Indigenous Employment in the Australian Rail Industry
Indigenous Employment in the Australian Rail Industry
Table of Contents
Introduction _________________________________________________________________ 1
Employment in the Rail Industry ______________________________________________________ 1
Rail Skills and Careers Council ________________________________________________________ 1
Indigenous Employment Strategy _____________________________________________________ 2
Section 1. Options for Increasing Indigenous Employment in Rail ______________________ 3
Option 1 Development of Reconciliation Action Plans _____________________________________ 4
BHP Billiton’s Reconciliation Action Plan ________________________________________________________ 4
Option 2 Engagement of Indigenous Coordinator/Advisor _________________________________ 6
Transfield Services Indigenous Advisory Board ___________________________________________________ 6
SKM Indigenous Employment Coordination _____________________________________________________ 7
Option 3 Employment of Indigenous Apprentices and Trainees _____________________________ 8
BHP Aboriginal Apprenticeship Program ________________________________________________________ 8
Vocational Training and Employment Centre (VTEC) ______________________________________________ 9
Aboriginal School Based Traineeship (ASBT) _____________________________________________________ 9
Option 4 Pre-employment programs _________________________________________________ 10
RailCorp Pre-employment Program___________________________________________________________ 10
Ashburton Work Start Program ______________________________________________________________ 10
Option 5 Development of cross cultural awareness package_______________________________ 11
BHP Billiton Cultural Awareness Workshops ____________________________________________________ 11
Option 6 Employment of Indigenous University students as cadets _________________________ 12
Rio Tinto NICP ____________________________________________________________________________ 12
Sinclair Knight Mertz ICP ___________________________________________________________________ 12
Arup ___________________________________________________________________________________ 13
Option 7 Corporate Leaders for Indigenous Employment _________________________________ 14
Option 8 Extend Indigenous Employment Strategies to rail divisions ________________________ 15
John Holland Group _______________________________________________________________________ 15
Leighton Contractors ______________________________________________________________________ 15
Transfield Services ________________________________________________________________________ 15
Laing O'Rourke plc ________________________________________________________________________ 16
Downer EDI ______________________________________________________________________________ 16
Section 2. Key Success Factors for Indigenous Employment in Rail ____________________ 17
Focus Area 1: Organisational Commitment __________________________________________ 18
Case Study: Transfield Services ______________________________________________________________ 18
Case Study: BHP Billiton ____________________________________________________________________ 19
Case Study: RailCorp ______________________________________________________________________ 20
Focus Area 2: Partnerships _______________________________________________________ 21
Case Study: Alice Springs to Darwin Rail Project _________________________________________________ 21
Case Study: Public Transport Authority of WA __________________________________________________ 22
Case Study: Indigenous Owned Contracting Businesses __________________________________________ 22
Focus Area 3: Recruitment Strategies _______________________________________________ 23
Case Study: Indigenous Employment Coordination ______________________________________________ 24
Case Study: Promotional Material ____________________________________________________________ 24
Case Study: Employee and Contractor Induction Programs ________________________________________ 24
Focus Area 4: Retention Strategies _________________________________________________ 26
Case Study: Employee Networks _____________________________________________________________ 26
Case Study: Sub-contracting Security Services __________________________________________________ 27
Case Study: Overcoming Racism with Cultural Awareness Workshops _______________________________ 27
Focus Area 5: Education & Training ________________________________________________ 29
Secondary School Programs_________________________________________________________________ 29
Apprenticeships and Traineeships ____________________________________________________________ 30
Tertiary Programs _________________________________________________________________________ 30
Work-Ready Programs _____________________________________________________________________ 31
Government Financial Assistance ____________________________________________________ 33
Wage Assistance __________________________________________________________________________ 33
STEP Program ____________________________________________________________________________ 33
National Indigenous Cadetship Program _______________________________________________________ 34
Corporate Leader for Indigenous Employment __________________________________________________ 35
Conclusion __________________________________________________________________ 36
Useful Publications ___________________________________________________________ 37
Catherine Maughan Indigenous Employment Strategy Page 1
Introduction The Australasian Railway Association (ARA) is the peak body representing the interests of all rail
operators, both private and government, track owners and managers, manufacturers of rolling
stock and components, and other aspects of the rail industry in Australia and New Zealand. The
ARA represents more than 150 member organisations. The fundamental purpose of ARA is to
create an environment that will permit the Australian rail industry to prosper. One of the key
issues identified by ARA that inhibits this outcome is rail skill shortages.
Employment in the Rail Industry
More than 40 000 people are employed in rail throughout urban and regional Australia in
diverse operations and professional occupations. Many more people work in support industries
providing goods and services to the industry.
Although the turnover of employees in rail is generally low, employees in the rail industry are
older than the average workforce and during the next five to ten years there will be more
workers retiring than new entrants. Many of those leaving the industry have knowledge and
skills not easily replicated or purchased in the market. In addition, turnover of new recruits is
up to five times higher than for any other group of workers in the industry.
The rail industry and the general working environment are in a state of transition. The
workforce that has dominated the past decades is now nearing retirement. The work
preferences and expectations of new entrants to the workforce are distinct and conflict, in
some aspects, with the preferences of the existing workforce.
Rail Skills and Careers Council
The ARA established the Rail Skills and Careers Council (RSCC) which focuses on the human
resources of rail, overseeing the efficient development of projects such as the Attraction and
Retention Research Project, the Graduate Program and the School Based TAFE and Employment
program.
The ARA, through the RSCC, is taking a strategic approach to lessen the risk of the rail industry
not having a skilled workforce in the future by advancing industry-wide focused programs
relating to:
Attractive image – that will engage stakeholders, customers and workers of the future
Skilling rail strategy – establishes clear guidance about training requirements and workforce planning
Workplace relations –that ensures valuable employees remain in the rail industry
Data collection – for monitoring the impacts of change initiatives and predicting future issues.
Catherine Maughan Indigenous Employment Strategy Page 2
The Workforce Development Strategy being developed by ARA focuses on the implementation
of a strategic project approach to employing the following target groups of employees:
Women returning to the workforce
People with disabilities
Mature job seekers
Indigenous Australians.
Indigenous Employment Strategy
The Australasian Railways Association (ARA) has received Australian Government funding for an
Indigenous Employment Strategy for the Australian rail industry. The purpose of the project is
to allow ARA to develop strategies which when implemented will lead to alternative forms of
labour supply for the Australian rail industry.
The options and case studies outlined in this document are a result of research conducted of
ARA Member Companies involved in Indigenous employment initiatives. Information was
collected using the following primary and secondary research methods:
Company websites
Annual reports and other company publications (such as media releases)
Journal articles and research reports
Face-to-face and telephone interviews.
Information was collected from the following ARA member companies:
Ansaldo STS
Arup
BHP Billiton
Centre for Excellence in Rail Training (CERT)
Downer EDI
Fortescue Metals Group
John Holland Group
Laing O’Rourke
Public Transport Authority of WA
Queensland Rail
RailCorp
Rio Tinto/Pilbara Iron
Sinclair Knight Merz
Skilled Services
Transfield Services This report has two sections. Section 1 outlines the numerous options rail organisations can explore for increasing Indigenous employment in their organisation. The case studies in Section 2 document give practical examples of the way in which organisations involved in the transport and resources sectors are increasing Indigenous employment across their operations.
Catherine Maughan Indigenous Employment Strategy Page 3
Section 1. Options for Increasing Indigenous Employment in Rail There are many ways in which organisations can increase the number of Indigenous Australians
employed in their businesses. Which option is most appropriate will depend on a number of
business factors including current level of engagement with Indigenous communities and the
capacity to initiate new recruitment and retention strategies.
Some organisations consulted indicated that they do not have any Indigenous employees and
that they were not sure where to start the process. For these companies gaining the support of
the executive leadership team is critical so Option 1 would be the most appropriate option.
There are several large multi-divisional companies who have already committed financial and
human resources (such as an Indigenous coordinator/advisor) to increasing Indigenous
employment throughout the business. Within these companies there exists unique
opportunities for the rail divisions to employ Indigenous Australians within the rail industry
(Option 8). In consultation with the Indigenous coordinator/advisor, heads of the rail divisions
could determine where their greatest employment needs are and the most appropriate option,
for example in the trades area (Option 3) or professional engineers (Option 6).
The options for organisations to increase Indigenous employment include:
Development of Reconciliation Action Plans
Engagement of Indigenous Coordinator/Advisor
Employment of Indigenous apprentices and trainees
Pre-employment programs
Development of cross cultural awareness package
Employment of Indigenous university students as cadets
Corporate leaders for Indigenous employment
Extend Indigenous Employment Strategies to rail divisions
Catherine Maughan Indigenous Employment Strategy Page 4
Option 1 Development of Reconciliation Action Plans
A Reconciliation Action Plan (RAP) is a tool to help organisations build positive relationships
between Indigenous and non-Indigenous people. It gives businesses a format for exploring how
reconciliation can advance their business objectives through identifying clear actions and
realistic targets. While each organisation shapes their own RAP, all plans include a creative
blend of relationships, respect and opportunities.
Through implementing a RAP, businesses may derive economic and social benefits such as:
Attracting and keeping loyal staff and customers who value your contribution to nation-building
A larger labour market from increasing numbers of educated and skilled Indigenous Australians being ‘job ready’ - 60% of Indigenous Australians are under 25 years old
New industries, services, products and ways of doing business emerging from joint ventures with Indigenous organisations.
In addition, companies who tender for large rail projects are increasingly being asked to
demonstrate their commitment to employing Indigenous Australians.1 Developing a
Reconciliation Action Plan is one way an organisation can demonstrate their commitment.
The RAP program was launched by Reconciliation Australia in July 2006. As the national
organisation facilitating and coordinating the program, Reconciliation Australia invites all
organisations interested in developing a RAP to work collaboratively with them to ensure their
RAP meets specific criteria for registration on the Reconciliation Australia website. A number of
private companies and Government departments have developed RAPs and lodged them with
Reconciliation Australia www.reconciliation.org.au. The Public Transport Authority of WA is
currently in the process of developing a RAP as a first step in increasing the current Indigenous
employment rate of less than 1% to 2.5%.2
BHP Billiton’s Reconciliation Action Plan
Through a RAP, BHP Billiton has described their approach to reconciliation as:
We work on the traditional lands of Indigenous peoples, which means it is our responsibility and
obligation to ensure their rights are respected. Our engagement with traditional owners and other
Indigenous people has evolved over our long history of operational experience, and through the
lessons learned along the way.
We recognise that we will only be successful when those that we touch benefit by their association
with us. We aim to build solid relationships with Indigenous people to ensure they understand our
business, and how they can contribute to, and benefit from it.
1 Anne Donnelly, Senior HR Advisor, Ansaldo STS Australia, personal communication 18 March 2008 2 Robin Austen, Access & Equity Officer, PTAWA, personal communication 19 March 2008
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Building relationships and partnerships is really at the heart of our business. There is very little we
can do on our own – our ability to work cooperatively with others, from business partners and
suppliers through to governments and host communities, impacts both directly or indirectly on our
business.3
Through ongoing consultation and involvement of local Indigenous communities, organisations
and key Indigenous people, each of BHP Billiton’s businesses have developed programs to meet
the needs of both the business and Indigenous people. Together, these programs form the
Reconciliation Action Plan. In the 2007 Reconciliation Action Plan each business unit has set
medium to long term employment targets for both their operations and their contractors based
on a number of criteria including:
... how many Indigenous people versus others are living in the local and regional area,
the level of unemployment, employment requirements by other employers in the region
including community based organisations, government agencies and private sector
organisations, and the potential number of Indigenous people that are either work ready
or can receive training to make them work ready and how long this may take.4
The setting of targets is an important step in realising BHP Billiton’s vision to “help secure a
better future for Indigenous people so that they are able to fully participate in and equally
enjoy the benefits provided to other Australians.”
In 2000/01 BHP WA Iron Ore (Pilbara region) set a target of 12% Indigenous employment by
2010. A target of 12% was set because Indigenous people make up 12% of the Pilbara
population.5 In just six years the Indigenous employment rate has increased from about 3% to
more than 8% (at June 2007). Nickel West and Olympic Dam have similar targets and
timeframes based on local demographics and other factors.
BHP Billiton business Indigenous employment targets
Business Target Timeline
WA Iron Ore 12% 2010
Nickel West 10% 2017
Olympic Dam SA 15 people
30 people
end 2007
June 2008
3 www.bhpbilliton.com/bb/sustainableDevelopment/socialResponsibility/communityProjects/reconciliationAustralia.jsp
4 BHP Billiton 2007 Reconciliation Action Plan www.bhpbilliton.com/bbContentRepository/reconciliationaustraliaplan.pdf
5 BHP Billiton Aboriginal Employment initiatives www.bhpbilliton.com
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Option 2 Engagement of Indigenous Coordinator/Advisor
After an organisation has made a commitment to employ Indigenous Australians it needs to put
in place processes and people who will develop, implement and oversee the Indigenous
employment strategies. Depending on the size and current capabilities, organisations may
directly employ an Indigenous coordinator or engage the services of consulting firms that
provide Indigenous employment advice.
Organisations can apply for Australian Government funding to assist with the cost of employing
an Indigenous Coordinator. The Structured Training and Employment Projects (STEP) Program
provides flexible funding for packages of tailored assistance, including structured and
accredited training, to help employers give long term jobs to Indigenous Australians.
ARA member organisations Transfield Services and John Holland Group have both used STEP
funding to employ an Indigenous Coordinator to develop and ensure the success of their
company’s Indigenous employment strategies.6
Transfield Services Indigenous Advisory Board
During the past two years, Transfield Services has taken a number of steps to engage with
Indigenous communities and Indigenous people including:
Developing and implementing a company-wide Indigenous Relations Policy
Becoming a signatory to the Corporate Leaders for Indigenous Employment Program
Establishing the Transfield Services Indigenous Advisory Board
Appointing an Indigenous Advisor who also chairs the Indigenous Advisory Board.
In early 2006, Transfield Services released its Indigenous Relations Strategy. This 12-month
plan provided the tools and guidance to establish a foundation on which they could build a
comprehensive Indigenous Participation Strategy. During 2007, Transfield Services launched
the Transfield Services Indigenous Participation Strategy for 2007 to 2009. This strategy aims to
boost employment, education and training opportunities for Indigenous Australians and raise
awareness of Indigenous culture throughout the Company.
The Transfield Services Indigenous Advisory Board is made up of five esteemed members of
Australia’s Indigenous community, each with experience in a particular area: government,
Indigenous culture, training, small business and sport. The Indigenous Advisory Board advises
Transfield Services on Indigenous relations and engagement, provides guidance and direction
around implementing policies and practices, and challenges the organisation to seek continual
improvements in this area.
6 DEEWR website: www.workplace.gov.au/workplace/Programmes/IndigenousProgs/
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Mr Eddie Fry as the appointed Indigenous Advisor also Chairs the Indigenous Advisory Board.
His role is to ensure that all parts of the business receive guidance on the best way to
incorporate Indigenous engagement into our day-to-day operations. Mr Fry is an Indigenous
leader who has worked with the Australian Government and private enterprises, including
Newmont Australia. In 2002, he began his own business, Gimbulki Services, which provides
advisory and consulting services on land management issues to many large Australian Stock
Exchange (ASX) listed companies and the mining industry.7
SKM Indigenous Employment Coordination
Sinclair Knight Merz (SKM) offers Indigenous Employment Coordination on major infrastructure
projects to clients in the minerals, petroleum, heavy industries, water, rail and road sectors.
Indigenous Employment Coordination includes providing Indigenous training and employment
guidance and advice on:
Indigenous cadetship, traineeship and apprenticeship policies and strategies
Indigenous employment policies and strategies
Utilising local/and or regional Indigenous businesses
Identifying positions that may be filled by Indigenous employees
Mentoring programs for Indigenous employees
Cultural awareness training for office and site personnel
Application and engagement of government Indigenous programs.8
The SKM IEC is led by Mr Jack Pearson. Mr Pearson joined SKM in early 2005 after many years
as a Government advisor on Indigenous affairs. SKM is currently providing Indigenous
employment services to a number of large organisations in the resources and transport sectors
including at least two ARA member organisations.9
7 Transfield Services Indigenous Participation Strategy 2007 -2009
8 SKM website www.skmconsulting.com/Markets/Indigenous_Services/Employment/employment.htm 9 Jack Pearson, Practice Leader Indigenous Engagement, SKM, personal communication 02 April 2008
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Option 3 Employment of Indigenous Apprentices and Trainees
Perhaps the greatest obstacle to increasing Indigenous workforce participation rates, especially
in regional and remote areas, is poor education levels. This disadvantage is being overcome at
many levels (schools, TAFEs, universities, workplace) through employers strategically partnering
with Indigenous organisations, governments and education and training providers. Many
organisations are employing Indigenous Australians in entry level positions as apprentices and
trainees including school based trainees.
Organisations can apply for STEP funding to assist with the cost of employing Indigenous
apprentices and trainees. Funding for participant based projects is generally calculated on an
annual, per participant basis and can range from $2 200 and up to $11 000 for some community
organisations. Funding is generally provided for one year or for two years in respect of
traineeships and apprenticeships.
ARA member that have used STEP funding to employ Indigenous trainees/apprentices include:
Queensland Rail (QR) – employ eight apprentices and two trainees within a variety of
QR business units
Rio Tinto Services – create 80 apprenticeships and traineeships with the company, its
subsidiaries and sub contractors in various sites across Queensland and NSW. Employ
60 trainees/apprentices at Comalco Aluminium Ltd’s Weipa operations
John Holland Group – employ 100 Indigenous Australians in the roles of apprentices,
trainees and other general roles across Australia.10
BHP Aboriginal Apprenticeship Program
In 2000, BHP introduced a pre-apprenticeship program because Indigenous people appeared not to be applying for apprenticeships and traineeships. The Company assumed that local Indigenous people were either not interested in applying for positions or thought they would not be able to pass the initial selection process. However, that assumption was challenged in the first year of the program as a number of local Indigenous applicants were successful in gaining apprenticeships in their own right, without needing to do the pre-apprenticeship program
For applicants who miss out on gaining an apprenticeship, the one-year program helps them develop their ability to succeed in the following year’s intake. As a consequence, Indigenous apprentice and trainee numbers rose from about two in 2000 to 55 in 2004. Aboriginal people are undertaking apprenticeships at BHP in engineering, mechanical and electrical trades and traineeships in clerical and mine production roles.11
10 DEEWR website: www.workplace.gov.au/workplace/Programmes/IndigenousProgs/ 11 BHP Billiton (2004) HSEC Report http://sustainability.bhpbilliton.com/2004/repository/caseStudies/socioEconomic33.asp
Catherine Maughan Indigenous Employment Strategy Page 9
Vocational Training and Employment Centre (VTEC)
Jointly funded by Fortescue Metals Group (FMG) and the Australian Government, VTEC
provides training and education for Aboriginal participants, as well as a guaranteed offer of
employment for successful trainees. VTEC boasts a retention rate of at least 60%. In 2007, the
Centre for Excellence in Rail Training (CERT)12 provided training in tracklaying for 25 Aboriginal
people at VTEC. The 20 graduates were subsequently employed by project partner Laing
O’Rourke to lay FMG’s new railway line in the Pilbara region.
VTEC manager Damien Ardagh said employers valued the program for taking the legwork out of
the training process and for providing a ready talent pool of workers, while trainees and their
families had expressed appreciation that others were taking the time to try and understand
where they were coming from and treating them as individuals rather than as statistics. “These
people are important,” he said. “They’re not just here to make up the numbers and they’re not
just about employment targets.”13
Aboriginal School Based Traineeship (ASBT)
Under the Aboriginal School Based Traineeship (ASBT) senior secondary students can start a
traineeship whilst also completing Year 11 and 12. The Aboriginal Employment Strategy (AES)
run a school based traineeship program for Aboriginal students in regional NSW and WA. AES
report a 90% success rate for completion of the traineeship due to the mentoring support they
provide to both the trainee and the host employer. The program fulfils a business need by
providing the host employer with a source of young and enthusiastic employees. On leaving
school many of the trainees go on to full-time employment with the same employer.14
The Public Transport Authority of WA is developing partnerships with schools with significant
numbers of Indigenous students. In particular, PTAWA is developing partnerships with
Sevenoaks Senior College in Perth. Sevenoaks caters for senior secondary students and in 2007
the College had 54 Indigenous students representing 13% of the student population.15
Seven Oaks College runs ASBTs with on-going support for the student and the employer
provided by college staff (Aboriginal Liaison Officers and Aboriginal Islander Education Officers).
PTAWA intends offering work placements for ASBT students in Semester 2, 2008. PTAWA view
this as an important way in growing relationships with Aboriginal students, their families and
communities. PTAWA is also investigating the Adopt-A-School program and running tours of
their facilities for Year 11 and 12 students.16
12 Stuart Pottinger, RTO Manager CERT, personal communication 08 April 08 13 Damien Ardagh, VTEC Training Manager quoted in SBS Living Black 15 September 2007 14 AES School Based Traineeships www.aboriginalemploymentstrategy.com.au/Page.aspx?category=1&element=23 15 Sevenoaks Senior College, Schools On-Line, Education Department of WA 16 Robin Austen, Access & Equity Officer, PTAWA, personal communication 19 March 08
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Option 4 Pre-employment programs
Sometimes there is a need for pre-employment programs that will lead to employment
opportunities through traineeships, apprenticeships and other roles for successful candidates.
Through strategic partnerships with training organisations, recruitment agencies and labour
hire companies, rail companies are working to expand the pool of potential applicants for
positions.
RailCorp Pre-employment Program
In partnership with TAFE, RailCorp is currently piloting a pre-employment program for
Indigenous Australians. Recognising that many Aboriginal and Torres Strait Islander people
experience educational, economic and social disadvantages, this program helps participants to
gain the knowledge, skills and confidence they need to compete for customer service assistant
positions through the usual recruitment process. Job offers to successful candidates of this
program will be made in 2007-08.17
Ashburton Work Start Program
This initiative is a result of a partnership based in Tom Price and Paraburdoo between SKILLED,
Rio Tinto Iron Ore, Shire of Ashburton, Job Futures/North West Jobs, Pilbara Gascoyne
Population Health, Pilbara TAFE and Ashburton Aboriginal Corporation. Launched in
September 2006 the program is designed to provide the local Indigenous communities with
training and skills to secure full time employment specifically within the mining industry.
Currently there are 12 people in the program which offers educational support such as reading
and writing, as well as a 12-week job ready course that assists with submitting resumes and
attending job interviews. Those who complete the course are employed by SKILLED as Haulpak
operators and stores people for Pilbara Iron, the Shire of Ashburton or found suitable local
work. 18
17 RailCorp Annual Report 2006/07 18 SKILLED’s Pilbara partnership wins state award December 2007
Catherine Maughan Indigenous Employment Strategy Page 11
Option 5 Development of cross cultural awareness package
One of the reasons Indigenous people leave organisations is because of racism and prejudice in
the workplace. Because recruitment is costly in terms of time and money, organisations will
want to ensure that staff turnover is kept to a minimum. Many organisations have found that
cultural awareness workshops and training greatly assist in improving understanding and
relationships with Indigenous communities and employees. Addressing racism and prejudice in
the workplace contributes to a more supportive work environment, encouraging more
Indigenous employees to stay.19
Organisations can apply for STEP funding to assist with the cost of developing cross-cultural
training packages. STEP funding can also be used to fund part of the delivery. The ARA could
potentially apply for funding to develop a cultural awareness framework for the rail industry.
BHP Billiton Cultural Awareness Workshops
Promoting cultural awareness amongst employees, contractors and other key stakeholders is a
key focus area for BHP Billiton. The cultural awareness training that BHP undertake also has an
important role to play in increasing the general awareness of their employees, contractors and
others of the significance of cultural heritage and the need for its proper management.
Each BHP Billiton business develops workshops that are tailored to meet the specific needs of
sites and individuals.
General cultural awareness workshops. Since 2000 more than 2,700 employees,
contractors and invited community representatives have attended the 1-day cultural
awareness workshop in the Pilbara. These workshops are delivered under contract by
Wangka Maya Pilbara Aboriginal Language Centre, in conjunction with relevant
Indigenous custodians.
Indigenous employee workshops. The 2-day workshops are attended by Indigenous
employees and supervisors of Indigenous employees. Presenters are Indigenous people
(consultants) and the focus is on employee and employer obligations, standards and
commitments, financial planning, cultural obligations, differing values and priorities.
Some time is spent on country with traditional Indigenous people.
Community awareness sessions - Provides community members with an overview of
the importance of the relationship with the Aboriginal community and the obligations
and legal responsibilities of the individual community members. These sessions are
designed for partners of BHP staff and contractors.
19
CSRM Indigenous employment in the Australian minerals industry
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Option 6 Employment of Indigenous University students as cadets
The National Indigenous Cadetship Project (NICP) is an Australian Government program that
aims to improve the professional employment prospects of Indigenous Australians studying a
Diploma or Bachelor degree. In 2006/07, 234 cadets commenced under the project, bringing
the total number of commencements since 1999 to more than 1,290.20
The Government provides employers with payments to cover administrative costs as well as an
allowance to be paid to the cadet while they are studying. Companies recruit cadets from a
discipline that will benefit them. The employer then provides the cadet with a 12-week paid
work placement for each full year of the cadetship, ensuring that the work duties complement
the cadet’s course of study.
Employers have found the project very useful in exposing their company to prospective
employees. Once students complete their university degree they often gain employment with
the employer who gave them the cadetship. Many ARA member companies have signed up
with the NICP including Arup, Baulderstone Hornibrook, BHP Billiton, Fortescue Metals Group,
Leighton Contractors, Parsons Brinckerhoff, Rio Tinto, Sinclair Knight Merz and Thiess.
Rio Tinto NICP
Signing up in 1999, Rio Tinto was one of the first private sector organisations to support the
NICP. Rio Tinto provides opportunities for university students studying many disciplines
including:
Engineering (eg civil, mining, chemical, mechanical, electrical)
Science (eg. metallurgy, chemistry, geology, archaeology, environmental)
Other degrees (eg. anthropology, human resources, IT, accounting, business)
Since 1999, 11 Rio Tinto cadets have graduated and gained employment including six who have
taken up graduate roles with Rio Tinto. Seven cadets are currently undertaking cadetships with
Rio Tinto. In addition, Rio Tinto Iron Ore provides scholarships for Aboriginal students in the
Pilbara to study at the university of their choice. The scholarships cover all major expenses
associated with tertiary study.21
Sinclair Knight Mertz ICP
The Indigenous Cadetship Program (ICP) is a signature project for SKM. Currently SKM supports
15 cadets in their Sydney, Melbourne, Perth, Brisbane and Adelaide offices. Five of the current
cadets are studying an engineering discipline; the other 10 cadets are studying law, commerce,
architecture, town planning and human resources.
20 Department of Employment & Workplace Relations Annual report 2006-07 21 www.riotinto.com/careers/221_australian_national_indigenous_cadetship_project.asp
Catherine Maughan Indigenous Employment Strategy Page 13
In addition to the paid work placement, SKM offer their cadets training, workplace rotations,
mentoring and an annual ICP Conference when all cadets come together. For the 12-week
work placements, cadets work within relevant areas of SKM and also with client companies.
Jack Pearson said ICP has been very successful because the cadets are fully supported by SKM
staff throughout their study. Jack also said the annual cadet conference was well received by
cadets and was important for peer support and networking. With the support of participating
organisations for work placements, SKM would like to build its cadet numbers up to 100.22
Arup
Joining the NICP program about 10 years ago, Arup has trained 10 Indigenous students studying
engineering. The cadets are placed in teams and mentored by a qualified engineer. The cadets
usually work on projects within their discipline of engineering but they are allowed to rotate
through different fields of work if they wish. Arup use the NICP program to link with Indigenous
Australians.23
22 Jack Pearson, Practice Leader Indigenous Engagement, SKM personal communication, 02 April 08 23 Engineers Australia (2007) Attracting more Indigenous Australians to engineering
Catherine Maughan Indigenous Employment Strategy Page 14
Option 7 Corporate Leaders for Indigenous Employment
Many of Australia’s major companies have demonstrated their commitment to finding more
work and training opportunities for Indigenous people since signing the Corporate Leaders for
Indigenous Employment statement. The Corporate Leaders for Indigenous Employment Project
encourages private sector companies to generate job opportunities. It allows them to use
elements of the Australian Government’s Indigenous Employment Programme to develop and
tailor their Indigenous employment strategies to meet their business needs.
Benefits for companies include increasing access to a growing labour supply and helping to
build a reputation as a good corporate citizen. By joining the project, companies are able to
share ideas at networking forums and get access to targeted resources such as the best
Indigenous employment strategies and practices.
A flexible package of funding is available to all Corporate Leader organisations. The funding can
be tailored to your business needs and may assist you develop and implement a strategy that
could, for example, include assistance for pre-employment training, mentoring or cross-cultural
awareness training.
ARA member companies that have already signed up to be Corporate Leaders include
Baulderstone Hornibrook, BHP Billiton, John Holland Group, Laing O’Rourke, Leighton
Contractors, Rio Tinto, Thiess and Transfield Services.
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Option 8 Extend Indigenous Employment Strategies to rail divisions
A number of large, multi-divisional companies (with rail divisions/capabilities) have already
demonstrated their commitment to increasing Indigenous employment across their business
operations. There exists a unique opportunity for senior rail staff in these companies to work
with their executive management team and the Indigenous coordinators/advisors to maximise
Indigenous employment opportunities in the rail industry.
John Holland Group is a large contracting Australian business with more than $4.3 billion
worth of work in hand and employing more than 4 500 staff. JHG has capabilities in the areas
of civil and engineering construction, maintenance and management. The company is a
signatory to the Corporate Leaders for Indigenous Employment. JHG received STEP funding to
employ an Indigenous Employment Coordinator to develop an Indigenous Recruitment and
Employment Strategy and the employment of 100 Indigenous Australians as apprentices,
trainees and other general roles across Australia.
John Holland Rail engages in the design, construction and maintenance of the complete range
of railway and tramway infrastructure including formation, track alignment, yard layouts, track
structure and bridges. Although there are no specific programs or targets within the rail
division, a limited number of people working in the rail division are believed to be Indigenous
Australians.24 There are numerous employment opportunities for Indigenous Australians in the
rail division including jobs in rural and regional areas.
Leighton Contractors is a diverse business operating in Australia and New Zealand employing
more than 6 000 people. Leighton Contractors’ rail projects range from the upgrade of existing
rail infrastructure to the development of new railway lines and stations. The varied size and
scope of Leighton’s rail projects requires specialised civil, structural, mechanical and electrical
works such as tunnelling, relocation and protection of services, track upgrades, signalling and
communications. Leighton Contractors is a signatory to the Corporate Leaders for Indigenous
Employment and a listed employer with the National Indigenous Cadetship Project.
Transfield Services is a multinational company employing 28 000 people globally (including
Australia) to provide operations, maintenance, asset management and project management
services across diverse industries including rail and public transport. Transfield Services
maintains rail track and associated infrastructure for rail asset owners across Australia including
Australian Rail Track Corporation, Genesee & Wyoming Australia and OneSteel, RailCorp and
Airtrain CityLink Limited. Transfield Services is a signatory to the Corporate Leaders for
Indigenous Employment and has accessed STEP funding to undertake a feasibility study to
24 Helen Tognolini, Administration Manager, John Holland Rail, personal communication 28 March 2008
Catherine Maughan Indigenous Employment Strategy Page 16
identify current and future employment opportunities for Indigenous Australians across the
company’s operations.
Laing O'Rourke plc is a development and construction multi-national business with an
operating turnover in excess of A$7b and more than 25 000 employees worldwide. Laing
O'Rourke Australia started operations in 2004 across the property markets of NSW and
Queensland. With the purchase of Barclay Mowlem in 2006, Laing O'Rourke Australia and Asia
Hub multi-disciplined capability extends across the building, rail, civil, marine, power, and mine
infrastructure sectors. Laing O’Rourke Australia is a signatory of the Corporate Leaders for
Indigenous Employment.
Downer EDI provides engineering and infrastructure management services to the public and
private transport, energy, communications and resources sectors operating primarily in
Australia, New Zealand and Asia. Downer EDI Mining has been a signatory of the Corporate
Leaders for Indigenous Employment since 1999. In their Aboriginal and Torres Strait Islander
policy, Downer EDI Mining states it will “enhance its commitment to Indigenous people by
increasing awareness with the wide Downer EDI organisation of Indigenous culture and
values.”25
Downer EDI Rail employs approximately 1 400 employees throughout Australia in the design,
manufacture, refurbishment, overhaul and maintenance of diesel electric locomotives, electric
locomotives, electric and diesel multiple units, rail wagons, traction motors and rollingstock and
related services. There are employment opportunities for Indigenous Australians as cadets (eg.
engineering, project management, finance, IT, human resources) and apprentices (eg. electrical,
welding, boiler making).
25 Downer EDI Mining (2007) Aboriginal and Torres Strait Islander Policy
Catherine Maughan Indigenous Employment Strategy Page 17
Section 2. Key Success Factors for Indigenous Employment in Rail There are many ways in which organisations can increase the number of Indigenous Australians
employed in their businesses. A key objective of the Indigenous Employment Strategy is to
identify and document the practices of organisations with significant rail interests that have
successfully recruited and retained Indigenous Australians in all levels throughout their
business. Throughout this document case studies of organisations involved in the transport and
resources sectors have been used to highlight initiatives they are using to increase Indigenous
employment across their operations.
The key success factors have been grouped into five focus areas:
1. Organisational commitment
2. Partnerships
3. Recruitment
4. Retention
5. Education and training
The final section contains a list of resources to assist organisations with developing and
implementing their own Indigenous employment strategies.
Catherine Maughan Indigenous Employment Strategy Page 18
Focus Area 1: Organisational Commitment
When operations give the same commitment to Indigenous employment
initiatives as other business activities, good outcomes can be achieved in
relatively short time frames.26
Achieving sustainable improvements in Indigenous employment begins with commitment.
Companies with successful Indigenous employment strategies have an executive leadership
team that has publicly committed to improving Indigenous employment outcomes and backs
this commitment by providing adequate financial and human resources. Companies
communicate their commitment to staff, contractors, suppliers and shareholders through
statements, policies, strategies and reconciliation action plans.
Downer EDI Mining will enhance its commitment to Indigenous people by:
Sustaining and strengthening its relationships with the Indigenous community
Increasing and enhancing the existing Downer EDI workforce by embarking upon specific recruitment, educational and career development programs
Acknowledging and respecting Indigenous culture and values
Increasing awareness with the wider Downer organisation of Indigenous culture and values
Promoting new business ventures and supporting the existing activities with Indigenous people.27
Ultimately the strength of an organisation’s commitment is measured by the number of
Indigenous people employed within the organisation. Consequently successful organisations
have processes that allow staff data to be collected and reported on. These organisations also
determine Indigenous employment targets appropriate for their business and region.
Case Study: Transfield Services
During the past two years, Transfield Services has taken a number of steps to engage with
Indigenous communities and Indigenous people including:
Developing and implementing a company-wide Indigenous Relations Policy
Becoming a signatory to the Corporate Leaders for Indigenous Employment Program
Establishing the Transfield Services Indigenous Advisory Board
Appointing an Indigenous Advisor who also chairs the Indigenous Advisory Board.
In early 2006, Transfield Services released its Indigenous Relations Strategy. This 12-month
plan provided the tools and guidance to establish a foundation on which they could build a
comprehensive Indigenous Participation Strategy. During 2007, Transfield Services launched
the Transfield Services Indigenous Participation Strategy for 2007 to 2009. This strategy aims to
26
CSRM (2007) Indigenous employment in the Australian minerals industry 27
Downer EDI Mining (2007) Aboriginal and Torres Strait Islander Policy
Catherine Maughan Indigenous Employment Strategy Page 19
boost employment, education and training opportunities for Indigenous Australians and raise
awareness of Indigenous culture throughout the Company.
The Indigenous Participation Strategy outlines how Transfield will undertake a feasibility study:
... to identify the issues involved in establishing a company-specific approach to
Indigenous employment and training. As part of this process, we will implement
improved measures to record the number of Indigenous employees we have across our
business and on each contract. We will use this information to develop target numbers
for Indigenous employees.28
Case Study: BHP Billiton
According to Reconciliation Australia, BHP Billiton is a national leader in reconciliation.29
Through ongoing consultation and involvement of local Indigenous communities, organisations
and key Indigenous people, each of BHP Billiton’s businesses have developed programs to meet
the needs of both the business and Indigenous people. Together, these programs form the
Reconciliation Action Plan.
In the 2007 Reconciliation Action Plan each business unit has set medium to long term
employment targets for both their operations and their contractors based on a number of
criteria including:
... how many Indigenous people versus others are living in the local and regional area,
the level of unemployment, employment requirements by other employers in the region
including community based organisations, government agencies and private sector
organisations, and the potential number of Indigenous people that are either work ready
or can receive training to make them work ready and how long this may take.30
The setting of targets is an important step in realising BHP Billiton’s vision to “help secure a
better future for Indigenous people so that they are able to fully participate in and equally
enjoy the benefits provided to other Australians.”
In 2000/01 BHP WA Iron Ore (Pilbara region) set a target of 12% Indigenous employment by
2010. A target of 12% was set because Indigenous people make up 12% of the Pilbara
population.31 In just six years the Indigenous employment rate has increased from about 3% to
more than 8% (at June 2007). Nickel west and Olympic Dam have similar targets and
timeframes based on local demographics and other factors.
28
Transfield Services Indigenous Participation Strategy 2007 -2009
www.transfieldservices.com/TS/LIVE/RESOURCES/DOCUMENTS/TransfieldServicesIndigenousParticipationStrategy2007-2009.pdf 29
Reconciliation Australia (2007) www.reconciliationaustralia.org 30
BHP Billiton 2007 Reconciliation Action Plan www.bhpbilliton.com/bbContentRepository/reconciliationaustraliaplan.pdf 31
BHP Billiton Aboriginal Employment initiatives www.bhpbilliton.com
Catherine Maughan Indigenous Employment Strategy Page 20
BHP Billiton business Indigenous employment targets
Business Target Timeline
WA Iron Ore 12% 2010
Nickel West 10% 2017
Olympic Dam SA 15 people 30 people
end 2007 June 2008
Case Study: RailCorp
RailCorp collects Equal Employment Opportunity data through an annual survey and publishes
the results in annual reports. RailCorp has set a benchmark of 2% for employment of Aboriginal
and Torres Strait Islander people (the NSW Indigenous population is 2.1% of total population).32
At June 30 2006, RailCorp employed 308 Indigenous people representing 2.3% of RailCorp’s
workforce.
Trends in the representation of RailCorp’s EEO groups33
EEO Group Benchmark
or Target
2004/05 2005/06 2006/07
Women 50% 14.6% 17% 18%
Indigenous 2% 3% 2.3% 2.3%
NESB 20% 23.8% 26% 27%
Disability 12% 7.5% 7% 7%
32
ABS 2001 National Regional Profile: NSW 33
RailCorp Annual report 2006-2007 www.railcorp.info/__data/assets/pdf_file/0003/5493/RailCorp_Annual_Report_2006-2007.pdf
Catherine Maughan Indigenous Employment Strategy Page 21
Focus Area 2: Partnerships
The other huge advantage of the partnerships approach for Indigenous
people is that it gives them a voice in planning for the future. Instead of
being the passive recipients of programs that others have deemed
beneficial to them, Indigenous people become partners in decision-
making processes that affect their future.34
Companies are finding that it is often more efficient and effective to meet Indigenous
employment targets in partnership with the Indigenous community and organisations. In
addition, some companies are contracting out part of their operations to commercially run
Indigenous-owned businesses.
Case Study: Alice Springs to Darwin Rail Project
The 1 420 km rail line from Alice Springs to Darwin was completed on September 17 2003.
Design and construction was completed by ADrail, a joint venture between Halliburton/Kellogg
Brown & Root, Barclay Mowlem, John Holland Group and McMahon Holdings. A Local Industry
and Aboriginal Participation Plan resulted in the training and employment of 275 Indigenous
workers (about 15% of the project’s workforce) on the Alice Springs to Darwin rail project.
John Holland Group Managing Director, Bill Wild said:
Indigenous employees worked on all areas of the railway, from civil plant operations, track
laying, bridge construction and administration to construction camp operations, sleeper
manufacturing, culvert construction and quarrying. Experience gained through both
employment and training on the project helped Indigenous Territorians obtain future
employment and broadened the skills base for Indigenous people generally in the area.35
Northern and Central Land Council, Centrecorp and the Northern Australian Aboriginal
Development Corporation implemented the employment and training strategies for the rail
project. Project Officers dedicated to maximising Indigenous participation in various
employment activities, such as site clearance, track-laying, sleeper production and construction
camp and catering services, were employed. To ensure that employment opportunities
continue, the Northern Land Council has now developed a database of Indigenous people
available to work in locations across the Top End.36
34 CSRM Indigenous employment in the Australian minerals industry 35 John Holland Group Media Release 7 July 2005 www.johnholland.com.au/Documents.asp?ID=295&Title=7%2F7%2F05+Indigenous+employment+to+be+boosted+by+John+Holland
36 Journal Article 2003 www.austlii.edu.au/au/journals/AILR/2003/1.html#Heading385
Catherine Maughan Indigenous Employment Strategy Page 22
Case Study: Public Transport Authority of WA
PTAWA is developing partnerships with schools with significant numbers of Indigenous
students. In particular, PTAWA is developing partnerships with Sevenoaks Senior College in
Perth. Sevenoaks caters for senior secondary students (Year 11 and 12) and in 2007 the College
had 54 Indigenous students representing 13% of the student population.37
Seven Oaks College runs Aboriginal School Based Traineeships (ASBT) with college staff
(Aboriginal Liaison Officers and Aboriginal Islander Education Officers) providing on-going
support for the student and the employer. PTAWA intends offering work placements for ASBT
students in Semester 2, 2008. PTAWA view this as an important way in growing relationships
with Aboriginal students, their families and communities. PTAWA is also investigating the
Adopt-A-School program and running tours of their facilities for Year 11 and 12 students.38
Case Study: Indigenous Owned Contracting Businesses
Established in 1995 by Aboriginal businessman Daniel Tucker, Carey Mining provides two main
services: a full range of mining services and it recruits, trains and supplies labour. In both
instances the company helps its clients build local stakeholder relationships. Carey Mining has
substantial contracts with major companies. For example Main Roads WA contracted Carey
Mining to train and employ Indigenous people to work on the metro rail project.39
Ngarda Civil & Mining provides earthmoving, civil engineering and contract mining services in
the North West of WA. Ngarda is dedicated to the employment, training and total integration
of Indigenous people in its operations. Ngarda employs 160 Indigenous people (total workforce
is 200). The company’s client list includes BHP Billiton Iron Ore, Boodarie Iron, Pilbara Iron,
Woodside, Newcrest and Aditja Birla. Last financial year Ngarda turned over just under $50M.
CDE Capital, an Indigenous civil and mining contractor, has more than 30 years experience
delivering construction projects throughout Australia. About 80% of CDE’s permanent
workforce is Indigenous. CDE Capital provides meaningful training and employment
opportunities for the local communities in which they work and on some projects have
recruited up to 50% of the workforce from the local Indigenous community.40
37 Sevenoaks Senior College, Schools On-Line, Education Department of WA 38 Robin Austen, Access & Equity Officer, PTAWA, personal communication 19 March 08 39
www.dia.wa.gov.au/Documents/ReportsPublications/OvercomingIndigenousDisadvantage/pg226-253PartBChapter8.pdf 40 CDE Capital www.cdec.com.au
Catherine Maughan Indigenous Employment Strategy Page 23
Focus Area 3: Recruitment Strategies
Modern Human Resource practice is based on systems, procedures and practices that treat all
people the same and produce standardised information. However, all people are not the same
and traditional recruitment practices are primarily geared towards non-Indigenous urban
dwellers. Consequently traditional HR systems and processes can create barriers and, often
inadvertently, discriminate against Indigenous people seeking to enter the mainstream
workforce.
Leading companies in the Australian minerals industry41 have been successful in recruiting
Indigenous workforce by adapting their recruiting programs. These adaptations include:
Focusing more on face-to-face rather than written communication with potential applicants
Using selection centre workshops to identify individual skills and abilities
Adopting flexible strategies to manage problems with drug and alcohol use
Providing cultural awareness training for all recruits, Indigenous and non-Indigenous, as part of the induction process.
The following table summarises the difference between the mainstream approach and good
practice Indigenous recruitment processes.
Step Mainstream Indigenous
Advertise/promote Advertise in mainstream newspapers Advertise internally Post ads on company websites and on-line recruitment sites Utilise large HR companies based in capital cities
Utilise Indigenous networks for advertising (incl Indigenous newspapers, organisations and employees) Work with local Indigenous organisations to identify potential applicants & organise community visits to talk about the company, the jobs and how to apply Post ads on notice boards in the community and Indigenous organisations Utilise companies that specialise in Indigenous employment
Applications/resumes Applicant submits in hard copy or electronically
Prepared in hard copy or electronically Provide assistance with completing forms/resumes Collect applications during community visits
Short-list Assess applications and resumes Telephone interviews, reference checks
Assess applications and resumes Reference checks, local knowledge
Selection Final short list drawn up Interview by HR officer and relevant manager/supervisor Psychometric test Medical, drug & alcohol tests Best candidate chosen
Selection centre workshops to determine short list Interview to also include Indigenous staff member or community representative Culturally appropriate psychometric tests Medical, drug & alcohol tests that includes appropriate feedback and follow up Use affirmative action policies to allow
41
CSRM Indigenous employment in the Australian minerals industry
Catherine Maughan Indigenous Employment Strategy Page 24
Indigenous people who meet a range of acceptable levels for the role to be selected, rather than just the ‘best candidate’
Offer of employment Successful applicants informed in writing Unsuccessful applicants informed in writing
Successful applicants informed in writing Unsuccessful applicants are briefed and supported appropriately as required
Induction Induction covers policies & procedures, rights & responsibilities, reporting requirements, OHS etc
Induction program also includes cultural awareness and, where appropriate, Aboriginal heritage issues
Adapted from CSRM Indigenous employment in the Australian minerals industry (2007)
Case Study: Indigenous Employment Coordination42
Sinclair Knight Merz (SKM) offers Indigenous Employment Coordination on major infrastructure
projects to clients in the minerals, petroleum, heavy industries, water, rail and road sectors.
Indigenous Employment Coordination includes providing Indigenous training and employment
guidance and advice on:
Indigenous cadetship, traineeship and apprenticeship policies and strategies
Indigenous employment policies and strategies
Utilising local/and or regional Indigenous businesses
Identifying positions that may be filled by Indigenous employees
Mentoring programs for Indigenous employees
Cultural awareness training for office and site personnel
Application and engagement of government indigenous programs
Case Study: Promotional Material43
RailCorp are developing a range of booklets to showcase their staff and occupational groups.
The first booklet features Aboriginal and Torres Strait Islander employees and will be followed
by a series of others including both occupational groups and young people under 30.
Case Study: Employee and Contractor Induction Programs44
Cultural awareness is included in new employee induction programs at the majority of BHP
Billiton’s business operation sites. Often the programs are tailored to meet the specific needs
of sites and individuals.
42 SKM website www.skmconsulting.com/Markets/Indigenous_Services/Employment/employment.htm 43 RailCorp Annual report 2006/07 44 BHP Billiton 2007 Reconciliation Action Plan www.bhpbilliton.com/bbContentRepository/reconciliationaustraliaplan.pdf
Catherine Maughan Indigenous Employment Strategy Page 25
Employee orientation. For all new employees. Aboriginal Affairs Department and Human
Resources staff presentation on employment, contracting and education strategy, as well as
cultural heritage compliance, commitments and protocols
Aboriginal heritage induction. For all new employees and contractors. The objective is to
promote traditional rights of Indigenous people and valuing cultural heritage through
protection and management of heritage sites.
Indigenous employee workshops. The 2-day workshops are attended by Indigenous
employees and supervisors of Indigenous employees. Presenters are Indigenous people
(consultants) and the focus is on employee and employer obligations, standards and
commitments, financial planning, cultural obligations, differing values and priorities
Catherine Maughan Indigenous Employment Strategy Page 26
Focus Area 4: Retention Strategies
Our statistics show us that our employee retention, Aboriginal
employee retention, is better than non-Aboriginal retention. People
said to us, “You can’t rely on Aboriginals, they go walk about”. But
that’s not what the statistics show. The statistics show that they stay
longer than other employees do. Incidentally, turnover is normal. We
have greater than 15% turnover on all our mines in northern
Australia. It is normal for people to leave a job and go and work
somewhere else.45
The factors influencing Indigenous and non-Indigenous turnover rates include economic
conditions, job characteristics, personal factors and social and cultural factors. For Indigenous
employees, personal, social and cultural factors have a greater impact than economic factors or
job characteristics. Within the minerals industry, successful retention strategies implemented
to reduce staff turnover, especially in the first 12 months, include:
Provision of ongoing mentoring and support networks
More flexible work rosters
Provision of career development opportunities
Provision of family support
Addressing racism and prejudice in the workplace.46
Support programs are especially important for Indigenous people who have a lack of prior
experience in the mainstream workforce. Developing the necessary knowledge, skill,
experience, confidence and self esteem in Indigenous people to want to participate in the
mainstream workforce has been achieved with work readiness programs and mentoring.
Career development opportunities and addressing racism in the workplace contribute to a
more supportive work environment, encouraging more Indigenous employees to stay.
Successful retention initiatives are generally implemented in partnership with Indigenous
organisations.
Case Study: Employee Networks
From 1999 RailCorp had an Aboriginal Torres Strait Islander Network Committee (ATSINC)
which provided a support network for Indigenous employees. The Committee met monthly to
45 Bruce Harvey (c2005), Rio Tinto Chief Advisor, Aboriginal and Community Relations cited in the ‘The Corporate Citizen’ Vol 5 (2) 46
CSRM Indigenous employment in the Australian minerals industry
Catherine Maughan Indigenous Employment Strategy Page 27
work on Indigenous employment and workplace issues, as well as particular projects such as
the annual conference for Indigenous employees and NAIDOC events.47
In 2006/07 RailCorp established five Diversity Networks including one for Aboriginal and Torres
Strait Islander people. The ATSI Diversity Network continued to provide ongoing support for
Indigenous staff including an annual ATSI Employee Conference. Representatives from each
Diversity Network and the operational groups form the ‘Equity and Diversity Steering
Committee’. The Steering Committee advises the CEO on potential barriers to equity and
strategies to overcome these barriers.48
Case Study: Sub-contracting Security Services
Indigenous people are a major client group for the Public Transport Authority WA as they are
regular users of passenger trains throughout WA, especially in non-peak periods. PTAWA has
engaged Chubb Protective Services to provide six Aboriginal Liaison Officers who work full-time
on the urban railway lines in Perth. The ‘arms-length’ relationship of the ALOs can assist in
alleviating potential problems with clients as the staff are not direct employees of PTA.
However, as employees of Chubb the ALOs are not included in PTA’s Indigenous participation
rate.49
Case Study: Overcoming Racism with Cultural Awareness Workshops
Promoting cultural awareness amongst employees, contractors and other key stakeholders is a
key focus area for BHP Billiton. Cultural awareness workshops and training provides the basis
for improving understanding and relationships with Indigenous communities along with helping
to facilitate better outcomes for Indigenous training, employment and business development.
The cultural awareness training that BHP undertake also has an important role to play in
increasing the general awareness of their employees, contractors and others of the significance
of cultural heritage and the need for its proper management.
BHP Billiton WA Iron Ore – since 2000 more than 2,700 employees, contractors and invited
community representatives have attended the 1-day cultural awareness workshop. These
workshops are delivered under contract by Wangka Maya Pilbara Aboriginal Language Centre,
in conjunction with relevant Indigenous custodians.
Nickel West – all employees and long-term contractors attend a half-day cross cultural training
awareness course facilitated by traditional Indigenous people from the region. In addition
Nickel West also conduct a course for staff at Manager level and above and employees who’s
47 NSW Public Sector Making it our business. Improving Aboriginal employment in the NSW public sector and RailCorp Annual report 2004/05 48 RailCorp Annual report 2006/07 49 Robin Austen, Access & Equity Officer, PTAWA, personal communication, 19 March 08
Catherine Maughan Indigenous Employment Strategy Page 28
roles are identified as being critical to the Indigenous Participation Strategy and who largely
interact with the Indigenous community. The 2-day course incorporates a day on country with
traditional Indigenous people building on the foundations of the one-day session.
Groote Island Manganese Company (GEMCO) – cultural awareness training in partnership with
Anindilyakwa Land Council for employees, contractors, service providers and partners. Specific
Courses include 1-day course for staff, 2-day course for staff at the level of Supervisor and
above and 1-day Reverse cross-cultural course for Indigenous employees.
GEMCO also run a number of other awareness programs including:
Team Building Leadership Camp - All Aboriginal employees and direct supervisors and some of the management team go on country for a 2-day team building and leadership program.
Community Awareness Sessions - Provides community members with an overview of the importance of the relationship with the Aboriginal community and the obligations and legal responsibilities of the individual community members. These sessions are designed for partners of GEMCO and contractors who live in Alyangula.
Management Awareness – all staff at supervisor level and above attend a 2-day corporate ‘cultural survey’ that incorporates Indigenous elements. Takes place on country.
Catherine Maughan Indigenous Employment Strategy Page 29
Focus Area 5: Education & Training
I've heard once before nobody up here is willing to work. I mean,
that's not true. A lot of other companies, if they really worked hard
instead of spending all their money training up people in the
Philippines, put a little bit more energy into what we've got around
us, Australia would be a different place.50
With record unemployment and a national skills shortage, organisations are taking a greater
and more active role in skilling their workforce by:
Up-skilling and retaining current employees, and
Improving the pool of potential employees.
Perhaps the greatest obstacle to increasing the Indigenous workforce participation rates,
especially in regional and remote areas, is poor education levels. However, this disadvantage is
being overcome at many levels (schools, TAFEs, universities, workplace) through strategic
partnering with Indigenous organisations, governments and education and training providers.
Secondary School Programs
Gumala Mirnuwarni A programme providing intensive educational support and mentoring for
Indigenous secondary school students based in Karratha and Roebourne. Delivered as a
partnership between government education departments, Rio Tinto Iron Ore and Woodside.51
Aboriginal School Based Traineeships ASBTs provide the opportunity for senior secondary
students to start a traineeship whilst also completing Year 11 and 12. The Aboriginal
Employment Strategy (AES) run a school based traineeship program for Aboriginal students in
regional NSW and WA. AES report a 90% success rate for completion of the traineeship due to
the mentoring support they provide to both the trainee and the host employer.
The program fulfils a business need by providing the host employer with a source of young and
enthusiastic employees. On leaving school many of the trainees go on to full-time employment
with the same employer.52 Rio Tinto and BHP also employ school based trainees.
Indigenous Australian Engineering Summer School Established by Engineering Aid (a non-profit
organisation), IAESS is an annual 5-day live-in Summer School that gives 20 Indigenous Year 11
and 12 students a taste of engineering as a university course and career. Since this program
began in 1998, at least 23 students from the program have gone on to study engineering at
university. IAESS is fully sponsored by a range of government departments, private donors and
50 Damien Ardagh, VTEC Training Manager, Fortescue Metals quoted in SBS Living Black 15 September 2007 51 www.riotintoironore.com/ENG/careers/183_indigenous_employment.asp 52 AES School Based Traineeships www.aboriginalemploymentstrategy.com.au/Page.aspx?category=1&element=23
Catherine Maughan Indigenous Employment Strategy Page 30
private companies. ARA member companies who have supported the IAESS include Arup, Rio
Tinto, Sinclair Knight Merz, Parsons Brinckerhoff and Transfield Services.53
Apprenticeships and Traineeships
Investment in Aboriginal Relationships Program In 2000, BHP introduced a pre-apprenticeship
program because Indigenous people appeared not to be applying for apprenticeships and
traineeships. The Company assumed that local Indigenous people were either not interested in
applying for positions or thought they would not be able to pass the initial selection process.
However, that assumption was challenged in the first year of the program as a number of local
Indigenous applicants were successful in gaining apprenticeships in their own right, without
needing to do the pre-apprenticeship program
For applicants who miss out on gaining an apprenticeship, the one-year program helps them
develop their ability to succeed in the following year’s intake. As a consequence, Indigenous
apprentice and trainee numbers rose from about 2 in 2000 to 55 in 2004. Aboriginal people are
undertaking apprenticeships at BHP in engineering, mechanical and electrical trades and
traineeships in clerical and mine production roles.54
Tertiary Programs
National Indigenous Cadetship Project The NICP is an Australian Government program that
aims to improve the professional employment prospects of Indigenous Australians studying a
Diploma or Bachelor degree. In 2006/07, 234 cadets commenced under the project, bringing
the total number of commencements since 1999 to more than 1,290.55
Rio Tinto NICP Signing up in 1999, Rio Tinto was one of the first private sector organisations to
support the NICP. Rio Tinto provides opportunities for university students studying many
disciplines including:
Engineering (eg civil, mining, chemical, mechanical, electrical)
Science (eg. metallurgy, chemistry, geology, archaeology, environmental)
Other degrees (eg. anthropology, human resources, IT, accounting, business)
Since 1999, 11 Rio Tinto cadets have graduated and gained employment including six who have
taken up graduate roles with Rio Tinto. Seven cadets are currently undertaking cadetships with
Rio Tinto. In addition, Rio Tinto Iron Ore provides scholarships for Aboriginal students in the
Pilbara to study at the university of their choice. The scholarships cover all major expenses
associated with tertiary study.56
Sinclair Knight Mertz NICP The Indigenous Cadetship Program (ICP) is a signature project for
SKM. Currently SKM supports 15 cadets in their Sydney, Melbourne, Perth, Brisbane and
53AIESS www.newcastle.edu.au/faculty/engineering/events/indigenous-summer-school/ 54 BHP Billiton (2004) HSEC Report http://sustainability.bhpbilliton.com/2004/repository/caseStudies/socioEconomic33.asp 55 Department of Employment & Workplace Relations Annual report 2006-07 56 www.riotinto.com/careers/221_australian_national_indigenous_cadetship_project.asp
Catherine Maughan Indigenous Employment Strategy Page 31
Adelaide offices. Five of the current cadets are studying an engineering discipline; the other 10
cadets are studying law, commerce, architecture, town planning and human resources.
In addition to the paid work placement, SKM offer their cadets training, workplace rotations,
mentoring and an annual ICP Conference when all cadets come together. For the 12-week
work placements, cadets work within relevant areas of SKM and also with client companies.
Jack Pearson said ICP has been very successful because the cadets are fully supported by SKM
staff throughout their study. Jack also said the annual cadet conference was well received by
cadets and was important for peer support and networking. With the support of participating
organisations for work placements, SKM would like to build its cadet numbers up to 100.57
Arup Joining the NICP program about 10 years ago, Arup has trained 10 Indigenous students
studying engineering. The cadets are placed in teams and mentored by a qualified engineer.
The cadets usually work on projects within their discipline of engineering but they are allowed
to rotate through different fields of work if they wish. Arup use the NICP program to link with
Indigenous Australians.58
Work-Ready Programs
RailCorp Pre-employment Program In partnership with TAFE, RailCorp is currently piloting a
pre-employment program for Indigenous Australians. Recognising that many Aboriginal and
Torres Strait Islander people experience educational, economic and social disadvantages, this
program helps participants to gain the knowledge, skills and confidence they need to compete
for customer service assistant positions through the usual recruitment process. Job offers to
successful candidates of this program will be made in 2007-08.59
Ashburton Work Start Program This initiative is a result of a partnership based in Tom Price
and Paraburdoo between SKILLED, Rio Tinto Iron Ore, Shire of Ashburton, Job Futures/North
West Jobs, Pilbara Gascoyne Population Health, Pilbara TAFE and Ashburton Aboriginal
Corporation. Launched in September 2006 the program is designed to provide the local
Indigenous communities with training and skills to secure full time employment specifically
within the mining industry.
Currently there are 12 people in the program which offers educational support such as reading
and writing, as well as a 12-week job ready course that assists with submitting resumes and
attending job interviews. Those who complete the course are employed by SKILLED as Haulpak
operators and stores people for Pilbara Iron, the Shire of Ashburton or found suitable local
work. 60
57 Jack Pearson, Practice Leader Indigenous Engagement, SKM personal communication, 02 April 08 58 Engineers Australia (2007) Attracting more Indigenous Australians to engineering 59 RailCorp Annual Report 2006/07 60 SKILLED’s Pilbara partnership wins state award December 2007
Catherine Maughan Indigenous Employment Strategy Page 32
Vocational Training and Employment Centre Jointly funded by Fortescue Metals Group (FMG)
and the Australian Government, VTEC provides training and education for Aboriginal
participants, as well as a guaranteed offer of employment for successful trainees. VTEC boasts
a retention rate of at least 60%.
In 2007, the Centre for Excellence in Rail Training (CERT)61 provided training in tracklaying for 25
Aboriginal people at VTEC. The 20 graduates were subsequently employed by project partner
Laing O’Rourke to lay FMG’s new railway line in the Pilbara region.
VTEC manager Damien Ardagh said employers valued the program for taking the legwork out of
the training process and for providing a ready talent pool of workers, while trainees and their
families had expressed appreciation that others were taking the time to try and understand
where they were coming from and treating them as individuals rather than as statistics. “These
people are important,” he said. “They’re not just here to make up the numbers and they’re not
just about employment targets.”62
61 Stuart Pottinger, RTO Manager CERT, personal communication 08 April 08 62 Damien Ardagh, VTEC Training Manager quoted in SBS Living Black 15 September 2007
Catherine Maughan Indigenous Employment Strategy Page 33
Government Financial Assistance
The Australian Government’s Indigenous Employment Policy63 provides flexible packages of
assistance including:
Wage Assistance.
Structured Training and Employment Projects (STEP).
National Indigenous Cadetship Project (NICP).
Corporate Leaders for Indigenous Employment Project.
Wage Assistance
Wage Assistance is a payment given to employers as an incentive to employ Indigenous
Australians on an on-going basis. Wage Assistance is used mainly by small private sector
businesses and is available for apprentices and trainees as well as other employees. It is also
available to public and community sector employers.
Wage Assistance offers salary subsidies to employers of up to:
$4,400 for full-time work or
$2,200 for ongoing part-time work of at least 15 hours per week.
STEP Program
The Structured Training and Employment Projects (STEP) Program provides flexible funding for
packages of tailored assistance to help employers give long term jobs to Indigenous Australians.
The level of funding depends on the type of organisation and services needed to ensure
ongoing employment. It takes into account the job readiness of the applicant, the type of
training received and training to be given, the duration of the job and where it is located.
STEP funding can cover the following:
training, including apprenticeships and traineeships, on the job training, school based apprenticeships and cross-cultural awareness training
development of an Indigenous employment strategy mentoring help with employment costs.
Numerous businesses have accessed STEP funding for different projects including the following
ARA member organisations:
RailCorp - train and offer ongoing employment to 15 Indigenous Australians as customer
service attendants and presentation service attendants in Sydney.
Queensland Rail (QR) - initiate the QR Indigenous Employment Strategy by recruiting eight
Indigenous Australians as apprentices and two Indigenous Australians as trainees within a
variety of QR business units.
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Catherine Maughan Indigenous Employment Strategy Page 34
Transfield Services - undertake a feasibility study to identify current and future employment
opportunities for Indigenous Australians across the company’s operations.
Rio Tinto Services - provide pre-employment training, apprenticeships and traineeships with
the company, its subsidiaries and sub contractors for 80 Indigenous Australians in various sites
across Queensland and NSW. Rio Tinto Services Ltd will employ and train 60 Indigenous
Australians as trainees/apprentices at Comalco Aluminium Ltd’s Weipa operations.
John Holland Group - employ 100 Indigenous Australians in the roles of apprenticeships,
traineeships and other general roles across Australia. The company will also employ an
Indigenous Employment Coordinator to develop and ensure the success of the company’s
Indigenous Recruitment and Employment Strategy.
BHP Billiton Iron Ore - provide employment for 50 Indigenous Australians recruited at its
mining operations in the Pilbara region of WA.
Pilbara Iron Company (Services) - provide training and employment for 61 Pilbara based
Indigenous Australians with the aim of increasing the rate of employment of Indigenous
personnel to 15%.
Fortescue Metals Group - provide employment for 80 full-time and 40 part-time Indigenous
Australians at its mining operations in the Pilbara.
National Indigenous Cadetship Program
The National Indigenous Cadetship Project (NICP) aims to improve the professional
employment prospects of Indigenous Australians studying a Diploma or Bachelor degree. The
Government provides employers with payments to cover administrative costs as well as an
allowance to be paid to the cadet while they are studying.
Companies recruit cadets from a discipline that will benefit them. The employer then provides
the cadet with a 12-week paid work placement for each full year of the cadetship, ensuring that
the work duties complement the cadet’s course of study.
Employers have found the project very useful in exposing their company to prospective
employees. Once students complete their university degree they often gain employment with
the employer who gave them the cadetship.
Many ARA member companies have signed up with the NICP including Arup, Baulderstone
Hornibrook, BHP Billiton, Fortescue Metals Group, Leighton Contractors, Parsons Brinckerhoff,
Rio Tinto, Sinclair Knight Merz and Thiess.
Catherine Maughan Indigenous Employment Strategy Page 35
Corporate Leader for Indigenous Employment
The Corporate Leaders for Indigenous Employment Project encourages private sector
companies to generate job opportunities for Indigenous Australians. It allows them to use
elements of the Australian Government’s Indigenous Employment Programme to develop and
tailor their Indigenous employment strategies to meet their business needs.
Companies become part of a team of innovative private sector organisations who have access
to the best Indigenous employment strategies and practices. Other benefits include:
expanding your talent pool by tapping into a growing Indigenous workforce
enhancing your reputation as a good corporate citizen
developing a workforce which better reflects your customer base
accessing to networking forums and targeted resources
opportunities for public recognition in the annual Corporate Leaders for Indigenous Employment Awards.
A flexible package of funding is available to all Corporate Leader organisations. The funding can
be tailored to your business needs and may assist you develop and implement a strategy that
could, for example, include assistance for pre-employment training, mentoring or cross-cultural
awareness training.
ARA member companies that have already signed up to be Corporate Leaders include
Baulderstone Hornibrook, BHP Billiton, John Holland Group, Laing O’Rourke, Leighton
Contractors, Rio Tinto, Thiess and Transfield Services.
Catherine Maughan Indigenous Employment Strategy Page 36
Conclusion
The Australasian Railway Association (ARA) is the peak body representing the interests of more
than 150 organisations involved in rail in Australia and New Zealand. The ARA has developed
an Indigenous Employment Strategy for the Australian rail industry which when implemented
will lead to alternative forms of labour supply for the Australian rail industry.
More than 40 000 people are employed in rail throughout urban and regional Australia in
diverse operations and professional occupations. Many more people work in support industries
providing goods and services to the industry. The rail industry and the general working
environment are in a state of transition. The workforce that has dominated the past decades is
now nearing retirement. The work preferences and expectations of new entrants to the
workforce are distinct and conflict, in some aspects, with the preferences of the existing
workforce.
Depending on a number of business factors including current level of engagement with
Indigenous communities and the capacity to initiate new recruitment and retention strategies,
the options for organisations to increase Indigenous employment include:
Development of Reconciliation Action Plans
Engagement of Indigenous Coordinator/Advisor
Employment of Indigenous apprentices and trainees
Pre-employment programs
Development of cross cultural awareness package
Employment of Indigenous university students as cadets
Corporate leaders for Indigenous employment
Extend Indigenous Employment Strategies to rail divisions
Organisations involved in the transport and resources sectors have successfully recruited and
retained Indigenous Australians in all levels throughout their business. The key success factors
of these organisations have been grouped into five focus areas:
1. Organisational commitment
2. Partnerships
3. Recruitment
4. Retention
5. Education and training
A commitment by member organisations to increase Indigenous employment could result in
more than 1 000 Indigenous Australians employed within all facets of the Australia rail industry.
Catherine Maughan Indigenous Employment Strategy Page 37
Useful Publications
Chamber of Minerals & Energy WA (c2007) Indigenous participation in Western Australia’s
resources sector. CME: Perth. www.cmewa.com.au
This publication highlights some partnerships between the resources sector and Indigenous
communities in WA. Contributing companies including BHP, Rio Tinto, Downer EDI and
Newmont, describe how they have achieved success in Indigenous employment, business
development, education and training, cultural awareness training and community projects.
The Centre for Social Responsibility in Mining (c2007) Indigenous employment in the Australian
minerals industry. University of QLD, CSRM : Brisbane. www.csrm.uq.edu.au
A key finding of this study is that when operations give the same commitment to Indigenous
employment initiatives as other business activities, good outcomes are achieved in relatively
short time frames. This paper explains the factors that lead to lower workforce participation of
Indigenous people and implications for employers (the Indigenous diversity challenge). This
paper is full of good practice examples including organisational commitment, culturally
appropriate recruitment and retention strategies and contractor issues.
BHP Billiton Iron Ore (n.d.) Indigenous contracting guidelines. Building sustainable Indigenous
economic development. www.bhpbilliton.com
These guidelines provide a framework to assist Indigenous Contracting Businesses understand
BHP Billiton Iron Ore’s approach to identifying and assessing business opportunities that are
available to them. Iron Ore’s desire is that its Indigenous contracting opportunities will enable
Indigenous Contracting Businesses to grow and become autonomous, profitable businesses
that can sustain their commercial operations by servicing a range of customers.
Department of Industry, Tourism and Resources (2007) Working with Indigenous communities.
Leading practice sustainable development program for the mining industry. www.ret.gov.au
This handbook provides guidance for resource developers on how to work effectively with
Indigenous communities. This handbook provides case studies to illustrate how companies
have engaged successfully with Indigenous communities in a range of contexts.