RESOURCE PEOPLE Issue 012 | Spring 2015

RESOURCE Issue 012 Spring 2015

Full Steam Ahead

The huge productivity effort bringing Roy Hill to life PLUS The Indigenous seafarer making waves

and debate over IR ‘repair job’

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CONTENTS

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COVER IMAGE Roy Hill

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38

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Editor Tom Reid Tom.Reid@amma.org.au Deputy Editor Kylie Sully Kylie.Sully@amma.org.au AMMA Contacts 1800 627 771 membership@amma.org.au migration@amma.org.au policy@amma.org.au training@amma.org.au

PUBLISHED BY

The Magazine Publishing Company ABN 70 010 660 009 PO Box 406, Nundah Qld 4012 Phone (07) 3866 0000 Fax (07) 3866 0066 Email sales@tmpc.com.au Web www.tmpc.com.au

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

CONTENTS

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3

REGULARS

04 05 54 56

From the Editor Chief Executive’s Message Events Calendar Business Partner Directory

COVER STORY

06 Roy Hill: Productivity in action ECONOMY & FINANCE

12 13 14 15

Market Wrap: ‘Knocked down but not out’ Industry eyes growth opportunities US rates best for Aussie mine service exports LNG exports to top $50bn by 2020: ANZ

HUMAN RESOURCES

16 18 19 20 21

Major project people strategies Employment trends: Exploring international influences Engagement slumps in middle management trap Fair work Commission hands down first bullying order HR hiring to remain steady

TRAINING

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22 Farstad’s first Indigenous officer shares pearls of wisdom 24 Resource industry joins skills talks in China 26 QGC partnership sparks STEM interest INNOVATION

28 30 31 31

The metal set to rock renewables Breaking the curse of efficiency Research alliance to underpin mining innovation Gold players pave way for discoveries

POLICY

32 33 34 36 36

Policy at a glance Gov’s crackdown on union misbehaviour hits roadblock Debate heats up over workplace relations ‘repair job’ IR managers fined for freedom of association breach MUA cops $200k fine for ‘scab’ posters

MIGRATION

38 New ‘Project Agreements’ for skilled migrants 39 Union campaign against 457s ‘hypocritical’: Cash 39 Proposed training fund could penalise employers LEADERSHIP

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40 Working smarter in an evolving market 41 AMMA board recruits leading HR executives DIVERSITY

42 Oil and gas players scoop diversity award 44 HR gun makes mark with diversity forum 46 Employers elevate Indigenous reconciliation pledge OHS & WELLBEING

48 48 49 50 51

Getting into the flow of wellness Full bench upholds landmark drug test decision FIFO app to reduce mental health stigma Partnerships keep rescue services in flight Research to inform work health and safety

MEMBER NEWS

52 In brief: People and projects

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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REGULARS

Tom Reid Editor

From the Editor IN THIS edition of Resource People we reflect on the significant achievement of Gina Rinehart and her senior management team in turning the $10 billion Roy Hill iron ore project from a dream into a reality.

While financing and developing such a massive mine, rail and port project at any time would prove a monumental challenge, the fact Roy Hill is coming to life during turbulent conditions for all resource employers, and particularly the iron ore market, shows Roy Hill truly represents Australian ingenuity and determination against the odds.

Our talent for this edition’s cover story is the project’s colourful and pragmatic CEO Barry Fitzgerald, who is forthright in sharing the project’s successes and challenges, and deeply proud of the social, economic and employment contributions made not only by his project but the entire resources sector.

While during the past 12 months we have witnessed commodity prices and international market conditions putting a dampener on new investment, organisations such as Chevron, Fortescue and Transfield Services are responding by finding smarter ways to work while striking a fine balance between cost reduction and ongoing workforce development. You can read

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

more on this in the Human Resources and Leadership pages.

In this edition we’re also proud to highlight winners of the 2015 AMMA Industry Awards, who are proving that despite the headwinds we collectively face, our industry’s commitment to investing in people and building more diverse and skilled workforces is not abating.

Taking out the Indigenous employment and retention award, Farstad Shipping will soon be the proud employer of Australia’s first Indigenous seafarer internationally qualified as a Class 1 ship master. You can read Ryan’s inspiring story on page 22.

Further, our joint winners for this year’s Australian Women in Resources Alliance Award, Smit Lamnalco and Santos, provide different success stories that are equally demonstrative of the mantra that small change often unlocks the potential for far-reaching positive impacts.

Please enjoy our final edition of Resource People for 2015.

This is a magazine by the resource industry, for the resource industry. In every edition we aim to bring you coverage of important economic and workplace policy developments as well as feature interesting ‘people’ stories, innovations and successes from the coalface. We look forward to showcasing more in what is sure to be a strong and prosperous 2016. RP

Steve Knott

Chief Executive’s Message Thank you to all our members, speakers, corporate partners and delegates who helped make the recent 2015 Resource People National Conference, Gala Dinner and Industry Awards another successful and informative AMMA event.

The strong level of attendance reflected in part how important it is for us to continue to engage with one another on how we can collectively address issues of commonality confronting our sector.

And as we navigate the final quarter of 2015, our industry remains at a pivotal junction.

Many of the major projects approved during our sector’s recent investment phase are moving into their long-term production phase. In the first half of this year alone we’ve seen another $8 billion worth of major resource projects progress to this milestone.

While this sets our nation up for many decades of increased royalty revenues and other economic benefits, the decline in new project investment continues to present major challenges for the sector, principals and contractors alike.

In addition, resource projects already underway, including those that have been operating for decades, are facing their own workforce challenges arising from declining commodity prices, productivity challenges, and heightened competitive pressures.

Roy Hill CEO Barry Fitzgerald, who features in our cover story for this edition of Resource People, was one of the keynote industry speakers at our recent national conference. During his presentation he gave a piece of sage advice that translates to all corners of our industry – from energy to iron ore; chief executives to on-site supervisors.

When asked about the impact of the fluctuating iron ore price on his business, Fitzgerald responding by saying the real challenge for leaders in the resource industry is to put aside the externalities and focus on ‘running the best business that we can’.

The message is to focus on what we can control and this highlights the solution to our industry’s competitive challenges largely lies with us, the industry.

We need to work smarter in order to achieve greater productivity and competitiveness. Through strategies and innovations implemented at the workplace level, each individual ‘people practitioner’ within AMMA’s membership network has the ability to navigate current and new challenges, develop solutions to complex workplace issues and add value to respective organisations.

Productivity Commission

In addition to greater innovation at a workplace level, it is crucial our industry is supported by a modern, competitive and flexible national policy platform, one that promotes Australia as an attractive place to invest and employ people.

The previous edition of this magazine included a large feature on the Productivity Commission’s Review of Australia’s Workplace Relations system – which we described as a rare

AMMA CHIEF EXECUTIVE

...resource projects already underway, including those that have been operating for decades, are facing their own workforce challenges arising from declining commodity prices, productivity challenges, and heightened competitive pressures.

opportunity to get our IR laws back on track to supporting economic and employment growth.

AMMA’s submission to the Productivity Commission was the most comprehensive of submitting parties and was based on 12 months’ work including independent KPMG analysis, member surveys, international comparative data, and more.

Unfortunately, the Productivity Commission’s draft report has since been released and falls well short of the systematic overhaul we so desperately need. Downplaying its recommendations as a ‘repair job’, it seems this process is unlikely to end the inertia on meaningful and necessary changes to Australia’s IR system. Without such changes, investment dollars will flow elsewhere with adverse consequential economic impacts on the national economy.

The report does, however, address some important issues for the resource sector and, if we can drown out the predictable scare campaigns with reasoned debate, we might yet salvage from this report some key opportunities for meaningful discussions on our nation’s future. For example, the report does pick up AMMA’s recommendation for more options to break the current union monopoly position in enterprise agreement making for new projects.

Finally, in coming weeks many of you will receive the AMMA 2015 Activities Report, outlining the breadth of our policy and advocacy activities as well as the range of consulting support we provide our members to assist with their on-site employee relations, legal, training and migration needs.

We look forward to continuing to advance the interests of our industry, as well as being your trusted partners throughout the remainder of this year, in 2016 and beyond. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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cover story

ROY HILL PRODUCTIVITY IN ACTION After more than 4,000 regulatory approvals, 29 million working hours and capital expenditure greater than Western Australia’s entire 2015-16 state infrastructure budget, construction of the Pilbara’s landmark Roy Hill iron ore project is on the final stretch.

With more than 5,900 onsite employees working to finish the final 10 per cent of project construction, CEO Barry Fitzgerald provides Resource People readers with insight into the productivity strategies that are rapidly bringing the Roy Hill dream to reality.

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cover story

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cover story

AS THE LONG-HELD vision of Lang Hancock, brought to life and made a reality by daughter and company chairperson Gina Rinehart, the $10 billion Roy Hill iron ore project was always going to attract plenty of attention and excitement – as well as plenty of doubters.

There were analysts who believed the project funding would never get off the ground, before Rinehart pulled together the largest international financing package of its kind the world has ever seen.

Others speculated such a mammoth onshore greenfields development could not viably enter the ultra-competitive global iron ore market so late in Australia’s recent investment boom. But with the project 90 per cent complete and raring to enter production in late 2015, yet another myth has been busted.

Rinehart is immensely proud that Hancock Prospecting, a wholly-owned West Australian company, has been able to take the lead and bring such a significant project to fruition.

“Roy Hill is a crucible of opportunity during a period of global uncertainty,” Rinehart says.

“It has already shown it will create new jobs, and benefit the greater mining and construction-related industries.

It will add to Australia’s exports and significantly benefit our West Australian

The skilling challenge

Early in the construction phase, the Roy Hill story was dominated by questions around how the project could assemble an 8,000-strong workforce in its remote Pilbara location. Such a challenge led to the pursuit of new strategies such as an Enterprise Migration Agreement (EMA) with the federal government, which Fitzgerald describes as ‘a risk and national economies.” mitigation process’.

While Roy Hill may have seemed “As it turned out we didn’t need that destined to be a modern day Australian risk mitigation process because the world mining success story, such an achievement rapidly changed and the employment requires the complex and careful codynamic in our industry rapidly changed,” ordination of labour, skills, innovation and he explains. expertise into a collaborative productivity “To get 7,900 people working on the effort rarely seen in the nation’s history. project, and we have ramped that up very “When you build a project like Roy quickly in terms of our electrical trades, Hill, because of the different skills, the proves that to be the case. different trades, the 300 contracting “But situations may arise where companies involved and the technology projects do need these sorts of things as required, a huge number of people flow contingencies or risk mitigation, because through the project,” explains CEO Barry at the end of the day being able to get Fitzgerald, the man leading the enormous those large numbers of skilled people effort behind the project. is critical to maintaining project cost “During this construction phase we have structures and getting to production as had more than 40,000 people register quickly as possible.” through our site access system, meaning During the negotiations for the they’ve all worked on that site. There are EMA, which was never signed, Roy Hill huge implications in how you manage committed to a significant volume of those people.” training. Fulfilling that commitment even as skills availabilities opened up has

During this construction phase we have had more than 40,000 people register through our site access system… there are huge implications in how you manage those people.

CEO Barry Fitzgerald and Chairman Gina Rinehart during a site visit

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cover story

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Roy Hill will operate five ore trains per day, each hauling a 31 thousand tonne payload

proven a productivity masterstroke during the construction phase.

“While we never needed the 457s (skilled migration visas), we still carried out a significant amount of training by providing external parties and specialist consultants to our contractors, aimed at increasing productivity on the ground,” Fitzgerald says.

“Initially there was pressure on us to commit to training in trades and other skills, but we believed the main training we needed in terms of the Australian construction process was training in supervisory staff.

“During that time we have helped initiate more than 6,400 on-the-job coaching hours, spread across 800 days of interaction with 1,500 workers and 600 leaders.

“Not only do we believe it was effective, the contractors believe it was effective and the results prove that it was effective. And so, one of the training legacies we have left is a legacy of improved construction capability in terms of frontline supervision.”

While boosting frontline supervision was an early success, Roy Hill also faced a number of significant challenges in having enough people qualified and experienced in operating the project’s enormous levels

of specialised equipment.

In terms of construction productivity, Fitzgerald recognises this as a major risk for all Australian major project owners.

“As a miner and project owner, we need to ensure our contractors have people who are competent and with equipment and skills certifications that are aligned correctly,” he says.

“We have rapidly increased the number of people onsite and we have also rapidly increased the number of plant. This puts huge pressure on the training systems that we have across our industry and the nation.

“This forces you to challenge internal and external training and RTO processes – the industry systems driven by regulatory authorities. It is our view there are major issues with the quality and veracity of the qualifications that are issued by some RTOs, and we have seen some of the negative consequences of that.”

To mitigate that risk, Fitzgerald says, it is critical for Roy Hill to conduct highly effective premobilisation checks of employee qualifications and experience.

Further, big efforts are made to ensure classified plant personnel have appropriate training and experience for the specific onsite requirements.

“It is critical that people are certified not for elevated work platforms or cranes in general, but for the specific elevated work platforms, and the specific cranes being used by your contractors on your site,” he says.

“Not only is this very important in the context of safety, but if you don’t have people who are properly trained then you clearly will have an issue with productivity as well.”

Roy Hill has recently received some bad press about improvement notices issued by the state Department of Mines and Petroleum relating to contractor safety concerns on the site. While recognising the site has had some safety incidents, Fitzgerald says the results indicate it is more a ‘press reputational issue’.

“We have worked more than 29 million hours on the project to date and our safety performance is approximately 10 times better than the mining industry’s average LTIFR (lost time injury frequency rates),” he says.

“I recognised LTIFR is not the best measure of safety but it is one in which we can gain access to data to benchmark ourselves, and we believe being 10 times better than the industry average is actually quite good.” »

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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cover story

» Changing market conditions Roy Hill is limited in its annual iron ore production capacity to 55 million tonnes – the capacity it is allocated at Port Hedland’s harbour. With no flexibility to incrementally increase its production, its business model is entirely cost-driven and centred on margins.

Therefore, when the iron ore price rapidly declined and its established competitors responded, the partially completed Roy Hill project needed to follow suit. Fitzgerald saw the best way to respond as actively engaging the workforce on which costcutting measures they saw most viable.

“When we set up our business a little more than three years ago, the market conditions were very different.

Our approach to our labour rates were different and our approach and understanding of what we needed to do to attract and retain good people was also very different,” Fitzgerald explains.

“We went to site and I addressed some 250 people in a (focus group) session and we talked about what we thought we could do to save money and how we might do it. We raised the issue of

going back to a longer roster and the feedback was that many had joined us on the existing roster and would prefer to reduce their salaries or start a day early to maximise productivity.

“Many of them thought we’d already made our mind up, but we issued a survey, got huge feedback and retained the existing roster.

“There was a clear benefit in working with our people and making sure they understood the change in the marketplace and what our competitors were doing to reduce their costs, both internally and externally. This facilitated us in reaching a more widely accepted outcome.”

Innovation and technology

Fitzgerald believes the way Roy Hill dealt with its roster and salary issues is indicative of the culture the project operator is building – a performancebased culture centred on contribution and accountability. Innovation is also critical for its margin-focused business model and must be embraced at all levels.

“I turn up to about 80 per cent of the inductions for employees at Roy Hill and

Gina, Barry and team pose in front of one of the state-ofthe-art GE locomotives

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Technology is driving a fundamentally different approach to the way people work, and not only in big innovations, but across a wide range of activities. detail what our business model is and what our key drivers are,” he explains.

“One of the great opportunities about being a greenfields project is that I’m able to say to our people that if they want to be a part of a great company in five years’ time, it will reflect and depend on what they do today.

“When people come into organisations, especially at lower levels, they generally don’t understand their role and their significance in creating organisational culture and driving the day-to-day innovation of doing things better.

“So I remind them of that obligation, my expectation of that and in fact encourage them to take up that opportunity.”

Driving innovation and performance through the business is the company’s

cover story

Roy Hill will move 55 million tonnes of iron ore each year

use of cutting-edge technology, which Fitzgerald says ‘must be embraced’ to boost productivity at all levels.

For instance, in January Roy Hill took delivery of the first 14 of a total order for 21 of the latest GE ‘Evolution Series’ diesel locomotives, which uses remote diagnostics technology to gather data and send to Pennsylvania for GE’s assessment.

“One of the responsibilities we have in the mining industry is to ensure we are aware of how technology will impact us,” Fitzgerald says.

“Technology is driving a fundamentally different approach in the way people work, and not only in big innovations, but across a wide range of activities.

“One innovation that we took as a matter of faith from day one is we wanted a remote operating centre. It gathers the data in real time and integrates this data there. We can control the entire project from our remote operating centre, including all the planning and scheduling right across the supply chain.”

Roy Hill Community

Any discussion on a project the size and significance of Roy Hill would be incomplete without considering the impact it has on communities – both within its immediate vicinity and the broader state and national wellbeing.

On the former, the project and its contracting partners were proud to launch

the Roy Hill Community Foundation in June. Structured as a registered charitable organisation for full transparency in its activities and funding management, the foundation has already attracted more than $11 million in cash and in-kind donations that will be invested in the immediate regional communities in which it operates.

“This is a holistic approach to leaving a positive legacy from the Roy Hill operations,” Fitzgerald says.

“It’s very much about working with our partners, because we believe together we can achieve far more than individually.

That approach has really struck a chord with the members of the foundation because they are actively having a say on what we do and where we do it through our committees.”

While the Roy Hill Community Foundation continues its work at the local level, Fitzgerald is more reflective on the huge impact major resource projects have on the long-term wellbeing of people and communities across the country.

“We often see quite emotive words about mining and the impact upon the community and upon the environment, and I think it is our role as an industry to put things into perspective,” he says.

“Roy Hill is an iron ore project with majority West Australian ownership; we are a significant participant in a global industry and achieved the largest ever project financing of its kind.

“In terms of the 40,000 people having actually worked on the project, when you factor in mum and dad and two children, I would suggest that a minimum of 300,000 people would know someone who has worked on our project and benefitted from our existence.

“When we are operational we will have more than 2,000 people employed. Some might argue that’s not a huge number, but that’s 2,000 people across 20 or 30 years. That is a significant contribution to the employment of our children and our children’s children.

“So when you reflect on the idea of having a project like Roy Hill and how that project operates within a community, it has a massive positive impact over a long period of time. That’s something we are very proud of.” RP

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BARRY FITZGERALD ON: Regulatory Reform: There is a huge issue with regulatory compliance within Australia and this is creating a major barrier to entry. For example, there is a huge amount of materials that need to comply with Australian design standards on the basis that international standards aren’t good enough and we’re special. This issue about our inherent protectionism needs to be addressed as it creates a narrower mindset to look at Australia as your market and not the world.

Industrial Relations: Because of our current legislative framework, 300 companies working on the Roy Hill project have taken the same agreement to the same unions for endorsement, and then taken it to the same regulatory body for ratification and approval. I question whether that is productive or adds value. Maybe a project agreement would be a better way.

Management Accountability: My view on leadership and management is to never ask someone to do something that you’re not prepared to do yourself. We reduced the midpoints across the whole salary range for all employees, staggering the base salary reductions from 0 per cent at the lower workforce levels and up to 10 per cent at my level. I couldn’t ask people to take a pay cut if I wasn’t prepared to do so myself.

Iron Ore Price: The issue is not what we at Roy Hill think the forward price will be, but rather what the independent experts who advise the financiers believe it will be. Internally we need to be conscious of what those numbers are, but all industry leaders should be reminded that at the end of the day our challenge is to deliver the very best business that we can and secure good shareholder returns, a strong project life and working environment.

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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ECONOMY & FINANCE

Market wrap:

‘Knocked down but not out’ Once a hotbed of initial public offering (IPO) activity, aggressive merger and acquisition bids (M&As), and capital raising ventures that attracted investors in a flurry, a lot has changed for the equity markets that traditionally fuel the activities of Australian resource companies. In this column, AMMA senior industry policy adviser Tristan Menalda gives us his market wraps.

In recent times the Australian resource industry has been impacted by a number of factors including suppressed commodity prices, foreign exchange vulnerability, rising geopolitical risk and the rise of inventory that has intensified gluts in many commodity markets as mines transition from construction into production.

The voracious and unexpected speed of the end of the mining price boom caught many off-guard. Investors are weary of the current market conditions, with their confidence spooked by a heightened level of uncertainty.

This is a challenge for the industry, given the mining sector typically relies on equity markets to provide the substantial capital to explore, identify, construct and operate a mine.

Since the start of 2015 to July, there has not been one junior mining company that has floated on the Australian Stock Exchange (ASX), and broadening the conditions to the entire resource sector, there has only been one junior mining or energy company that has floated this year.

To put that into perspective, between 2009 and the end of 2014, investors have championed more than 270 new junior resource floats on the ASX. With a number of juniors holding quality reserves but being cash-constrained, we are seeing various and alternative capital raising strategies being implemented.

Access to international debt capital markets is restricted to borrowers with strong equity valuations and balance sheets – thereby bypassing many junior and some mid-tier miners. This is driving a trend for juniors to offer bonds with higher coupon rates, some that secure the debt against the company’s assets, offering

Tristan Menalda

convertible notes or raise equity with a follow-on offering.

Alternatively, miners have also engaged in profit sharing agreements with major construction/logistic companies, where they receive a percentage entitlement of applicable positive net operating cash flows in exchange for investments, such as shares, cash or lower contracting rates, in the company.

With depressed commodity prices likely to remain for the near-term we expect an increase in joint ventures as mining companies including juniors realise synergies and cost savings.

In addition, we expect there to be more acquisitions, as Asian buyers and major mining houses acquire quality assets at bargain basement prices to secure supply in response to projected greater demand for commodities as a result of a

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rising middle-class in Asia, higher rates of urbanisation and comparatively strong GDP growth in our major trading partners.

So what can mining companies do to attract investment?

While there is no one-size-fits-all approach or magical solution to attract investment, leading trends among mining companies include: • reviewing and refining their sustainable mine optimisation model; • showcasing and promoting their high quality resources and reserves; • rightsizing their business and workforces; • reviewing workforce planning arrangements; • prioritising and focusing on core activities; • optimising productivity; • minimising all but essential spend; • displaying strong corporate governance; and • maintaining their social licence to operate.

At a policy and regulatory level, macro and micro economic reforms are also vital to boost investment, which will positively reflect on the entire Australian mining industry and thus open up greater access to equity markets.

For example, modest changes to the workplace relations framework, which have been modelled by KPMG in 2015 in its report Workplace Relations and the Competitiveness of the Australian Resources Sector, suggests minor reforms could result in increased investment in the resource sector of up to 8 per cent.

Such a boost could ultimately prove the difference between a mine receiving investment and potentially the go-ahead to construct and produce in Australia instead of the investment going offshore to our international competitors. RP

ECONOMY & FINANCE

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Industry eyes

growth opportunities After an intense focus on reining in costs to offset lower commodity prices, it’s now time for the resource industry to look for growth opportunities, KPMG’s Jonathan Smith says.

“I’M seeing more conversations about where growth is going to come from than I have in the past two or three years.

That’s positive, that’s going to create opportunities,” KPMG’s national oil and gas sector lead Jonathan Smith says.

Delivering an economic overview at the AMMA’s 2015 Resource People National Conference, Smith says after achieving a more competitive cost position, many resource executives are now under pressure to pursue growth.

He predicts this period will give rise to more acquisitions as resource companies adopt a counter-cyclical strategy, and also a greater focus on innovation.

“I do think innovation in capital intensive industries is something we can really nurture here,” Smith says.

“There are a lot of bright people, there are a lot of people who have faced incredibly challenging issues with some of these major projects.

“If we’re dealing with these issues here, surely we can take those capabilities to other parts of the world.”

The war for talent still exists

in other industries such as aerospace, defence and retail, with the view to bring that back into mining oil and gas,” he says.

“There’s also a lot of focus on recruiting women and working through barriers to have more female leadership in the business. That’s something (KPMG) has spent a lot of time working on also.

“All the research tells you if you have a diverse team you get better outcomes.”

As well as managing the expectations of millennials who are chasing a diversity of work experience, Smith says employers

I do think innovation in capital intensive industries is something that we can really nurture here.

must get strategic about leveraging the experience of senior workers. He warns that failing to invest in knowledge transfer and training during a downturn can come back to bite.

“In the United States the average age of oil engineers 20 years ago was 35, today it is 55. That’s a big chunk of engineering workforce that will leave in about five years and the next wave (of oil engineers) are 15-20 years younger, so they don’t have (the same level of) experience,” Smith says of a recent survey he conducted in the US. “How do we capture this tacit knowledge? Senior people in the workforce see that knowledge as their power, so it has to be handled very sensitively.”

In a final word, Smith urges the industry to remain committed to education and leadership development partnerships to ensure there is a pipeline of talent to turn those growth opportunities into reality. RP KPMG’s Jonathan Smith addressed the AMMA Resource People National Conference

When resetting business models and goals, one of the most important questions resource employers can ask themselves, according to Smith, is whether they have the right capabilities in place.

“The challenge is you might have the right headcount but you may not have the right capability. It’s very difficult to transition quickly to that,” he says.

“There is a war for talent but it’s quite different to what it has been.”

Smith says one goal of strategic workforce planning should be to create diversity of thought.

“For the first time in a long time I’m having clients ask me (about innovation)

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ECONOMY & FINANCE

US rates best for

Aussie mine service exports THE United States has beaten the likes of Indonesia, PNG and China to be revealed as Australia’s top export market for mining equipment, technology and services, according to a Commonwealth survey of local companies selling into the international business community.

Accounting for about 10 per cent of all revenues from non-commodity-based mining exports in 2015, the US was rated both the most lucrative market and among the easiest to do business by 124 survey participations from across the mining services and technology sector.

The mining companies were among 1,200 Australian businesses from 19 industry sectors and 114 markets taking place in the second Australia’s International Business Survey 2015 (AIBS 2015), which is one of the country’s largest and most in-depth investigations into international business activity and prospective growth.

Following the US as the top export market for Australian mining technology and

services companies were Indonesia (9 per cent), Papua New Guinea (8 per cent) and China (7 per cent). The traditionally strong mining markets of Canada and Chile were further down the pack, each accounting for 7 per cent of technology and services exports, according to survey respondents.

Despite producing the fourth best export result for the sector, a stunning 23 per cent of mining respondents also rated China as the most difficult country in which to do business.

Indonesia was rated next most difficult (15 per cent), with India (8 per cent) and Brazil (6 per cent) following, despite neither rating in the top 10 for export revenues.

Austrade chief economist, Mark Thirlwell, says India, Indonesia and China were identified as difficult to do business in across the board.

“However these three markets along with the US and UK were identified across all respondents as top target markets for generating new revenue,” Thirlwell says.

“According to our respondents,

information gaps, particularly in some of the more challenging overseas markets, can be an obstacle for Australian businesses looking to expand offshore, and Austrade’s extensive international network can be a resource in helping close some of those gaps.

“International business is about more than just exporting these days, important as that is. Australian businesses are by and large optimistic and ambitious, so they are using different business strategies to further their objectives in overseas markets.”

Mining survey respondents named the current value of the Australian dollar, costs of production and labour productivity as being the three main restrictions to taking advantage of new international business opportunities.

However, an encouraging 86 per cent of respondents intend to expand into new international markets within the next two years and close to 60 per cent expect their global performance to be better this year than in 2014. RP Australia exports mining services and technology to the US

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ECONOMY & FINANCE

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LNG exports to top

$50bn by 2020: ANZ ANZ predicts the value of Australia’s LNG exports will triple to more than $50 billion by 2020 as production from new gas fields come on stream.

The surge in exports, outlined in the report Australia’s Gas Industry: When Markets Collide, could see LNG overtake iron ore as Australia’s top export commodity by the end of 2016 and position the nation as a direct rival to Qatar as the world’s biggest LNG exporter by 2018.

The research confirms what many industry analysts have predicted for some time, given more than $200 billion has been invested in new major LNG projects in the past decade. However, the report also predicts international gas prices will

rise due to increasing LNG usage in Asia, which ANZ estimates could grow by more than 40 per cent in the next decade.

ANZ chief economist Warren Hogan says a rise in LNG exports will deliver many long-term benefits to the Australian economy, including higher tax and royalty payments, but wholesale gas prices could double in the next two years, adding an

average 30 per cent to household gas bills.

“Fast growing Australian LNG exports will have significant benefits for the Australian economy. However, the gas market is set for a dramatic shake-up, with international forces likely to drive domestic prices higher. This will inevitably impact consumers and gas reliant manufacturers,” he says. RP

The Santos GLNG project on Curtis Island

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HUMAN RESOURCES

Chevron’s Gorgon LNG project is more than 90% complete

Major project

people strategies They may be under greater competitive pressures than ever before, but major project operators Chevron and Fortescue are ensuring their workforce strategies are powering their projects forward.

APPROACHING the finish line of construction with the first cargo of LNG tipped for the end of this year, Chevron Australia’s $55 billion Gorgon LNG project will soon begin operating in a very different economic environment than when the first dirt was turned more than five years ago.

Overseeing 8,000 employees at Gorgon’s project site on Barrow Island, Western Australia, general manager of human resources Kaye Butler’s focus is very much on keeping productivity high during this final phase.

“Right now (the biggest challenges) are ensuring we get the productivity from the workforce to complete the projects in a timely fashion and remain competitive,” Butler says, referring also to Gorgon’s sister project Wheatstone, now more than halfway through construction.

“There is also a lot of work going in the business and with our service providers

around steady state operations. We need to make sure we’re doing everything at a competitive cost basis, that we’re not overemploying when we don’t need to, that our operators are the best they can be, and that we’re providing them with that development.”

Butler says Chevron has been readying itself to take on the identity of an operating company in Australia for a number of years. This involves anticipating whether the LNG sector has the skills to man a succession of projects transitioning across the country.

“There are discussions in the sector right now about whether we will have enough LNG operators. It is an area we need to develop and Chevron is working with training providers to bring more people into operations,” Butler says.

“There is a lot of capability in the Australian education system to produce

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these people, however, more work needs to be done to encourage students to study STEM (science, technology, engineering and maths) disciplines to ensure we build that pipeline of capability.

“Australia has an incredible opportunity to be an LNG centre of excellence globally. We need to grab that opportunity, otherwise it will pass us by.”

While new-project owners are concerned with starting production in the most competitive position possible, volatile commodity prices are forcing established operators to implement the toughest cost-reduction strategies many have seen since the beginning of the construction boom.

With the fall in the iron ore price, Fortescue Metals Group’s group manager of people, Linda O’Farrell says the approach has been to focus on what can be controlled.

“The market is so volatile, so what can you

HUMAN RESOURCES

do? You can control safety, you can control costs to a degree, and you can control productivity. So that’s our mantra – look at what you can control,” O’Farrell says.

“Our philosophy is to make sure every single role and person is important in the business, so you really do miss it when someone’s not there. I think that’s a way of really empowering people because they know that what they do really does matter.”

One of the most publicised costreduction strategies Fortescue announced in the wake of the falling iron ore price was a move from its signature eight-dayson, six-days-off roster to two-weeks-on, one-week-off.

O’Farrell admits the move, which affected the majority of Fortescue’s Pilbara-based workforce, wasn’t exactly a popular one, but most employees understood it was a decision the company didn’t take lightly.

“The key for us was to be absolutely upfront with our workforce. We travelled around our sites and spoke to thousands of people, and that’s something Fortescue does really well – our leaders are very visible,” she says.

“We decided against pay cuts across the board and the reason for that was to

achieve balance between retaining great people, keeping them engaged and making sure we’re competitive.

“So we looked at all the different options and decided a roster change was the most sustainable way for us to move forward, which meant some people got a pay increase when the roster came in.

“We froze pay for everybody else and restructured roles, so there are not too many managers within Fortescue that don’t have a bigger role with more responsibility and less staff to actually achieve those accountabilities.”

Despite current cost pressures, O’Farrell is adamant the strong social investments Fortescue has become famous for, such as the VTEC Aboriginal training program and engagement with Indigenous-run enterprises, will not be compromised.

“We’re really proud that even through difficult times, our Aboriginal participation rates have actually increased to now sit at 13 per cent,” she says.

“But that’s not enough for us, because we still have far too many employed in entry level jobs. So our key priority is to increase trades participation and that’s a long-term investment. We’ve got

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an Aboriginal mining manager at our Cloudbreak mine now, so we’re starting to make a different in that space.

“Programs such as ‘CEO for a Day’, where our talented Aboriginal employees get the opportunity to shadow Nev (Power, CEO) or Andrew (Forrest, chairman) also remain incredibly important.”

While transitioning from construction to production will see Gorgon’s workforce reduce from the current 8,000 to around 300, Butler says Chevron’s own social initiatives will evolve with the project.

“We’re working to get more Aboriginal people in the pipeline and through every part of the organisation, and that will continue once we pass construction,” she says.

“Aboriginal employment is certainly a passion of mine and when I have an Aboriginal running our operations, I’ll feel like I’ve made some progress.

“It’s the same with graduate employment. We’ll always need graduates across many disciplines, so this will become more of a focus as we build a pipeline of Australians to work in our operations.” RP

Fortescue’s philosphy is to ensure every role is important to the business

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HUMAN RESOURCES

Employment trends:

Exploring international influences Head of leading Australian recruitment company DFP Recruitment, Robert van Stokrom, recently sat down with Resource People to discuss the national resources employment market and global trends influencing the way we work.

The DFP Mining and Resources Job Index has become a valuable source of knowledge for employers. Can you provide a snapshot of how employment is tracking in Australia?

In the first six months of 2015, the DFP Mining and Resources Job Index revealed the number of vacancies advertised fell by 22.1 per cent. During the 12 months to June, job advertising in Western Australia has declined by 39.4 per cent and Queensland by 17.4 per cent.

Interestingly, permanent vacancies rose by 2 per cent in June, its first rise since October 2014.

In terms of the various job disciplines, production-related jobs increased, while OH&S and related jobs remained steady.

Geologists and exploration roles have declined by 35.9 per cent.

unemployed and hundreds of millions more are inactive, meaning they are not involved in education, employment or training.

Like many other industries, the key word for the resource industry going forward is flexibility.

When trying to understand flexible talent, a global, mobile workforce is made up of digitalisation, mobility, and a 24/7 mentality.

The new workplace needs to align to the new workforce. The new workforce takes into consideration globalisation, age, self-centeredness, diversity, hyper connectivity, disengagement and remote and dispersed environments.

Robert van Stokrom

accepted practice.

29 per cent of the Japanese working population operate remotely. This Would you say achieving work-life balance compares with 28 per cent in US and only 18 per cent in the European Union. is still a main priority for jobseekers and In Europe, 15 per cent of workers are employees in today’s market?

It’s more about work-life blend rather than self-employed (33 million people). In France one-in-three workers have unconventional work-life balance. working hours while in the Netherlands, More broadly, what are some key trends A significant change has occurred in 46 per cent of employees work part-time. in the global employment market? the attitudes to work and life in the past Globally, there is an obvious disconnect few decades. Research from 1980 to 1990 How can the Australian resource industry between people and jobs. showed work intruding into private life, ensure it continues to create employment Our friends at the International Labour bringing extra stresses, heavy workloads Organization (ILO) have some great and increased expectations into the home. in an evolving and globally competitive marketplace? data on this. In 1980, one billion people Comparatively, research from 2000The resources industry, once booming with worldwide were of working age (15-64).

2010 shows personality and passion an unprecedented level of new project In 2010, this had increased to 3.2bn and invading the office, with increased construction, is now at a critical stage in it is predicted that by 2020, 3.5bn people creativity, corporate social responsibility, will be of working age with 40 per cent of hobbies, emotions and the introduction of Australia. Budget certainty, regulatory changes, reform of workplace relations are these in India and China alone. social media into the workplace. all seen as vital cogs to ensure our nation is Further, a 2014 McKinsey Global Work is no longer considered a place a globally competitive place to do business.

Institute survey of 37,000 employers – it is now a task that can be completed Building confidence in government globally found 36 per cent couldn’t find from anywhere. policies, the industrial relations the talent they needed. It also found environment, the labour force and the 30-45 per cent of the global working What types of work arrangements have industry will then result in an increase age go underutilised, meaning they are become more accepted internationally? in investment, increase in jobs and unemployed, inactive or work part-time.

Similar to changes in work-life attitudes, improvement in the economy. RP Seventy-five million youths are officially working remotely has become a widely

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HUMAN RESOURCES

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Engagement slumps in

middle management trap IF you are a middle income earner and feeling disengaged at work, you are not alone. One of the biggest studies into workplace engagement in Australia’s history has found middle-managers are the least engaged of all employees.

The survey, a collaboration between SACS Consulting and Deakin University researchers, involved 2,600 Australian employees across a range of employment sectors. It revealed those earning between $70,000 and $150,000 are more disengaged compared to both lower and higher earners.

Respondents completed an anonymous questionnaire about engagement and leadership behaviours of supervisors and colleagues, as well as the personality questionnaire HEXACO and the Schwartz

Personal Values questionnaire.

SACS managing director and principal researcher of the study Andrew Marty suggests the dip in engagement may be explained by the nature of work.

“Our study shows middle managers have less autonomy in their decisionmaking and more disenchantment with their work than either lower paid workers at the coalface or higher paid executives leading organisations,” Marty says.

“This middle manager lag is no doubt dragging organisational productivity down.”

SACS plans to help employers drive productivity by incorporating the findings into an online tool using a ‘360 feedback system’ to predict employee engagement and give employers and staff a better

understanding of their strengths and weaknesses.

“Using this research, organisations can lift the engagement levels of their workforce.

Tasks will become easier to do, staff become more open to change and try harder in their jobs. Engaged employees release their discretionary effort, which ultimately boosts the organisation’s productivity,” Marty says.

“By analysing the behaviours of staff across the organisation, employers can gain certainty around who will be a better fit for their organisation and more likely to engage with their work.”

Analysis of personality and values found that optimists and those with positive personality traits are more likely to be engaged at work. RP

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HUMAN RESOURCES

Fair Work Commission hands

down first bullying order

With the Fair Work Commission (FWC) handing down its first bullying order, AMMA’s Legal Services director Amanda Mansini explores its implications for employers and provides timely advice on managing workplace bullying incidents.

SINCE THE anti-bullying jurisdiction came into place, the FWC has received in excess of 870 applications by employees who claimed to have been bullied at work.

The circumstances surrounding these applications have been such the FWC has not considered an order to stop bullying is necessary, for example, because there was no risk of continued bullying or the alleged bullying behaviour was deemed a reasonable management action.

The decision in CF and NW v Company A and ED [2015] FWC 5272 should serve as a reminder to employers of the importance of having trained all employees in appropriate policies and procedures, as well as the importance of fairly investigating any alleged misconduct.

Amanda Mansini

Although they now worked at different locations, there was a real prospect of future work-related interactions and the unreasonable conduct could continue if not ordered to stop.

In response to this finding, the What happened? employees and the property manager In this case, a property manager had allegedly repeatedly bullied and harassed agreed not to approach each other or attend the other business premises (for two employees at a small real estate 24 months). This was branded a ‘practical business by belittling and humiliating the preventative solution’. employees, swearing and using abusive The FWC also ordered the employer to language, undermining the quality of more broadly address the organisation’s their work, physically intimidating and victimising by “slamming” objects on their culture and ‘broader conduct within’ it by establishing and implementing antidesk, and threatening violence. bullying policies, procedures and training.

The employees reported the behaviour and the employer conducted an informal investigation. The investigation was What should employers do non-conclusive and there was no formal to prevent bullying in their anti-bullying or grievance resolution workplace? procedure operating within the workplace. 1. Train employees in their anti-bullying The property manager then resigned but policies and procedures accepted an equivalent position with a Anti-bullying policies and procedures related business at another location. should be in place and actively followed. These policies and procedures should explain what What did the FWC find? constitutes bullying, the consequences The FWC found the employees were of engaging in such behaviour and victims of bullying, and there was a risk provide examples of appropriate and the employees would continue to be inappropriate behaviour. Employers bullied at work by the property manager.

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need to then train all employees, especially managers, in the application of these policies and procedures.

2. Investigate thoroughly as soon as possible after complaints are made When a complaint is made, an employer should conduct a full and extensive investigation of the matter as soon as possible in the circumstances. The purpose of the investigation is to determine whether the alleged conduct has occurred and it should always involve individual discussions with relevant employees.

Importantly, the allegations of bullying need to be put to the employee and then a reasonable opportunity to respond must be given, even though the employer is not obliged to accept the respondent’s version of events.

3. Treat all employees in an appropriate and consistent manner Disciplinary action may be triggered by the investigation. The most appropriate action will depend on the circumstances and the gravity of the allegation. If the employer believes dismissal is warranted, this will need to be based on valid reasons backed by substantial evidence.

Mitigating circumstances should also be taken into account, such as the length of service of the employee, whether they have a positive work record, and whether they are genuinely contrite. All in all, employers must ensure they treat each employee equally and apply any disciplinary actions or investigations consistently.

For assistance with drafting, reviewing or creating anti-bullying policies and procedures, or for guidance on training and investigation, contact an AMMA Legal or Workplace Consulting professional at your local AMMA office. RP

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HR hiring to remain steady MORE than half of all human resources hiring managers do not expect to increase headcount during the next 12 months, despite being optimistic business conditions will improve, according to a survey of 2,200 employers conducted by professional recruitment consultancy Michael Page Australia.

“Human resources professionals have experienced a challenging economic environment during the past 12 to 24 months,” Michael Page Australia’s director of human resources legal and technology John MacLean says.

“There is a lot of emphasis on HR teams at the moment being able to cope with market demands as businesses recover, which could lead to an increase in hiring levels.”

The 2015/16 Michael Page Australia Salary and Employment Outlook revealed: • 58 per cent of HR managers do not expect to

increase headcount in the next 12 months; • 54 per cent of HR managers rate the national economy as ‘fair’, 25 per cent rating it as ‘good’; • 42 per cent rate overall confidence in the HR industry as ‘good’, 29 per cent rate it as ‘fair’, 10 per cent rate it as ‘very good’; and • 81 per cent of HR managers will be rewarding their employees with a salary rise, with 95 per cent rewarding a modest raise between 1-5 per cent.

“Financial incentives, particularly bonuses, are becoming increasingly more performance driven, so to receive a financial reward employees must hit all of their targets,” MacLean says.

“It is also common for HR professionals to want to work in an industry that’s growing and not a company that is reducing headcount or cutting costs.” RP

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TRAINING

Farstad’s first Indigenous

officer shares pearls of wisdom Being Broome born-and-bred, Ryan Cobb has always had a close affinity with seafaring. However, it was his personal ambition coupled with Farstad Shipping’s award-winning Indigenous training and employment program that will soon see the 35-year-old become the first Indigenous seafarer with an international unrestricted Master Class I Certificate.

BY THE time this edition of Resource People hits the desks of resource professionals across Australia, Farstad Shipping’s Ryan Cobb will have completed his Chief Mates and Masters exams and embarked on his 12-month seafaring stint.

He’ll then sit his final exam with the Australian Maritime Safety Authority (AMSA) to become the first Indigenous Australian master with an unrestricted Class 1 Certificate – an accomplishment almost lost on him.

“Being the first Indigenous person to achieve this qualification certainly wasn’t the initial goal, rather it’s something I’ve realised in the meantime,” Cobb says.

“Originally, I wanted to be a pearl diver in the family tradition. Pearling is the key industry in Broome and the local population have worked in that industry for the past 150 years. Growing up it was an attractive job; a young guy’s job with some adventure.

“I did nine years in pearling before first sailing with Farstad in 2006. I’d spent too many hours under the water and then figured if I was going to be driving boats, I wanted to get to the top job. So that’s what I’ve since pursued with Farstad and I’m almost there.”

In 2004/5, the emerging LNG industry saw a number of vessels arriving in the Broome and Dampier region to support offshore exploration. Such activity had previously been seen in the early ‘80s when Woodside was building its North West Shelf project, but rarely since.

That would all soon change.

“The downturn in the tourism and pearling industries coincided with the emergence of the oil and gas sector. It

Farstad’s first Indigenous officer, Ryan Cobb

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TRAINING

Farstad trainees Nicolas Marley and Patrick Lawson at Fremantle’s Challenger Institute of Technology

Nicolas Marley accruing his sea time as an Integrated Rating in the Bass Strait

was a natural thing for local seafarers to move into,” Cobb explains.

“When I first joined Farstad we were involved in a lot of the exploration happening around then in the Browse basin, and even out farther to the west.

“We’d had a couple of employees from the Pilbara who weren’t particularly well-suited to the work or the lifestyle, so I said to Peter Barrow (former HR general manager) ‘why don’t you come to Broome, there are a lot of guys there with seafaring experience’.”

Linking up with the Broome locals, under the guidance of Woodside’s

Michael Roe and Lindsay Greatorex, proved a masterstroke for Farstad Shipping’s Indigenous training and employment outcomes, with the expearlers providing a good cultural fit and strong aptitude for learning the ins and outs of the oil and gas sector.

Farstad’s executive vice-president for the Asia Pacific region, Wayne Aitken, says the results of the maritime company’s partnership with Woodside have been ‘excellent’.

“Several challenges were identified early in our partnership, including recruiting from a new area and only having limited

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Indigenous knowledge and cultural awareness of that area,” Aitken says.

“But throughout the years we’ve worked very hard to break down those barriers. For instance, we undertake an exhaustive pre-employment regime that includes aptitude testing, initial interview and assessments, and finally discussions with family members to ensure all parties understand the commitment required for a career in our industry.

“We’ve also implemented cultural awareness training throughout our organisation so everyone understands some of the issues faced by Indigenous trainees and how to best support them.

“It’s all about ensuring we are setting up our Indigenous employees for long and successful careers in the offshore oil and gas maritime industry.

“This joint program is now very well received within the Broome community and its continuing success has generated overwhelming response whenever new positions are advertised.”

Since 2008, 19 trainees have been recruited from the broader Kimberley region, with 14 still employed by Farstad and all but two having completed their traineeships. Farstad has also recently expanded its Indigenous work with project operators to include teaming up with Shell in Broome for a school-based Work Inspiration Program.

Cobb participated in the Shell career exhibition, proving despite his modesty, he has become a strong role model for fellow Indigenous seafarers looking to enter the oil and gas industry.

“The program we’ve got is a great indication of what can be done with valuable industry partnerships and passionate people who will put a lot of time into it,” he says.

“While we don’t want the local people to think there are a million jobs to be had, we’ve demonstrated there are solid opportunities within both the maritime sector and the broader oil and gas industry.

“In my role, I’m just happy to provide as much of a support base to our Indigenous trainees as I can.”

Farstad Shipping was the recipient of the 2015 AMMA Industry Award for excellence in Indigenous Employment and Retention. RP

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TRAINING

Resource industry

joins skills talks in China The Australia-China free trade agreement may be making headlines for the political debate around foreign labour, but that’s not stopping the two nations from preparing for a more united future through collaborations on skills and training.

THE June signing of a free trade agreement between Australia and our largest trading partner, China, signalled the beginning of a new era of significant trade and investment opportunities for both nations.

While the deal has suffered a setback due to politicking and union campaigns against skilled labour aspects of the deal, both nations have nonetheless already begun advancing their vocational education and training (VET) relationship and learning from each other’s experiences in skills development.

Taking place in Beijing, the recent Australia-China Strategic Policy Dialogue on Vocational Education and Training 2015 hosted government and industry representatives to share knowledge and best-practice in skills development.

Joining a federal government delegation at the meeting, AMMA executive director industry services, Tara Diamond, spoke on the challenges and opportunities in the globalisation of skilled labour.

Diamond represented Australia in her capacity as a member of the federal government’s Australian Industry and Skills Committee and VET Advisory Board, which is tasked with leading reform of Australia’s VET system.

Along with representatives from Chinese multinational firms, she addressed the skills ‘mismatch’ in multiple labour markets, similarities in technical skills needs, impacts on training systems, and the potential for regional occupational standards.

“The forum offered an important opportunity for dialogue between Australia and our largest trading partner,” Diamond says.

“As Australia and China become even closer in trade, and labour becomes

I spoke with the Chinese business and education community at length about the experiences of Australian resource employers operating in both domestic and international markets...

Tara Diamond

more globally mobile, it is important to have a mutual understanding of each nation’s future skills needs, and discuss opportunities to genuinely collaborate on global skills initiatives.

“I spoke with the Chinese business and education community at length about the experiences of Australian resource employers operating in both domestic and international markets, and the workforce strategies that are supporting our world-class projects.”

Chair of the Australian Industry and Skills Committee John Pollaers delivered a keynote presentation and participated in a roundtable with key business representatives Shanghai to discuss the skills challenges facing business in China.

“Australia’s VET system is internationally recognised as delivering high quality training that is linked to the needs of industry. The Australian Industry and Skills

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Committee is focused on ensuring the needs of Australian employers continue to be met by the training system, and that Australian training continues to be valued internationally,” Pollaers says.

“Industry in China faces similar challenges to what we face in Australia – an ageing population, wage pressures and rising costs.

“Ensuring a highly skilled and productive workforce, with industryrelevant skills will be vital to continued economic growth in both countries.

“As a result of this visit, both governments have agreed to further cooperation on vocational education and training, including on approaches to industry engagement.”

Pollaers believes the strengthened government engagement, along with the China-Australia free trade agreement, would help support further international engagement by VET stakeholders. RP

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TRAINING

QGC partnership

sparks STEM interest the rate of Australian school students participating in STEM subjects – science, technology, engineering and maths – is apparently on the decline, but a new $3.95 million partnership is aiming to turn that trend around in Queensland.

Natural gas producer QGC has teamed up with the Queensland Museum Network to inspire young minds to study STEM subjects through direct programs in schools from Prep to Year 12, teacher professional development, an academic research program, and community engagement initiatives.

The classroom programs were piloted in the first half of the year with students from schools in Chinchilla, Brisbane and Gladstone.

“The pilot has focused on earth sciences in line with the national curriculum and has injected learning strategies which encourage new thinking, investigation

and team work,” Queensland Museum Network CEO and director, Professor Suzanne Miller says.

“Through this partnership we are making accessible an enormous range of resources and artefacts from the Queensland Museums collections either physically or in virtual form to add to the learning experience.

“We are also able to provide access to industry professionals from both QGC and the Queensland Museum who offer real life examples of how a passion for science and technology can develop into exciting and rewarding careers.”

QGC managing director Mitch Ingram says as the world’s first operation to produce LNG from natural gas in coal seams, QGC values the importance of education in generating local skills and expertise.

“Part of the legacy we aim to develop

North Lakes State College students participating in a science experiment at the QGC and Queensland Museum Network Partnership Launch

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as a company is to build capability in Queensland to inspire future innovation and industrial development,” Ingram says.

“Our partnership with the Queensland Museum is essential to this and will also help in building pathways to employment within our industry for young people in the regions where we operate.”

The partnership was launched by state Minister for Science and Innovation Leanne Enoch.

“As we continue to transition Queensland’s economy for the future, the sciences are going to play an increasingly important role. One of the biggest challenges the sector faces is encouraging young people to choose a career pathway in STEM,” Minister Enoch says.

“This pathway doesn’t start at university, we need to be nurturing it from a young age, which is one reason this partnership is such great news for Queensland.” RP

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INNOVATION

The metal set

to rock renewables With a world-class vanadium deposit on its hands, Yellow Rock Resources is ensuring this minor metal will finally have its time in the sun as a renewable energy solution for the resource industry.

THE August announcement that construction had begun on Australia’s first mine site solar power station was met with interest from an industry under pressure to identify long-term cost solutions.

In what will be the largest integrated off-grid solar and battery storage facility in Australia, Sandfire Resources’ $40 million project is expected to initially cut diesel spend for its West Australian DeGrussa copper mine by 20 per cent.

One man who has good reason to welcome the announcement is Yellow Rock Resources’ managing director Vincent Algar, who is leading the development of a project primed to capture the emerging renewable energy storage market.

Algar sees the Sandfire news as further proof the ‘horse has well and truly bolted’ on the concept of renewable energy at mine sites.

“When doing a cost study for a mine site, the fuel price is a very volatile thing.

If you price the sun as one of your major contributors to power, you can get a consistent price throughout the project life and that reduces risk immensely,” he says.

Algar is speaking to Resource People at a time when confidence in Yellow Rock Resources’ Gabanintha vanadium project, located 43km south of Meekatharra in Western Australia, is at an all-time high.

New drilling results have propelled its status to one of the highest-grade

The Gabanintha project site in Western Australia

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vanadium projects in the world and spurred the company to accelerate resource estimation studies and environmental surveys.

“We’re drilling sections of up to 2.20 per cent (V2O5) in the diamond drilling which is really at a world level in terms of producing vanadium projects,” Algar says.

“So we are extremely excited about these results and have been able to gain an enormous amount of confidence about the project and its potential economic viability.”

Most old-hands in the resources game are aware of vanadium for its important role in creating high-strength steel, but Algar sees the metal reaching household

INNOVATION

name status for its potential to shape the renewable energy market through Vanadium Redox Flow Battery technology.

Originally invented at the University of New South Wales in 1985, the technology is gaining momentum as a viable solution for large scale energy storage due to many favourable properties, including an ability to store energy for longer than lithium.

“These batteries can handle grid-level storage, so we’re talking anything from multi-kilowatt to megawatt storage,” Algar says.

“We’re particularly interested in the growth of the renewable grid energy storage market, right from domestic level through to large scale commercial applications such as mines and remote communities.

“That’s where we think vanadium will have its time in the sun.”

Algar hopes the open-pit Gabanintha project will be under construction within three years. While he can’t yet articulate exact labour demand, he expects workforce numbers and skills requirements

equivalent to a ‘large gold mine’.

“The skill set around vanadium is probably 60 per cent normal mining skills and 40 per cent specialised chemical engineering,” he says.

“Because we’re using a standard processing technology, we’ll be able to draw skills both locally and from overseas.”

While the latest drill samples foretell a promising future for the Gabanintha, it remains to be seen whether its product will be primarily supplied to the renewable energy market or fall back on its traditional use in steel.

Despite his optimism for vanadium redox flow batteries, Algar is keeping Yellow Rock’s options open.

“It’s important to remember the steel market is a current market; it is alive and it currently soaks up 90 per cent of global production of vanadium,” he says.

“We’d be stupid to ignore that market, but we are making sure we understand and are participating in the (renewables) growth market that is here in front of us.” RP

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Yellow Rock Resources managing director Vincent Algar

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INNOVATION

Breaking the

curse of efficiency If you get a greater sense of achievement from whittling down an inbox full of unopened emails than tackling a more business-critical task, you could be a victim of what Dr Jason Fox calls the ‘curse of efficiency’.

The motivational strategist and design expert is regularly brought into workplaces to shake up the way organisations approach work. He believes one of the biggest threats to businesses today is ‘default thinking’, which leads to focusing on things that don’t matter.

“As humans we recognise patterns, we codify a repeated phenomenon, we build a database in our mind and when we see similar patterns occur again we take cognitive shortcuts,” says Fox, whose Australian-based clients include Suncorp, Optus and Telstra.

“When managing really complex industries we start to see a complexity of patterns happening and we start to form systems to save us time.

“Now many will argue this type of efficiency is really good because it saves us a whole heap of time for strategic thinking. But what tends to happen is we suffer from a curse of efficiency and we become so busy, the time for thinking about the future of work gets shortened.”

The curse of efficiency can be broken if organisations explore new ways to discover pathways for success, Fox says, and that starts with getting people motivated by the work itself rather than goals, target and incentives that distract from the bigger picture.

He talks about research featured in the Harvard Business Review’s 10 breakthrough ideas of 2010 list, which found the number one motivator of employees was a clear sense of progress.

“This is still something that many organisations aren’t capitalising on,” Fox says.

“What it means is reducing the latency between effort and meaningful feedback.

The more people can see how their effort contributes to something bigger than

Dr Jason Fox

We have a finite amount of time, energy and attention to give to things each day. It makes sense that we want to invest in things that provide a rich sense of progress. themselves, the more likely they are to put effort into that.

“We have a finite amount of time, energy and attention to give to things each day. It makes sense we want to invest in things that provide a rich sense of progress.

“This is a really big challenge in the resource industry because the visibility of progress, the latency of progress on

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projects, can often be so big.”

Fox advises that instead of focusing on short term (weekly or monthly) or long term (annual) goals, organisations should get in the habit of identifying three projects that matter every quarter.

“If you’re looking to drive pioneering change or move into uncharted territory, try to avoid the temptation of setting clear goals because we don’t know what the future has in store. The further out the future gets, the fuzzier it gets and if we anchor ourselves to one particular goal in the distance we may rob ourselves of the ability to adapt along the way,” he says.

“The opportunity is to celebrate small wins, to focus on the sense of progress and the visibility of projects that matter.

If we get that happening we may get more inherit motivation to pursue those projects, to pursue better pathways.” RP

INNOVATION

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Research alliance to

underpin mining innovation LEADING academic knowledge in South Australia will soon assist the state’s mining sector through a new research alliance between copper miner OZ Minerals and the University of Adelaide.

The university’s Institute for Mineral and Energy Resources (IMER) will collaborate with OZ Minerals on research in geology and exploration, mine to mill optimisation, geometallurgy, infrastructure development and resource characterisation.

OZ Minerals CEO Andrew Cole says the partnership will drive innovation within the company.

“This is an opportunity to combine industry and academic knowledge, find new and better ways of doing business

critical activities and immediately apply them to real-life situations,” Cole says.

“OZ Minerals’ Prominent Hill operation and future development opportunities at Carrapateena provide significant optionality going forward.

“We look forward to working with the University of Adelaide to pursue new research opportunities that can extract the maximum value from these assets.”

The partnership involves the establishment of the Australian Research Council (ARC) Research Hub for CopperUranium Transformation at the university; an initiative that will focus on developing processes for adding value to South Australia’s copper concentrates.

University Professor and acting deputy vice-chancellor, Rick Russell, says OZ Minerals’ engagement has the potential to benefit more than just the company alone.

“Combining university expertise in the mineral and energy resources, and other areas, with industry input will benefit not just OZ Minerals and the university, but also the wider local and national communities,” Professor Russell says.

“It will boost university engagement with the community and ensure beneficial impacts for industry from our research.”

The partnership also holds the potential for student placements at OZ Minerals and opportunities for OZ Minerals staff to participate in study and research. RP

Gold players pave

way for discoveries NORTHERN Star Resources is a major sponsor in a $1.7 million government-led quest to prolong the life of existing gold mines and discover new resource-rich sites in Western Australia.

The Commonwealth and West Australian Governments have joined with key gold sector players on the Pathways To High-Grade Ore: 3D Gradient Mapping Of Mineral Systems project that aims to capitalise on gold mining opportunities in the WA Goldfields region.

Federal Minister of Industry and Science Ian Macfarlane says the project holds significant promise for mining industry jobs.

“This will bring together the CSIRO’s world-leading science with a West

Australian industry that employs thousands of people,” Minister Macfarlane says.

“It holds great promise for the WA mining sector, but it will also have implications for gold and copper discovery across Australia.”

Mineral systems scientists will evaluate the earth’s crust to develop 3D modelling of gold-bearing systems centred on important Eastern Goldfields geological faults, which host major existing and potential mine sites.

WA Minister for Mines and Petroleum Bill Marmion says the project launch comes at an ideal time for the gold sector.

“Mining companies are helping sponsor the project because extending the life of existing operations is very

cost-effective, especially when it comes to job security,” he says.

“Researchers will start this intensive, 12-month project immediately, linking sampling on the WA Goldfields with hightech analysis in CSIRO’s Perth laboratories.

“This research will also help point the way to new discoveries in promising greenfields areas such as WA’s Yamarna Greenstone Belt.”

Along with Northern Star Resources’ $110,000 contribution, funding will also come from La Mancha Resources ($40,000), Saracen Mineral Holdings ($15,000), Excelsior Gold ($10,000), and Ramelius Resources ($10,000).

Funding will also come from the CSIRO and the WA Government’s Minerals Research Institute. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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POLICY

POLICY AT a glance A wrap-up of recent resource industry and employment policy developments

by AMMA executive director, policy and public affairs, Scott Barklamb.

ENVIRONMENTAL CHANGES

workers to take leave where it has been excessively accrued, and to cash out up to two weeks’ annual leave per year. One proposal rejected was an ‘annual closedown’ clause across 65 awards, whereby employers would be permitted to require employees to take annual leave during an annual shut-down of the business.

TO REPEL ACTIVISTS

Following the furore over the Mackay Conservation Group’s successful Federal Court challenge of Adani’s $16bn Carmichael Coal Project, the Australian Government has introduced an amendment to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The changes do not weaken the ability for individuals or groups to engage in environmental assessment processes, but rather ensures ideological groups that are not directly impacted by a new project cannot lodge legal challenges after the project has achieved environmental approval.

PAID PARENTAL LEAVE

Scott Barklamb

CHINA FREE TRADE AGREEMENT

AMMA is calling on Bill Shorten and the Labor Party to rise above the superficial and dangerous misinformation campaign being waged against the China-Australia free trade agreement. Despite the blatant mistruths being peddled by the union movement, the agreement requires Chinese companies to be registered in Australia and therefore to comply with all Australian employment laws and market rates and conditions.

ZONE TAX OFFSET CHANGES OPEN FOR COMMENT

The government is progressing one of its federal budget tax reforms with the release of draft legislation that would exclude some people who travel to remote areas for work from claiming a tax offset. AMMA publicly opposed the removal of the concession for FIFO, DIDO, and BIBO employees following the May federal budget announcement, and is calling for the Zone Tax Offset conditions to remain unchanged.

CHANGES TO ATO VEHICLE REIMBURSEMENTS

The Australian Taxation Office’s changes

Parents will no longer be able to receive employer-funded primary carer leave payments along with the full amount of nationally funded paid parental leave under the Fairer Paid Parental Leave Bill 2015, which was tabled in June and is yet to pass through the Lower House.

FIFO MENTAL HEALTH REPORT

to the approved vehicle mileage reimbursement rate – implementing a flat rate of 66c per kilometre regardless of a car’s engine size – have implications for enterprise agreements with specified vehicle mileage reimbursement amounts, and for company policies on reimbursement for work related use or private vehicles.

FIFO FLIGHTS ARE ‘WORK’ – NOT A FRINGE BENEFIT

In a case determining whether an engineering company should pay Fringe Benefits Tax (FBT) for its FIFO employees, a Federal Court full bench has found workers flying to and from a project site are officially ‘at work’ from the moment they arrive at the departing airport. John Holland won its appeal of a Federal Court ruling which found the company was liable to pay FBT on its expenses to fly employees between Perth and Geraldton.

EMPLOYERS WELCOME ANNUAL LEAVE CHANGES

The Fair Work Commission has changed annual leave provisions, as part of its first four-yearly review of modern awards, to grant employers power to direct

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

The West Australian Education and Health Standing Committee has handed down its final report on FIFO work arrangements, The impact of FIFO work practices on mental health, in which it outlined 42 findings and 30 recommendations on issues such as rosters, fatigue and accommodation.

AMMA is committed to engaging with the recommendations and other stakeholders, but says any actions must be based on reliable evidence and resource employer input to deliver valuable health benefits in the industry.

MIGRATION SALARY COMPARISONS BACK TO $250K

The Senate has scuttled a move by the Australian Government to reduce the upper threshold for 457 visa market salary rate comparisons from $250,000 to $180,000, after a Greens-led disallowance motion was voted up. Reducing the market salary rate comparison back to its previously longstanding limit was recommended by the 457 Visa Integrity Review Panel, however the disallowance has seen market rate equivalent limit remain at $250k. RP

POLICY

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Gov’s crackdown

on union misbehaviour hits roadblock Australia’s business community is expressing widespread disbelief after the Senate blocked two legislative bills critical to addressing union unlawfulness and misbehaviour.

FEDERAL Minister for Employment Senator Eric Abetz says the government remains committed to re-establishing the Australian Building and Construction Commission (ABCC), despite the latest development seeing the souped-up construction industry watchdog blocked by a split vote in the Senate.

“It is unfortunate the Senate did not take the opportunity to send a strong message to the construction industry that it has to comply with the law just like everyone else,” Senator Abetz says.

“No objective observer can deny there is an endemic problem of industrial unlawfulness in this industry given the litany of court judgements and fines against the CFMEU for repeated and unrepentant breaches of the law.

“Since 2005, the courts have imposed fines of more than $6.1 million on CFMEUrelated unions and officials for proven breaches of the law. This has not been enough to deter the CFMEU from repeated breaches of industrial laws. The current system is simply not strong enough.”

While the Greens and Labor continue to argue the ABCC is an unjust regulator doing the anti-union bidding of the Coalition, Senator Abetz’s latter statement can find some backing in the figures coming from the existing, albeit watered-down industry watchdog, the Fair Work Building and Construction Commission (FWBC).

FWBC director Nigel Hadgkiss says the agency has a record number of cases before the court, and 46 of the 52 cases (88 per cent) have the CFMEU and/or CFMEU officials named as respondents.

“We are winning many battles in court

against unlawful behaviour, but we are not winning the war to stamp out unlawful behaviour. Unlawful conduct is worse than ever across the nation’s building sites,” Hadgkiss comments.

Ironically, on the same day the Senate voted down reintroducing the ABCC, which would essentially do the same work as the FWBC but with greater investigatory powers and harsher penalties, the existing FWBC agency launched yet another Federal Court prosecution against the CFMEU, this time alleging two officials forced their way onto a public school construction project, stopped work and coerced employees into signing up to the union.

Under the current regulator the maximum penalties for such behaviour is $10,200 for an individual and $51,000 for the union. This is less than one-third of the penalties that would apply, at $180,000 for unions and $36,000 for individuals, if the Senate had instead voted in favour of the ABCC. “Labor and the Greens voted against re-establishing the only regulator that had kept the CFMEU to account,” Senator Abetz continues.

“This not surprising when one considers the CFMEU has donated $6.4 million to the Labor party since 2007 and the Greens received more than $500,000 in donations from the construction unions in a single year (2013-14).”

AMMA chief executive Steve Knott, as one of many supporting voices from industry, encourages the government to do all it can to ‘get the ABCC over the line’.

He adds if restoring the ABCC with its full former powers turns out to be politically unfeasible, the parliament could instead look to bolster the resources and deterrent penalties of the FWBC. Registered Organisations Bill also voted down

The failure of the ABCC bill to pass through the hostile Senate came shortly before another Coalition bill seeking to address union misbehaviour was blocked.

In a narrow vote of 34 to 33, the Senate voted down the Fair Work (Registered Organisations) Amendment Bill, which had proposed to establish a Registered Organisation Commission as a dedicated regulator to hold registered organisations such as unions and employer associations to the same standards and penalties of incorporated organisations.

Senator Abetz questions why union officials shouldn’t be held to the same standards as company directors.

“Why should a corrupt union official who has ripped off hundreds of thousands of dollars from a union only be liable for a fine of $10,800, when for the same corrupt conduct a company director would be liable for five years’ imprisonment or a fine for $360,000 for ripping off shareholders?” he says.

“There should be no material difference between the penalties.”

AMMA has consistently called for the registered organisations to be subjected to the same processes and rules as incorporated organisations, and will continue to advocate this position on behalf of AMMA members and the wider resource industry. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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POLICY

Debate heats up over

workplace relations ‘repair job’ After 255 submissions and five months of robust political debate, the Productivity Commission’s hotly-anticipated draft report into Australia’s workplace relations system was released to a lukewarm reception from Australia’s business community.

In this Policy feature, Resource People explores the reaction to the report and looks at some of the positive outcomes for the resource industry.

SPEAKING publicly less than a week after the release of the Productivity Commission’s draft workplace relations report, Chairman Peter Harris says with some delight that his organisation has ‘surprised a number of commentators – from the left and from the right’.

His satisfaction stems from the commission being proudly apolitical; devoid of ideological influence and reviewing all things only through the prism of hard economics.

“We draw on established economic principles and on the evidence available to us to put forward proposed reforms,”

Harris says.

“The report is not a cure-all for relationships between employers and employees… but it provides data and relevant policy design for a necessary discussion on how to make a functional system much better.”

While Harris’ focus on independence may be commendable, a common criticism of the draft report is that it fails to live up to its potential as the long overdue and much needed icebreaker that would crack through the political paralysis around workplace reform.

Earlier this year, Harris raised

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expectations among employers by describing the inquiry as ‘a comprehensive review of a workplace relations system for the future’. By all reactions, the draft report published in August fell well short of those expectations.

Some argue that Harris appears to have had a change of heart with his draft report describing the current system as needing a ‘repair job, not a replacement job’.

Henry Ergas, a statesman of Australian regulatory economics who writes for The Australian newspaper, is among the most frank in his analysis.

“The sole objective of the industrial

POLICY

relations system should be to facilitate the process by which employees and employers reach mutually advantageous agreements about the terms and conditions of employment,” Ergas says in The Australian.

“Whether our IR system achieves that objective while minimising compliance costs, avoiding unnecessary constraints on employees and employers, and promoting the integrity and accountability of collective organisations, should therefore have been the focus of the Productivity Commission’s workplace relations inquiry.

“But that is not what the commission’s 1000-page interim report does. Instead, starting from dubious premises, it reaches conclusions that are often inconsistent with the evidence it presents.”

The business community was less forthright in its criticism, with many groups cautiously attempting to draw some favourable outcomes from the draft recommendations.

Australian Chamber of Commerce and Industry (ACCI) CEO Kate Carnell, is disappointed the recommendations don’t properly address employers’ concerns on unfair dismissal laws, general protections and the anti-bullying jurisdiction, but notes the report’s importance in driving conversations towards a more flexible system.

“The claim by some critics that there is no need for any review, let alone change, is absurdly complacent and will consign Australia to slowing productivity gains,” Carnell says.

“The draft report sheds some light on the state of our workplace relations system, (however) it is very important that the final report includes recommendations that will create employment opportunities and the prosperity that comes through work.” the Priority areas for resource employers Comparing its findings and recommendations to the 480-page submission lodged by resource industry employer group AMMA, the Productivity Commission’s draft report could be described as ‘hit and miss’ on the resource industry’s priority issues.

It’s also littered with contradictory approaches to fundamental IR issues – perhaps a by-product of its ‘renovate, not rebuild’ approach to the system. One example is its treatment of industrial action.

Noting employer evidence that both strikes and threatened strikes is an escalating problem, the commission recommends that unions can only strike once bargaining has commenced; that the capacity to terminate striking where it causes significant economic harm be strengthened; and penalties for unlawful industrial action increased.

On the other hand, it questions whether industrial disputes are actually harmful to productivity and recommends relaxing a number of procedural requirements for unions to organise strike action, such as through the Protected Action Ballot Order (PABO) process.

Some argue Harris appears to have had a change of heart with his draft report describing the current system as needing a ‘repair job, not a replacement job’ There are, however, some favourable draft recommendations that reflect AMMA’s submission, it’s independently commissioned KPMG report and dialogue with the Productivity Commission staff prior to the release of the report.

The first relates to bargaining for ‘greenfields’, or new project, agreements, which AMMA has long argued provides unions with a ‘veto power’ and is a significant driver of cost escalations and delays to new projects. The Productivity Commission recommends strong incentives for parties to reach an agreement within a three month period, and that good faith bargaining principles also apply.

Further, the draft report recommends a five-year nominal expiry date for all agreements, and more significantly proposes a ‘life of construction’

35

agreement where justified. Both options would provide greater industrial certainty during the construction phase of a project.

Another area in which AMMA’s advocacy is reflected is in the acknowledgement that the structure and appointments process of the national workplace tribunal, the Fair Work Commission (FWC), requires immediate attention.

It found a new ‘fit for purpose’ governance model could reduce inconsistencies in some of the FWC’s decisions, and recommends fewer members of the tribunal be drawn from the ranks of former officials of trade unions or employer groups.

Scattered among the more significant ‘wins’ for resource employers are a number of other recommendations that reflect AMMA’s proposals including in adverse action claims, unfair dismissals, agreement approval processes and permitted content in agreements.

Further engagement needed

Despite the general disappointment in the Productivity Commission’s lacklustre appetite for fundamental change, its recommendations were always intended to generate debate that would inform secondary submissions in September.

Just as it was the most comprehensive submitting party in the initial round, AMMA on behalf of its resource industry members has relayed in detail its feedback and concerns regarding the draft recommendations.

While the review looks unlikely to live up to its potential as a driver for fundamental workplace change, AMMA is nonetheless optimistic on securing favourable outcomes for resource employers in the medium term.

For instance, the federal Opposition is indicating bipartisan support may be reached for addressing issues around greenfields agreement making for new projects, which is critical to fostering future investment and job creation in Australia.

Longer term, there is a chance yet the Productivity Commission’s review may prove a small catalyst for deeper conversations to truly get Australia’s workplace relations system back on track. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

36

POLICY

IR managers fined for

freedom of association breach A LARGE construction company and two of its senior IR/HR managers have been fined by the Federal Circuit Court for changing an employee’s employment conditions after he resigned his union membership.

Baulderstone was fined $25,000 and its managers $3,500 each for the incident, which saw the employee asked to sign documents changing his status from a contractor and safety office to an employee under the company’s workplace agreement.

In what was described by Judge Manousaridis as ‘deliberate and concerted’, the senior managers were found to have forcibly changed the employment status of the safety officer after an onsite CFMEU delegate complained about being a non-

CFMEU member.

The two senior managers were found to have told the worker he had to sign the documents because his ‘role as a safety officer and being on a salary doesn’t work out’ when he was no longer a CFMEU member. “[The manager] concealed the purposes for which she required [the worker] to sign the documents; and she required [the worker] to sign the documents in the face of [the worker] telling her he did not understand why he was being put on wages,” Judge Manousaridis says in his decision.

The Fair Work Building & Construction (FWBC) inspectorate, which was prosecuting the case, submitted the victim ‘was vulnerable because of his

shyness, limited education, and lack of understanding of why he was being required to sign the documents that were presented to him at the meeting…’

The Court ruled it was ‘difficult to characterise [the managers] succeeding in having [the worker] sign the documents as anything other than the exploitation of the vulnerable situation in which [the worker] found himself’.

The IR and HR managers involved in the incident, as well as their superior, are no longer employed by Baulderstone.

Commenting on this case, FWBC director Nigel Hadgkiss says all building and construction industry participants have the right to choose whether or not to be a member of an industry or employer association. RP

MUA cops $200K

fine for ‘scab’ posters THE Maritime Union of Australia (MUA) and one of its senior officials have been ordered to pay $215,000 in penalties and compensation after labelling workers ‘scabs’ for not taking part in industrial action.

In what has become a notorious incident, Federal Court Justice Antony Siopis found the MUA distributed the posters naming four individual Fremantle Port Authority employees as ‘scabs’ because they did not go on strike with other employees in December 2011.

A fifth employee who did not work during the strike action also became victim to the vitriol because, as Justice Siopis explains, the employee

‘fraternised very briefly with those employees coming on shift who worked during the strike’.

The poster stated the five employees had ‘turned on their colleagues’, described the employees as ‘treacherous’ and stated the employees ‘should stand condemned by all workers in Fremantle’. It also stated no one had ‘a right to scab’ so long as drowning or hanging was an available option and stated those branded as scabs are ‘marked for life’.

Describing the distribution of the posters as ‘an act of vengeance’ which caused the affected workers to fear for the safety of themselves and their families, Justice Siopis fined the MUA

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

$80,000 and the assistant secretary of the union’s West Australian branch, Will Tracey, a further $15,000. Both parties were ordered to pay an additional $120,000 in total compensation to the five workers labelled ‘scabs’.

The MUA’s WA secretary Chris Cain was also found to have authorised Tracey to distribute the scab poster.

The orders are the result of litigation by the Fair Work Ombudsman (FWO).

Justice Siopis found the conduct of the MUA and Tracey breached the adverse action provisions of the Fair Work Act, but stopped short of agreeing with the FWO’s allegation that the conduct breached the coercion provisions of the Fair Work Act. RP

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MIGRATION

New ‘project agreements’

for skilled migrants

New guidelines are now in place for ‘project agreements’ that have replaced the former enterprise migration agreements (EMAs) as umbrella agreements to bring in skilled migrants to work on major projects.

THE guidelines, launched in mid-2015, follow in-depth consultation between the Department of Immigration and Border Protection and industry stakeholders such as AMMA. Compared with the former EMA guidelines, the new project agreement guidelines introduce many flexibilities of benefit to resource employers who are experiencing a domestic skills shortage.

While demand for skills in the industry has tapered off in recent years, project agreements are intended for use in situations where construction of large projects results in significant peak workforce demands that cannot be met by the local labour market.

“A project agreement provides confidence, early in project planning, that workforce needs can be met should these shortages eventuate,” the new

agreement would outline matters, including the occupations being sought and any concessions agreed that would facilitate the recruitment of overseas workers.

• Under the overarching project deed, selected employers endorsed by What are project agreements? the project company could enter Project agreements are designed to address into a labour agreement with the situations where project companies face a Commonwealth to sponsor overseas genuine shortage of suitably qualified skilled workers on the project under the Australians during the construction phase of terms and conditions contained in a major project. Project agreements would the overarching deed of agreement. have a two-tiered structure: Importantly, a labour agreement would • A company representing employers only be approved where suitablywithin a project would be able to qualified Australians were not available. enter into an overarching project deed Project agreements could be of agreement with the Department of negotiated at a point in time but have a Immigration and Border Protection to bring in necessary skills from overseas delayed activation of up to two years. It is not expected a project agreement would to work on a project. The deed of last for more than three years from the date of activation. guidelines state.

“This provides investor certainty, enabling projects to proceed and, in doing so, may support job creation for Australian workers.”

How do project agreements differ from EMAs?

New project agreement skilled migration guidelines are now in place

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

Differences between the former EMA guidelines and those for project agreements include: • EMAs were restricted to resource projects whereas project agreements are available to resource and infrastructure projects.

• EMAs specified a project capital expenditure threshold of at least $2 billion in order to qualify for an EMA. The new guidelines do not specify a minimum capital expenditure for project agreements. However, the program is designed for large projects.

• EMAs specified a peak workforce threshold requirement of 1,500 workers in order to qualify whereas under the project agreement guidelines this has been reduced to 1,000 workers. RP

MIGRATION

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Union campaign against

457s ‘hypocritical’: Cash ASSISTANT Minister for Immigration and Border Protection Senator Michaelia Cash has called out the ‘incredible hypocrisy’ of the Australian union movement after revealing multiple unions have utilised the 457 skilled visa scheme.

Minister Cash says while unions were running a long-term campaign against the 457 visa program, evidence presented to the senate inquiry into the temporary work visas told a different story.

“During the past five years, at least 41 subclass 457 visa holders have been sponsored by eight unions in Australia,” Minister Cash says.

“This includes those unions who have led the charge against the use of foreign labour, such as the Maritime Union of Australia and

the Transport Workers Union.”

The most commonly sponsored occupation is workplace relations adviser, which Minister Cash says is a peculiar admission, given that role would carry out what is arguably a union’s core business.

She is equally perturbed by another sponsored occupation of copywriter, which ironically suggests those foreign workers may be helping to implement the unions’ campaign against overseas labour.

“The purpose of the 457 visa program is to fill skilled labour requirements where such workers cannot be found locally,” Minister Cash says.

“It is well known that in recent years, Australia’s major media outlets have

shed thousands of jobs, and so it is curious some unions could not have filled the occupation of copywriter from the domestic labour market.”

Minister Cash is calling on each union to provide evidence of the labour market testing they undertook to demonstrate there were no Australian workers able to undertake the roles.

“It is impossible for the union movement to carry on with their disingenuous and highly damaging campaign against foreign workers. Their campaign is a fraud and they should be apologising not only to their members but to the Australian community more broadly for engaging in this nasty and ultimately phoney campaign,” she says. RP

Proposed training fund

could penalise employers IN response to a discussion paper on training benchmarks under the 457 visa scheme, AMMA has warned adopting current proposals for an annual training fund contribution could inadvertently punish resource employers already investing significantly in the development of the national skills pool.

In September 2014, the 457 Integrity Review Panel recommended current training benchmarks be replaced by an annual training fund contribution based on each 457 visa holder sponsored, with the contributions scaled according to size of business.

In its submission to the discussion paper 457 Integrity Review: Training Fund

Contribution, AMMA highlighted such a contribution risks punishing employers who currently invest the most in training but whom are unable or unwilling to divert their current training expenditure into a proposed new training fund.

“Many employers in the resource industry invest large amounts of money into the specific and tailored training and upskilling of their own Australian employees via their apprentice and company trainee programs,” AMMA’s submission states.

“As an employer representative, AMMA does not want to see resource industry employers discouraged from investing in training their own Australian employees simply because they would

not be able to offset their company’s direct training expenditure against the proposed replacement requirements.

“On close examination, the panel’s recommendation for a per visa holder levy risks punishing those business sponsors who already invest heavily in training Australians unless fair alternatives are also made available.”

Concerned imposing a new levy would not deliver targeted workforce benefits, AMMA urged the government to consider its proposed alternatives to a per visa holder levy based on alternative benchmarks available under the current scheme for both standard and business sponsors, and on-hire labour agreements. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

40

LEADERSHIP

Working smarter in

an evolving market

From multi-skilled employees to wearable technology, Transfield Services chairman Diane Smith-Gander discusses how resource contractors can deliver greater value in an environment that demands higher productivity and lower costs.

IN her role as chairman of Transfield Services, Diane Smith-Gander finds herself concerned with the same issues as the ASX-listed global asset management company’s clients are concerned with.

“Right now, that’s the slowdown in global economic growth expectations and the aggressive declines in commodity prices. These are creating real financial imperatives to drive down costs in order to insulate margins,” says Smith-Gander, who made the Australian Financial Review and Westpac’s 100 Women of Influence list in 2014.

“Yes, capital costs are huge, but the cost of human resources does remain a significant contributor to ongoing operational costs.”

Employing 19,000 people across nine sectors, Transfield Services is working on a model to consolidate labour across contracts to reduce overlap, produce cost savings and improve productivity.

She admits, however, this is more difficult to achieve in the resource industry where reactive site-based maintenance services are critical.

“The only way we’re going to drive costs down in that arena is if we multi-skill maintenance workers so they’re able to address a broad range of situations rather than be siloed in the activity they can do,” she says.

“That person is going to be a very different sort of worker. It’s not just about giving someone a smart tablet. It’s a worker who’s really multi-skilled. They’re someone who is mobile, technologically savvy, and who will need a very seamless connection to the customer.”

Smith-Gander sees augmented reality and wearable technology playing a large role in workforces of the future.

“Augmented reality is clearly something

that allows you to get quick and ready access to specialised information about the how-to of jobs. If we want one worker to deal with a range of circumstances, they can’t be constantly going back and forth to hard copy binders that tell them how to do things. They will need to do that in the field,” she says.

“Wearable technology has huge potential, especially in understanding where workers are actually located. If we can watch the Tour De France and see what the heart-rate is of any of the riders surely we can do the same thing with someone that might be working in an enclosed space, to get a much better understanding of their wellbeing.”

While pointing out the industry outlook is ‘not all bleak’ given the $220 billion worth of committed new resource and energy projects in the pipeline, SmithGander says the industry must still think carefully about how it can improve.

One aspect of this for Transfield is

Transfield Services chairman Diane Smith-Gander

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

drawing innovations from the workforce.

Through the organisation’s Better Ways program, employees are invited to submit ideas to improve business performance.

Smith-Gander says more than 18,000 ideas have been implemented during the past 20 years, delivering ‘hundreds of millions of dollars in savings’.

And, as president of Chief Executive Women, representing more than 300 senior women leaders, Smith-Gander is also driving a commitment within Transfield to stamp out the gender pay gap. She see gender diversity and equality initiatives as essential to improving business performance.

“It’s clearly the right thing to do to support diversity. It will enhance decision-making and drive innovation because diverse teams use different decision making processes. That’s why our Better Ways program works, because it’s about the diversity of people out there,” she says. RP

LEADERSHIP

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AMMA board recruits

leading HR executives TWO of Australia’s leading human resources executives will help shape the future of work in the resource industry through leadership positions with national resource industry employer group AMMA. Chevron Australia general manager – human resources Kaye Butler and Newcrest Mining Limited executive general manager – people and community Jane Thomas have joined AMMA’s Board of Directors.

“I am pleased to welcome Kaye Butler and Jane Thomas, both recognised among the top human resources executives in the country, to AMMA’s Board of Directors,” AMMA chief executive Steve Knott says.

“Their leadership and insight will further strengthen the existing AMMA Board and support our vision to ensure Australia’s resource industry is an attractive and competitive place to invest, do business and employ people.”

Butler joined Chevron Australia in 2007 and oversees people services for major energy projects including the landmark Gorgon and Wheatstone LNG developments in Western Australia. Prior to joining Chevron Australia, she held various senior positions in the resource industry including for global aluminium producer, Alcoa.

“It is an honour to join the Board of AMMA, which has consistently been at the forefront of industry reform, especially at a time when the Australian resource industry is at a crossroads and our international competitiveness is at risk,” Butler says.

“I look forward to being a member of a board that will lead the case for policy reform to address our falling international competitiveness and productivity.”

Thomas joined gold miner Newcrest in January this year, having held the position of group head of people and culture with AGL for the previous seven years. She has more than 20 years’ experience in human resources in large organisations, including PepsiCo International, Westpac Banking

Jane Thomas

Kaye Butler

Corporation and Philips.

“I am passionate about achieving outcomes that ensure the Australian resource industry continues to be an attractive option for people already working in the sector, for enticing new talent to our businesses, and for ensuring companies continue to invest in their people and projects,” Thomas says.

“I look forward to working with the AMMA Board on maximising the opportunities available to us.”

AMMA’s Board of Directors now comprises: • Graeme Hunt (president) – managing director and CEO, Transfield Services • Richard Owen – chairman, ExxonMobil Australia • Richard Weston – executive vice-

Their leadership and insight will further strengthen the existing AMMA Board and support our vision president, Australasia Region, Gold Fields • Johnpaul Dimech – CEO, Sodexo Australia • Michael Utsler – chief operating officer, Woodside Energy • Kaye Butler – general manager, Human Resources, Chevron • Jane Thomas – executive general manager, People and Community, Newcrest. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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DIVERSITY Smit Lamnalco managing director Tony Cousins holds the AWRA Award with north operations manager Nikki Carter (left) and HR advisor Adele Cunningham

Oil and gas players

scoop diversity award For the first time in the history of its industry awards, AMMA has dual winners of the 2015 Australian Women in Resources Alliance (AWRA) Award – recognising organisational achievements in gender equality.

Here, Resource People explores the individual successes of Smit Lamnalco and Santos that, while different in focus, will go a long way toward changing the face of the oil and gas sector.

SMIT LAMNALCO is on a mission to demystify the gender diversity challenge in the heavily male-dominated oil and gas support sector by telling its own story of success.

In 2008 the towage and marine services provider, then called PB Towage, was undergoing significant growth but only had one female manager on its books – its national employee relations manager Emma Fensom (now Newcastle Port manager).

Today, Fensom sits on a senior management team that comprises about 40 per cent women, including North Queensland operations manager Nikki

Carter, who joined the company in 2012, also in an employee relations role.

The growth in female managers at Smit Lamnalco didn’t happen by accident.

Rather, it came from the company’s leadership identifying workforce diversity as a strategic business priority and implementing a range of initiatives including flexible working arrangements.

Speaking to Resource People following the company’s AWRA Award win, Carter (pictured above left) – a qualified master with substantial experience in the offshore oil and gas maritime sector – says working with an organisation that values gender

www.amma.org.au | SPRING 2015 | RESOURCEPEOPLE

diversity has been a ‘different experience’.

“It is rewarding to work with such a collaborative group of people and I think a big part of that dynamic is the breadth and diversity of approach to all challenges provided by a gender balanced team,” she says.

“Our managing director Tony Cousins regularly and publicly makes clear that he values the entire team, and that he is supportive and proud of our achievements in this area.

“We have found with the right people, increased participation of women almost always delivers positive benefits to a work

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SANTOS: Closing the superannuation gap RETIREMENT may not be a topic the average working woman thinks about daily, but the reality is in Australia there is almost a 50 per cent gap between male and female superannuation balances.

After an internal audit conducted as part of a pay equity review discovered a superannuation gap across the workforce of oil and gas producer Santos, the company took action and developed its innovative Superannuation Top Up initiative.

The initiative was implemented in March and provides employees with employer paid superannuation while on unpaid parental leave. That encompassed around 50 women at the time of implementation.

“The Superannuation Top Up initiative provides women and men the ability to grow their superannuation balance while on unpaid parental leave,” Santos chief human resources officer Joanne Fox, explains.

“The numbers demonstrate females in Australia will live longer and will retire with less; often missing out on employer-based superannuation contributions as they assume the role of primary caretaker for child rearing and return from parental leave on a part-time basis.”

Working with its superannuation provider, Santos also developed female-

group. Obviously having a positive and engaged workplace culture to begin with makes this easier.”

Purchased by Smit Lamnalco in the beginning of 2015, the company has continued to grow and now boasts 20 owned and operated vessels manned by 148 permanent, full-time seafarers.

There has been minimal staff turnover since the commitment to increase female participation was first established in 2008 and outside of senior management, three women hold superintendent roles, with one becoming qualified as the first ever

Joanne Fox

focused superannuation information sessions combined with personal financial planning.

Fox says the company’s executive leadership and board recognised the merits of the initiative as part of a broader gender equality commitment.

“It’s supported by all levels of leadership with the business firmly focused on how to attract and retain women within the oil and gas sector,” she says.

“Equity must be a foundation principle for how organisations do business and we are proud to be leaders in gender equity initiatives such as this. In approving this initiative, leaders recognised superannuation is an important part of the gender pay mix.”

Santos believes the return of investment in terms of workforce

female tug master in the company’s harbour towage business.

Flexible work arrangements have been instrumental in attracting qualified women to the business, and a strategy to develop female employees meant Carter and Fensom were supported in taking on operational management responsibilities alongside their HR/IR duties.

While admitting there is ‘a long way to go’ to increase female participation among vessel-based crew (currently just above the industry average at 2.2 per cent), Carter is confident Smit Lamnalco’s active engagement with local

engagement and retention is immeasurable and drives cultural and societal change.

“We’ve seen greater engagement from female employees looking to complement the employer-based superannuation with their own contributions,” Fox says.

Proving its gender equality credentials, new fathers at Santos can also take advantage of the initiative.

“Our experience tells us many men want to be more involved in contributing to the care of young children and providing this initiative to both males and females supports this” Fox says.

“Santos will continue to develop other gender diversity initiatives that help to reduce the superannuation gap and work towards better gender equity.” RP

schools, bolstered training capacities, targeted recruitment and supportive workplace practices will only see numbers improve.

“When we run recruitment, we look at all applications from women, even those outside our basic job requirements.

If there are applicants that require upskilling, we provide feedback on what we’re looking for,” she says.

“We will continue to communicate our successes in the hope that we can assist others in the industry to increase diversity sensibly and sustainably.

“It really is a matter of just doing it.” RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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DIVERSITY

HR gun makes

mark with diversity forum Winner of AMMA’s 2015 Young Professional Award, Veena Mendez, is proving even the most complex industry challenges can be tackled when you have the passion and determination to make a difference.

WHEN Veena Mendez launched Women in Oil and Gas (WIOG) in 2013, she aspired to generate discussion about the gender diversity challenges facing the sector.

Three years on, she is chairing a thriving organisation boasting 1,250 members and counting.

“My original goal was to promote diversity and career advancement of women in the oil and gas industry, and help companies to attract and retain talent,” Mendez says.

“WIOG’s many initiatives cover the different levels of member bases such as women in leadership roles, middle management roles, new entrants to the industry, and students. The overarching goal has not changed since its inception, however, the ways we achieve these goals have evolved as per changing market conditions.”

Mendez’s ability to build and grow WIOG, all while working in a busy role as Chevron Australia’s category team leader where she manages contingent labour hire, recently earnt her the Young Professional Award at the 2015 AMMA Industry Awards ceremony. The Award recognises a professional with no more than 10 years of experience who is making a positive and noticeable impact on the industry.

Today WIOG is a recognised brand within the oil and gas sector. Bi-monthly events featuring industry executives and covering practical topics such as ‘the art of networking’ usually sell out within three hours and typically draw more than 100 guests.

The online platform – WIOG @ Site – currently rolled out across construction sites in Onslow, Karratha, Darwin and Barrow Island is allowing men and women to share their personal career journeys and inspirational stories. However, it is through initiatives targeting university and school students that Mendez is helping to build a pipeline of future women employees in

oil and gas.

WIOG @ Universities works with UWA and Curtin University to facilitate presentations from oil and gas companies and successful graduate employees, providing insight into the industry and supporting students transitioning to the workforce.

Partnering with Chevron’s ‘Powering Careers in Energy’ initiative, WIOG @ Schools is opening the minds of school kids across Western Australia by bringing oil and gas professionals into the classroom to discuss the exciting study and career opportunities that lay before them.

“If Australia is to reach and maintain a leadership role in innovation worldwide, we must broaden the pipeline by encouraging young learners to apply critical thinking to engineering and technical fields, as well as to every other

AMMA chief executive Steve Knott presents Veena Mendez with the Young Professional Award

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industry,” Mendez says.

“For this to be generated we need to show what impact their decisions to choose STEM (science, technology, engineering and maths) subjects would have on their career choice, and how they can excel by taking these opportunities.

“I would like to see more females taking STEM subjects, being strategic in identifying those projects and assignments that are rare, and being prepared to take on these opportunities early in their careers.”

WIOG continues to receive support from major oil and gas companies including Chevron, INPEX and Woodside.

Mendez credits the ongoing mentoring and support received from within her own workplace at Chevron as key to her success in building the initiative. RP

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DIVERSITY

Employers elevate

Indigenous reconciliation pledge Two of the resource industry’s leading service providers, Sodexo and Transfield Services, are raising the bar on Indigenous participation with their formal commitments reaching the highest level recognised by Reconciliation Australia.

IT is not unusual for resource industry organisations in Australia today to have a Reconciliation Action Plan (RAP) in place.

But not many can say they have reached Elevate status.

Recognised as the pinnacle of Reconciliation Australia’s four-stage RAP program, Elevate organisations must demonstrate proven results, knowledge and leadership in building relationships and bettering outcomes of Indigenous Australians.

In its plans for 2015-18, Sodexo and Transfield Services have committed to further promote inclusive workplace practices, raise awareness of their commitment to reconciliation, and strengthen relationships with Indigenous people.

Facilities management provider Sodexo has invested more than $4 million through its previous three RAPs in an effort to instigate sustainable change in Aboriginal and Torres Strait Islander communities.

CEO Johnpaul Dimech says reaching Elevate status is a proud milestone.

“As Sodexo reaches the halfway point

of our 10 year reconciliation pledge it is important to reflect on what we have achieved so far,” Dimech says.

“To date, Sodexo maintains a healthy partnership with the Yothu Yindi Foundation through its Garma event.

“Additionally, we have hosted 12 National Reconciliation Week events, achieved 10 per cent Aboriginal and Torres Strait Islander employment in the resources services business and provided sponsorship and support of multiple community-based activities.”

Sodexo has developed initiatives such as Australia’s first VTEC Certificate II in Hospitality program, which celebrated its first Indigenous graduates early this year. It also established a Second Change Review Panel, which works with Aboriginal and Torres Strait Islander candidates with disadvantages, achieving successful employment outcomes for 76 per cent of participants.

On the procurement side, Sodexo has spent more than $1 million on Indigenous products and services across its business.

Transfield Services – a global provider of

Sodexo COO Keith Weston (centre left) with Sodexo employees

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A South Australia Dept of Transport bus covered in the Transfield Services RAP artwork, depicting an Aboriginal dreaming story of Tjilbruke

operations, maintenance and construction services – was first granted Elevate status in 2014 for its second RAP, however, managing director and CEO Graeme Hunt says detailing its commitments has allowed the company to make significant advancements and set even greater goals for the next three years.

“Our achievements include the establishment of 40 Indigenous Participation Plans at contract level that provide the channel for meaningful local engagement and sustainable change,” Hunt says.

“This has led to results such as a 4.5 per cent Indigenous employment rate – well above the national average.”

Transfield has worked to safeguard Indigenous employee retention by

DIVERSITY

Sodexo employee Kusi Bin Roshid getting to know the Yolngu young people at Garma 2014

conducting random, third-party surveys of Indigenous employees every 18 months to ensure it is creating a culturally safe workplace.

Its other initiatives include working with Indigenous youth who have been involved in the juvenile justice system, to create viable career pathways.

Reconciliation Australia CEO Justin Mohamed says Sodexo and Transfield Services are now among a select group to

have taken their reconciliation obligations to the highest level.

“Sodexo’s Elevate RAP signifies its continued and accelerated commitment to meaningful and sustainable outcomes for Aboriginal and Torres Strait Islander people and their communities. Raising the bar of its endeavour sets a fine example to others within its sphere of influence,” Mohamed says.

“Transfield Services’ strong governance

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structure ensures that all levels of the organisation are involved in the company’s reconciliation actions.

“Its 40 separate local community participation plans developed in partnership with local Indigenous stakeholders bring the voices of Aboriginal and Torres Strait Islander people into corporate Australia.”

Sodexo’s core RAP priorities for the next three years include becoming an employer of choice for Aboriginal and Torres Strait Islander people; strengthening relationships and supporting cultures; increasing supplier diversity and developing new ways to work with Indigenous Australians; and ensuring strong governance, measurement and reporting.

Key targets for Transfield Services include increasing Indigenous employment up to 6.5 per cent; continuing cultural awareness training by expanding it to 80 per cent of employees; and recruiting 10 Indigenous interns as part of a program under the new Transfield Services Youth Council. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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OHS & WELLBEING

Getting into

the flow of wellness IF YOU have ever be so immersed in a task to the point where you lose track of time, forget to take a lunch break or your cup of tea has gone cold, chances are you were in a state of ‘flow’.

Originally coined by regarded researcher and professor of psychology, Mihaly Csikszentmihalyi, flow refers to the mental state of someone when they are completely ‘in the zone’ and motivated to complete an activity.

While bringing this concept into the workplace has obvious benefits for performance and productivity, corporate health specialists GU Health are encouraging resource employers to think about how it can be used to improve their workplace wellness programs.

GU Health’s wellness manager Gretchen

Masters says for an individual to engage in and reach a state of flow, a workplace wellness program should: • include options so employees have a sense of control; • allow employees to progress through different levels depending on skill; • take place in an appropriate environment to allow focus and creativity; • include clear goals, both for the individual and company; and • provide prompt feedback and in various forms.

Unfortunately, mainstay programs such as seminars and toolbox talks don’t always meet these criteria.

“People sit there like passengers with information floating around. If the topic happens to be on their radar, they will

probably process it and, if you’re lucky, they might take action,” Masters says.

“But it is very unlikely they will be genuinely engaged in what is being presented on the topic.”

Masters says more inventive approaches such as onsite fitness stations and turning wellness programs into a game are far more likely to help people achieve flow and therefore enjoy and commit to a program.

“The gamification of wellbeing programs is quite a new concept. If you have 20 or 30 different wellbeing initiatives throughout the year, you can incorporate those into a game with each program allocated points,” she says.

“Employees reach milestones, they receive feedback and although it’s a competition, they are still on their own journey.” RP

Full bench upholds

landmark drug test decision A FULL BENCH of the Fair Work Commission (FWC) has upheld Commissioner Cambridge’s decision the BHP Billiton-managed Port Kembla Coal Terminal could include both urine and saliva testing in its onsite drug and alcohol management regimes.

In April this year, Commissioner Cambridge heard a dispute between the CFMEU and Port Kembla about its proposed policy that would see the Wollongong site employees subject to both urine and saliva testing at random.

The Commissioner ruled in favour of the employer, stating ‘any discomfort or embarrassment about providing a urine sample would be of negligible

consequence if such discomfort or embarrassment avoided death or debilitating injury suffered at work’.

Commissioner Cambridge’s decision to back Port Kembla’s new drug and alcohol management policy was seen as a favourable shift in the FWC’s position, with other decisions in recent years sending mixed signals about employers’ rights to enforce whichever testing policy deemed most effective.

On appeal, a Full Bench of the FWC ruled in favour of the original decision that both methods had their benefits and shortcomings and, if Port Kembla deemed the most effective way to ensure safety was to implement a combination

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of the two, that should be respected.

“PKCT has a statutory duty to ensure the safety of its employees and contractors who might be put at risk by work that is being carried out. An essential element of this duty involves the identification of potential hazards and elimination or minimisation of risks,” the Full Bench said.

“Having regard to the high-risk nature of the work undertaken at the Port Kembla coal terminal by employees, the privacy concerns about urine testing must therefore give way to allow the implementation of a testing method which will enable PKCT to identify and manage workplace safety risks.” RP

OHS & WELLBEING

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FIFO app to reduce

mental health stigma A mobile app to be built ‘by men for men’ in the Pilbara-Kimberly region has received funding from beyondblue in a bid to connect men who work in fly-in, fly-out or drive-in, drive-out roles and enhance conversations about mental wellbeing.

The Y-Fronts peer-to-peer community mobilisation and stigma reduction strategy is one of six projects involved in the STRIDE (Stigma Reduction Interventions: Digital Environments) project, which is joint-funded by beyondblue and The Movember Foundation.

The Y-Front app will rely on activitybased interaction that encourages participation to keep men engaged and promote network growth.

Beyondblue CEO Georgie Harman says STRIDE was a response to the high number of men who die by suicide in Australia each year, which is almost double the number who die on our roads.

“Nearly 2000 men die by suicide each year, with men three times more likely to die this way than women,” Harman says.

“This is a national tragedy and is fuelled by the fact men don’t seek help for mental health problems as much as women because they don’t want to be seen as weak or as a burden on others.

“In recent years there have been increases in awareness about depression and anxiety, but we now need to focus on using digital tools to reduce the stigma that prevents men from seeking support and keeps the suicide rate high.

“We must focus on stigma reduction within the digital environment because this is where men spend an increasing amount of time, and STRIDE aims to do this by challenging the attitudes of participating men, showing them the benefits they can reap if they tackle these conditions and analysing which elements of each of the six smaller projects has worked best.

“I have no doubt this project will save men’s lives, while teaching us the best ways to reduce the stigma of mental health conditions among men.”

The other funded projects also target

men in specific communities or groups, such as the Tell Your Story project that involves refugees with post-traumatic stress disorder and the Real Courage project which targets past AFL players and coaches, as well as construction workers who all have shared experiences with significant life transitions.

Movember Foundation executive director of programs Paul Villanti says

We must focus on stigma reduction within the digital environment because this is where men spend an increasing amount of time...

targeting a wide-range of at-risk men is the key to de-stigmatising mental health issues.

“Each of these six projects will drive men within the target communities to confront any negative or stigmatising attitudes they hold about mental health conditions,” Villanti says.

“Stigmatising beliefs can be the biggest barriers to men getting help but STRIDE will aim to remove these barriers and save lives.

“As a catalytic funder of men’s health programs globally, the Movember Foundation is proud to donate funds to this groundbreaking program. It’s thanks to funds raised by the Mo community that we are able to support innovative programs such as this.”

The project commenced in July and will run for two years before results are analysed with the aim to find the most effective ways to reduce stigma around mental health conditions in men. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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OHS & WELLBEING

Partnerships keep

rescue services in flight Flying rescue services are often the difference between life and death when it comes to Australia’s remote or hard to reach locations, but such critical services do not come cheap.

Through separate but equally vital partnerships, resource organisations Rio Tinto and Orica are helping to fuel flying services in their local communities.

Global commercial blasting provider Orica has become a major sponsor of the Westpac Rescue Helicopter, while mining giant Rio Tinto has contributed $10 million to the Royal Flying Doctor Service (WA).

Orica’s sponsorship comes at a critical time for the Westpac Rescue Helicopter Service as it was recently awarded a new 10-year contract to provide aeromedical services to all of northern New South Wales.

“No one ever pays to be assisted by the service, but its value is priceless.

We are here to support the community and continue to need its help in return,” Westpac Rescue Helicopter Service general manager Richard Johns says.

Orica general manager mining services Australia Pacific Adrian Mason says the partnership is a natural fit for the company.

“Orica has operations at numerous sites throughout the Hunter Valley and northern New South Wales, from Newcastle to Gunnedah,” Mason says.

“While we already invest significantly in the local Newcastle community, we think it’s important to also support a service relevant to all the communities in which we operate.”

Rio Tinto’s $10 million contribution to the RFDS builds on the company’s long-term commitment to the Life Flight jet that has become a vital service in Western Australia.

“The health and safety of our people and the sustainability of our local communities lies at the heart of everything we do at Rio Tinto,” Rio Tinto chief executive iron ore Andrew Harding says.

“Since 2009, the first Rio Tinto Life Flight jet has been providing critical

Rio Tinto Life Flight jet

medical care to all West Australians, particularly people living in regional and remote communities.”

RFDS CEO Grahame Marshall says many lives have already been saved as a direct result of the Rio Tinto Life Flight jet and the extended commitment from the company will further increase the flying doctor’s capacity in the future with the introduction of four new Pilatus PC24 jet aircraft.

“Since the jet’s first mission in October 2009, the aircraft has evacuated almost 1,500 patients, the majority, more than 70 per cent, from the more distant Kimberley and Pilbara regions,” Marshall says.

“Delivery of the new Pilatus PC 24

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Orica is a major sponsor of the Westpac helicopter

jets, commencing in 2017, will see the realisation of a long-held and exciting dream for the RFDS and will provide a world leading aero medical service to the people and communities of Western Australia well into the future.“ RP

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Research to inform

work health and safety NEW research exploring the awareness of health and safety in the workplace and productivity loss in young injured workers may inform better health and safety policy and practice in Australia.

Safe Work Australia has published four new research reports it hopes will raise important implications for improving work health and safety.

The four reports examine: the awareness of work health and safety among Australian employers and workers; how employers and workers source work health and safety information; health and safety implications in the transport industry; and the prevalence of back and neck pain in young workers and the associated productivity loss.

Safe Work Australia CEO Michelle Baxter says the research provides insight into the extent to which Australian employers and workers are consciously aware of health and safety in their workplace and actively try to manage risks.

In regards to the research into the transport industry, she says acceptance of risk-taking and rule-breaking was much higher than any other industry.

“This report identifies some of the important factors that need to be addressed if we are to reduce the current high levels of injuries and fatalities in the transport industry, as well as improving health and safety more generally,” Baxter says.

Research examining the health of young

workers and the impact it has on their working lives and productivity found back and neck pain to be common among the 23-year-old workers in the study. These workers take nearly twice as much sick leave as workers who are pain-free. The cost in lost productivity from absenteeism alone is estimated to be $139 million per year.

“Manifested throughout a career, the impact of back and neck pain from a relatively young age would have significant productivity costs at the organisational and national levels if not addressed in the workplace,” Baxter says.

The four research reports and accompanying research briefs can be downloaded from: safeworkaustralia.gov.au. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

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MEMBER NEWS

In Brief: People and Projects A snapshot of recent news and milestones across the Australian mining, oil and gas sectors.

Woodside awards local contract for Browse FEED ONESUBSEA, a Cameron and Schlumberger company providing services to the subsea oil and gas market, has been awarded a front-end engineering and design (FEED) contract for the proposed Woodside-operated Browse FLNG project offshore north-west Australia.

The contract will involve up to 20 locally employed people operating out of OneSubsea’s Perth office in collaboration with Woodside to fully define and determine the optimal subsea production system design and equipment requirements for the development.

Woodside CEO Peter Coleman says the contract is the first of a number anticipated to be awarded in the future to Australianbased engineering firms, manufacturers and suppliers associated with the subsea elements of the Browse FLNG Development.

“Our local content commitment is focused on working with Australian-based suppliers with world-class capabilities to partner with us on our operations and developments,” he says.

In 2013, OneSubsea opened a stateof-the-art life-of-field facility in Kewdale, Western Australia, that was built to support Woodside and other operators in the region. The facility will be key in the development of this project.

Woodside is targeting a final investment decision on Browse FLNG for the second half of 2016. RP

The contract will involve up to 20 locally employed people operating out of OneSubsea’s Perth office...

MMG moves ahead with Qld zinc mine AIMING to capitalise on an expected decrease in global zinc supply, base metals miner MMG Limited has announced approval of an updated development plan for the Dugald River zinc project in north-west Queensland.

Placing the project within the world’s top 10 zinc mines when operational, the plan includes a mine production rate of 1.5Mtpa, annual production of approximately 160,000 tonnes of zinc in zinc concentrate, plus by-products, during an estimated 28-year mine life.

“We are positive about the longterm fundamentals for zinc,” says MMG chief executive officer, Andrew Michelmore.

“This decision reflects our confidence in zinc at a time of shrinking global supply.

MMG will employ 400 at its Dugald River zine mine once operational

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Dugald River remains one of the world’s highest grade undeveloped zinc deposits.

“Under the updated plan, Dugald River will come online around a time when significant global zinc supply will disappear through mine closures.”

The expected remaining cost of the project to first shipment of concentrate is around US$750 million plus interest costs.

Once funding arrangements and agreements with service providers are finalised, construction of remaining surface infrastructure facilities should commence in 2016 with first production from a Dugald River concentrator expected during the first half of 2018.

MMG will employ 400 people at the mine once operational. RP

MEMBER NEWS

Anglo’s Dawson mine celebrates top apprentices COAL producer Anglo American has celebrated the outstanding achievements and contribution made by its Dawson mine apprentices at a special awards ceremony.

Held in conjunction with the Gladstone Area Group Apprentice Limited, the Dawson Apprentice Awards recognised the best performers throughout 2013 and 2014, selected from a pool of nominations submitted by supervisors, superintendents and management.

The awards were presented by Dawson general manager Dave Palmer and maintenance and engineering manager Adam Routledge.

Palmer says the awards acknowledged the outstanding efforts and hard work of the apprenticeship program participants.

“We are delighted to host these awards to recognise the apprentices who are excelling in their fields and reward their hard work and overall contribution,” he says.

“Our apprenticeship program promises great opportunities for participants who will go on to exciting careers in mechanical and electrical trades.”

Seven apprentices received awards, along with a certificate and a gift voucher to spend on tools. RP

L-R – Matt Keene, Robert Brosnan, Adam Routledge (Dawson Maintenance Manager), Pat Bowden, Dave Palmer (Dawson Mine General Manager), Josey Stevenson and Cameron Wheeler.

Morris wins $250m Origin contract MORRIS Corporation has secured a long term contract with Origin Energy to provide catering, facilities management and maintenance services at its Surat Basin operations.

Estimated at $250 million, the threeyear contract covers facilities including six accommodation villages as well as nonproduction infrastructure on operational sites such as offices, workshops and sewerage treatment plants.

The services to be provided include catering, cleaning, grounds management, security, health and recreation management as well as asset management and maintenance.

Morris Corporation CEO Fiona Berkin says with the resources market changing significantly in the past few years, suppliers like Morris have had to adapt to the needs of the clients to deliver cost savings and efficiencies.

“While our team has done a fantastic job to date to win the contract, we know this is only the beginning of the journey with Origin and we need to work hand in glove with them over the next few years to continue to improve our service offering and lower total costs,” Berkin says.

“This can only be done through a true partnership with our client.” RP

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Tugs guide an LNG carrier through Gladstone Harbour

First LNG ships from QCLNG’s Train 2 BG GROUP, owner of QGC and the Queensland Curtis LNG (QCLNG) project on Curtis Island near Gladstone, has loaded its first LNG from the project’s second production train.

Since production from the first train commenced in December 2014, 27 cargoes of LNG have been shipped.

By mid-2016, it is expected both trains at QCLNG will be producing enough LNG to load 10 vessels per month combined.

“The start-up of QCLNG’s second LNG train is another important operational milestone delivered in line with our plan,” BG Group chief executive Helge Lund says.

“The completion of our upstream infrastructure and the two LNG trains are achievements of which BG Group, particularly our team in Australia, can be proud.

“We have already shipped more than 1.5 million tonnes of LNG from Queensland, and Train 2 will add significant further volumes and flexibility to our LNG shipping and marketing portfolio.”

The first LNG from Train 2 set sail on the Maran Gas Posidonia. RP

RESOURCEPEOPLE | SPRING 2015 | www.amma.org.au

EVENTS 54

EVENTS CALENDAR

SEPTEMBER

Wed 11 – Thurs 12

Wed 30 – Thurs 1

MINING 2015 RESOURCES CONVENTION

RIU MELBOURNE RESOURCES ROUND-UP

With back-to-back presentations across two auditoriums from key resource industry experts and participants, this two day event draws crowds in excess of 1,500. Add to the mix more than 80 exhibition booths and you have an event that is sure to please.

Held at the Hilton Brisbane Hotel.

More info at: www.verticalevents.com.au/mining2015/

Bringing Australia’s resource companies together across two days, this event will ensure brokers and investors hear first-hand from chief executives and managers about growth strategies and project developments in the year ahead. Held at the Sofitel Melbourne on Collins.

More info at: www.riuconferences.com.au

OCTOBER Tues 20 ENERGY SKILLS 2020

Energy Skills Queensland’s 8th Annual Conference will cover many of the innovations, challenges and opportunities facing the energy, resources and telecommunications industry now and into the future with informative presentations from nationally respected speakers. Held at Royal International Convention Centre, Brisbane.

More info at: www. Energyskillsqld.com.au

Tues 24 – Wed 25 QUEENSLAND GAS CONFERENCE

Dedicated to the latest developments and issues surrounding CSG and LNG in Queensland, this conference will explore the technical and commercial drivers to ensure operational excellence and deliverance of project goals. It will provide two days of educational seminars and mini training sessions. Held at the Brisbane Convention and Exhibition Centre.

More info at: www.queenslandgasconference.com.au

AMMA END-OF-YEAR INDUSTRY BRIEFINGS Tues 6 Oct – Thurs 3 Dec

Mon 26 – Tues 27 HUNTER VALLEY LONGWALL CONFERENCE

Building on 13 years of excellence, this annual meeting of underground coal players is the optimal place to discuss the latest advances in the industry, swap experiences and learn from the best operators in the business. Held at the Crowne Plaza Hunter Valley.

More info at: www.longwallconference.com.au

NOVEMBER Wed 4 – Thurs 5 FUTURE MINING CONFERENCE

The Third Future Mining Conference 2015 will address innovations and opportunities to transfer scientific and technological developments from other disciplines into the minerals industry. It will examine the human factors and skill needs for future operations, identify possible ‘blue sky’ scenarios, strategies of mining education and research, novel mining systems and future commodities and directions. Held at the Australian Technology Park Sydney.

More info at: www.futuremining.2015.ausimm.com.au

Mon 9 – Fri 13 INTERNATIONAL MINING AND RESOURCES CONFERENCE (IMARC)

Taking place at the Melbourne Convention and Exhibition Centre, IMARC will welcome around 100 exhibitors and more than 3,000 attendees at one of the largest resource industry events of the year. Whether it’s listening to keynote presentations from national and international thought leaders and policy makers, participating in a workshop or networking with exhibitors, it’s all there to experience at IMARC. More info at: www.imarcmelbourne.com

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National resource industry employer group AMMA’s leading workplace relations experts will be on the road from October to December to keep the industry’s workforce-focused professionals up-to-date on the latest regulatory developments and discuss lessons in everything from managing workplace disputes to drug and alcohol testing and negotiating workforce agreements in an evolving market.

Held in capital cities and regional towns from Port Hedland to Gladstone, Bendigo to Karratha – these intimate forums are an ideal opportunity to reflect on the challenges and successes of 2015 and prepare for the year ahead with industry peers.

The AMMA Industry Briefings are open to all resource industry professionals and free for AMMA members.

More info at: www.amma.org.au

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BUSINESS PARTNER DIRECTORY