Australia’s Fair Work Commission has begun hearings in Brisbane for a landmark case against an Australian mining giant over labour-hire workers, testing the Albanese government’s ‘Same Job, Same Pay’ laws.

The Mining and Energy Union applied for orders that would lift the pay of over 1,600 labour-hire mineworkers at Peak Downs, Saraji and Goonyella Riverside mines to match permanent employees. 

According to the union, BHP is fighting the applications, made under ‘same job, same pay’ laws introduced by the Albanese government to prevent employers from using labour hire as a loophole to undercut established enterprise agreements.  

The hearings are important for establishing that labour-hire mineworkers at BHP mines, including those employed by BHP’s in-house provider Operations Services (OS), are eligible for the Same Job Same Pay. 

Australia’s ‘same job, same pay’ laws were passed in 2023 and came into effect in 2024. The legislation closes the labour-hire loophole and aims to stop companies from underpaying workers through the use of labour hire. The loophole allowed companies to agree on a pay rate with their employees and subsequently bring in labour-hire workers, compensating them at a lower rate.

MEU Delegate and coal miner at BHP Peak Downs mine, Jason Noonan said that in addition to lifting pay, the new laws are delivering more permanent jobs. 

“More permanents have come on board since Same Job Same Pay was introduced as the incentive to use labour hire has lessened,” Noonan said.

According to ABS News Australia, BHP has fought the application in the Fair Work Commission, stating those employed under its OS model are service contractors, not labour hires.

In its submission to the Commission, the company said employees under its OS models were more than “mere labour supply,” and the work was more “specialist or expert in nature”.

“Payment under those agreements is tied to a range of performance metrics, not labour hours,” the submission said. 

But the union said this argument “has no legs”.

Barristers for BHP are expected to give their opening statements later this week.

It comes as the mining giant is also reportedly at the centre of a wage theft controversy.

“Operations Services has created more than 4,000 permanent, high-paid jobs, with access to training and development, job security and the opportunity to grow,” a BHP spokesperson told ABC News. “With more than 200,000 job applications, it’s clear the Operation Services employee proposition is compelling and competitive.”

MEU General Secretary Grahame Kelly said the union is ‘very confident’ that the WorkPac, Chandler Macleod and Operations Services employees covered by the union’s application are eligible for Same Job Same Pay. 

“They work under the exact conditions that the Albanese Government sought to address with laws to close the labour-hire loophole,” said Kelly. “We’ve seen major players like Qantas accept that the labour-hire rort is no longer lawful or in line with community expectations.” ‘Rort’ is Australian slang for a practice that is fraudulent or dishonest.