RESOURCE PEOPLE Issue 003 | Summer 2013

MP Moore to leave western post

Crane operator lifting the game

Restoring Tassie's Savage River

PLUS onboard with Allseas, Shorten vs Abetz and Toll's fatigue secrets

Issue 003 | Summer 2013

The people behindAustralia’s leading

gold miner

Newcrest’sDebra Stirling

Inside the world-classGLNG project

Santos spotlight

www.amma.org.au | Summer 2013 |

02

REGULARS

04 | From the Editor05 | Chief Executive’s Message54 | Events calendar56 | Business Partner Directory

RECRUITMENT

06 | Promoting benefits to attract and retain08 | Workforce planning for a competitive edge10 | A blueprint for successful hiring decisions11 | 5 minutes with AMMA’s Geoff Timmerman

MEMBER FEATURE

12 | Spotlight on Santos GLNG

LEADERSHIP

14 | Construction inspectorate chief has his say16 | Code of conduct flagged for Queensland construction18 | MP leaves Western post with Moore growth ahead

POLICY

20 | Great productivity debate21 | Get Fair Work reform back on track22 | Policy at a glance23 | Law Council concerned over new VPs24 | Pre-election head to head: Shorten vs Abetz

DIVERSITY

26 | Dianne’s open ticket to success

COVER STORY

28 | The people driving Newcrest’s golden age

CONTENTS

Published by Third Sector Services, Great Southern Press Pty Ltd. +61 3 9248 5100 gs-press.com.au

CONTENTS

1218

26

| Summer 2013 | www.amma.org.au

03CONTENTS

Editor | Tom Reid [email protected]

Advertising | Tara Diamond [email protected]

AMMA Contacts1800 627 771 | [email protected]

[email protected] [email protected]

[email protected]

MIGRATION

32 | Perilous seas ahead for offshore employers34 | Allseas Australia’s workforce strategy36 | Research backs use of migrants38 | Industry impact of LAFHA tax reforms ongoing

OHS & WELLBEING

40 | Taking action on workplace bullying42 | Managing fatigue’s heavy toll

TRAINING & DEVELOPMENT

44 | Unearthing South Australia’s new talent46 | Building leadership at Earth Data

INNOVATION

48 | Taking control of dust management49 | QGC funds community development50 | Preserving nature’s assets at Savage River

ECONOMY

52 | Realising Tasmania’s northwest wealth

34

MP Moore to leave western post

Crane operator lifting the game

Restoring Tassie's Savage River

PLUS onboard with Allseas, Shorten vs Abetz and Toll's fatigue secrets

Issue 003 | Summer 2013

The people behindAustralia’s leading

gold miner

Newcrest’sDebra Stirling

Inside the world-classGLNG project

Santos spotlight

28

50

www.amma.org.au |Summer 2013 |

04 REGULARS

IT IS FITTING that Newcrest Mining features as our first Resource People cover story for 2013. Like many employers, Australia’s top gold miner has faced some challenges over the past 12 months but, as Debra Stirling clearly articulates, ‘is about to really deliver on its potential’.

Stirling is a star performer in a talented executive team and has seen Newcrest’s

workforce strategies underpin half a decade of rapid expansion. In this interview, she shares the secrets behind the company’s unrivalled culture and why Newcrest was named Randstad’s ‘most attractive employer’ last year.

We also provide unique insight into the workforce requirements for one of Queensland’s ‘big four’ LNG developments – the $18.5 billion Santos joint-venture GLNG project. This feature illustrates the employment, training and community benefits a project of this size delivers to our nation.

The recent support shown from Tasmania’s government for mining development in the Northwest Tarkine region is a great boost for the state’s employment prospects. We celebrate this sensible decision with a feature on Grange Resources’ Savage River mine, where environmental sustainability is paramount.

After 36 years in state politics, Norman Moore shares his outlook on the West Australian resources sector. Retiring at

this year’s state election, Moore’s leadership as WA Minister for Mines and Petroleum has left a lasting legacy for both the state and national resource sector.

Also inspiring is the story of Boom Logistics crane operator Dianne Deegan, the first Aboriginal woman to hold an open ticket crane operator’s license. Her success is a testament to perseverance and passion for the job.

Migration explores sub-sea pipelaying processes with Allseas and how the company was drawn into the offshore migration debate. While in Policy we bring you the latest in productivity discussions and reforms to the Fair Work Act; featuring a special ‘head to head’ with Minister Bill Shorten and shadow spokesperson Eric Abetz.

You’ll also find within these pages case studies on best practice recruitment, training, OHS and much more – featuring employers from across AMMA’s diverse membership base such as Chevron, Macmahon, Toll and CSA Mine.

This edition features a broad range of content as Resource People continues to evolve, but our core focus remains exploring how the people behind our industry’s renowned operational success truly give Australia’s resource employers a competitive edge.

Tom Reid Editor

From the Editor

RESOURCE INDUSTRY EMPLOYER GROUP

ASSOCIATE MEMBER 2011/12proud sponsor of AMMA

Onsite Medical Solutions

Around the clock, around the world

Sydney • Perth • Brisbane +612 9202 8222 www.customercare.com.au


05REGULARS

AUSTRALIA’S RESOURCE INDUSTRY employers wasted no time putting a challenging finish to 2012 behind them and are powering through the new year with bright prospects.

In this first edition of Resource People for 2013 we have captured just a glimpse of the success stories and innovation driving this renewed sense of optimism across the wider resource industry.

While continuing to focus on employment and workforce management, Summer 2013 has also broadened our focus to include greater insight into various operational aspects of our nation’s prospering mining, oil and gas projects.

Australian resource employers’ understand that excellence in operational aspects and human resources management are inextricably linked. This remains a critical element in our industry’s ongoing contribution to Australia’s economy and society.

Despite ongoing media speculation about economic conditions, fluctuating commodity prices and the increasing burden of overregulation, our sector has been responsible for the largest transfer of wealth and skills in our economic history.

AMMA is proud to see more than 270,000 Australians working directly in the sector, about 40,000 more than just one year ago. These growth figures demonstrate that our industry is by far the fastest growing source of new jobs in the country.

With all this activity comes challenges however, and facilitating the level of skilled labour to sustain this employment growth continues to be our top priority. Australia must create a greater pool of skilled workers or risk falling short of realising the full benefits of our industry’s unparalleled investment opportunities.

During 2013 AMMA will be extending our services and people capabilities across the suite of benefits we offer our members. As the demand for skilled people across Australia heats up, we are earnestly pursuing a range of workforce initiatives to address the skills and labour challenges faced by our members in the resource and related construction sectors.

Key initiatives launched more than a year ago in AMMA miningoilandgasjobs.com and the Australian Women in Resources Alliance (AWRA) are beginning to deliver long-term positive impacts for the sector.

AWRA will host its first national conference event in May prior to AMMA’s 2013 National Conference. Both are hosted at Melbourne’s Crown complex and promise to create our biggest and best event to date. Similarly, AMMA miningoilandgasjobs.com continues to be backed by the Australian resource industry as the most effective online recruitment and information portal available.

A newer focus for AMMA is our Skills Connect program, which is facilitating the transfer of labour and skills from other sectors of the economy into the resource industry. Alongside a number of partners across construction-related skills and trade programs, Skills Connect is a proactive initiative aimed at supplying more skilled tradespeople to our industry during a period of unprecedented construction-based labour demand.

The depth and scale of our partnerships allows the AMMA Skills Connect scope to cover all skill development areas from the entry points of ‘try-a-trade’, school to work programs and apprenticeships through to sophisticated migrant gap training, international skills assessments and employer specific training solutions.

While we are very excited about the value of these initiatives, there remains a sour political backdrop where the urgent policy demands for sustaining Australia’s great resources opportunity are not being sufficiently addressed.

Throughout this federal election year, the nation’s policy-makers need to outline what action their respective parties will take to address the triple threat to our international competitiveness - unsustainable wage escalations, a combative labour environment, and declining productivity.

The government must ensure that new projects are not held to ransom by exorbitant wage claims, industrial unrest or unnecessary delays. Similarly, enterprise agreements should address only the core employment relationship and protected industrial action should only be taken as a last resort, following genuine attempts to bargain.

These policy issues are explored throughout this publication alongside best practice case studies, insightful feature stories on various members and engaging success stories.

These are the stories that are too often left untold within our sector and we again thank everyone involved.

It is stories like these that, when coupled with an ongoing pursuit of effective regulatory reform, demonstrate that the Australian resource industry is on the right track and making real progress in meeting our workforce needs.

Steve Knott AMMA Chief Executive

Chief Executive’s Message


RECRUITMENT06

WHETHER YOU ARE managing 3,000 or 350 workers, a growing trend in modern HR management is to promote an attractive range of benefits as the top strategy for attracting and retaining talented employees.

Amid heightened competition for skills and experience, resource employers are rolling out a variety of different benefits to keep their employees happy, healthy and, ultimately, contributing to their operations.

Chevron Australia HR Business Partners manager Katty Masci says the global energy company’s dedication to its people keeps it a step above the competition.

Masci asserts that while most companies offer basic employee benefits including health programs and childcare, Chevron ‘offers much more’ to its employees.

“With employee benefits it’s not only the financial benefits that you can provide, but it is also the non-financial benefits. This is a key contributor to some of our success in engaging our employees and retaining them,” she says.

“We have a health and wellness strategy that forms part of employee benefits and that’s really to provide a working environment with opportunities to achieve good health, well-being and a strong work-life balance.

“This is an important factor to all of us in our busy work life and these strategies benefit both the employees and their families.”

While not as large as Chevron’s operations, Glencore’s CSA Mine similarly leverages employee benefits to attract and retain its workers. HR superintendent Brien Obray notes the site situated in Cobar, New South Wales, is competing with several neighbouring mines for locally-based trade and technical professionals.

He says a review of the company’s HR strategy found local workers were less inclined to move roles based on salary alone – with improved retention instead coming from engaging these workers in the business and targeting benefits at improved family lifestyles.

“Retaining current employees is key because if you don’t lose them, then you don’t need to replace them and half your (recruitment) headaches have gone away,” says Obray.

“We needed to implement simple employee benefits other than just throwing more money at the employees, because that is not sustainable in the long term. We came to the conclusion that our salaries need to be competitive, but we don’t need to be the highest payer; nor do we want to be.

“We found that residential employees not only wanted the competitive salary with some simple extra benefits but that the employees and their families want to feel like they’re part of the business – so we involved them in the business. One example is the monthly newsletter we send home to keep the whole family informed.

“When the family is happy it is easier to retain employees, as one of the reasons workers leave is because the family is unhappy. We put emphasis on the whole family, not just mum and dad who work at the mine.

“These strategies give us a big return for a small outlay. They are very easy and simple to do, but when you manage it well you get a great return.”

Another example of CSA Mine Glencore’s family-oriented benefits that assist retention is the provision of tutoring for employees’ children. According to Obray, CSA Mine pays for a classroom and teachers in the local school to provide additional after-school education resources.

In a similar vein, Chevron provides remedial benefits for its employees and their families, including regular health checks, skin cancer checks and even parental training.

Masci notes Chevron’s most popular benefits relate to the ongoing support for employees’ work-life balance. The company has flexible working conditions available which include flexible start times, part-time work and job-sharing arrangements.

“One of our most popular employee benefits is our compressed working week, which is a nine-day fortnight. This gives employees the opportunity to do things that they can’t do during normal working days and also allows people with families to spend additional time with them,” says Masci.

When it comes to attracting and retaining future employees, ensure your company has strong benefits. As discussed here by Chevron and CSA Mine, employers of all sizes are creating an arsenal of attractive benefits to maintain a happy and engaged workforce.

Promoting benefits to ATTRACT and RETAIN

When the family is happy it is easier to retain employees, as one of the reasons workers leave is because the family is unhappy.

We put emphasis on the whole family, not just mum and dad who work at the mine.

BRIEN OBRAY


RECRUITMENT 07

“We also take pride in the contribution that we make to the Australian economy, as well as understand our responsibility to protect people and the environment, striving to explore and produce energy safely and reliably. All of these community-based attributes help us achieve an overall objective of being a high-performing company.”

Obray concludes that the provision of these benefits have produced tangible results.

“We have measured that two years ago we had an annual turnover rate of about 29 per cent, and as of end of October 2012, we had 15 per cent. So the benefits have definitely helped us,” he says.

“We are expecting even better results in the near future to put us in a really good position. Hopefully, we will have reduced our turnover by well over 10 per cent by the end of this year.”

Chevron and CSA Mine Glencore might be at the pinnacle of the strategic use of employee benefits, but all companies big and small are boosting their HR results, both in attracting and retaining employees.

And in today’s competitive labour market, offering a strong suite of employee benefits is not just a source of competitive advantage – but an operational necessity.

Our local expert consultants are

nationally supported and provide

effective candidate acquisition.

Call your local DFP representative

today and see how we can help

you find what you’re looking for.

We offer expert local knowledge in oil, gas & mining recruitment.

Perth1300 337 000 [email protected] 337 000 [email protected]

Broome1300 337 000 [email protected] Port Hedland1300 337 000 [email protected]

Karratha1300 337 000 [email protected]

Melbourne | Sydney | Brisbane | Adelaide | Canberra dfp.com.au

Chevron’s offshore domestic gas pipeline works.


RECRUITMENT08

OVER THE PAST three years, Australia’s national resource workforce has grown by around 32,500 jobs annually. According to Tony Wallace, if you haven’t built an effective strategy for managing your workforce needs, you’re probably already behind the eight-ball.

The Workforce Planning Australia senior associate says inadequately accounting for workforce growth in a company’s forward

planning estimates could lead to serious opportunity costs.“If [a workforce] is not factored in, then I think you’re missing

an important component, particularly when workforce costs are somewhere in the order of 25–30 per cent of operating costs and there’s upward pressure on those figures with growth in wages allowances and operating costs,” says Wallace.

“If you don’t consider those costs as part of your capital investments, then you will be at a greater risk to your profitability.”

According to Wallace, resource companies must think about HR strategies as a continual process – not just a plan that is forgotten shortly after being drafted.

“It’s not next week’s roster or the next budget planning for the next month or so,” he says.

“Strategic workforce planning really needs to be done three-to-five years out, and be consistent with the organisation’s overall strategic direction.”

To achieve lower turnover and keep employees strongly engaged, Wallace says workforce planning must have a foundation in aligning workers’ needs with the needs of the organisation.

To begin with, a company should create a multi-disciplinary team involving executive leaders, finance, HR and other planning staff. Integration and a ‘whole-of-business’ approach is key.

“Workforce planning is not just the domain of HR professionals,” notes Wallace.

“While organisations may put a lot of rigour into capital investments, the same rigour isn’t always carried through with analysing and forecasting labour costs.

“Understanding how you migrate from the current workforce to the future workforce and the associated transition needs, including training, is critical.

“It’s important to understand this across all investments and the stages from exploration, right through to realising the benefits from the resources that you’ve mined. It’s important

to have [your] workforce as an integral component of that investment decision.”

Wallace also believes that successful workforce planning relies on acquiring a large amount of data on employees. In analysing this data, workforce segmentation is also crucial.

“Data is important because it gives a compelling argument for change and can demonstrate what is actually going on, as opposed to what people may think is going on,” he says.

“The data should be a rich story that gives insights into how the organisation is changing, what the workforce looks like, as well as risk factors. Good data should provide a story on the workforce that is easy to have a conversation around.

“Inside your organisation you’ll have a number of job groups or occupations, and it’s important to not just look at the whole organisation, but look at your respective job groups. You can use this taxonomy to start focusing on the most important job groups for your organisation.”

By focusing on a continual workforce planning cycle, creating an ongoing, detailed set of data, and viewing the workforce in segments, organisations will be in a much better position to develop a long-term workforce strategy.

In this ongoing period of skills shortages and high labour demand, such a position could give your organisation the competitive edge you’ve been looking for.

Wallace’s top five tips for effective workforce planning:

1. Work toward long-term outcomes, planning ahead for three-to-five years.

2. Involve the executive, business and finance teams in workforce planning.

3. Make the planning focused on strong data, rather than assumptions on employee behaviour.

4. Segment the workforce into meaningful groups to focus on the core operations of the company.

5. Develop a strategy that takes into account employee retention, not just recruiting.

Workforce planning for a COMPETITIVE EDGEWith employment growth in Australia’s resource industry continuing to sit at around 25 per cent annually, effective workforce planning is no longer a luxury, but a necessary part of doing business.

TONY WALLACE


RECRUITMENT10

BUSINESS LEADERS OFTEN tell me that one of their most pressing challenges is how to effectively attract, recruit and retain top talent. It’s no surprise that this was one of the major issues identified in the latest Conference CEO Challenge survey.

In the hunt to gain competitive advantage through talent recruitment, my experience is that organisations often

over-emphasise the importance of the technical skills required to do the job.

Technical skills are important to establish capabilities, but it is usually a candidate’s personal attributes that dictate the application of those skills, and ultimately, on-the-job performance. Unlike technical skills, behaviours and personal attributes are difficult to change and hard to identify.

The blueprint for success comes from first designing a robust competency framework to define the behaviours, skills and attributes required for your business strategy. Building your talent strategy on this solid foundation will improve productivity, minimise risk and make a material difference to your organisation’s performance.

While there is an art to recruitment and talent management, reassuringly there is also a science to support critical hiring decisions.

Psychometric assessment aligned to a competency framework is an objective method for assessing personality, behavioural work style and motivation. It takes the guesswork out of selecting high-potential, high-performing talent. When used with competency-based interviews, psychometric assessment has proven to be the most accurate selection method for predicting future performance and on-the-job success.

Assessment information allows you to identify a new employee’s strengths and development areas. Additionally, it informs how best to manage and motivate individuals in order to increase their job satisfaction and achieve greater performance and business productivity.

This also results in decreased behavioural and performance issues, reduced turnover and absenteeism, and reduced recruitment spend. The same assessment and competency framework you use to make efficient, informed hiring decisions also generates critical intelligence which can be aligned to your broader talent management strategies, identifying suitable career paths, boosting internal mobility and supporting you to retain valuable talent.

The business case for a competency framework including psychometric assessment is compelling.

Hiring a better calibre of employee translates into a tangible return on investment, with high-potential employees being almost twice as valuable and three times more likely to succeed in their roles.

Independent research from the Aberdeen Group has found that organisations using psychometric assessments benefited from a 12 per cent increase in revenue per full-time employee. Additionally, shareholder return for organisations with more robust recruitment strategies is significantly higher than their competitors.

Recruitment and talent management is too important to the success of your business to leave to chance. That’s why deploying a research-based, globally-validated competency and assessment process gives you the assurance that your talent management framework is best practice.

So the next time you are seeking to boost your competitive advantage and business performance through talent recruitment, start with objective and relevant information, and add psychometric assessment to draw a true blueprint for success.

A survey of more than 750 business leaders has shown that after innovation, human capital is the biggest concern facing today’s CEOs. In this column, Futurestep head of assessment and selection Kim Severinsen explores how psychometric testing can help you make the right hiring decisions.

SUCCESSFUL HIRING DECISIONSA blueprint for

KIM SEVERINSEN

Technical skills are important to establish capabilities, but it is usually a candidate’s personal attributes that dictate the

application of those skills and ultimately, on-the-job performance.


RECRUITMENT 11

AMMA’s Geoff Timmerman, Training and Development Consultant

I’ve worked in the training sector for:Just over 12 years, and coming up to 10

months with AMMA now.

My work with AMMA involves:Primarily training development, delivery

and assessment for the range of both accredited and non-accredited specialised programs available through AMMA.

The thing I love about my job is:Working with a great team of people and witnessing both

new and experienced workers in the resource industry learning something about themselves.

The greatest challenge of my work is:Balancing job requirements with travel, as we deliver training

all across Australia.

The best way to connect with a classroom:To be authentic; be yourself.

My colleagues think I am:A touch gregarious (to put it mildly).

You wouldn’t know it but: I knitted a 33 metre scarf when I was

eight years old (something I probably shouldn’t admit). I kept and carried it in a garbage bag...and I think mum made it into a bedspread about 15 years ago.

My alternate career choice would be:Professional saxophone player or a fireman – both great

rosters and fun, interesting jobs.

If I could be anywhere else in the world it would be:Las Vegas, or on the deck of a five-star sunny beach resort.

I couldn’t live without:My Jeep and my dog Bonnie, who was sold to me as a ‘small

Staffie-cross’, but quickly grew into 40 kilogram Bull Arab.

I’m inspired by:The right song at the right moment.

The perfect meal is:Oyster shots for entree, followed by mud crab, king prawns

and fat chips. My late Dutch grandmother’s chocolate mousse with freshly whipped cream for dessert… accompanied by a glass or two of quality shiraz, of course.

I would spend my last $100 on:A decent bottle of scotch.

5 minutes with...

GEOFF TIMMERMAN


MEMBER FEATURE12

pool and working with suppliers to source the best talent. Custom-built support software ensures efficient service delivery.

The company has also developed a contemporary careers website as an important recruitment tool, which uses vibrant imagery and video clips of its employees’ experiences working with Santos. The Career Opportunities page allows external visitors to view and apply for existing vacancies across Australia, as well as register their interest for future roles.

“It is a top priority to employ local people that are ready, willing and appropriately skilled to fill the large number of jobs that will be available on the GLNG Project,” says Adams.

THE $18.5 BILLION GLNG Project is at the centre of Queensland’s pioneering gas sector, with four groundbreaking initiatives underway to convert coal seam gas (CSG) to liquefied natural gas (LNG) for export to global markets.

GLNG – a joint venture between Santos, PETRONAS, Total and KOGAS – involves a 420 km underground CSG pipeline which is currently under development to link the Bowen and Surat basin gas fields with an LNG plant on Curtis Island, offshore from Gladstone.

The project requires a peak construction workforce of about 6000 people, with 1000 long-term positions ongoing once operational. The project’s viability relies on Santos’ ability to source this mammoth number of skilled people – so how do they do it?

According to Lesley Adams, general manager, human resources of Santos’ GLNG Project, the competition is strong not only among Queensland’s big gas projects, but with resource operations around the world.

“We are operating a world-first project, which is extremely exciting but also challenging, and a key challenge is finding people with the right level of experience and capability,” says Adams.

“We don’t believe we are just competing with Queensland LNG projects, but other LNG and oil and gas projects globally.”

Santos utilises a range of attraction and advertising strategies including internal promotion of roles, targeted advertising, niche job boards, talent mapping and utilisation of networks. The major focus is on positioning the company as a preferred employer.

“Our brand and scope of work are attractive and we have competitive terms and conditions,” says Adams. “We adopt a proactive approach to reaching candidates as well as using a range of online advertising options. Once employees have joined Santos, we have a large focus on creating the right environment to engage and retain our people.

“Our goal is to make Santos easy to join and hard to leave.”To deliver this ethos, Santos has built a strong internal

resourcing team based in Adelaide and Brisbane to deliver a permanent recruitment service nationally. The team has a deep understanding of the business requirements and sources its candidates using a range of methods. More than 95 per cent of roles are placed by the team and within industry-leading average timeframes.

With contract positions, Santos uses a dedicated in-house team that is committed to building the company’s contractor

The labour demands associated with constructing a world-class LNG project during a major skills shortage are astounding – but Santos is on the front foot. In this case study, Resource People explores the workforce strategies behind the GLNG Project, from recruitment and retention to training and migration.

Spotlight on SANTOS GLNG

An operations centre for the Santos GLNG Project.

The Santos GLNG Project is currently under construction.


MEMBER FEATURE 13

Adams says the company’s engineering, procurement and construction contractors employ workers with the required skills and experience to ensure the project has the right people, in the right place and at the right time.

Santos’ skills training programs also ensure the company is able to target potential employees at all levels of experience. Traineeships and apprenticeships, as well as a large graduate program, supplement the long-term skills and capability requirements for the project.

A number of training and development partnerships are in place, including collaboration with SkillsTech to open the Australian-first CSG and Gas Transmissions Pipeline Operations Training Centre in Brisbane.

“Training is an area through which we can make a real difference by providing skills and knowledge transfer for people with trade backgrounds wanting to enter the CSG-to-LNG industry,” says Adams.

“We are also creating new career paths for school students (including in regional areas) so that kids don’t have to leave home and go to the city for a fulfilling career.

“Many of these programs, including SkillsTech, have the flexibility to take unskilled workers and train them in short timeframes, enabling us to broaden our candidate pools. We also have Aboriginal traineeships and apprenticeships.

“These will continue throughout the project. For example, we have significant training planned for our LNG plant operators in Gladstone on the use of technology within our plant operations.”

Adams says Santos GLNG is committed to supporting local businesses and delivering local jobs. Locally, the company has awarded more than $3 billion in contracts to Australian contractors since the project reached final investment decision, with up to 70 per cent of the total project spend expected to be in Australia.

However, Santos’ recruitment strategies extend beyond Australia’s borders, with international conferences used to promote senior technical employment positions in geosciences, drilling and completions, production and reservoir engineering.

Adams says the reality is that the big Queensland LNG projects will need to look at all options to fill the large number of jobs required, and that means searching globally for hard-to-fill roles.

“Our industry’s skills challenge is about bridging the gap locally, but also widening our view to see that many of the skills and talent we need are abundant in the Asian region,” she says.

“This is not about bringing in cheap, unskilled workers from overseas. We must continue to invest in skills development, education and training programs in Australia – which Santos is doing – but Australia’s major projects demand more talent, skills and human resources than our population can provide.

“If we see ourselves as part of Asia, as we should, we’ll soon realise that professional engineers, technicians, geologists and project managers are plentiful in this wider region.”

Santos is continually reviewing, modifying and improving its various recruitment strategies. While there is no single strategy that will deliver the volume of skills that Santos requires, in the past the company has had success with LinkedIn, online job

Training is an area through which we can make a real difference

by providing skills and knowledge transfer for people with trade backgrounds wanting to enter the CSG-to-LNG industry.

LESLEY ADAMS SANTOS, GLNG PROJECT.

boards, conferences, international campaigns, networking, and employee referrals.

However, recruitment is only half of the picture, with staff retention just as important.

“Retention is a very individual thing for each employee,” explains Adams. “We are very successful with our staff retention rates. We focus heavily on creating the right environment, including developing our leaders; we believe leadership is one key to our retention.”

With heavy investment in upskilling its current workforce, Santos plans to continue workers’ journey with the company well beyond the GLNG Project.

“We hope many people will transition to our Queensland operations or other parts of Santos following GLNG’s construction,” says Adams. “Santos has a broad range of operations and projects across Australia and Asia. In addition, within the GLNG upstream area, development projects will continue for 15–20 years. This is just the first phase for the upstream component.”

Regardless of whether or not the employees remain with Santos, the company’s innovative recruitment strategy is likely to increase the number of skilled workers in Australia. With other major resource employers following suit, it is easy to see how the level of experience and calibre of the Australian resources industry workforce as a whole is rapidly improving.


14 LEADERSHIP

LEIGH JOHNS IS an advocate for strong consequences for illegal union activities, but operating in the middle of a highly political legislative debate can often be a lonely place.

On one side of the coin his industry inspectorate, Fair Work Building and Construction (FWBC), is working to prosecute and hold to account illegal

union activity, much of which has led to the eight-year record high in the latest Australian Bureau of Statistics (ABS) industrial disputation data.

The increasingly-militant Construction, Forestry, Mining and Energy Union (CFMEU) has labelled his recent work as ‘corporate welfare for millionaires’.

On the other hand, Johns and FWBC continue to be held to account by employer groups and the federal Opposition, following the ‘watering down’ of the inspectorate’s prosecution powers after transitioning from the former Australian Building and Construction Commission (ABCC) to FWBC in June 2012.

Speaking at a recent AMMA conference, the FWBC chief executive expressed his frustrations at industry’s ongoing criticism, complete with labels including ‘toothless tiger’ and ‘neutered construction watchdog’.

“FWBC shares a lot of common ground with AMMA and its members. We all want to see good workplace relations practices in place that allow projects to be delivered on time, on budget, with no disruption. We all want to see confident investment and stable growth,” says Johns.

Curbing illegal strikes in the construction sector must be one of the toughest jobs in Australia right now. In this policy feature, Fair Work building and construction chief Leigh Johns opens up on industry criticism, the role of his agency and a joint approach to tackling militant unionism.

Construction inspectorate chief HAS HIS SAY

FWBC key achievements• Investigated 47 per cent more matters

overall than in the previous year under the ABCC, leading to $721,368 recovered for employers.

• Recovered more than $1.2 million for underpaid building and construction workers.

• $590,000 penalty handed down to CFMEU and CEPU for illegal strikes against Lend Lease in Queensland last year.

• Launched proceedings against CFMEU for damages caused in the Grocon dispute.

• Launched Federal Court proceedings against the CFMEU’s Joe McDonald for initiating an illegal full-day strike in Karratha.

• Recovered more than $100,000 for 10 sub-contractors working on the Gold Coast University Hospital and Brisbane Supreme Court projects (Abigroup).

LEIGH JOHNS

Construction underway on Fortescue’s expansion project.


LEADERSHIP 15

“The factual conclusion is that FWBC is investigating more unlawful industrial action and coercion matters than in the past - not less. At the same time, we are investigating a wider range of other matters.

“Since we started pursuing wages and entitlements claims we have recovered more than $1.2 million for underpaid building and construction workers. I’m incredibly proud of this achievement.”

Rebutting public commentary that the construction industry watchdog is ‘all bark and no bite’, Johns lists a number of successful outcomes since the ABCC was abolished under the Fair Work (Building Industry) Act 2012.

A notable case is the unlawful action taken by CFMEU and CEPU officials at the Gold Coast University Hospital and Brisbane Supreme Court and District Law Court projects in 2011, in which FWBC recently recovered $101,930 in losses for 10 sub-contractors.

“In the case of the Gold Coast University Hospital and Brisbane Courts projects we didn’t ‘bark’ during our investigation. We didn’t bark to the media or yap at the heels of any parties in the industry who didn’t need to know what was being worked on. We investigated, and then we bit,” says Johns.

“We (have also) commenced proceedings against the CFMEU and 10 of its officials and members for alleged breaches of the Fair Work Act in relation to a dispute with Grocon which made national news and shut down parts of Melbourne’s CBD.

“FWBC is exceeding an internal KPI to get matters into court within 12 months of the complaint – the ABCC regularly took more than 12 months. Of the 22 matters FWBC currently has in court, 54 per cent of them relate to allegations of unlawful industrial action.”

Johns’ resilience to continue pursuing important cases while under intense heat from industry and media commentators may be commendable, but employers still argue the legislative base from which Johns has to work is too soft.

The Gillard Government, which abolished the ABCC in favour of FWBC in June 2012, cannot hide from the industrial disputation figures, which show days lost to strike activity are the worst since 2004 – driven largely by escalating disputes in the construction sector.

The ABCC was first introduced in 2005, following the earlier establishment of the Building Industry Taskforce, to combat the history of unlawfulness among construction unions. But industry fears the advances the ABCC made over seven years could be reversed under FWBC.

AMMA chief executive Steve Knott highlights weaker penalties, wound-back prosecution powers and a narrower definition of industrial action as just three of nine major changes under the new laws.

“Given the construction industry’s spike in illegal strike activity since the abolition of the ABCC, it is time for the government to restore the full powers of the former ABCC to its watered-down replacement, FWBC,” Knott says.

“No doubt Leigh Johns and the FWBC team are doing their best with the legislative framework they have to work with, but

Why was the ABCC more effective?• Broader definition of industrial action.• Greater scope for injunctions.• Stronger anti-coercion provisions.• Higher penalties for unlawful conduct.• Stronger prosecutorial powers.• More effective compulsory information

gathering powers.• Greater independence of the

inspectorate.• Broader definition of ‘building’ work.• No compulsory examination notices for

employers.

there is no hiding from the fact that weaker prosecution powers and lower penalties for offending unions are encouraging a return of lawlessness in the construction sector.

“Under the changes, maximum penalties for breaking the law have been reduced from $22,000 to $6,600 for individuals and from $110,000 to $33,000 per breach, including by unions.

“Similarly, the reforms of June 2012 meant FWBC could no longer intervene in or initiate proceedings where the other parties involved had settled the matter.

“Put simply, if an employer has suffered so much commercial damage that it must give in to the union’s demands and settle, FWBC cannot prosecute that union for the damage it caused during that illegal dispute.”

Employers are hopeful that, if the Coalition takes power after this year’s federal election, it will honour its commitment to industry to restore the ABCC’s full range of powers to FWBC. Knott says employers ‘aren’t concerned with what the agency is called, so long as the full powers are restored’.

Johns, however, is certain his new agency can wind back disputation in Australia’s construction sector through the inspectorate’s newfound focus on securing compensation for those affected, rather than fixating on penalising those involved.

He calls on employers and the resource/construction industries to work with the FWBC and take a collective stand against militant unionism.

“A stakeholder engagement report from August last year showed that 62 per cent of stakeholders were willing to engage with FWBC compared with 40 per cent for the ABCC. We are excited by this cultural shift and are working hard to engage more people – employers, employees and sub-contractors,” says Johns.

“FWBC and industry both have work to do. It is important for industry to back the new regulator and to work with it as it did with the ABCC. Together, FWBC and industry can be co-producers of much public value.”


16 LEADERSHIP

TWO OF THE most active employer groups in Queensland’s construction industry are calling on the state government to implement a code of conduct and state regulator to address rising union militancy and strike action on building projects.

Master Builders Queensland and AMMA both warn the increased risk of unlawful union activity, coupled with hostile provisions in the federal government’s Fair Work Act 2009, are putting Queensland’s major construction projects at risk.

The issue is exacerbated by the abolition of the Australian Building and Construction Commission (ABCC) in June, which watered down the consequences for unions engaging in illegal and damaging activity.

“The commercial sector of the Queensland building and construction industry over the last year has experienced one of the most difficult periods of unlawful industrial conduct in its history,” says John Crittall, Master Builders Queensland director, construction policy.

“The industry requires a stable industrial environment in order to attract investment and create jobs and the state government has an extremely important role to play. The failure of the industrial system to cope with industrial disputes adds further weight to the need for a new building industry code of conduct in Queensland to protect building projects.”

AMMA executive director, industry Scott Barklamb says resource construction projects across Australia have suffered wage blow-outs and lengthy delays due to the increased union powers under the Fair Work legislation.

“Resources-related construction projects are forecast to create 40,000 new Queensland jobs by 2015, with around $200 billion worth of investment either underway or in the state’s pipeline,” says Barklamb.

“The best practice standards of the Queensland construction industry need to measure up to world best practice. AMMA joins Master Builders Queensland in urging the Newman Government to develop a code of conduct and industry regulator to apply at state level.”

CODE OF CONDUCT flagged for Queensland construction

The industry requires a stable industrial environment in order to attract investment and create jobs and the state government has an extremely important role to play. The failure of the industrial system to cope with industrial disputes adds further weight to the need for a new building industry code of conduct in Queensland to protect building projects.

JOHN CRITTALL MASTER BUILDERS QUEENSLAND.

Construction workers from McConnell Dowell on-site in Queensland.

At nib we believe health insurance should be easy to understand, easy to use and above all great value.

Newcastle Industrial Benefits (now known as ‘nib’) was founded 60 years ago to provide

health insurance for the workers of BHP Steelworks and their families. You could even say

the resources sector is in our blood.

We’ve come a long way since 1952. These days nib is one of Australia’s fastest growing

health funds now covering over 850,000 people. We have a network of recognised

providers, retail centres and nib agreement private hospitals throughout Australia.

nib is excited to launch nib Resources - specifically catering for the corporate health needs

of the mining and resources sector.

nib Resources can offer you and your employees:

• An extensive range of domestic health cover. We’ll help you choose the right health

cover to suit you and your employees. We’ll also provide a dedicated nib Account

Manager to look after the day-to-day business of your corporate health plan

• Health cover for overseas visitors living and working in Australia on 457 and other

working visas

• Your choice of a fully-subsidised, partially-subsidised or voluntary corporate health plan

• Health and wellbeing programs are available at your request

• We’re happy to negotiate a discount on the covers available in your nib Resources

product range.

DISCOUNTED HEALTH INSURANCE FOR MINING & RESOURCES

Simply get in touch with Samantha Edmunds your nib Resources Business Development Manager

ph: 0419 710 501 email: [email protected]

Getting started is easy


18 LEADERSHIP

NORMAN MOORE MP has presided over several major policy decisions since taking over Western Australia’s mining and resources portfolio in 2008, but having served the state’s Legislative Council since 1977, his political perspective is unrivalled.

Despite his impending retirement from politics, Moore remains emphatic about his opinions on the state of Australia’s resources industry. Opening his interview with Resource People, Moore declares that Australia’s mining ‘boom’ cannot, as many economic commentators would argue, be drawing to a close as ‘it did not exist in the first place’.

“Speculation that the resources ‘boom’ will end soon was incorrect and premature,” explains Moore.

“A boom – which is represented by a sharp rise and fall – did not exist in the first place. Instead, the WA resources industry has experienced strong growth which is now levelling out as major new projects reach the end of construction and move into production phase.”

Western Australia’s longest-serving Member of Parliament and current Minister for Mines and Petroleum will this year retire from politics after 36 years’ service. Here, Norman Moore shares his insight on the future of WA’s resource industry.

MP leaves Western post with MOORE growth ahead

Moore says that despite strong growth and projects reaching completion in WA and Queensland, factors such as volatile global economic conditions, subdued commodity prices, and major industry players rethinking commitments to new projects are causing significant strain in the sector.

“A large number of resources projects under construction simultaneously in WA and wider Australia are creating challenges. Rising project development costs are a concern, compounded by limited number of skilled workers and delays in mobilisation of machinery and materials to remote locations,” he says.

“Cost pressures are also having a direct impact on WA resource projects [that are] competing for capital from other Australian mining provinces and Africa.

“The shortage of skilled workers [also] continues to constrain industry output and innovation. To alleviate this, operators are increasingly looking to source skilled foreign labour.”

To address labour shortages and cost challenges, Moore notes the state government has introduced a number of programs and funding strategies, such as the Skilled Migration Strategy, which aim to recruit skilled migrants for positions not being filled by the local workforce.

When discussing Indigenous workforce development within the industry, Moore recognises the occasionally inharmonious relationship that can occur between local Indigenous populations and industry in the state.

“In regards to Native Title disputes, the Department of Mines and Petroleum follows due process to deliver validly granted tenure. The department works closely with the Native Title Unit in promoting Indigenous Land Use Agreements for conducting future government business and access for explorers as part of the Native Title claim settlement process,” he says.

“There are liaison officers based in Kalgoorlie and Karratha and a similar position has recently been advertised to be based in Broome. These officers liaise with industry, prospectors and Native Title representative bodies to resolve Aboriginal heritage and Native Title issues as a frontline response from the department.”

This issue has most recently been highlighted by the recent

NORMAN MOORE WESTERN AUSTRALIAN MINISTER FOR MINES AND PETROLEUM.


LEADERSHIP 19

conditional approval granted by Moore’s department for Woodside’s Browse LNG development at James Price Point. The project has been criticised by both Indigenous and environment groups, yet Moore stresses the development will be beneficial to all West Australians.

“It is the state government’s role to foster the development of the WA resources industry for the benefit of all West Australians… and to ensure that development adheres to high standards in terms of environmental protection and safety,” he notes.

What is not beneficial to WA’s economy, Moore argues, is the federal government’s recent carbon pricing mechanism, which has contributed to a significant downturn in production in the state’s breadbasket, the Pilbara.

“State government has not supported the introduction of the federal government’s Minerals Resource Rent Tax and carbon pricing mechanism,” Moore says.

“Growth in the Pilbara is strong though, with the region considered to be the state’s premier mining region. [The] value of mineral resources production from the northwest was over $60 billion in 2011–12, contributing almost 60 per cent of the

WA’s positive outlook is measured in terms of extensive reserves, decades of past production and future production using world-class infrastructure.

NORMAN MOORE.

state’s total value of mineral and petroleum sales ($10 billion).“The state government is continuing to support the

development of the [Pilbara] region through the Pilbara Cities Initiative, for which over $1 billion in Royalties for Regions funds has been committed to 2014. Some of the key Pilbara Cities Initiatives centre on delivering in areas such as housing, as well as health, energy, water, and community development across Karratha and Port Hedland.”

When asked about Fortescue Metals Group’s court challenge of the federal government’s Mineral Resource Rent Tax, Moore says the state government may intervene but won’t directly join a case.

“We will not join the case if a case goes ahead, but we will participate by way of intervention, so in other words, the WA Government would appear in the proceedings, if the court allows it, to present our point of view,” he says.

“I understand most of the legal opinion is that it’s unlikely to succeed, however in saying that there are certainly constitutional grounds for mounting a challenge.”

Looking ahead, Moore says his government will continue to work to diversify WA’s energy mix to ensure long-term energy security.

“WA’s positive outlook is measured in terms of extensive reserves, decades of past production and future production using world-class infrastructure,” he says.

“The state has encouraged a highly competitive and mature industry structure, and is well positioned to ride out short-term price volatility.”

Kalgoorlie’s ‘Superpit’ gold mine, managed by KCGM.

Woodside Energy’s Pluto LNG plant.


POLICY20

As the policy debate surrounding the nation’s productivity levels intensifies, Resource People explores how Australia’s mining, oil and gas projects could be the key to rising from the productivity doldrums.

GREAT PRODUCTIVITY DEBATE

WHEN THE FAIR Work Act review panel last year concluded the legislation was basically working as intended, the focus of the public debate turned sharply to the performance and impact of Australia’s workplace relations laws on the nation’s faltering productivity.

Declining productivity has been repeatedly flagged as a major challenge affecting the nation’s ability to compete for global investment capital. As a major determinant in productivity levels, reforms to the Fair Work legislation has been a key aspect in the calls for solution-based policy.

While unions and some economic commentators continue to downplay the impact of workplace relations regulation on productivity, the concerns of industry representative groups and business executives are growing louder and more pressing.

“The productivity impacts of the Fair Work framework have transcended far beyond pure workplace relations matters and now directly impact industry’s work practices and workforce development strategies,” says AMMA chief executive Steve Knott.

“A common theme among employer groups is that the government’s over-regulation and recentralisation of Australia’s workplace relations system has adversely contributed to the removal of much-needed flexibility around how businesses can maximise their people capability.

“This has made it near impossible for employers to fully respond to new market opportunities, innovate, and ultimately compete with multi-national firms.”

A nation’s total productivity measure comes from multiple factors, including corporate governance, scientific research, technological innovation and the use of labour. With Australia in the global top 10 for all but the latter, labour issues appear to be dragging multi-factor productivity down.

In September 2012, the World Economic Forum’s global competitiveness report ranked Australia the 20th most competitive place in the world to do business – despite having the best debt-to-gross domestic product (GDP) ratio of any advanced economy. Of the 12 national categories measured, Australia’s labour market efficiency was by far the worst, ranking 42nd internationally.

Earlier in 2012, the Business Council of Australia (BCA) conducted an independent analysis of the cost of building large-scale resource projects in Australia and found productivity levels and wage inflation were far worse than in competing countries.

Compared to the similar market of the United States’ Gulf Coast, the BCA report found costs for iron ore and coal projects were 38 per cent greater in Australia; processing projects were at least 50 per cent higher; and offshore oil and gas development costs were 200 per cent higher.

“This adds up to a comparative disadvantage for Australia, with the costs and inflexibility of our workplace relations system affecting international investment and the capacity to create employment opportunities for Australians,” says Knott.

Despite industry leaders repeatedly identifying workplace relations as contributing to Australia’s uncompetitive global cost


21POLICY

positioning and dismal labour efficiency levels, Fair Work Act review panel member Dr John Edwards maintains the evidence is lacking.

“If it was the case that the Fair Work Act was diminishing productivity, [the laws] would have to change because productivity, at the end of the day, is the source of our growth in Australian living standards,” says Edwards.

“What explains the decline in productivity growth is the question [the review panel] had to ask ourselves. Paradoxically, it seems to be the case that a large part of the decline in productivity is the result of the phenomenon that has been most striking in the Australian economy over the last decade – our investment boom.

“Investment today, at nearly 30 per cent of GDP, is an incredible number, [and] about half of that is in mining. This investment boom has not yet been requited in higher output, and that has a big impact on our productivity numbers.”

Edwards concedes labour productivity in the resource industry has ‘collapsed’, but says even with this rapid decline, the industry’s productivity level is still ‘four or five times the national average’.

“It does mean, of course, that your productivity is going to turn around and you are going to see quite big productivity growth in mining over the next decade,” he adds.

Edwards stands by the Fair Work Act review panel’s decision to ‘reject a number of recommendations that we knew were

important [to the resource industry]’, based on the panel’s belief that economic factors had the greater impact on productivity declines than the workplace relations laws.

Knott, however, believes the opportunity for the resource industry to drive Australia’s productivity growth, competitiveness and innovation for decades to come is under threat by the adversarial workplace environment being created by the legislation.

“Dr Edwards’ analysis is important to the great productivity debate because we are now just entering the period where all the resources investment capital should start to pay off for our country, both in terms of economic output and employment growth,” says the AMMA boss.

“The resource industry should be Australia’s ticket out of this productivity slump, but the growing body of evidence that the viability of large-scale mining, oil and gas projects are being undermined in part by provisions of the Fair Work Act cannot be ignored.

“Some simple legislative fixes would reduce our escalating industrial conflict, address excessive wages inflation and demonstrably improve Australia’s international competitiveness (see ‘Get Fair Work reform back on track’ below).

“It’s time all stakeholders engage in a considered exchange of views about necessary policy reform that would lead to more productive Australian workplaces and promote our national employment and economic interests.”

AUSTRALIA’S RESOURCE INDUSTRY employer group AMMA is calling for the federal government to get the Fair Work Act reform process ‘back on track’, following an ‘underwhelming and ineffectual’ first round of amendments in response to the failings of the present system.

“Australia is at a defining point in our economic history, with more than $650 billion worth of resources projects either approved or proposed for our shores, estimated to create up to 90,000 new jobs by 2016,” says AMMA executive director, industry Scott Barklamb.

“The government has not sufficiently responded to employers’ concerns about the adverse impact the Fair Work legislation is having on the commercial viability of these projects, in terms of labour productivity and labour costs.

“The resource industry also has significant concerns around a number of the government’s recent legislative proposals, particularly those not recommended by the Fair Work Act review panel.”

AMMA urges the government to move swiftly to address the real issues affecting competitiveness, productivity, investment and job creation. These include ensuring:• Protected industrial action during bargaining can only be

taken as a last resort and there is greater access to ‘cooling off’ periods.

• The capacity to make greenfield agreements without exorbitant wage and condition outcomes or unnecessary project delays.

• Allowable matters in enterprise agreements pertain to the direct relationship between employers and employees and not to third parties.

• The location and frequency of union right-of-entry visits is reasonable and for the most part left to employers to determine based on operational needs.

• Agreement-making options are broadened through the re-introduction of a workable form of individual agreement.

Get Fair Work reformBACK ON TRACK


POLICY22

WORKPLACE POLICY AND lobbying specialist Scott Barklamb has returned from his stint in Geneva, where he worked as a senior adviser to the International Organisation of Employers, to take on the role as AMMA executive director, industry.

Working for the peak global employer body, Barklamb represented organisations from more than 140 countries and co-ordinated employer advocacy to the G20 and international labour ministers’ forums. His most recent Australian-based position was as director, workplace policy with the Australian Chamber of Commerce and Industry; before that working as a senior policy manager with the Western Australian government.

He looks forward to representing the interests of AMMA’s members in the national resource industry as he builds on the work of his predecessor, Minna Knight, who was appointed to the Queensland Industrial Relations Commission in December 2012.

In his first ‘Policy at a glance’ column, Barklamb outlines the basics of just some of AMMA’s ongoing workplace policy research and representative work.

Fair Work Amendment Bill

The first tranche of reforms to the Fair Work Act took effect on 1 January 2013, with amendments creating two new tribunal vice-presidential positions and setting default super fund processes. AMMA will continue to be an important stakeholder as further tranches of reform occur throughout 2013 (see pg 21).

Adverse action

The BRIT vs Barclay High Court decision last year overturned an appeal that had ruled a TAFE teacher was suspended on full pay because he was a union official. The decision means union officials will not be totally immune from disciplinary action if they breach employment conditions.

Skilled migration

AMMA continues to lobby in support of the role played by skilled migration in overcoming labour-sourcing challenges. An efficient 457 visa scheme and the facilitation of enterprise migration agreements are priorities to deliver major resource projects on time and on budget.

Taxation

Changes to the Living Away from Home Allowance that will reduce the number of workers who are eligible to receive the scheme took effect on 1 October 2012, with transitional periods applying for some workers until June 2014, (see pg 38).

OHS Harmonisation

The Model Work Health and Safety (Mines) Regulations and codes of practice were approved by Minister Shorten in November 2012 and are awaiting sign-off by state and territory ministers. As of 1 January, the regulations apply in every jurisdiction except Victoria, which is not participating.

Maritime

The recent Allseas decision reinforced AMMA’s view that the Migration Act does not apply to certain vessels operating in the offshore sector. A review of the Act’s application is underway and AMMA is cautioning the government about the cost and productivity implications of changing the laws, (see pg 32).

Policy at a glanceA wrap-up of recent case law decisions and policy activity by AMMA executive director, industry, Scott Barklamb.

SCOTT BARKLAMB EXECUTIVE DIRECTOR, INDUSTRY.


23POLICY

THE LAW COUNCIL of Australia has questioned Workplace Relations Minister Bill Shorten’s decision to allow two new vice-presidents (VPs) to be appointed to Fair Work Australia under the first tranche of legislative changes to the Fair Work Act, introduced in January 2013.

In its submission to the Senate Committee on the Fair Work Amendment Bill 2012, which passed both houses late last year, the Law Council says the power to appoint two new VPs could undermine the integrity of the tribunal.

“Once a person has been appointed to sit on a court or independent tribunal with designated powers and privileges, any change that would have the effect of removing or reducing

that particular person’s powers or privileges while not affecting the powers and privileges of other members of that tribunal, has a tendency to undermine the independence of the court or tribunal,” says the Law Council.

“Should such a power be exercised it would have the potential to reduce the standing of the tribunal, given the potential for such an action to be characterised or perceived as an attack on the independence and/or competence of the Full Bench.”

The Law Council’s concerns have been publicly backed by various industry representative groups, including the Australian Chamber of Commerce and Industry and resource industry employer group AMMA.

Law Council concernedover new VPs


POLICY24

SENATOR ERIC ABETZ is a Liberal Senator for Tasmania, Leader of the Opposition in the Senate and Shadow Minister for Workplace Relations. Abetz, who has been an Australian Senator for 18 years, has been a vocal critic of the Fair Work legislation.

Issue 1: Collective enterprise bargaining and individual flexibility

“The Coalition has identified the 28-day notice period as a major disincentive to the effective operation of Individual Flexibility Agreements (IFAs). The review panel’s recommendation that the 28-day period be extended to 90 days goes some way to providing certainty, albeit at a glacial speed.

“Some have suggested that there’s even further room to move, arguing that IFAs could last for up to three or four years – the same length as an Enterprise Agreement – given it is also subject to Labor’s own Better Off Overall Test.

“If an employee is better off overall – using Labor’s test - why shouldn’t employees be able to negotiate with employers an arrangement that fits in with their family or personal commitments that is of benefit to both parties?”

Issue 2: Strike activity and ‘permitted matters’

“The Coalition has long said that one of the key problems with the Fair Work Act is union boss militancy. The best way that we can ensure that the militancy problem is solved is to bring back the Australian Building and Construction Commission.

“Secondly, the matters that may or may not be included in an enterprise agreement have been hotly disputed in the media. Over the last year, every long and drawn out negotiation has centred on the content of agreements.

“Clauses dealing with the limitation of the use of contractors should not be permitted. Nor should right of entry clauses that go above and beyond the over generous right of entry provisions in the Act. The promotion of union membership is also highly inappropriate.”

Issue 3: Union involvement in new project (greenfield) agreement making

“It has been put to the Coalition that good faith bargaining

should commence only where negotiations are initiated by the employer. The employer should not be forced to the negotiating table under good faith bargaining for greenfields agreements because the project is yet to get off the ground.

“It has been put that if Fair Work Australia (FWA) finds a union is not bargaining in good faith, by refusing to come to the table at all, the employer should have the option of initiating negotiations with an alternative union. Or, apply to FWA for approval of the agreement based on the Better Off Overall Test and National Employment Standards. This may be preferred to arbitration. The Coalition is receiving feedback from stakeholders on these suggestions.”

Issue 4: Skilled labour shortages

“Provided workers are paid the appropriate wages and provided there aren’t Australians who could readily fill particular jobs, businesses should be able to bring in the workers they need to keep growing and to create more local jobs. A stronger economy is in everyone’s interests; immigrants who contribute to a stronger economy improve the life of every Australian. Under a Coalition government, 457 visas won’t be just a component but a mainstay of our immigration program.

“A more skills-focused immigration program would actually make it easier for governments to discharge their duty to allow the economy to grow, which advantages all Australians.”

Issue 5: Skilled migration and Enterprise Migration Agreement (EMA) policy

“The government’s inept handling of skilled migration, in particular EMAs and the Living Away From Home Allowance, has damaged the investment environment.

“The Coalition supported Labor’s EMA policy when it was included in the 2011–12 Budget. In principle, it is sound policy designed to safeguard investment in our country and protect Australian jobs.

“Sadly, the government’s EMA policy has so far proved to be a mirage. Despite bipartisan support, the government still managed to score an own goal because of the unhelpfully manic approach by some union bosses to whom the government is beholden.”

The productivity and sustainability of Australia’s resource industry is sure to be a hotly-contested area for policy debate in the lead-up to this year’s federal election. From industry’s concerns about the Fair Work Act to labour shortages and skilled migration, Resource People asked two Australian political leaders to outline their respective policies.

PRE-ELECTION HEAD TO HEAD:SHORTEN vs ABETZ

Senator The Hon. Eric Abetz

ERIC ABETZ


25POLICY

BILL SHORTEN IS the Minister for Workplace Relations, Employment and Superannuation. A former Australian Workers Union national secretary, Shorten led the 2012 Fair Work Review Panel process. The minister has been defiant in the face of industry criticism of the legislation, and continues to defend its merits.

Issue 1: Collective enterprise bargaining and individual flexibility

“I have always believed productivity is best found at the enterprise level. Enterprise bargaining allows for employers and employees to negotiate working arrangements that best suit their individual workplaces.

“The Fair Work Act allows employers and individual employees to make industrial arrangements that deal with things that matter to them through IFAs. IFAs can vary the effect of certain terms of a modern award or enterprise agreement, and provide employers and employees with individual flexibility while maintaining protections through the award safety net or agree enterprise agreement terms.

“The government has noted the recommendations from the Fair Work Act Review Panel about the operation of IFAs and is currently consulting on those recommendations.”

Issue 2: Strike activity and ‘permitted matters’

“The vast majority of enterprise agreements are made without any industrial action at all. The Fair Work Act Review found that ‘the number of days lost to industrial action under the Fair Work Act has remained within the band of historically low levels’.

“Under the Fair Work Act there are clear and tough rules about when and over what matters protected industrial action can be taken. Similar to previous Commonwealth workplace relations laws, provisions under the Fair Work Act allow for enterprise agreements to include terms about matters pertaining to the employment relationship.”

Issue 3: Union involvement in new project (greenfield) agreement making

“The Fair Work Act Review examined the negotiation and operation of greenfields agreements. The panel was not convinced that the requirement to negotiate a greenfields

The Hon. Bill Shorten

BILL SHORTEN

agreement had led to any overall negative impact on the economy and rejected calls for a return to WorkChoices-style employer greenfields agreements.

“However, the panel did consider there were some issues with certain bargaining practices associated with greenfields agreements, and made some suggestions to address these issues.

“I note that the Fair Work Commission has created a major projects and infrastructure panel, headed by the president, to assist industrial parties involved in major projects.”

Issue 4: Skilled labour shortages

“The federal government is working collaboratively with industry and state and territory governments to expand Australia’s productive capacity through the implementation of the National Resources Sector Workforce Strategy. The Strategy contains actions in seven key areas of workforce development.

“In addition, the government has committed $30.7 million through the National Workforce Development Fund to train more than 4,700 workers across 68 projects in the resources sector.

“We are also working with employers in the resources sector to meet their demand for qualified and experienced staff. The National Apprenticeship Program will assist up to 1000 experienced workers by having their existing skills recognised and supporting them to complete the competencies required to obtain a full trade qualification within 18 months.”

Issue 5: Skilled migration and Enterprise Migration Agreement (EMA) policy

“All Australians want to see our resources sector succeed; for Australian workers to have access to good jobs in the sector and for mining companies to be sustainable, success and supportive of miners and their families.

“The introduction of the Resource Sector Jobs Board and the requirement that it be used by EMA project owners and companies is important to providing access for skilled workers to jobs in the resources sector but also to ensuring public support for the use of the 457 program and EMAs.

“As noted in the EMA guidelines, project owners and companies need to implement a workforce plan which includes minimum employment, training and skills development commitments for Australians.”


DIVERSITY26

WHEN DIANNE DEEGAN moved to Port Hedland seven years ago in pursuit of a mining career, she never anticipated becoming a role model for both Indigenous Australians and women wanting to follow in her footsteps.

Nevertheless, now widely believed to be the first and only Indigenous woman to hold an Open Crane Operator’s ticket, the Boom Logistics employee has had to accustom herself to the positive media attention.

“[The attention] is something I’ve been looking at and reflecting on over the years since I joined the industry. I suppose I’ve broken the ground and made the path easier for others, in saying ‘I’ve done it and so can you’,” says Deegan.

“But really in the beginning I didn’t know too much about the industry, I just wanted to get into mining and I was here at the right time.

“Pilbara TAFE’s Pundulmurra Campus had an interesting course going which linked with an Aboriginal training program within BHP and some of BHP’s contractors. I was one of the trainees and that’s how it all started.

“They gave us the base tickets and then guided us into different fields. Crane operating wasn’t something I knew too much about at the start, but I grew to like it very much and am now quite passionate about it.”

Boom Logistics was the contractor which employed Deegan in its Aboriginal training program in 2006. Before long, she had obtained her ‘Franna’ crane ticket, before progressing to a C6 ticket for operating 60 to 80 tonne cranes.

Now qualified to operate any size crane in an industry famous for its larger-than-life machinery, Deegan is proud and humbled to have created history.

“When I first got into a Franna I thought to myself ‘oh God, what am I doing?’. And that’s just a little crane. It took six years to get to the Open Ticket, but I was very excited and proud to get there,” she says.

“My advice to women thinking of joining the industry is to come in with an open mind. There are a lot of opportunities out there and more women are becoming involved because the industry’s culture is shifting.

“I was out for dinner recently for my daughter’s 18th birthday and half of her female friends are looking to get into the resource industry through adult apprenticeships and entry-level positions.

“A lot of their parents are in the industry so the knowledge that leads to a successful mining career is a lot more accessible for young women now.”

Deegan may be the company’s star performer in this space, but Boom Logistics widely practices diversity as the key to a strong, healthy workforce. CEO Brendan Mitchell says the company is on a ‘diversity journey’.

“The diversity within our workforce and the broad range of skills our employees bring is what makes Boom strong. We also face challenges in attracting talent in remote locations and see the opportunities that exist in employing a diverse workforce to meet our business needs,” says Mitchell.

“Attracting and retaining women is a challenge for Boom and most industrial services companies.

Australia’s first Indigenous woman to hold an Open Crane Operator ticket was not expecting any special recognition, but her story is uplifting for those aspiring to reach new career heights.

Dianne’s OPEN TICKET to success

My advice to women thinking of joining the industry is to come in with an open mind. There are a lot of opportunities out there and

more women are becoming involved because the industry’s culture is shifting.

DIANNE DEEGAN BOOM LOGISTICS.


27DIVERSITY

“Working collectively with our strategic business partners will assist with achieving our diversity objectives. We have set out our goals in Boom’s diversity policy, and while there are still aspects that we are working towards, we have achieved a number of these.

“We have implemented a number of initiatives in the areas of learning and development, remuneration and benefits, and workplace flexibilities to support the attraction and retention of talent across the country.”

In the Indigenous engagement space, Boom Logistics’ Indigenous Employment Framework has seen a number of success stories emerge in recent years. These include rigger trainees completing their qualifications and joining the team full-time; an Indigenous crane operator who now coordinates dealings with a major customer; and two Boom supervisors completing BHP’s Blue Leadership program.

Deegan has seen firsthand how resource employers’ effective engagement can provide employment and economic benefits within rural Indigenous communities. She believes the opportunities are plentiful, but a higher level of cultural understanding could break down further barriers and assist people to take them.

“A lot of companies go into Aboriginal communities and involve them in native title matters, secure them royalties and provide jobs and other opportunities,” says Deegan.

“I’ve seen it myself; there is a lot of opportunity for the Indigenous if they want to take it and in a town like Port Hedland there are many Indigenous people who can access the programs that are available.

“But in the more remote communities there is a cultural issue where only a handful of people are taking those opportunities and are successful. You can go in and say these are the oppor-tunities if you want to take them, but you can’t force it on them.

“This is where there needs to be a bit more outreach with those further remote communities. Rather than only certain bodies or resource employers getting involved, we need a consolidated community approach to assisting those areas.

“There are a lot of views that have come from anthropologists studying communities but not necessarily getting everybody’s side of the story. I think there is a lot more that needs to go into the genealogies and cultural studies in these remote communities in order to get everybody on board.”

Finishing her interview with Resource People to get some rest after a long night shift, Deegan’s story of perseverance will surely motivate all resource workers to get the most from their careers – men, women, Indigenous and non-Indigenous alike.

Her influence has already inspired her 18-year-old daughter Charlie to follow in her footsteps and, if her mother’s drive is any indication, Charlie may even make history through some achievements of her own.


28 COVER STORY

This job is the best I have had – a dynamic company with a great future and a team of hard-working, dedicated and hugely talented people.

DEBRA STIRLING

29


COVER STORY

NEWCREST MINING LIMITED was already on a rapid growth curve when the $10.5 billion acquisition of Lihir Gold in late 2010 accelerated its ascension to Australia’s leading gold producer, and into the top five globally.

Operational challenges for the Melbourne-based company in consolidating the merger have been well-documented. But having spent $1.3 billion upgrading Lihir’s core Papua New Guinea (PNG) production site and a further $1.9 billion on the group’s new underground mine in Cadia Valley, New South Wales, 2013 is looking much brighter for Newcrest.

“Newcrest’s world-class gold assets – long-life, low-cost mines – are the foundation for a long-term, successful future. The company is about to really deliver on its potential,” says Debra Stirling, executive general manager of people and communications.

“Operationally, we have faced significant challenges over the past 18 months, as we embedded the Lihir merger, but we are coming through that now and the future is bright.

“We have two major projects at Cadia East and Lihir coming online, underpinning a production lift and lowering costs. We are also joint venturing one of the best copper gold deposits in the world at Wafi Golpu, PNG; and doing some very innovative things with our organisational design and operation of existing mines.”

Stirling was appointed five years ago to oversee the workforce strategies that would play an integral role in then-chief executive officer Ian Smith’s vision to elevate Newcrest’s status to a top five global gold producer.

Now under the leadership of Smith’s former chief financial officer Greg Robinson, uniting a 19,000-strong workforce under one set of corporate values and driving high performance is crucial to Newcrest’s ongoing success.

Stirling is a driving force behind the company’s ‘Miner of Choice’ vision, which has become the key pillar of its world-class HR management practices. Newcrest’s unique and powerful culture has been acknowledged by several global consultancy firms including LEK, Cato Design and Towers Watson.

“Culture is not well understood by investors but its value should not be underestimated. It shapes how people behave and how decisions are made. A strong, values-based culture reduces risk and increases certainty,” says Stirling.

“At Newcrest, our people make the difference in how well we deliver our strategy and how well we perform relative to our global peers. Our executive team, board and entire management team know that our people are a major strategic priority.

“Our vision is to be the ‘Miner of Choice’ and those values lie at the heart of our culture. It is deeply integrated into everything we do and underpins our decision making and how we behave.

“We work very hard to drive that culture across Newcrest, including our international sites and the former Lihir operations. Our ‘Creating Our Future’ cultural programs have been instrumental in this.”

Asked how to measure the impact of a ‘successful culture’, Stirling points to Newcrest’s latest employee engagement survey. The results show a significant increase on an already above-industry-average 2009 result, as well as a high level of discretionary effort described by the survey firm as ‘off the scale’.

The real proof though, she says, is the confidence workers have in their employer when things don’t go to plan.

“In December 2010, two of our miners were trapped underground at our Gosowong operation in Indonesia,” says Stirling.

“Our people worked ceaselessly to get them out safely, and when the two workers finally emerged they told us that throughout the eight long, dark days, they never stopped trusting that we would do it because we were the ‘Miner of Choice’.

“This level of employee engagement – what someone needs to be productive, happy and healthy in your workplace – is just common sense really.

“It’s about shared vision and benefits, mutual respect and a sense of ownership. The outworking of these produce clear direction, effective performance management and career development, good communication and valuing difference and creativity – all part of a high performance culture.”

Growing pains

Regardless of Stirling’s talent and the board’s support for best-practice workforce management, there are inherent HR challenges in Newcrest’s expanding operations.

Debra Stirling has presided over Newcrest Mining’s people capabilities during an extraordinary five-year period which has seen the gold producer shoot from mid-tier miner into the ASX Top 15. As told to Resource People, Newcrest’s culture ensures the company’s golden run is just beginning.

THE PEOPLE DRIVING NEWCREST’S GOLDEN AGE

30


Providing sufficient people with the right skills and attributes to deliver the company’s growth plans has been identified as a major strategic challenge for Newcrest, which is exacerbated in diverse international settings.

“An ongoing challenge is implementing our nationalisation plans as quickly as we would like, especially passing on skills and standards to our local people,” says Stirling.

“More than 50 per cent of our gold resources are located in PNG – a country where less than 2 per cent of people go to university, vocational training is limited and 80 per cent of students do not finish high school. This is a huge issue for industry and the government.

“Estimated numbers for the construction of the proposed joint venture Wafi Golpu operation in Morobe Province, assuming the relevant approvals, are around 5,000 people. Then to run it, we will need an estimated 2,000 people depending on the mine configuration. That is an enormous potential future skills demand.”

Stirling also notes that shortly after the Lihir merger, the disparity in productivity and capability between Australian and international sites was immediately apparent. Newcrest uses multilingual communications to help overcome such difficulties when training and recruiting in overseas operations.

The successful rollout of the ‘Creating our Future’ cultural program in Indonesia and PNG proved the ‘one Newcrest’ vision would translate well across borders, but only if unique cultural factors are taken into account.

“We know there is ‘no one size fits all’, so we tailor our programs to suit the prevailing national culture. Being a company with operations in several countries, this is critical,” says Stirling.

“The international sites are significantly behind Australia on many productivity measures, so there is a lot of opportunity to close that gap, with improved training and development. But in other areas the international sites are outstanding performers and offer learnings across the group.”

Finding and keeping the best

In the ultra-competitive recruitment landscape facing Australia’s resource industry, every employer is in a fight to stand out from its rivals for the country’s top talent.

Newcrest has proven it has an edge, having won the prestigious 2012 Randstad Award for Most Attractive Employer of the Year in Australia – not only topping competing miners but also edging out the likes of Virgin Australia, the ABC and GHD.

“Winning awards is not our focus so it was a huge shock to us. But we were delighted and it was a great boost for my team, because we usually keep a low public profile,” says Stirling.

“Newcrest’s selection was partly based on competitive remuneration, career development opportunities and job

security. The award does raise our profile in the market and many new recruits have mentioned it.”

Working at Newcrest clearly resonates with Australian jobseekers. The company has an innovative recruitment team that continually develops new attraction tools, but Stirling believes the top priority must be ‘retaining good people’.

“If we get this right, the attraction bit takes care of itself,” she says.

“Remuneration is attractive, with strong incentives, and benefits are very competitive; our managers and leaders are trained and developed so they earn the respect and loyalty of their people.

“Another thing Newcrest is doing is working on the supply side. For example, we have linked with MMG and Monash University to establish a mining engineering course at Monash. Previously, there was no course available in Melbourne, so

COVER STORY

Our efforts in the people space will continuously lift Newcrest’s performance well into the future. The company is about to really deliver on its potential.

DEBRA STIRLING

Newcrest’s Cadia Valley processing facility.

Newcrest Mining provides competitive employment packages at its Cadia Valley operations.


31

a potential huge employment catchment area was being overlooked.

“I have been told that even at the bottom of the last mining cycle there were not enough mining engineers in Australia, and there is a serious global shortage, so we expect all successful graduates to be gainfully employed. We also expect the new research capability to help galvanise a resurgence of the mining support industry in Melbourne, as we have seen in Brisbane and Perth.”

Newcrest’s ‘bigger picture’ focus is clearly paying off for the company, with employee-initiated turnover generally below the industry average, at around 8 per cent.

“What makes the difference is how we handle successful candidates,” says Stirling.

“We treat our people as individuals, but there are considerations that matter to most of our people: respect and fairness; satisfaction and relevance at work; being fairly-remunerated; positive working relationships; and seeing opportunities for growth and promotion.”

Golden touch

Stirling began her career 25 years ago in political and financial journalism before moving into corporate affairs. She has since worked on the executive leadership teams of four ASX Top 20 corporations across various sectors, also now sitting as a non-executive director of Centro Australia.

While having ‘loved’ every role she has taken, Stirling is in no hurry to consider the next chapter after Newcrest.

“I have been very blessed over my career, but this job is the best I’ve had – a dynamic company with a great future and a team of hard-working, dedicated and hugely talented people,” she says.

“It is a privilege to be part of a capable executive team who strongly believe in the importance of people, values and culture – as does our board. There are enormous challenges ahead and an opportunity to really make a difference and build a legacy.”

Despite the phenomenal transformation of Newcrest over the last half decade, there is a sense that the company’s most prosperous years are ahead of it.

Acknowledging significant cost pressures and global competition for capital, Stirling is adamant the Australian resource industry will ‘rise to the challenge’ and Newcrest will help lead the way.

“Our strategy is all about growing and developing Newcrest’s world-class gold assets and utilising our technical capability to maintain and enhance our position. We see huge upside value in our people capability,” she says.

“My team and I have all the support we need to ensure we develop the frameworks to realise this people potential. Across training, culture, diversity and workforce planning, our efforts in the people space will continuously lift Newcrest’s performance well into the future.”

Productivity: “As costs rise across the industry, declining productivity is a major challenge. But at Telfer, in the middle of the West Australian desert, sometimes in 50 degree temperatures, our people continue to lift their productivity on a number of key measures to keep that mine profitable. That, for me, is inspirational and epitomises what Newcrest people can do.”

Wages inflation: “When firms were enticing people with $30,000 sign-on bonuses at Perth Airport, we had a 50 per cent turnover in the open pit at the Telfer mine. The craziness has certainly eased and it is now around one quarter of that rate, but industry wages growth and churn is still excessive. Being a one-trick pony with escalating salaries is short-sighted, irresponsible and damages everyone in the end – even the candidates, who will eventually price themselves out of the market.”

Diversity: “Diversity at Newcrest is not just gender, but also cultural background, age and other factors like ability and thinking styles. We value difference, but that alone doesn’t make it happen. FIFO, for example, is hard for people with aged parents or young children. We need to market to women and let them see that we are serious about making it easy for them to work for us. It means providing as much flexibility in working hours as we can – and this is my personal soapbox – encouraging job share at all levels. I have seen that work extraordinarily well.”

Indigenous engagement: “We consult and partner with local indigenous communities to develop targeted education, training and employment programs. This is a core community responsibility and fundamental to our diversity strategy. Telfer currently supports more than 60 Indigenous people under various employment arrangements for Newcrest or contractors. On-site Aboriginal mentors are a crucial part of our community relations team.”

Employee relations: “The current system does not cater for, nor encourage, harmonious and productive relationships between companies and their people. For instance, Newcrest had individual statutory agreements in place at its Australian operations which worked well for our people and the sites. The current legislative framework effectively removed that option. An outdated conflict mentality no longer reflects modern workplaces, especially in a highly-competitive, global marketplace where flexibility, creativity and agility are critical. A shared vision and benefits, mutual respect, and a sense of ownership, is where we need to be.”

Community engagement: “No resource company can operate today without understanding and respecting their local communities, and ensuring that their needs and expectations are considered – socially, economically and environmentally. With the long lifecycles in mining, consideration of the local community needs to feature from the beginning of exploration, to beyond the mine closure. If we don’t do it voluntarily, we either won’t be welcome at all or it will be forced upon us.”

COVER STORY

DEBRA STIRLING ON THE BIG ISSUES


MIGRATION32

IN RESPONSE TO pressure from union groups around the result of the Allseas Federal Court case, the Australian Government is considering additional compliance mechanisms to the already weighty regulatory and economic burdens on offshore employers.

“The May 2012 Allseas case decision found that the migration zone, as currently defined in the Migration Act 1958,

does not extend to vessels engaged in laying pipeline on the seabed,” explains AMMA policy manager Julie Copley.

“Allseas’ stance was upheld because the Migration Act unambiguously says that it does not apply to vessels operating outside the migration zone – in Allseas’ case this relates to vessels installing gas pipelines on the seabed.

“But now the Federal Department of Immigration and Citizenship has been tasked with exploring legislative options to ensure that workers in Australia’s offshore maritime zones come

within the domain of the Migration Act.”The government has spruiked the review would create

‘legislative certainty’ in order to promote continuing investment in the offshore industry and to promote the opportunities for Australians to work on Australian projects.

With migration a small, but essential part of the overall offshore skills picture, the industry has warned that legislative change could lead to a range of unintended consequences for the broader hydrocarbons sector.

Farstad Shipping executive vice president Joseph Homsey is concerned about the impacts on the Australian offshore sector’s cost positioning, with further compliance burdens likely to add to the already uncompetitive costs of employing people in Australian waters.

Citing issues in heavy union involvement in offshore labour agreements, as well as the need to use a small number of highly skilled migrants on technical operations, he says Australia must follow leading overseas markets in focusing on labour productivity at a viable cost.

The federal government’s review of the application of the Migration Act to offshore resource workers poses a further threat to reducing the productivity and viability of current and existing offshore projects. Here, Farstad Shipping’s Joseph Homsey and AMMA’s Julie Copley discuss the potential impacts of any migration law changes to this crucial Australian industry.

Perilous seas ahead for offshore employers

JOSEPH HOMSEY


MIGRATION 33

“The biggest single cost factor in Australian shipping operations is labour and the use of Australian labour is being determined by unions. This is the general history of the Australian situation,” says Homsey.

“There are a lot of examples overseas where specialist groups come on to do a job in a country which is advancing that economy, and they receive support for not having to change out all their crew because they have crossed an ‘imaginary line’.

“Canada has a good system for this. Companies can put forward a ‘human resources case’, just as they would an environmental or safety case.

“For us to really work well as businesses and industries, the government has to be given guidance on how to set a proper framework that facilitates employment and project activity in the offshore industry.

“There is an opportunity for industry working with government to see guidelines developed that take the adversarial nature of crewing and use of essential foreign expertise in Australia, which at the same time will assist the permanent domestic industry to be more cost effective.”

The review of the application of the Migration Act to offshore resource workers is expected to conclude early this year. AMMA has lodged a submission to the department and encourages its members to get in touch to contribute to industry’s lobbying activities.

AMMA warns:• Legislative change targeting people

working on foreign-flagged, foreign-owned vessels may create unintended consequences for the much broader industry and economy.

• The offshore hydrocarbons sector needs to be an attractive place for global investment.

• Workplaces and working conditions are regulated by international law and the flag states for specialised employees – these conditions are directly relevant to the management of risk, including workplace health and safety.

• Under international law Australia has jurisdiction over its citizens or ships wherever they are located, but the federal government must recognise that in other circumstances Australia’s legislative reach cannot override, for example, the accepted jurisdiction of another country.

RESOURCE INDUSTRY EMPLOYER GROUP


MIGRATION34

ruled on appeal that its offshore construction workers didn’t fall under the jurisdiction of the Migration Act 1958.

The federal government has since flagged its intention to amend the legislation to ensure workers such as Allseas’ vessel operators all fall under the Act, meaning Allseas would have to process individual working visas for each offshore foreign worker.

Van Benten is more concerned with getting on with the job rather than being involved in a legislative debate. He believes the controversy around the decision is less about what is practical to encourage business activity in Australia and more so a scare campaign around migrant workers.

“If we were to work in Argentina or in South Africa or anywhere else in the world, we fly the people to the place that is used to run the crew changes; they travel to the vessel the next day by helicopter or crew boat and, after their four to six week period offshore, they then go back to their place of abode where they have their family,” says van Benten.

“Regardless of where we are operating, the vessel comes with about 25 international crew who remain with the vessel and are really the management of the vessel. This is where the special skills sets of controlling or operating and maintaining the vessel is concerned, they provide that expertise and know-how.”

THE COMPANY MAY typically operate kilometres offshore where its work is invisible to most, but nonetheless Allseas Group is a central player in many of the world’s most significant resource infrastructure projects.

Since 1985, the offshore pipelay and subsea construction contractor has installed more than 16,350 kilometres of pipelines on 200+ major resources projects, today employing over 2,000 workers across eight global offices and five specialised vessels.

As explained by Allseas Australia regional manager Willem van Benten, the company is bringing a new level of technical expertise to Australia’s shores through its work on major offshore LNG projects for Chevron, Woodside and Apache.

“In addition to our finished work on Woodside’s Pluto development, we have current contracts with Chevron for the pipelines and flowlines for Gorgon and Wheatstone, as well as with Apache for the Julimar development,” explains van Benten.

“The Chevron project here (Gorgon) is special because it’s such a lengthy project and most of it is on the sea floor, so there are no surface breaking structures and it’s all done with pipelines and sub-sea technology. For Australia, that’s really a fantastic opportunity to learn.

“Allseas mainly completes work in the North Sea and the Gulf of Mexico. In the North Sea it is primarily large diameter pipelines between 36 and 48 inches; whereas the Gulf of Mexico normally involves very deep water, between 500 metres and 3,000 metres.

“But as our Australian contracts are all taking place off the continental shelf, we are operating in similar depths and those unique technical skills are slowly starting to come to Australia.

“The waters for Pluto go down to 860 meters and for the Gorgon Jansz field, the pipelines are down to 1,350 meters of water depth. On the turn lines, both the Gorgon Jansz and Pluto pipelines are all 34 and 36 inch, so we’re bringing that sort of capability and technology to Australia.”

Such is the highly specialised nature of Allseas’ work that its pipelay vessels on current Australian projects, Lorelay and Highland Navigator, operate with full-time international crews. Lorelay is the larger of the two and comprises 25 non-Australian nationals, trained at Allseas’ state-of-the-art facility, who travel with the 236 metre ship wherever she is needed.

It’s this practice that saw Allseas unwittingly become the centre of political debate in May 2012 when the Federal Court

Following the company’s involvement in a landmark migration case, Allseas Australia regional manager Willem van Benten explains the value that a multi-national workforce brings to the offshore pipelay vessel operator’s activities and how strategic alliances are creating more jobs for Australian workers.

MEMBER CASE STUDY: Allseas Australia’s workforce strategy

Lorelay in action.


MIGRATION 35

We’ve given these people a strategic alliance and our message to the

crews that we have is ‘you are one of us, and we want to be one of you’.

WILLEM VAN BENTEN ALLSEAS.

The Allseas pipelay ships operate with a highly complex global positioning system, which steers a number of propellers in order to maintain its position when laying pipe. It’s this type of technology that has never before been used in Australian offshore construction.

Van Benten says the ‘frustrating’ aspect of challenging ‘confused legislation’ is that Allseas only uses foreign workers for those international skills, and instead partners with Australian labour hire companies for the majority of the positions involved in its contracts.

“On Lorelay we use Brunel Technical Services to provide all of our blue-collar labour and the foremen to supervise and run those crews. On this vessel that’s between 100 or 110 workers,” he says.

“Then for the nautical aspects, concerning the ship’s duties like taking stores on board, maintaining the engine room and providing catering services to the ship’s whole complement, we contract Programmed Total Marine Services – which is around 40 additional people.

“15 places onboard are taken by the customer, in this case Chevron, for supervision and quality control; and then we have some quality control of our own which can be a mix of Australian and non-Australian nationals.

“But from a total complement of 215 workers onboard Lorelay, we have 140 or 150 Australian people doing those tasks that are more universal. So when we are in Australia – those positions go to Australians.

“This idea that Allseas is taking jobs from Australians is a myth; really our ships are creating many times the opportunities for locals than are taken by the foreign crew.”

This type of system, explains van Benten, relies heavily on developing strategic partnerships with companies like Brunel and Programmed around the world. Whenever Lorelay or other Allseas vessels return to Australia, those same service companies supply crews for the project period.

“From a commercial point of view, we need a certain amount of expertise that we can bring to this country in order to fulfil the obligations to our clients as described in our contracts. So it’s generally the Allseas people that supply the technology and supervision,” says van Benten.

“Those people are selected on their ability to work with a majority of Australian crew, because when we come back to this country, and we’ve been here since 2001, we retain on average between 60 and 80 per cent of the Australian crew who worked with us previously.

“We’ve built a connection between these Australian crew members and our own supervisors and technical people that has now gone into its 11th year. We want to work with the Australian crew providers that we have and those Australian workers who have had experience with Allseas in the past.

“We’ve given these people a strategic alliance so we go back to the same crew provider every time we come to Australia. What we see today is that we have work for our vessels up to end of 2014, and our message to the crews that we have is ‘you are one of us, and we want to be one of you’.”

Later this year Allseas is planning on bringing the world’s largest pipeline laying vessel, Solitaire, to Australian shores to finish the job on the Gorgon Jansz field.

Regardless of what happens with the federal government’s flagged intentions to the Migration Act – one thing is certain.

With double the complement onboard the vessel, Solitaire will bring twice the opportunity for Australian crew members to head offshore with the world’s leading pipelay operator – a central player in the largest infrastructure project in Australia’s history.


MIGRATION36

Groundbreaking research has backed the usage of 457 visas and temporary overseas workers in the national resource industry, with a body of evidence showing a genuine reluctance for skilled and experienced workers to relocate from Australia’s East Coast to remote western locations.

THE EDITH COWAN University (ECU) study confirms the important role temporary overseas skilled workers play in ensuring resource projects are built on time and on budget, leading to increased longer-term employment opportunities for Australians and greater investment security.

Led by ECU academic Dr Susanne Bahn, the study: 457 visa workers in Western Australian resources industry investigates the costs and benefits of employing workers on temporary residence subclass 457 business visas as one mechanism to address skilled labour shortages, particularly in WA.

Research backs use of migrants

DR SUSANNE BAHN EDITH COWAN UNIVERSITY.

“The construction phase of the resource projects currently underway in WA relies on a steady supply of skilled and experienced labour from across the country. The representatives interviewed found a shortage of skilled workers in Australia which led them to source temporary workers on 457 visas to top up their labour force for short periods of time,” says Bahn.

“Participants indicated that they had encountered reluctance from Australian recruits about relocating to WA, with moving away from family and friends and a lack of social infrastructure among the main reasons.”

The report also found that the initial cost in sourcing and recruiting temporary skilled migrants can reach $65,000 per worker, highlighting that employers only go down this path as a last resort to supplement their skilled domestic workforce where significant skills or experience gaps emerge.

In light of the report’s findings, AMMA is continuing its campaign for wider acknowledgement and acceptance of these challenges in public and political debate on enterprise migration agreements (EMAs), 457 visa schemes and temporary skilled migration more generally.

The final report, which was co-funded by AMMA, can be found at the Edith Cowan University website.Australian workers and skilled migrants complement each

other’s skills

Seeking skilled tradespeople to work in Australia?VETASSESS provides assessment services for individuals applying for 457 and permanent visas to work in Australia. With over 6 years experience in supplying these services, VETASSESS has recently established a Queensland presence to cater for the growing market in this state.

We assess the skills of tradespeople from all over the world, assisting high-quality skilled tradespeople to work in Australia.

Our assessors are experienced tradespeople who have worked in Australia for many years.

Trade occupations assessed by VETASSESSAutomotive electricianBakerBricklayerCabinetmakerCarpenterCarpenter and JoinerChefCookDiesel Motor MechanicElectricianElectrician (Special class)FitterFitter and Turner

JoinerMetal FabricatorMetal Mechanist (First Class)Motor Mechanic (General)Motorcycle MechanicPanel BeaterPastry CookSheetmetal WorkerVehicle PainterWelderCivil ConstructionMobile Plant

Countries where VETASSESS can conduct skills assessmentRepublic of IrelandUSAUnited KingdomBrazilChinaFijiIndiaPapua New GuineaPhilippines

South AfricaSouth KoreaSri LankaThailandUnited Arab EmiratesVietnamZimbabweOther Countries (by request)

Head Office:Level 5, 478 Albert Street East Melbourne 3002 Victoria, AustraliaT: +61 3 9655 4801 F: +61 3 9654 3385E: [email protected] W: www.vetassess.com.au

Western Australia Office:Unit 9E, 817 Plaza817 Beeliar DriveCockburn Central 6164Western Australia, AustraliaT: +61 8 9417 7321 F: +61 8 9417 7302E: [email protected] W: www.vetassess.com.au

Queensland Office:Unit 2, 477 Brunswick StreetFortitude Valley 4006Queensland, AustraliaT: +61 7 3666 0079E: [email protected] W: www.vetassess.com.au

VET_Qld Mining Bulletin FP Ad_121128_V2.indd 1 28/11/12 1:52 PM


MIGRATION38

THE FEDERAL GOVERNMENT’S changes to the Living Away From Home Allowance (LAFHA) criteria were aimed at all industries, but its Australia’s resource industry that has been one of the most heavily impacted.

Introduced in late 2012, the taxation law amendments have rendered many, if not all, temporary skilled workers ineligible to receive the LAFHA tax concession.

“AMMA submitted to the government that these changes would create significant disincentives for skilled workers from overseas to work on Australian resource projects at a time when we are experiencing a lack of critical skills. This is exacerbated by a shortage of domestic workers juxtaposed with a very limited global supply” says AMMA migration manager Jules Pedrosa.

“While aimed at a small group of people that may have abused the LAFHA system, the proposals unnecessarily disadvantage many other businesses and workers in the resources industry, with particularly negative impacts specifically on skilled workers from overseas.”

Using her own status as a 457 Visa sponsored worker as an example, BDO Australia senior manager employment taxes Caylee Beazer, explains the new provisions now stipulate a worker must maintain a home in Australia and work away from that home to be eligible receive the allowance.

She says this is a significant change and to be eligible, a worker must intend to return to this home, have an ownership interest in it, and cannot rent it out for the period that they will be working away from it.

“You can still have a ‘usual place of residence’ in the United States or United Kingdom, but because I’m living in Perth, do my day-to-day things here, and because my work’s here, that’s where I reside and that’s my normal residence,” explains Beazer.

“In order for me to be eligible to receive a LAFHA that’s taxed concessional now, I need to be working away from Perth somewhere for a fixed period of time, with the intent to return back to Perth.”

To complicate matters for employers and workers, FIFO workers must now provide the government with full substantiation for all expenses, including both accommodation and food, when working away from their homes. In addition, the tax concession is now limited to only 12 months for each work location the employee is living away from home. Those

who have FIFO/DIDO work arrangements are exempt from this 12-month limitation.

Consult Australia’s chief executive officer Megan Motto, says the amendments are expected to drive many of Australia’s highly-skilled professionals, whose salaries have been supported by the LAFHA, out of the country.

“Some of the consulting firms we represent recruit approximately 15 per cent of their workforce from overseas due to the current skills shortage,” says Motto.

“One of our members has more than 4,000 employees and reports that over 8 per cent of its workforce is currently employed under the visa subclass 457. These reforms could equal a loss in salary of up to $12,000 for an engineer.

“With no time to prepare for and budget around these changes, it is simply not viable for many of the professionals who are suffering this kind of loss in income to remain in Australia with their families. The sheer impact of these reforms is enormous and the haste with which this decision has been made, clearly shows a lack of due recognition by government.”

Beazer suggests that employers review project viability and update budgets, superannuation costs and payroll costs, which are all likely to increase in light of these new reforms.

Recent tax reforms to the Living Away From Home Allowance have created a potential deterrent for much-needed overseas skilled workers who will no longer be eligible for the concessions under the new legislation.

Industry impact of LAFHA

CAYLEE BEAZER BDO AUSTRALIA.

tax reforms ongoing


OHS & WELLBEING40

WHEN BULLYING OR harassment occurs in the workplace, a failure to address and investigate the problem can lead to long-term hazards for Australian employers – particularly when dealing with the unique geographic, social and safety factors in the resource industry.

The increased threat of damaging legal action as well as the risk to the overall wellbeing of a site’s workforce has seen

resource companies more stringently establish and apply their own bullying and harassment policies.

Macmahon senior HR adviser Sean Bennett recently presented on the issue at an AMMA Perth Conference, advocating for clear, thorough investigations into any issues as soon as they arise.

“The Productivity Commission estimates the annual cost of workplace bullying and harassment to be between $6 billion and $36 billion annually,” he says.

“Laws in Victoria that take bullying and harassment from a workplace health and safety issue to a criminal conduct issue may have an effect on other states and territories”.

According to Bennett, properly investigating and managing an allegation doesn’t necessarily require a formal process, with informal measures often just as effective when actioned in the early stages.

“Phase one is the investigation of the allegation, where the objective is to prove or disprove those allegations; we analyse, plan, interview, review, evaluate and make conclusions; and then we write the report,” he says.

“Phase two is when we actually provide the decision-maker with the opportunity to take action, as well as to find closure in any follow-up activities.”

While it seems like a straightforward process, employers who have been involved in workplace bullying and harassment claims will know they’re not always simple, and can sometimes create a ‘domino effect’ of claims and counter claims with cyclical investigations and possibly expand in scope, becoming an escalating burden on company resources.

Bennett recommends investigating with a basic project management model in place, dividing resource constraints of scope, cost, quality and time – all centred on stakeholder expectations.

“It may be costly and time-consuming, but what’s the cost of not investigating – the financial, cultural or reputational damage and other implications your company may face?” he asks.

“Traditionally, our sector has operated on a model of compliance – we have policy, we provide training, we have contact officers and investigate complaints as they arise. But is this really the best approach?

“With increasing complexity and severity in this area, the legislation and our duty are being driven more towards a proactive model of continuous improvement.”

Taking Bennett’s advice, effective investigations are the key to preventing the worsening of a bullying and harassment situation. These policies also put an employer in a position to know what action is appropriate to take, and to defend or respond to any legal proceedings that may result.

To protect your company from general protection claims and workers’ compensation claims – and, just as importantly, to keep a happy and healthy workforce – ‘people managers’ in the resource industry should ensure their policies are in place and up-to-date.

The financial and reputational costs of a bullying or harassment case, as well as increased legislative focus on this area, has seen resource employers improve all on-site policies to effectively manage incidents that arise.

TAKING ACTION on workplace bullying

SEAN BENNETT

Macmahon underground miners hard at work


OHS & WELLBEING42

IT GOES WITHOUT saying that managing fatigue is important, but today’s OHS specialists acknowledge a demonstrated link to improved workplace and business performance.

In his role at Toll Mining Services, Roger Swift strategically implements a business management system which incorporates health, safety and environment and security.

When it comes to fatigue among the company’s workforce of heavy vehicle operators, Swift argues there is one contributing factor that stands out from the rest – sleep deprivation.

“Based on my experiences in the mining sector, I would say that a lack of sleep hours is a major factor contributing to fatigue in workers,” explains the Toll Mining Services national health, safety, environment and security manager.

“There is an inability nowadays for people to realise how much sleep they really need. Fatigue for us is the contributing factor in one third of vehicle accidents on site across the mining industry, and in more general terms I would say around about 40 per cent of the workforce in Australia suffers from fatigue or sleep disorder.

“Employee engagement is improved when we have fatigue reduction control measures in place. It’s better for the health of our workers, and it lowers the risk of cancer and cardiovascular diseases.

“It is also quantifiable in our business to improve the health and wellbeing of our employees. By having systems in place, we can improve quality and production rates.”

Having last year spent 176 days across 31 mine sites, Toll Mining Services’ Roger Swift is a fatigue management expert and understands how this OHS ‘sleeping giant’ can compromise safety on the worksite.

Managing fatigue’s HEAVY TOLL

ROGER SWIFT TOLL MINING SERVICES.


OHS & WELLBEING 43

The system employed by Swift and his team at Toll Mining Services is known as the DSS-IVS (Driver State Sensor in Vehicle System). The technology uses a small, console-mounted camera to track operator eye behaviour, determine the driver’s drowsiness state and detect micro-sleeps the instant they occur. Audio and seat vibration alarms immediately alert the operator, and site dispatchers are notified of incidents in real time.

“Using the DSS system, Toll Mining Services supervisors are alerted of a potentially hazardous situation that may occur out in the field. The system allows our supervising staff to react to a situation in an appropriate way,” explains Swift.

“A solution, for example, could be as simple as, ‘let’s pull over and take a 10 minute break.’ And that’s all based within the fatigue management plan. For every fatigue-based situation, we have a process in place that’s suitable for staff and drivers. Basically it’s about what they need to do to get back to an alert state.”

The DSS technology measures the alertness of divers continuously in real time, providing a driver with an immediate response to their fatigue levels.

When first introduced, Swift admits there was some resistance from employees who felt the system was invasive, however he says this antipathy dissolved when the safety benefits of the DSS-IVS were fully explained.

“Most people don’t know they’ve had a micro-sleep, but this technology tells them so,” notes Swift.

“We launched the fleet-wide adoption of DSS-IVS machines in 2008, and it was Australia’s first, full-size deployment of the system.

“The site at which we launched was a 24/7 operation and we had a number of roll-overs which were related back to fatigue. Compared to the previous ‘black-box’ system we had in place, which only looked at the vehicle, not the driver, we reduced fatigue-related events by 82 per cent.”

Swift believes that if a company has an OHS strategy that looks at continual improvement and identifies the causes or contributing factors in an incident, it can become a company that increases productivity and stops leakage in the bottom line.

Following Swift’s push to have the DSS-IVS system a mandatory part of the company’s OHS processes, Toll Mining Services recently announced the technology will soon be implemented in all its high-risk operations in Australia and overseas.

However, Swift concludes there are still many more avenues for the company to improve its OHS processes.

“Toll Mining Services and Toll Group regard the risk of fatigue and the control of fatigue very highly,” he says.

“As a company we obviously can’t go into someone’s living room and tell them to go to sleep so they’re fit for duty the next day. So having a well-defined OHS system makes good business sense.

“The long-term goal is to make sure we have a system that is user-friendly, not invasive to our employees, and can be accepted and adopted by companies who will realise that the cost of providing a safe work environment for long-haul drivers across Australia is a shared responsibility.”


TRAINING & DEVELOPMENT44

FROM A YOUNG age, University of Adelaide geology graduate Matthew Fargher seemed destined for a professional career in the resource industry; it was only a matter of which employer would snap him up first.

Having now commenced the Newcrest Mining two-year graduate program after a well-deserved Christmas break, the 25-year-old reflects on his first visit to a mine site while in high school.

“In the 2004–05 summer school holidays I was a successful applicant for the Australian Student Mineral Venture – an AusIMM initiative which provided the opportunity for about 12 high school students to go on a field trip to Victorian

and South Australian mine and processing sites,” recalls Fargher.

“Through this I became aware of the disciplines and their associated career pathways within the mining industry.

“Halfway through my geology degree, Dominion Gold Operations (now Kingsgate Consolidated) provided the opportunity for 13 geology and mining engineering students to attend their annual ‘Club Challenger’ site visit. This was an invaluable experience where for the first time I was shown the role of a mine geologist, an underground operation and a FIFO lifestyle.”

Fargher’s role with Newcrest Mining will involve learning different geology roles in exploration and production for both underground and open-pit mines. The graduate program will see him relocate to Brisbane and complete four six-month placements at different sites around Australia.

A high achiever who has been president of the AusIMM Adelaide Student Chapter and presented at the 2012 AusIMM Congress, he believes his work ethic helped him secure a highly competitive graduate position, having graduated with honours and completed an honours project in ore mineralogy for Newcrest.

“The old saying ‘P’s (passes) get degrees’, although true in a literal sense, does not guarantee a student a job. Companies have a lot of choice and are often looking for more than just a piece of paper,” says Fargher.

“Another pre-requisite for most positions is the desire and willingness to relocate, as many operations are interstate or overseas. Many students limit their options by not being open to this.

“I look forward to learning and experiencing as much as I can. I would like to stay at the same company for a while, so hopefully I’m suited to Newcrest and Newcrest see value in keeping me well after the two-year graduate program concludes.”

Another University of Adelaide honours geology graduate secured himself a position through exceptional academic performance, though 37-year-old Matthew Reid has a very different tale to tell.

Four years ago Reid was injured in a motorcycle accident which forced him to reconsider his position in life and encouraged him to enrol in university. He says his decision to enter the mining industry was later born from the realisation that he could develop his knowledge while on the job.

“My interest in the mining industry grew throughout my university studies, and became a serious consideration and reality in 2012,” says Reid.

“I had the misconception that I would need to remain in academia to develop myself in structural and metamorphic geology. It is fantastic to be able to see real-world applications used due to your interpretations and knowledge gained out of university.

“I was fortunate to secure a job with Hillgrove Resources in September 2012 before completing honours, and started as a graduate mine geologist in late October.

“As a graduate mine geologist my role will involve learning a broad skill base that involves all aspects of day to day running of a mine, from learning production, logging and aiding in the

Matthew Fargher and Matthew Reid are two of many university graduates who have just begun their resources careers. While now peers as geologists within Australia’s fastest-growing industry, their journey to this point has been very different.

Unearthing South Australia’s new talent

MATTHEW FARGHER

MATTHEW REID

It is fantastic to be able to see real-world applications used due to your interpretations and knowledge gained out of university.

MATTHEW REID.


TRAINING & DEVELOPMENT 45

constant updating and understanding of the structural model that controls/constrains the ore lodes.

“All work takes place at Kanmantoo mine, in the Adelaide Hills, which is also very convenient as it means that there is no FIFO requirement, and I am home every night.”

Like Fargher, Reid intends to remain to remain with his current employer and work his way up to senior technical roles and management.

While new to the sector, the value these two eager graduates are providing to Newcrest and Hillgrove shows that catching them early is perhaps the best recruitment policy for securing the next generation of mining talent.

The old saying ‘P’s (passes) get degrees’ does not guarantee a student a job. Companies have a lot of choice and are often looking for more than just a piece of paper.

MATTHEW FARGHER.


TRAINING & DEVELOPMENT46

IT IS NO secret that long-term planning and workforce capability strategies are vital for employers to cope with the shifting demands of the Australian resources industry.

To combat industry-wide challenges in workforce retention and capability, geological exploration and analysis company Earth Data has embarked on leadership training for its promising employees.

The training was undertaken through AMMA, which offers specialised leadership courses for employees in the wider resource industry. Earth Data has to date put around 20 workers through the program, most from team leadership backgrounds.

While the training strategy is primarily centred on talent management, career path planning and development, Earth Data service delivery manager Luke Roberts says a lack of formal leadership training can also restrict workforce development.

He also believes this form of training can reinforce employees’ positive perception of their employer and, as such, improve retention rates.

“The participants have no formal training in leadership, and mostly come from technical backgrounds. This training gives them a chance to step into a new role and develop their skill set,” says Roberts.

“Training is the first step in the company’s overall workforce-building strategy. It’s important to outline to employees the future potential they have at the company, and allow them to develop themselves professionally.”

Additionally, undertaking the training with AMMA was about giving the company an edge in a very competitive environment, says Roberts. He believes that having a highly adaptable workforce with transferable skills will be advantageous for any future company restructures that may be on the horizon.

Jeremy Beckett, a field geology team leader working on Earth Data’s coal seam gas (CSG) projects, started his career with the company in June 2011. Becket remarks that geologists are in high demand in the CSG sector, as Australia’s energy sector undergoes explosive growth.

Working with the company for 1.5 years, Beckett says his management path with Earth Data was defined early. He says the formal training undertaken with AMMA has reinforced that there is a fundamental difference between picking up skills on the job and completing a formal leadership training course.

“Leadership skills are something you don’t really learn through just experience, if you’ve never been formally taught. There’s a lot of work difference between the on-the-ground workers and the leadership teams. The training provides a skills-realignment. It improves our image professionally,” Beckett says.

“The training was mostly in relation to customer expectations and customer services – which I had some experience in

first-hand. The training confirmed what I knew or had learnt on the job in these areas, but also pointed out the areas that I could work on.”

AMMA course leader Geoff Timmerman, who oversaw the training undertaken with Earth Data, says the pupils’ technical ability and skills are there, but the course helps develop other crucial skills needed for a strong workforce.

“The resource sector often focuses on and values technical skills. But regardless of sector, it’s people skills and advisory skills that are needed to develop a strong team with people management and effective leadership capabilities.

“This course within AMMA’s leadership suite teaches general supervisory skills and allows participants to reflect on being a leader in the workplace, which is a key skill required to manage people effectively. You can always train a technical skill, but attitude and how to treat people is an entirely different skill to train.”

For Beckett, one of the most useful aspects of the course was the method in which it was taught.

“I really enjoyed the team work. We’re essentially a team-driven company that works in remote field management,” he says.

“I got to spend time at the course with a lot of my leadership colleagues who I rarely see, working on practical exercises. We would then take the course work and complete it online, again working with each other remotely.

“These were team-building exercises because we were putting into practise some of the skills being taught about managing time, and working together from a distance. We will now go on to use this knowledge on how to work as a team in our practical day-to-day work.”

In an industry where skilled workers are both limited and sought aggressively by competitors, Earth Data has invested in leadership training to increase its talent retention and build a stronger workforce.

Building leadership at Earth Data

Earth Data recruitment officer Jodie Jeffrey and service delivery manager Luke Roberts.

Course Overview This intensive two day workshop provides senior leaders the insight, skills and tools to lead an organisation through the distinct phases of business transformation.

The workshop is based on the leadership methodology and strategy deployment developed by S A Partners, the global experts in Lean Thinking, Leadership and Culture. One of the key focus areas is on the leader’s actions and words as well as processes and structure to ensure alignment to strategy and engagement from the entire workforce.

Attendees examine how and why many change programs fail and are provided with a framework to implement a sustainable change culture through clarity of purpose, understanding customer and other stakeholder value, providing end to end process visibility and engagement of people. Target Audience Senior Managers, Executives and Directors responsible for driving business transformation.

Learning and Business Outcomes• A complete and simple methodology for implementing business transformation

using the proven and comprehensive Lean Business Model.• In depth understanding of the elements of strategy deployment, culture and the

differences between alignment and engagement.• Broad understanding of value stream management, people enabled processes

and the main tools and techniques employed by business improvement professionals within the organisation and extended enterprise.

• A greater awareness of the differences between management and individual leadership styles.

• A personal action plan to start, accelerate and or sustain the transformation process.


INNOVATION48

As dust management continues to be a significant issue for the mining industry, Gold Coast innovator Reynolds Soil Technologies is exporting its innovative solution to clients around the world.

A PROJECT CONTRACT in South America is the latest indicator that Reynolds Soil Technology (RST) has created a unique solution to dust management issues in its RT5 Superskin product.

Further building on Australia’s reputation for world-class mine technology development, the cross-linked polymer product, which is diluted and sprayed onto loose minerals and exposed ground to create a strong yet flexible veneer, is the latest ‘must have’ environmental management product.

“The technology was developed three years ago when RST was working on the Queensland Rail Veneer Project,” explains David Handel, RST’s operations and technical director.

“I realised that to differentiate ourselves from other dust control solution suppliers, we needed a crusting agent that was as effective as our current veneering technology, but which used a greatly reduced dosage rate. At the time, existing technology required 2 million litres of product per year, which meant massive logistical input, such as freight, handling and storage.

“It took six months to finalise the formulation using nanotechnology – a micro particle which, when formulated, had a gigantic surface area enabling us to reduce the usage requirements by 90 per cent. This was proven in wind tunnel testing performed by the University of Newcastle’s bulk solids department, and was later approved by Queensland Rail.”

Dust generated from mine site sources such as wind erosion, vehicles using unsealed roads and blasting has long been

identified as a potential health risk to employees and nearby residents – the effort to minimise this threat is a top priority for operators.

Handel says the RT5 Superskin uses 90 per cent less product than other products on the market to treat the same area, and is applied using any conventional water spraying equipment.

Its largest usage among Australian mining companies at present is for numerous tailings dam applications.

“This application has stopped dust liftoff from the tailings dam surface by 100 per cent,” says Handel.

“As a tailings dam sealant, RT5 Superskin has lasted over 12 months, which is very impressive for this type of product. We have also treated many coal stockpiles for mining companies, which minimises health risks and improves safety.

“RT5 Superskin can reduce freight costs by 90 per cent, and is easier to store and handle. The product also improves a project’s carbon footprint, with energy requirement reductions at the manufacturing stage as well as during its delivery and application.”

Handel says the small amount of product required allows for alternative application. For instance, RST treated a 100 hectare tailings dam via aerial application recently.

RST, which was a finalist for the 2012 Australian Mining Prospect Awards, is now seeking to implement the technology into other areas including haul road dust suppression and erosion control.

of dust managementTAKING CONTROL

An aerial application of the RT5 Superskin.


INNOVATION 49

AFTER DISTRIBUTING ALMOST $600,000 to 18 local organisations from Gladstone to the Western Downs in Queensland, QGC has now provided $3.4 million of funding to 110 community and charity groups across the sunshine state.

The milestone marks more than half of QGC’s $6 million community fund, set up as part of the Queensland Curtis LNG Project, being distributed to a range of highly-valued social organisations within the project’s operating area.

“The fund supports short-term, one-off projects and applicants are assessed by community and company representatives who focus on key community needs,” says QGC vice president sustainability, Brett Smith.

“This is a significant contribution to the development and social fabric of these communities and we are confident we can help many more worthwhile projects through the fund.’’

The latest rounds of funding include $225,063 distributed among seven not-for-profit organisations in the Western Downs and $268,086 for six non-profit organisations in North Burnett and Banana Shire; and $112,983 for five charitable Gladstone community groups.

Chief executive of Downs Industry School Co-operation Mike Paton says the $48,664 received from the fund for a mini-bus would help the organisation show more young people in

and around Dalby the learning and vocational opportunities available to them.

“We are delighted that QGC is supporting us and it will mean a lot to the youth in the western regions where transport is an issue,” says Paton.

QGC will distribute the remaining funding through to the end of 2014, focusing primarily on communities along which the 540 kilometre QCLNG export pipeline is being constructed.

QGC funds community development

QGC Curtis Island pipeline under construction.


INNOVATION50

“Throughout the 1970s and 1980s, there wasn’t a thorough understanding of the mine’s environmental impact,” Maynard says.

“When mining recommenced in the late 1990s after a pause, it was agreed that new operations at the site would help the Tasmanian government to fix the poor environmental legacy, as the environmental issues from the old operation were taken on board by the government.

“To allow a miner to continue to mine that operation, but also clean up all of those legacy issues, was a significant thing and quite a milestone for the way governments and mines and environmental groups can work together.

“We have plans on the drawing board that will help to remediate the government’s liability for the next 20–50 years or longer; we are far more stringent on the way we treat our waste than we even treat our iron ore.

“It’s a good news story for our operation and the people at the mine are very proud of what they are able to do, to not only continue to provide a workplace that can help prosper Tasmania, but also restore some of the beautiful natural environment in this area.”

Maynard also highlights that Grange Resources’ majority shareholder, Chinese trade corporation Shagang International, brought a further sense of the importance of environmentally sustainable operations at the site.

“Our major Chinese shareholders are very concerned with how we interact with the environment at Savage River, they are also very concerned about the safety of our people – they want us to run a business we can all be proud of,” explains Maynard.

SINCE ITS TRANSFORMATION into an innovative and sustainable enterprise, the Savage River Project has become a star exposition of why the local community overwhelmingly supports environmentally responsible mining projects in Tasmania’s northwest.

With just 1 per cent of the Tarkine wilderness proposed to be opened up for minerals activity, Grange Resources has

shown how the resource industry can give the state a much-needed economic boost while preserving its pristine rainforest landscape.

“It’s unbelievable how much diversity of mineral wealth there is in Tasmania, particularly on the west coast,” says Ben Maynard, Grange Resources’ manager of mine to metal production and planning.

“Going forward in mining, we need more people to understand that these resources are finite, and the older the mines get, the more difficult the projects get, so we need to have a sustainable industry.

“Savage River has survived because of its people. Tasmanians are an innovative bunch and that’s been shown as one of the real key successes with the Savage River Project. It is a very difficult mine site in terms of terrain, with consistent rainfall, steep walls and complicated geological structures.”

Maynard has worked on Savage River with various operators for more than 15 years, covering a range of technical and management positions. Now running the teams which deliver production at the mine, he says the site’s environmental footprint hasn’t always been properly managed.

Australian Bulk Minerals restarted Savage River in 1997 before Grange Resources took ownership in 2009. The company inherited a history of environmental issues associated with Australia’s largest integrated iron ore mining and pellet production project, going back to its creation in 1965.

Nestled amid the backdrop of Tasmania’s wild northwest, Grange Resources’ Savage River Project is redefining how magnetite iron ore mining can occur with minimal impact to the natural environmental – all the while keeping Tassie’s top resources talent down south.

PRESERVING NATURE’S ASSETS at Savage River

BEN MAYNARD

Workers on Grange Resources’ Savage River Project in Tasmania.


INNOVATION 51“They want to invest in us; they need the supply of minerals

and they have opportunities to process it and turn it into something. We can work together with them to find value in this very interesting and dramatically-changing market.”

According to Maynard, another great success of Savage River’s rehabilitation has been the ability for miners who have worked at the site for up to 30 years to connect with new processes and procedures.

“The aim from the point of take-over has always been to raise the standards of how we do business, how we work, how we identify hazards and how we rate risks. It is also about how we communicate any problems or successes from the top down and from the bottom up within the business,” he says.

“We brought in a management operating system that integrated different ‘silos’ of the business together, so that we now have a management team that spans the mine-to-metal process, and we have a technical service team that is across the whole business.

“We meet every week and talk about key projects, key issues, and key problems, and we apply continuous improvement tool to help solve those problems, understand solutions and embed them into the way the business operates.”

Grange people

The turnaround of Savage River under Grange Resources provides a proven blueprint for any new resource developments in Tasmania. Maynard says the company is committed to seeing the state’s prosperity supported through innovative and sustainable mining operations.

However, he acknowledges that Grange Resources faces challenges to attract and retain quality talent to the Savage River Project – a challenge mirrored in Tasmania generally.

“The Tasmanian location can be both a positive and a negative,” Maynard explains.

“It is a remote location, but one that’s drive-in drive-out. So while staff do live on-site – they’re only a relatively easy drive away from home and their families.

“We don’t remunerate to the same degree as some larger mines do, but for Tasmanian averages, we pay well. Our skills resource pool is varied – we chase engineers, graduates, professional and technical staff. We never have a shortage of applicants for a position, but sometimes find it difficult to attract some of the more skilled personnel.”

Maynard says the lure of higher paying management and technical positions in Western Australia is often difficult to compete with, but reveals some staff have left and then realised the value of the supportive culture and emphasis on safety and environmental sustainability at Savage River.

To manage the disproportionate levels of skilled versus unskilled applicants to Savage River positions, Grange Resources has strategies in place to invest heavily in training and retain their top talent.

“We have our own immersive technology simulator at Savage River, allowing staff to practice driving with different modules in a manner that is the same as being in the real gear,” Maynard says.

“We can take people who haven’t had experience in driving big machinery before and run them through our simulator for a training period, then pair them with experienced operators for further training in the field.

“The strategy there was to take unskilled people and bring them up to a level that could function and add value to our operation in our conditions.

“On the other side of that, looking at our technical staff, we have a really great graduate program, where we target mining and geotechnical engineers and take them into our technical team and rotate them for a period of two years right through the operations.”

With 2.2 million tonnes of iron ore pellets produced per annum and current reserves estimated to extend the mine life to 2030, Savage River and Grange Resources will remain a significant Tasmanian employer for many years to come.

As importantly, the project paves the way for increased resource investment in the region and proves the benefits of future mining operations can occur with the greatest respect to the state’s prime asset – its natural environment.

Grange Resources’ Savage River mine in Tasmania.

“The people at the Savage River mine are proud to provide a workplace that can help prosper Tasmania, but also restore some of the beautiful natural environment in this area.”

52


ECONOMY

THE EFFORTS OF minority green action groups to outlaw resources activity in Tasmania’s Northwest Tarkine region took a hit late last year when Shree Minerals received conditional approval for its open-cut iron ore mine.

With Venture Minerals also proposing a new project in the region, Tasmanian Premier Lara Giddings is determined to put up the ‘open for business’ signs in

the state. The local community is also overwhelmingly in favour of more mining projects to give the state a much-needed economic boost.

During almost three years of a minority government, Tasmania has seen record levels of mineral exploration and a 20 per cent growth contribution to the Tasmanian economy from the mining industry alone. Now, the state government’s strategy to ensure this positive trajectory continues hinges on the resource-rich region of the Tarkine/Arthur-Pieman area in the state’s northwest.

“Mining is an important part of the Tasmanian economy, and we certainly see that the Arthur-Pieman region as being quite critical to our future. It’s a very highly mineralised area of Tasmania, and because of that we have consistently opposed any blanket listing of that area under National Heritage,” Giddings tells Resource People.

While National Heritage Listing would not preclude mining from occurring in the area, Giddings admits it will make it much harder to attract investors.

“We are very keen to ensure that investors are not given the wrong impression about our ability and our want to realise the wealth that does exist here in Tasmania,” she says.

Building strong relationships with existing and potential investors – particularly in Asia – is another focus for the Giddings Government. On a recent trip to China, she spruiked the state’s investment potential at a forum of 100 Chinese investors. Meanwhile, Tasmania is also undergoing a similar process to the federal government’s Australia in the Asian Century White Paper, to analyse Tasmania’s role in Asia and what it needs to do to continue to build lasting investment relationships.

Is Giddings concerned about migration of workers from the state to the mainland?

“If you’ve got the jobs, people will stay, and that’s one of the reasons why we want to see the investment in the mining

industry – we want to see growth in jobs here. We are also working very broadly across the economy to diversify, so that when there are downturns in any industry, we are much more able to sustain our economy and our workforce,” notes Giddings.

This diversification includes the dairy industry, irrigation infrastructure, viticulture, aquaculture, and the digital opportunities from the roll-out of the National Broadband Network.

She adds, however, that the basic foundations of Tasmania’s economy – of which mining is such an important part – will remain critical for employment, and is confident that mining will continue to play a central role in Tasmania’s economic growth for generations to come.

“The mining industry has had a very long history here in Tasmania. We’ve got some very old mines on the west coast that were thought to have a limited life span left, and they keep finding more resource,” says Giddings, citing the extension of MMG Roesebery mine to 2024, and Grange Resources’ Savage River mine to 2030.

“We understand the need for us to stand on our own two feet, and be able to realise our wealth. I think it is important that we work together and we stand proud of our mining industry.”

Speaking to Resource People shortly after the Shree Minerals iron ore mine was given the go-ahead by the federal government, Tasmanian Premier Lara Giddings explains why she is determined to ensure the state’s untapped mineral wealth does not become a lost opportunity.

Realising Tasmania’snorthwest wealth

LARA GIDDINGS

Savage River from the air.


EVENTS54

FEBRUARYTuesday 12 – Thursday 14 The Native Title, Land Access and Cultural Heritage event will address the main issues around Native Title and Aboriginal Heritage legislation changes and operational issues, featuring presentations and case studies from highly-respected industry professionals, Duxton Hotel, Perth.More info at: www.beaconevents.com

Thursday 14 Hosted by the Australian Women in Resources Alliance (AWRA), the Women in Boards Workshop is being run to assist women in the industry to strategically achieve their career goals, as well as plan for board positions – both now and in the future, Christie Conference Centre, Brisbane.More info at: www.amma.org.au

Tuesday 26 – Wednesday 27 The 3rd Annual Strategic Metals & Rare Earths conference will explore the commodity cycles of rare earths and strategies to ensure the success of your own project, Quay Grand Hotel, Sydney.More info at: www.rareearthsandstrategicmetals.com.au

Tuesday 26 – March 8 The first series of AMMA Member Forums begin on 26 February in Perth and continue to 8 March in Hobart. These forums provide for the exchanging and sharing of important workforce and operational experiences and information, as well as an opportunity to contribute to AMMA’s policy and lobbying activities.More info at: www.amma.org.au

Thursday 28 The AMMA Fresh Thinking Workshop is devoted to finding a fresh approach to the challenges facing people-management professionals. The hands-on session, held in Perth in conjunction with SA Partners, will address recruitment, workforce planning and development, workplace diversity and international labour sourcing issues.More info at: www.amma.org.au

MARCHTuesday 12 – Wednesday 13 The 13th Annual Mineral Sands Conference will include updates on the most topical issues for mineral sands mining in Australia and around the world, Rendezvous Grand Hotel, Melbourne.More info at: www.informa.com.au

Tuesday 19 – Wednesday 20 The 3rd Annual South Australian Resources and Infrastructure Conference will be hosted at Adelaide Convention Centre, Adelaide.More info at: www.sainfrastructure.com.au

Wednesday 20 – Friday 22 The Mining Australia Exhibition will showcase the latest advances in technology, equipment and services. The event is open to all companies and organisations operating in and associated with

the resources industry, Belmont Park Racecourse, Perth.More info at: www.miningaustraliaexpo.com.au

APRILTuesday 16 – Wednesday 17 The 4th Annual Western Australian Major Projects Conference, will be held on the 16–17 April 2013 at the Perth Convention and Exhibition Centre. This event continues to be the largest major projects and infrastructure conference in the state, with a key focus on mineral and petroleum activities, attracting more than 350 delegates annually.More info at: www.expotrade.net.au

MAYTuesday 14 The first annual AWRA Conference takes place on Tuesday 14 May at Melbourne’s Crown Conference Centre, just one day before Australia’s largest gathering of workforce-related professionals in the resource industry – the 2013 AMMA National Conference.More info at: www.amma.org.au

2013 AMMA National ConferenceThis 15–17 May, hundreds of resource and construction-

related executives will gather for Australia’s preeminent annual event on workforce-related issues – the AMMA National Conference.

Held in Melbourne’s stunning Crown Conference Centre, the three-day event features a series of high-profile keynote presentations, panel discussions and informative workshops delivered by Australia’s leading mining, oil and gas, construction and allied sector employers, academics and influential political figures.

AMMA director of member services Tara Diamond says feedback from its diverse membership has AMMA prepared to deliver its most engaging and entertaining event yet.

“As the most significant workforce-focused event on the resource industry calendar, the AMMA National Conference attracts more than 500 delegates comprising chief executive officers and senior professionals from every sector and sub-sector of the country’s growing resource industry,” says Diamond.

“The conference will offer these delegates the latest information on workplace relations, recruitment, workplace safety and migration, but we’ll also have industry figures and subject experts on board to explore interesting and topical issues of labour mobility, community engagement, diversity and broader economic matters.”

While the annual event is given top billing when it comes to professional development and networking opportunities, Diamond says the Gala Dinner and AMMA Industry Awards remains a highlight for many.

“The AMMA National Conference would not be complete without our annual Gala Dinner, when six lucky members are named the ‘best of the best’ across categories relating to human resources, recruitment and workforce development,” she says.

AMMA members and non-members can take advantage of a discounted early-bird rate by registering for the conference before 1 April 2013.More info at: www.amma.org.au/amma-national-conference

56


BUSINESS PARTNER DIRECTORY

RESOURCE PEOPLE Issue 003 | Summer 2013

Documents

aucontents121826 summer

resource people

workforce requirements

western postcrane operator

newcrests workforce

savage rivereconomy52

worldclassglng projectsantos

retain08 workforce planning