How these workers are getting a $30k pay rise

For too long, big business have used labour hire as a loophole to drive down wages and conditions – leaving labour hire workers to miss out on pay and protections, compared to their directly-employed workmates.

But that’s finally beginning to change thanks to union-won Same Job Same Pay laws, which union members have already used to win substantial pay rises in key industries!

These laws mean that workers who are employed through labour hire could be legally entitled to the same pay and conditions as they would be if directly employed.

What is labour hire and how did we get here?

Labour hire is a form of employment in which an employer hires a worker(s) from an agency.

While the term ‘labour hire’ is relatively new, the use of agencies or companies specialising in the supply and provision of outsourced labour in Australia has existed for decades. What started as a last resort for employers that found themselves in unpredictable emergency situations, has since exploded into a key feature of the organisational structure of many Australian businesses.

It’s now estimated that at least 600,000 workers are employed through labour hire, with the majority in the financial, health care, airlines and mining industries. 

But the new laws remove the financial incentive to outsource permanent jobs to lower-paid labour hire workers. 

Much-needed reform in the labour hire industry

Same Job Same Pay laws came into effect in December 2023 and allow unions to apply to the Fair Work Commission for an order that ensures workers from a labour hire company must be paid in the same way as workers who are directly employed under an Enterprise Agreement.

In effect, this means labour hire workers will receive the same pay as direct employees for the same job.

No more undercutting wages to boost company profits: if you’re doing the same work, you should get the same pay. It’s that simple.

The laws apply to workers across various industries, particularly sectors where labour hire is used extensively, such as mining, construction, and manufacturing.

Changes already making a huge difference in workers’ lives

The Mining and Energy Union (MEU) has already secured multiple wins applying the new laws!  

In May this year, the MEU made a Same Job, Same Pay application to the Fair Work Commission to address the significant pay gap between directly employed workers and labour-hire workers at the Mount Pleasant coal mine in the Hunter Valley, NSW.

The employer agreed to employ the labour hire workers directly, resulting in a pay rise of more than $30,000 and permanent jobs.

And hundreds of labour hire workers at Batchfire’s Callide mine at Biloela, Queensland are in line to get a pay rise from 1 November, after the Fair Work Commission decided in favour of issuing the first order under the Same Job, Same Pay laws in July.

It means their pay must be lifted to match rates under the Enterprise Agreement that covers permanent employees; with some workers set to receive up to an extra $20,000 per year.

These cases set a powerful precedent for other labour hire workers to also be paid fairly and win secure, permanent jobs, and further applications have been filed in the mining industry and across airlines, meat processing and warehousing. Watch this space!

What’s next?

Union members fought hard for these changes and will continue to defend against any attempts to strip these rights away from workers.

And that’s just what Peter Dutton and the Coalition will do, if they are elected.

Shadow Finance Minister Jane Hume confirmed this when she refused to rule out workers having their pay cut. Hume criticised the laws as merely “red tape” holding back business – proving once again that Peter Dutton and his party are the party of big business, and they will always put big business interests first.

Fair pay, safe conditions and job security are worth fighting for. If you want to stand up for fairness and protect your rights at work, it’s time to join your union.

When we stand together, we win.