BHP says it will take a bigger hit from Labor laws than expected

afr.com:

BHP says the Albanese government’s “same job same pay” agenda will capture more workers than it expected when it estimated the annual impost at $1.3 billion, as the government rubbished the company’s estimates.

The mining giant expects it will be several weeks before it can accurately quantify the impost from the Fair Work Legislation Amendment (Closing Loopholes) Bill, which wastabled in parliament on Monday.

The bill is designed to give labour hire workers the same rate of pay and conditions as those directly employed by a company, and the preamble to the bill took aim at BHP’s suggestion in May that a “same job same pay” regime could cost the miner up to $1.3 billion extra per year.

“At the department’s request, BHP provided further information with respect to this modelling, on a confidential basis. The department has considered this information and does not consider that it aligns with the scope and anticipated application of this proposal,” said the explanatory memorandum attached to the bill.

But BHP pointed to paragraph 558 of the memorandum as being sufficiently obtuse to capture service providers – such as Thiess or Downer for example – as well as labour hire firms.

BHP did not expect those sorts of service providers to be captured when it estimated the impost at $1.3 billion, suggesting the actual impost could be higher given BHP relies on the likes of Thiess to run mines like Mt Arthur coal in NSW.

BHP Minerals Australia president Geraldine Slattery said there was no solace to be found in the fine detail of the bill tabled on Monday.

“We remain deeply concerned that this bill will create further uncertainty and complexity for no gain in productivity, reduce the ability of Australian industry to successfully