BHP rejects McKell claims regarding OS employee arrangements

Image: BHP

BHP has refuted a McKell Institute report which declared employees working for the company’s Operations Services (OS) subsidiary were on labour hire arrangements.

The mining giant rejected any parallels drawn regarding its workers being employed on labour hire arrangements.

In McKell Institute’s ‘Wage Cutting Strategies in the Mining Industry: The Cost to Workers and the Community’ report, it accused BHP of outsourcing itself via OS.

According to McKell, OS workers were paid $30,000 to $50,000 less than current site agreements annually, had no pay rise over the four-year term and faced inferior work conditions to BHP employees.

McKell also highlighted that OS workers at the Mount Arthur coal mine in New South Wales were paid $106,000 compared with the union agreement of $159,200.

“This pay discrepancy is similar at other mines where OS has been deployed,” McKell Institute stated.

“The jobs attract substantially worse conditions in a number of other areas including no accident pay, incentive bonuses that are prohibitively difficult to attain and no payment for transport including fly-in, fly-out (FIFO) flights, which are a huge cost.”

BHP, however, stated that more than 53,000 people had applied for 2000 jobs that OS had created since its inception in 2018, demonstrating its success in creating stable jobs for regional Australians.

“OS is giving people the opportunity to apply for permanent roles with BHP, which offers job stability, a competitive salary, performance related bonuses, flexible work options and permanent entitlements including sick leave, paid parental and access to the company share program,” a BHP spokesperson said.

“OS workers are not on labour hire arrangements as in inferred by their inclusion in the McKell Report.”

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