The Guardian 23 May, 2007
Facts and myths about AWAs in mining
Australia’s biggest mining union, the CFMEU, this month released statistics that clearly show productivity growth, wages, conditions and workforce stability are much higher at mining operations covered by collective agreements rather than AWAs.
"The Howard Government, with the support of large mining companies like BHP Billiton, are promoting a myth that AWAs are essential for the mining industry. That is completely wrong", said CFMEU National President Tony Maher. "BHP is running a political agenda here to support the Howard Government’s ideologically driven campaign to impose AWAs on the Australian workforce".
Tony Maher said that as the world’s largest mining company BHP also dominates the Australian mining industry with thousands of employees in the unionised coal sector and the non-union dominated the metals mining sectors. "BHP knows the facts and it is only because of the company’s support for the Howard agenda that it is helping perpetuate the myths about AWAs in mining". Tony Maher pointed out that industry and government statistics show:
Coal mining, predominantly covered by union collective agreements, has far higher productivity growth than non-union iron ore and gold mining operations.
Over the last decade coal mining productivity growth has been 9 times higher than iron ore mining, while gold industry productivity has actually been negative.
Recent ABS data (6306, Feb 2007) underlines that Australian mining does NOT rely on AWAs — just 31% of workers in metal ore mines, and only 16% of the mining industry’s workforce are on AWAs. Mining relies more on common law contracts rather than on AWAs. About 55% of metal ore miners are on common law contracts.
The ABS data also shows:
Unionised coal miners earn an average of $46.70 per hour. Largely non-union metal ore miners earn $35.10 per hour. Coal miners earn an average of one third more.
Average working hours are less in unionised coal mining — about 43.8-hours per week — while mostly non-union metal ore mining has workers on around 46.2-hours per week. And that’s just the hours paid for!
Sectors of the mining industry that rely on individual and common law contracts have very high labour turnover — about 40% per year — indicating that workers are not happy with the wages or the hours. In contrast, unionised coal miners on collective agreements have only about 10% turnover per year.
"The proof is there for all to see. Higher pay, better hours, better productivity growth and low labour turnover typify the unionised coal industry when compared with non-union metal ore mining. It is ideology not evidence that is driving mining employer commitment to AWAs", said Tony Maher.