Albanese Labor Government closes labour hire loophole, delivering pay rises for more than 3000 workers

From today thousands of labour hire workers will start receiving a substantial pay rise thanks to the Albanese Labor Government’s Same Jobs, Same Pay changes.

Labour hire workers are engaged by a labour hire employer, who sends them to a host employer, with the labour hire employer responsible for their pay and entitlements.

In industries including mining, aviation, warehousing and meat processing, labour hire workers have been paid significantly less than workers directly employed by the host employer, despite doing the same work, on the same rosters and even wearing the same uniforms.

As part of the Albanese Government’s historic Closing Loopholes legislation, labour hire workers can now apply to be paid the full rate of pay as a comparable employee under the host employer’s enterprise agreement, subject to conditions.*

The mechanism for achieving pay parity is a Regulated Labour Hire Arrangement Order (commonly known as a ‘Same Job, Same Pay Order’).

These orders can be sought by an individual employee, or more commonly, their union representatives.

The introduction of Same Job, Same Pay ensures labour hire cannot be used purely to undercut enterprise agreements reached by host employers.

Peter Dutton and the Coalition have promised to review Labor’s Same Job, Same Pay law if they are elected, putting the pay of thousands of Australian workers at risk.

At present there have been four orders issued by the Fair Work Commission will that come into effect from tomorrow:

• Batchfire Resources Callide Mine: the Mining and Energy Union has said that around 320 labour hire workers at the Batchfire Callide mine in Queenslandwill receive up to $20,000 more each per year.
• Workers employed by 2 labour hire firms, FIP Group and Task Labour Services, working at Australian Country Choice Production meatworks, are expected to see pay rises of up to 25 percent.
• Labour hire workers at South 32 Cannington silver and lead mine near Cloncurry are expecting pay increases of up to 60 percent.

In addition to these orders, Qantas has agreed to bring 2450 long haul cabin crew that were previously employed by a subsidiary as labour hire into direct employment under their main enterprise agreement.

Qantas have also agreed not to oppose two other Same Job, Same Pay applications by the Flight Attendants Association of Australia that will bring another 800 labour hire workers into line with the pay rates of directly hired cabin crew.

There are more than 40 Same Job, Same Pay applications currently in the pipeline before the Fair Work Commission, meaning that thousands more workers in the mining, aviation, meat processing, warehousing and other industries will receive large pay increases, thanks to the Closing Loopholes laws introduced by the Albanese Labor Government. 

Comments attributable to Minister for Employment and Workplace Relations Murray Watt: 

“The Albanese Labor Government was elected on the promise of getting wages moving, and we are continuing to deliver on this commitment.

"Today, thousands of workers will receive substantial pay rises thanks to our Same Job, Same Pay laws coming into effect.

“There is a legitimate place for labour hire, especially to address surge or seasonal workforce needs.

“But the labour hire loophole has been used for far too long to undermine agreed wages and our reform will put an end to this for good.

“These workers are doing the same work, wearing the same uniforms and turning up to the same shifts week after week, yet are paid significantly less than other staff they work alongside.

“Paying workers who do the same work is not just fair, it also delivers safer, more productive workplaces for everyone.

“It is disturbing that when Australians are dealing with cost of living pressures, Peter Dutton wants to wind back Labor’s workplace laws, which will only make things worse.”

BACKGROUND:

Mine workers - 351 workers will be better off today and will now receive an additional $190-$770 per week

Meat workers - Approximately 200 workers will be better off today receiving an additional $500 per week.

Cabin Crew - Approximately 2500 long haul cabin crew are better off today than they were yesterday, receiving up to $316 per week extra.

And what do Peter Dutton and the Coalition think of our industrial relations reforms?

Peter Dutton

April 2024

“We will wind-back excessive government intervention which is holding back our economy. We will remove regulatory roadblocks and stay off the backs of businesses to allow them the freedom to flourish." 

November 2022

Labor’s laws will “lead to more strikes and fewer jobs without increasing… wages”

Michaelia Cash

December 2023

“All I can say is this: those on the Coalition side of the chamber, we will always stand with the employers of Australia.”

5 September 2023

 “The Same Job, Same Pay measures… amount to an attack on the labour hire industry.”

Jane Hume

Senator Hume claimed real wage increases “would be the worst thing for Australians."

15 September 2024

Senator Hume said the Coalition would look at “all of the industrial relations laws” to make sure they are “fairer for employers” if they won office.

Angus Taylor

On workplace relations…“We will take a targeted set of repeals to the next election.”

*The reform does not apply to employees who are working for a host business under training arrangements, or where the host is a small business employer – that is, with fewer than 15 employees.