion. If there's no difference of opinion, if there's no challenge to the status quo, we don't change' he says. "What the psychologists are finding in many big companies is the technology and digital world that should connect us, actually isolates us."
What the psychologists are finding in many big companies is the technology and digital world that should connect us, actually isolates us.
area of technology, the innovation in technology creates more opportunities than it takes away.”
KEY TRENDS EMERGING IN HR The main HR trends centre around Dave Ulrich, HR Expert how HR can help the business compete, according to Mr Ulrich. This means that HR work should not ARTIFICIAL INTELLIGENCE only focus on factors and stakeholders While some jobs would disappear, inside the organisation but outside. artificial intelligence would open the HR creates value by linking its work to doors to new jobs and opportunities, general business conditions (digitisation, says Ulrich. demographics) and to external “The ‘person-machine interface’ is not stakeholders (customers, employees, and community). new. A hundred years ago people got around with horse and buggies, then “To respond to these conditions, HR should not only deliver individual came the automobile, and everybody said, ‘Oh. This is gonna destroy the world competencies (talent), but also the right we've lived in," he says. organisation capabilities (culture),” Mr “The person machine or man machine, Ulrich says. as it's been often described, the interface, This means HR specialists need to doesn't destroy the world. It creates a learn about general societal trends new world. including digitisation, urbanisation, “The fact that automobiles can economic trends, political trends and get us access and moving and then demographic trends. from automobiles to aeroplanes to “HR experts are having to manage the transportation. In almost every industry pace of change and the volatility of certainty there's an evolution between the person kinds of work and blurred boundaries and the machine that opens more between stakeholders: customers, investors, communities and employees.” opportunities than it closes. “I don't know what those new jobs will be Ulrich says the solution lies in ‘finding with artificial intelligence. It may be coding. the problem’. “Learn about the value of surveying It may be privacy. It may be distribution. your community: What's the biggest “I am an optimist that in almost any
issue you face as a business leader to help your business win? Is it managing cost? Is it managing safety? Is it managing growth? What's the business issue you wrestle with?" Mr Ulrich has studied HR competencies for over 30 years and how those competencies deliver key outcomes. He concludes being a credible activist gives HR professionals personal credibility. “Get invited to the business dialogue. Being a strategic positioner helps HR deliver value to customers, investors, and communities; and being a paradox navigator deliver business results. This combination of skills helps HR pros become more effective,” he says. And that could mean the difference between a company being successful or not. “HR insights deliver the right talent, leadership, and organization that enables a firm to win in its market. Often, in mining and other industries, competitors can copy access to financial capital, business strategy, and operational systems, but these HR outcomes (talent, leadership, culture) differentiate companies and help them win. Dave Ulrich shared his expertise with Australia’s resource and energy industry leaders on 22 August in Perth at AMMA’s Resource Industry Employer Forum. RP
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LEADERSHIP
AGE NO BARRIER
to leadership
As a young graduate, Incitec Pivot saw great potential in Hannah Campbell's ability. With demonstrated safe manufacturing working practices, passion, drive, thirst for knowledge and ability to lead and learn, she embraced the opportunity to lead the Operations function as the Moranbah Operations Readiness Coordinator at her company’s Ammonium Nitrate Facility.
AMMA INDUSTRY AWARD WINNER 2017 CATEGORY: Young Professional of the Year WINNER: Hannah Campbell HANNAH CAMPBELL executed the plant turnaround, a project comprising 94,000 man hours and 695 Workpacks. The high risk and complex scope of work included commissioning of five compressor trains following major overhauls and catalyst reductions. This involved the planning and execution of the plant shutdown and decommissioning, isolation and blinding, permit issuing, commissioning and start-up of the Ammonia, Nitric Acid, Ammonium Nitrate and Power and Utilities plants. Ms Campbell showed experience beyond her years to successfully control the large risk to customer contracts with the ability to maintain supply with the plants offline capacity being unproven. “Working to Incitec Pivot Ltd’s continuous improvement business system, Hannah focused on how she would leave a legacy, as well as executing the turnaround successfully,” Peter Ware, VP Australian Manufacturing, Incitec Pivot Ltd says. “By working collaboratively with, and seeking input from different functions, she was able to work to, and continually improve the processes to match the site’s needs both during the turnaround, and going forward. “Following a 'lessons learnt' review post-turnaround, she then updated the Operations Readiness TMS documents for use in future turnarounds.” Ms Campbell led key changes including an Electronic Permit Map, Schedule Development Process and Commissioning Workpacks for critical machine commissioning.
My advice would be to back yourself, to not be afraid of giving something a go. The worst you can do is make a mistake and everyone makes mistakes. That's how we learn.
Hannah Campbell, Incitec Pivot
Mr Ware says Ms Campbell not only ensured the turnaround scorecard criteria of safety, quality, schedule and cost were achieved, but the site was able to effectively still service Incitec Pivot Ltd’s customer base during the period. “Importantly, there were no recordable injuries during the turnaround window. There was no slip from Decommissioning and Commissioning, which was a company record,” he says. “A bonus, but obviously planned, was that post turnaround the site set new MSPRs (Maximum Sustainable Production Records) for all plants.“ As a young, female engineer within a historically male-dominated industry, Ms Campbell was drawn to the field because of her desire to work in an environment where she was constantly challenged to solve problems and look to improve the status quo. “It’s one of the most challenging sectors that a young engineer can go into. That's really why I went into that sector, and what I love most about it is that every day is a new challenge,” she says.
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
Ms Campbell started in the Incitec Pivot Graduate Programme in 2014 as a process safety engineer in Gibson Island, an ammonia based fertiliser producer on Australia’s East Coast. After a year she moved to Moranbah as an operations process engineer in the ammonia and utilities plant, before being given the opportunity to lead the operations planning for the 2017 Moranbah turnaround one year later. “Having only worked in the industry for two years and really only a couple months out of my graduate program, I was very nervous and intimidated at first, due to the size of the project and experience of the rest of the execution team," she says. “However, senior management were quick to remind me that they had given me this opportunity because they were confident in my ability, and assured me they had my back. I think that's part of the
Hannah Campbell with AMMA CE Steve Knott AM
LEADERSHIP
reason for the success of the project. “I had little experience in turnaround activity but I found that because I had the support of my team and site, I became confident in my ability and I was able to improve one day at a time and tackle each challenge one-on-one. And I guess that's why we succeeded in the long run.” Ms Campbell credits her mentors and coaches with her success. “I definitely would not been able to do what I did without my strong mentors who guided me through the process and the turnaround management team who provided on the job coaching,” she says. “My advice for other people within the sector is to treat age as a number and not a disadvantage, and to look for potential and not just demonstrated performance.” Ms Campbell has big goals and these
were in part achieved after she was awarded the 2017 AMMA Industry Awards Young Professional of the Year. She wants to work in operations management and shortly after receiving the national award was promoted to production superintendent at the Moranbah plant. “I think the award helped solidify the fact that even though I am young, I can do it. That role is typically not done by someone as young as me and typically not done by a female either, however Incitec Pivot Ltd are challenging this status quo more and more. It’s a great challenge for me, and of course it’s great for gender equality." she says. “In the future I'd love to keep going onto production manager, site manager and go from there.” RP
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Hannah Campbell at work
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58
LEADERSHIP
REAL TIME PLATFORM FOR
managing frontline work plans wins METS award Anglo American Executive Head of Underground Operations for Moranbah and Grosvenor Glen Britton and Commit Works CEO Paul Moynagh.
A COLLABORATIVE PROJECT transforming underground mining operations has won the 2017 METS Ignited Collaboration Award. Brisbane-based mining equipment, technology and services (METS) company Commit Works are working with mining company Anglo American on a real-time platform for managing frontline work plans. METS Ignited is an industry-led, government-funded growth centre for the mining equipment, technology and services (METS) sector that works with industry, miners, and research organisations to improve the competitiveness and productivity of the Australian METS sector. The award, in its second year, acknowledges and recognises organisations that contribute to a culture of collaboration within the mining innovation ecosystem and achieve mutual business gains as a result of successful collaboration. “The submission by Anglo American and Commit Works was outstanding,” CEO Ric Gros says. “We received an exponential number of applications for the METS Ignited Collaboration Award this year and
this reflects the growing number of collaborations across the mining ecosystem, helping to improve the competitiveness and productivity of the Australian METS sector.” South32, AMC Consultants and JKTech, and Rio Tinto Iron Ore, AMOG and The University of Newcastle were finalists in the award. Commit Works CEO Paul Moynagh says the award was recognition for years of hard work developing innovative real-time platforms for managing frontline work plans that deliver safer and more productive mining operations for clients. “Our job is to make software tools that ensure people go to work every day with a plan,” Mr Moynagh says. “Planned work is much safer and far more productive than unplanned work, and that has been reflected in the results that Anglo has seen over the last five years. “The sites that use our short-term planning and scheduling system quickly get to the point where they can actually rely on their shift plans to lead their teams and track results in short intervals.” The team at Anglo’s Moranbah North also won the 2017 Australian Mine of the Year
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
and Coal Mine of the Year. Anglo American and Commit Works co-designed and implemented the unique visual management system entitles Visual Ops that provides realtime operations mapping to monitor the progress of work onsite. The system provides supervisors and crew with context-rich awareness of the location of hazards, people, equipment and tasks, assisting to improve safety and productivity by giving visibility via phones, tablets or big screens for everyone on site to clearly Anglo American Executive Head of Underground Operations for Moranbah and Grosvenor Glen Britton says this initiative has been achieved through an effective partnership between Anglo American and Commit Works. “The story of our collaboration began by identifying a clear gap in work management capabilities that no solution on the market could fill. Together, we’ve pioneered a series of unique innovations – Fewzion and Visual Ops. Both have delivered results beyond expectations,” Mr Britton says. RP
LEADERSHIP
59
ADANI REPRESENTS AUSTRALIA
at ILO meeting of safety experts
Wayne Reilly
ADANI GENERAL MANAGER of Health Safety & Security, Wayne Reilly, represented Australian mining employers at the International Labour Organisation’s (ILO) tripartite meeting in October, in Geneva, where experts from employers, worker and government groups reviewed and revised the global open cast mining safety standards. Once in Geneva, Mr Reilly was unanimously voted in by the employer delegates of 15 countries as chairperson and spokesperson of the employer group,
leading the global employer group and speaking on behalf of the group in the five days of tripartite meetings. The meeting set the safety standards for ILO member states for 10 years, ratified by all nations through their respective laws. Mr Reilly has worked as a Health, Safety, Environment & Quality (HSEQ) professional for 26 years’ and has diverse experience in major project delivery, mining, construction, processing and aerospace industries with tertiary qualifications in engineering, science and safety. “As the developer of the Carmichael thermal coal mine in central western Queensland, Adani is proud to have Mr Reilly, who has extensive international mining safety experience, represent Australia,” Adani Mining's CEO Jeyakumar Janakaraj says. “Adani has provided leadership for the hundreds of thousands of people working in open cut mines in the developing world.”
Adani’s gesture of sharing its expertise and contributing to the global standards for WHS in open cast mines was also a practical demonstration of Adani’s commitment to be a global leader in safe, clean, socially responsible operations. The Carmichael mine is the biggest greenfield open cut in Australia’s history. “Adani is committed to using its historic Australian operations to set a new global standard for safe, clean, and socially responsible operations, and contributing to the global standard under which hundreds of thousands of working people in dozens of countries is an important practical demonstration of Adani’s values and approach,” Mr Reilly says. The “ILO is a unique coming together of countries and their workers, employers and governments and it’s our honour to lend this expertise and energy to make resources work safer for more operations, for more employment globally.” He says Adani is committed to leading the industry in the safety of both operating the mine, and building the mine. RP
Wayne Reilly onsite with colleague Kel Chapman
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INNOVATION
SAFETY TECHNOLOGY
for mine-site data
Innovative solutions are streamlining efficiencies at a remote Queensland mine.
DUGALD RIVER MINE, one of the world’s highest-grade known zinc deposits, is now equipped with technology to ensure the operation can run safely and efficiently to maximise output. The mine, owned by MMG Limited, last year announced an optimised mine plan that will support a 1.7Mtpa operation with annual production of around 170,000 tonnes of zinc in zinc concentrate, plus by-products. An innovative system installed at the mine has enabled control room administrators to capture live data ensuring data accuracy, increasing efficiencies and control over equipment, tasks and personnel. It comes as inventive mining solutions provider, MICROMINE, announces successful implementation of its underground fleet management and mine control solution, Pitram, at the mine in north-west Queensland. The solution utilises voice radio
data capture, allowing production data to be entered into Pitram via radio communication. Included in the deployment is Pitram’s Materials Management module which utilises mine design, survey and production data to provide real-time stockpile balances throughout the mining operation. MMG Dugald River Mine Technical Services Superintendent Rhett de Vries says the technology means enhanced safety and efficiency. “The implementation of Pitram has provided Dugald River with a robust Mine Control solution that will allow the operation to record, manage and process mine site data in real-time,” he says. “Improvements in safety, productivity and reporting efficiency are already being realised, and the business looks forward to leveraging these benefits as the operation ramps up.” Pitram Business Development Manager, Chris Rowohlt says the
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
solution streamlines processes from the control room. “Real-time data entry allows the control room to make proactive decisions which ensures the operation can run safely and efficiently to maximise output,” he says. “The Pitram Materials Management module adds value to the Dugald River operation by providing an accurate method of tracking the material flow including grades from source to processing.” Additional modules implemented will include drill and blast, which provides tools for planning and managing drill and blast operations, additionally, the controlled areas module improves safety by monitoring access to dangerous and hazardous areas. A single source of the truth, Pitram, allows control room administrators to make decisions in real time based on the data captured to increase productivity and reduce costs. RP
INNOVATION
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PILBARA SOLAR STUDY
shines light on jobs WA’S PILBARA IS known for its massive mining riches but the hot sunlight beating down on the region could also be sold overseas, a new study has found. Exporting solar energy from the Pilbara to South-East Asia is technically viable and a large-scale project could create up to 2000 jobs in the region and 12,000 in the State, a WA Government pre-feasibility study found. The study developed a scenario detailing the cost to build a three-gigawatt solar farm and transmission undersea cable from the Pilbara to Indonesia. The Pilbara has one of the highest levels of direct sunlight — or solar interference — on the planet and was identified by the International Energy
Agency as one of the top six locations to develop large-scale solar farms. The study found other competitive advantages in the Pilbara such as land availability, industrial infrastructure, proximity to Asia and existing investment links, making it well placed to supply an efficient and reliable power source to meet rapidly growing demand from South-East Asia. Falling solar energy costs would make the commercial case for connection to Indonesia within five to 10 years, according to the study, which was released at the New Pilbara Economic Development Conference in Perth, in August, 2017. “Exporting solar energy to Asia has
the potential to be a valuable addition to the Pilbara’s existing energy mix and would stimulate new economic activity, creating thousands of permanent jobs in the region,” Regional Development Minister Alannah MacTiernan says. RP
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62
INNOVATION
HOW DRONES
are changing operations FLYING ACROSS THE sky with minimal fuss, the increasingly prevalent use of drones is doing more than just providing a bird’s-eye view of what’s happening on the ground. As the use of drone technology becomes an ever-popular way of gaining a more-informed, real-time view in different situation, the resources industry is now also finding out the benefits of this burgeoning practice. Whether it’s for mine site surveying or improving safety, drones are becoming an essential part of operations. Another upside to using an unmanned
aerial vehicle is that it leaves site personnel more time to undertake indepth evaluation and interpretation of what these piece of equipment find. More importantly, the drones can do jobs that have the potential to put workers in safety-compromising situations. When faced with work at a more remote, or hard-to-reach part of site, a drone can employed to do the heavy lifting. Instead of putting significant resources into the job through safety preparation and travel time, a drone can efficiently and safely carry out what’s required. Not only can they safely give a real-
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time sneak peak of every corner of a site, they can also track and survey site conditions and monitor dust and fumes. They can also be used to improve road safety on sites, by monitoring traffic, road conditions and hazards. While improving safety is their number one advantage, more information about sites than ever before can be gathered through the use of a drone. Stockpiles can quickly and accurately be managed and measured, and design compliance can also be reviewed. From an overall perspective, they boost safety and productivity.
INNOVATION
Their ability to provide total site solution, site surveying services that are an improvement on ground-based alternatives was what caught the eye of equipment maker Komatsu Australia. Six in-house pilots at the company have recently received their ‘wings’ as certified drone operators. Komatsu national technology solution expert manager Aaron Marsh says obtaining the remote pilot licences was crucial for the company because it dovetails into its Smartconstruction integrated business model, providing a multitude of advantages for the initial site surveying stage and beyond. “The main advantage of aerial surveying using unmanned aerial vehicles is that it is fast and accurate and creates efficiencies in subsequent construction stages such as earthmoving,” Mr Marsh says. “For example, the 3D drone data can be fed into our Komconnect application to automatically calculate the area and volume of earth to be moved and our customers can access it in real-time. “Likewise, our factory-integrated intelligent Machine Controls operating on the ground, can update the asbuilt ground conditions as they go for accurate cut and fill volume reporting. "The drone captured data can also be used for stockpile calculations and ongoing review of construction progress and site logistics.” Using the drones leads to a more streamlined and economical process, meaning a process to navigate the site that used to take days and weeks, can now be completed with 'negligible manual effort', Mr Marsh says. High accuracy survey quadcopter drones, which create sub five centimetre accurate 3D point clouds, are used for the operation. It is a big step in the company’s focus on working smarter and gaining real-time access to what is happening on-site. Getting the all-clear to operate the drones, through remote pilot certifications is only obtained after sitting a week-long intensive unmanned aerial vehicle (UAV) course, certified by CASA, the Civil Aviation Safety
Authority, which Komatsu required to fly its drones commercially. On course completion, Komatsu applied to CASA for a commercial operator’s license. Drones are also being employed to gain information for community engagement, BHP Billiton’s Heritage Manager, Daniel Bruckner, explains. Drones are now being used to map and digitally record areas of cultural heritage where they exist near the company’s sites in Western Australia’s Pilbara region. “For me, the bigger picture is what this technology allows us to do that could never have been done before, and for us that means being able to share and preserve cultural heritage that might otherwise have been lost,” Mr Bruckner says. “We’re now able to share all our footage with local Aboriginal groups, and they’re excited about that possibility.”
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The company has also boosted productivity by trialling drones fitted with military-grade cameras to provide real time aerial footage and 3D maps of our sites. With no need to engage planes for survey work, the cost-savings have been substantial, estimated to be about $5 million at Queensland sites alone. As we all know, technology is playing an integral part of the continually evolving future of work. It means the legwork will be carried out by drone, freeing up more time for analysis and interpretation. The impact on particular occupations is likely that, for example, surveyors will spend less time in the field gathering data in the field and more time interpreting it. From improved safety, efficiency, site surveying, and the ability for businesses to increase their digitalisation and connectivity, the positives from using drones are there for all to see. RP
RESOURCEPEOPLE | SUMMER 2017 | www.amma.org.au
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ECONOMY & FINANCE
FUTURE MINE DISCOVERY
boost for junior explorers In a bid to stimulate exploration and fast-track the discovery of future mines, a federally-funded multi-million dollar incentive for junior explorers has been introduced. RESOURCE EMPLOYERS HAVE welcomed a $100 million tax incentive for junior exploration companies. The Junior Mineral Exploration Tax Credit (JMETC) replaces the Exploration Development Incentive (EDI), which was dumped from the Coalition’s 2017-18 budget. In a bid to reinvigorate the mining sector and generate new mine discoveries, Prime Minister Malcolm Turnbull unveiled the initiative in Western Australia in August. The scheme aims to make it easier for junior explorers to raise money for exploration in greenfield sites, allowing tax losses made to be distributed as a tax credit to shareholders. Australia’s exploration lobby group, the Association of Mining and Exploration Companies (AMEC) hailed the new scheme as 'visionary and great news for Australians'. “The JMETC is a critical investment in Australia`s future, particularly as contemporary research in relation to existing mines indicates that there will be significant reductions in production and government revenue streams as those mines reach the end of their current lives,” Simon Bennison, AMEC Chief Executive Officer, says. “They need to be replenished by new
discoveries as soon as possible.” Mr Bennison says mineral exploration is a long term, high risk activity which needs scarce equity capital in a globally competitive market place. “The credit to investors will represent 30 per cent of the eligible greenfield mineral exploration expenditure incurred, and renounced by the company,” he says. It is hoped the scheme will result in more investors entering the equity market and labelled the rewards greater for those investors in successful exploration companies which subsequently develop a new mine. Analysts project employment will decrease in the base and precious metals by up to 75 per cent over the next 15 years without assistance such as the JMETC. “Action needs to be taken now to discover the mines of tomorrow, noting also that each new mine can take 10 years before the full benefits in jobs, revenues and royalties streams are realised,” Mr Bennison says. Mr Turnbull says the government wants to see an uplift in exploration after it fell nearly 70 per cent across the past five years. “These tax incentives will encourage ‘junior explorers’ to take risks and to have a go at discovering the next large-
scale mineral deposit,” he says. Under the new JMETC scheme Australian resident investors of junior explorer companies will receive a tax credit where the exploration company chooses to give up a portion of their losses relating to their greenfields exploration expenditure in an income year. “The ability to immediately distribute tax credits to investors will make investing in a ‘junior explorer’ more immediately attractive and encourage investment in small exploration companies undertaking greenfields mineral exploration in Australia,” Mr Turnbull says. The Coalition says JMETC improves on previous pilot programs assisting junior mineral explorers, such as the EDI, and has been developed based on industry feedback. RP
NT MINERALS SALES soar to all-time high AUSTRALIA'S $90-BILLION MINING equipment, technology and services (METS) sector has been delivered a CSIRO roadmap for the future. In a positive sign for the sector in the Top End, minerals sales have hit their highest ever mark in the Northern Territory. The NT Mining Production summary revealed minerals sales soared to a value of $3.63 billion during the 2016-17 period.
The figures equate to a 19 per cent increase in mining production sales on the last financial year. The summary showed metallic minerals including manganese, gold ore, and bauxite reached $3.3 billion; non-metallic minerals such as garnet sands, limestone and quicklime were valued at $53.6 million; and energy minerals, including uranium oxide, was valued at $262 million. The value of manganese produced
www.amma.org.au | SUMMER 2017 | RESOURCEPEOPLE
increased 79 per cent from the previous year to $1.48 billion and zinclead concentrate rose 19 per cent to $650 million. The value of combined zinc-lead concentrate, which increased 29 per cent on the previous year, to $650 million. A wide range of mineral commodities are prevalent in the NT, including worldclass deposits of manganese, bauxite, zinc-lead, gold and uranium. RP
ECONOMY & FINANCE
65
CLEVER KIDS TURN ENTREPRENEURS
to celebrate the mining industry
CLEVER SOUTH AUSTRALIAN mining kids Deegan Dealtry and Sam Ranford, both 12, have launched a clothing brand called Pretty Rooster in a bid to show other children that mining is cool. Both boys come from mining families and have grown up with parents who spend time away for work. “I’m only 12 and Dad has spent half my life doing FIFO, but that is just how his job works,” says Sam Ranford, whose father Joe works as a mining engineer and mum Alicia is the creator of the award-winning support network Mining Family Matters. “I really miss him when he is away but we talk on the phone and I like hearing about all the cool things he does. We decided to make these cool T-shirts so all mining kids can wear them and feel proud of our parents working in mining.” Deegan Dealtry is the artist behind the unique t-shirt designs. “Mum goes to the mine site for two days each week, but my brother, sister and I are all used to it,” Deegan says. “Dad makes sure we keep organised and it’s pretty awesome that Mum gets to wear steelcapped boots and a hard hat.”
Pretty Rooster is a combination of the boys’ school nicknames: ‘Pretty Boy’ for Deegan and ‘Rooster’ for Sam. Deegan’s mum Jacquie, who works in HR for an Adelaide-based mining company, says Deegan was basically born with a pencil in his hand. “Ever since he was tiny he’s loved to draw – it’s great to see him develop the talent into a small business. It will teach both boys such great skills,” she says. RP
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