Transfield Services - AMMA · 2013. 9. 25. · Issue 005 Spring ‘13 – Summer ‘14 Bechtel’s Andy Greig Transfield Services talks Curtis Island Lng projects and 60 years in

Issue 005 Spring ‘13 – Summer ‘14

Bechtel’s Andy Greig

Transfield Services

talks Curtis Island Lng

projects and 60 years in

Australia

expanding its footprint

Industry Minister Ian Macfarlane

PLUS exclusive feature with Leighton’s global HR boss Dharma Chandran

Bluestone Mines builds capacity

Abbott and Abetz: policy scorecard

www.amma.org.au | Spring ‘13 – Summer ‘14 |

02

REGULARS04 | From the Editor05 | Chief Executive’s Message54 | Events calendar56 | Business Partner Directory

HUMAN RESOURCES06 | Latest jobseeker trends revealed08 | Inside Leighton’s skills empire10 | Construction skills demand remains strong11 | 5 Minutes with an AMMA staffer

MEMBER FEATURE12 | Future focus Transfield Services’ greatest asset

LEADERSHIP14 | Big challenges for Macfarlane in familiar role15 | AFL legend’s leadership centre takes shape16 | ‘get on’ with reform, says ACCI16 | A quick word with Clive Palmer

POLICY18 | Coalition policy score: where do they stack up?19 | Six key challenges Labor left for Eric Abetz20 | Bullying changes: obligations and risks21 | Policy at a glance

MIGRATION22 | new immigration minister looks at 457 scheme22 | Wrap-up of Labor’s last migration changes23 | 457 Visa program effective, says migration council

OHS & WELLBEING24 | Making tracks against kidney disease26 | Empowering healthy habits27 | Sodexo fast tracks healthy lifestyles

COVER STORY28 | People, projects, performance: 60 years of Bechtel in Australia

COnTEnTS

COnTEnTS

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14THE MAGAZINE PUBLISHING COMPANYABn 70 010 660 009

PO Box 406, nundah Qld 4012Phone (07) 3866 0000Fax (07) 3866 0066Email [email protected] www.tmpc.com.au

Andy Greig, BechtelRixRyan Photography

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COVER IMAGE

www.amma.org.au |Spring ‘13 – Summer ‘14 |

04 REgULARS

ANDY GREIG’S BRISBANE office proudly sports a poster of Star Wars Jedi master Yoda, superimposed with the Bechtel boss’ face and the accompanying slogan “Try not, do!”

The cheeky staff gift aptly describes Greig’s measured leadership style as he quietly goes about motivating the

people designing and building some of the largest projects our nation has seen.

In 32 years with the company, the understated Greig has rarely donned a business suit or publicly spruiked Bechtel’s achievements or multi-billion dollar portfolio. As he tells Resource People in our cover story, his desire is not just to deliver construction of seven major Australian resources projects, including three side-by-side LNG developments on Queensland’s Curtis Island, but to leave behind a positive community legacy.

Another AMMA member seizing opportunities provided by Australia’s burgeoning LNG investment is asset management and services contractor Transfield Services. CEO of the energy and mining division, Joe Sofra, tells us why he is bullish on Transfield’s diversification strategy and provides insight into the people and planning behind complex project shutdown activities.

In Human Resources, Leighton Holdings’ global HR chief Dharma Chandran speaks of the competitive environment in which the multi-

national construction and mining contractor operates. With 30,000 employees in Australia alone across the Leighton, Thiess, John Holland and Macmahon brands, he reveals the innovative workforce engagement techniques that keep the group at the top of its game.

Other stories in this final issue of 2013 include Bluestone Mines’ leadership training, Oz Minerals’ award-winning gender diversity practices, the latest in OHS and migration and a look at wages and competitive challenges in the offshore oil and gas sector.

Economy features investment commentary from Saul Eslake and the global mining heads of KPMG and Deloitte Touche Tohmatsu. In Innovation we talk to Bernard Salt about demographics and UQ on community engagement; while Training explores maritime safety and emergency management.

The final piece to our strongest Resource People edition yet is a comprehensive look at the new Coalition Government’s workplace policies and how frontbenchers Eric Abetz and Ian Macfarlane plan to instill greater confidence and stability into our industry, which continues to deliver employment, social and economic benefits for the whole country.

So whether your interest is big project construction, workforce management, economics, training or policy and political matters – there is something in Resource People for everyone.

Tom Reid Editor

From the Editor


05REgULARS

THIS EDITION OF Resource People spans an important period for Australia’s resource employers as we close out a year that’s seen some challenges, though none insurmountable, and move towards 2014 with a renewed sense of optimism.

With a new federal government that has promised a more stable and balanced policy platform for doing business in our sector and our country more widely, one political catchphrase we hope to never hear again is ‘the boom is over’.

The industry has never adopted this simplistic ‘boom versus bust’ dichotomy nor have we ever accepted that resources growth is irrevocably coming to an end.

Our industry already generates 1.1 million jobs and more than $20 billion annually in royalties and taxes, yet Australia is still to reap the full social and economic benefits of the production and export phase following the past decade’s record resources investment.

There also remains about $350 billion worth of new projects on the horizon that will continue to fuel large-scale construction activity if we get the policy mix right.

Restoring Australia’s reputation as a globally competitive and productive business and investment destination is key to bringing this opportunity to market. With the right policies, investment and growth can become the long term and sustained norm in Australia.

AMMA is working constructively with Prime Minister Tony Abbott, whom we’ve known well since first elected to parliament in 1994, and his ministerial team to do just that. We’ve encouraged Mr Abbott to hit the ground running and to swiftly implement his government’s stated plans.

Resource People’s interview with our new Minister for Industry, Ian Macfarlane, reveals an experienced and considered leadership outlook as the former Howard Government minister takes back control of his old portfolio and once again declares Australia’s mining sector ‘open for business’.

Another minister for whom AMMA has great respect and a strong working relationship with is Senator Eric Abetz, who has been assigned the key portfolio of employment.

AMMA has long advocated for appropriate workplace relations settings that provide adequate employee protections but also allow employers to be flexible, innovate and ultimately drive a highly productive and engaged workforce.

This has been our consistent approach regardless of who is in government.

As analysed within these pages, the Coalition’s Policy to Improve the Fair Work Laws doesn’t tick all the boxes but it makes a good start in restoring genuine balance and addressing the plethora of recent anti-business, pro-union IR re-regulation that has been so damaging to Australian businesses.

Welcome first moves include restoring the Australian Building and Construction Commission (ABCC) as an effective building industry industrial regulator, breaking the union monopoly on new project agreements and restoring some balance to what have proven to be excessive and often disruptive union site entry powers.

Another priority area for our sector will be access to responsible and economically responsive skilled migration programs, including the 457 Visa scheme and Enterprise Migration Agreements (EMA).

New Immigration Minister Scott Morrison, who has addressed AMMA forums on numerous occasions in recent years, is well versed and supportive of our sector’s needs and responsible use of specifically targeted skilled migration programs.

We will also be working with the government and maritime authorities to ensure any changes to Australia’s intercontinental migration zone doesn’t wreak havoc on our nation’s $150 billion offshore oil and gas sector.

Just as critical to maintaining our industry’s strength are the non-legislative workforce initiatives that AMMA is implementing to great effect, many in ongoing partnership with the Commonwealth.

With each edition of Resource People I am proud to read the next phase of AMMA Skills Connect is being rolled out across the country as this program works to improve labour mobility, transitioning of skills and training of people in trades roles.

Similarly, online recruitment hub AMMA miningoilandgasjobs.com continues to go from strength to strength while the Australian Women in Resources Alliance (AWRA) is rapidly developing new tools and engagement techniques to support increased female participation in our traditionally male-dominated industry.

The training profile of this edition features our work with Bluestone Tin and how the company is building the leadership capabilities of its people. We can help all our members tap into the government’s Workforce Development Funding to achieve similarly valuable results.

These efforts and initiatives greatly advance AMMA’s vision of ensuring Australia’s resource industry is an attractive and competitive place to invest, employ people and contribute valuably to the national wellbeing. This is even more important with a change in government providing new opportunities for us to further progress this.

Reading about Bechtel, Transfield Services, Leighton Holdings and the plethora of other success stories in this magazine demonstrates that collectively, Australia’s resource industry remains on track to continue being a key driver of improved well being and living standards across our community.

Steve Knott AMMA Chief Executive

Chief Executive’s Message


HUMAN RESOURCES06

THE AMMA MININGOILANDGASjOBS.COM Jobseeker Index is a new biannual analysis of the trends, motivations and demographics of resource industry jobseekers and the first edition delivered wide ranging results.

“The index shows jobseekers typically have more than 15 years’ experience in the workforce and varying degrees of education, though many hold diplomas, certificates or trade qualifications,” says AMMA miningoilandgasjobs.com director Kyla Jones.

“Many are hoping to progress their career within the industry or want to transfer from another sector and take advantage of the benefits a resource career offers.

“Jobseekers also appear to be open to flexible work arrangements, including a range of FIFO rosters with two weeks on, one week off being the most popular choice.

“While men remain the dominant demographic, it is encouraging that 30% of all people showing interest in a resource industry career are women. This shows collective employer efforts to attract more women and increase the traditional 15% female-participation rate, are gaining momentum.”

The results also show that the remote locations, diverse opportunities and flexible nature on offer within the resource industry are seeing more jobseekers gather career information online.

“Networking online and visiting career websites exposes jobseekers to greater opportunities than the local paper or recruitment firm,” Ms Jones says.

“People interested in mining, oil and gas careers are proving to be very tech-savvy, with 62% actively searching through social media channels such as Google+, LinkedIn and Facebook.”

Other key findings from the AMMA miningoilangasjobs.com Jobseekers Index include:

jOBSEEKER TRAITS AND TRENDS revealed in new resources indexTrade-qualified men aged 35-55 remain the largest group of resource industry jobseekers, but a new industry-led demographic index reveals some surprising traits among people actively pursuing careers across Australia’s mining, oil and gas sectors.

KYLA jONES SITE DIRECTOR

AMMA MInIngOILAnDgASjOBS.COM

• 72%ofjobseekersareaged35orolder• Menrepresent70%ofthejobseekeraudiencewithan

average age of 42• 61%ofjobseekershavemorethan15yearsofworkforce

experience• 23%areDegreeeducated;48%arequalifiedtoDiploma,

Trade or Certificate I, II, II• Almostathird(32%)hailfromQueensland,followedby18%

from Western Australia• Jobseekersarelargelymotivatedbycareerprogressionora

change in industry• Jobseekersvalueinformationoncareerdevelopmentmore

than other non-salary benefits• Workersexperiencedinskilledtrades,administration,

management, engineering and construction represented the largest respondent groups.

The AMMA miningoilandgasjobs.com Jobseeker Index is compiled from a national survey of 1,045 visitors to the resource industry owned-and-operated careers website AMMA miningoilandgasjobs.com.

The index tracks key demographics, lifestyle and job search trends to provide a biannual report on the national resource industry jobseeker audience and recruitment landscape.


HUMAN RESOURCES08

DESPITE AMASSING 25 years in the international financial services sector before joining Leighton Holdings’ executive team in 2011, Dharma Chandran concedes his current role has given him a newfound appreciation for finding competitive advantage.

“We work in a highly competitive environment, both in the construction and mining sectors,” Chandran says.

“There is a need for businesses to innovate and engage more powerfully with our workforces so they have the necessary skills to continue to meet the expectations of clients.”

While softening commodity prices has led many in the industry to review their investment and expansion strategies, Chandran remains focused on innovative ways to engage Leighton’s workforce and foster the skills to stay one step ahead of the competition.

“Despite these falling commodity prices, there remains a skills shortage. The cost cutting is impacting the demand for labour but the demand for quality, highly skilled labour is still there and is still causing competitive pressures,” he says.

“Interestingly, even though the demand for workers is reducing a little, the expectations of our clients are rising. We have established several creative ways to ensure our business continues to grow and remains profitable in these conditions.”

Chandran’s outlook on growth is no understatement. In June 2013, Leighton Contractors announced a landmark mining deal which set a new record as the largest single contract awarded in the company’s history.

The $1.3 billion deal extended its agreement to mine Fortescue Metals Group’s Solomon Hub iron ore project in the Pilbara,bringingthetotalvalueofworktoarecord$2.8billion.

INSIDE LEIGHTON’S skills empireAlmost two years into his role as Leighton Holdings’ human resources chief, Dharma Chandran explains how innovative workforce engagement keeps Australia’s largest diversified construction and mining contractor at the top of its game.

The global Leighton Holdings empire includes subsidiaries across construction, infrastructure, resources and property. Already incorporating the Thiess and John Holland brands in its stable, the group acquired Macmahon Holdings’ construction business last year, taking on more than $570 million worth of additional work.

Together, the group of companies turns over $23 billion of contracts around the world annually and employs more than 57,000 people; 30,000 of whom are Australian-based.

According to Chandran, successfully engaging with a skilled workforce of this size and diversity requires a three fold approach: acquiring and building skills; sharing for success; and retaining Leighton’s best.

ACqUIRING AND BUILDING SKILLS“The employment brand is a critical component of acquiring and building skills,” says Chandran, a former Ernst & Young partner in charge of the Asia-Pacific Performance and Reward practice.

“Creating strong recognisable brands ensures that we attract the best candidates in the world. Digital communication and social media are important channels for establishing our value proposition and attracting the best people in our organisation.

“Recently, LinkedIn did a survey of the most in-demand brands on their website and I’m happy to report that Leighton Contractors ranked third, John Holland ranked fourth and Thiess ranked ninth.”

Chandran says attracting traditionally under-represented employee groups is also key to remaining competitive. Encouragingly, women comprise about 17% of its Australian workforce, which is a step-ahead of the national average of 15.1%.

“Through our Women in Mining group together with our


HUMAN RESOURCES 09

reconciliation action plan we are increasing the participation of non-traditional labour and narrowing the gap,” he says.

But for Leighton Holdings, diversity is greater than gender alone. It was, in fact, Chandran’s diverse cultural background that convinced CEO Hamish Tyrwhitt that he was the right person to head the company’s HR division.

A Sri Lankan-Tamil, Chandran moved to Australia from Malaysia during his senior high school years and, while joking he “missed the plane home and has been here for the past 30 years”, sums up his experience in Australia as “tremendous”.

University educated in law and commerce, he has held a number of corporate and consulting leadership positions throughout Australia and Asia with companies including McKinsey & Co, Towers Perrin and Westpac Banking Corporation.

With 27,000 Leighton employees based in Asia, speaking multiple languages is another valuable asset.

“Diversity goes beyond gender and that’s an important perspective to have in Australia where so many of us come from overseas,” he says. “Gender equity is a serious issue, but inequity is also prevalent across other sections of our population and we shouldn’t lose sight of that.”

Chandran describes career-long learning as his passion, with each of Leighton’s operating companies running extensive career development programs from graduate level to CEO.

“The Leighton Group currently offers more than 25 scholarships for engineering students at universities across Australia. We have around 600 people on graduate programs throughout the group and around 500 people in our apprenticeship programs.

“We also have a Leighton Masters in Project Management program, which we do in conjunction with the University of NSW. Each year, up to 30 of our employees are selected to undertake a Masters with all fees covered by us.

“Since I’ve taken over this role, we’ve also launched executive leadership development programs for our top 75 leaders.”

SHARING FOR SUCCESSLeighton Holdings’ unique corporate structure allows it many competitive advantages, one being access to skills across the group through its internal joint ventures to capitalise on what Chandran refers to as each subsidiary’s “Centre of Excellence”.

“Each of our operating companies has different skill sets and core capabilities and we try to leverage that as far as possible,” he says.

“There have been several occasions where two or more of our operating companies have gotten together to deliver a project.”

Recently, three of Leighton’s companies – Leighton Properties, John Holland and Leighton Contractors’ subsidiary Broad – successfully partnered at the Kings Square development in Perth. The Leighton Properties development will be constructed by John Holland and Broad, and includes Shell Australia and John Holland as tenants.

This type of cross-subsidiary deployment is a critical skills sharing strategy that Chandran wants to expand.

“In the past we have not moved people freely and easily across our operating companies,” he says.

“Their cultures are quite different and employees’ affiliation with their operating brand is strong. John Holland and Thiess have been in existence for a long time.

“But we’re trying to increasingly deploy people to areas, projects and geographies where they’re most needed.”

RETAINING LEIGHTON’S BESTWhile there has been much debate between some sections of government, community and industry on the impacts of fly-in, fly-out (FIFO) arrangements, for Leighton the practice is a vital part of its strategy to retain valuable skills.

“The FIFO and DIDO arrangements we have in place are critical for our workers to connect with their families,” Chandran says.

“It ensures family life is not overly disrupted by the remote locations and challenges of our larger projects, particularly in the north and west of our nation.”

Considering engaged employees are more likely to be emotionally committed to their job, it’s no surprise that Leighton’s workforce engagement programs are an important strategy to retaining skills.

However, Chandran explains that sometimes it pays to go back to basics and reassess the way things have always been done.

“We’re launching our first group-wide employee engagement survey,” he says.

“This may not sound very innovative and we have run engagement surveys within each operational company before, but it’s the first time we’ll have a common survey, at a common timing, right across the group.

“Certainly for us, it’s dramatic and transformational change.”Diversification is a clear theme running through Chandran’s

commentary on Leighton Holdings’ business, practices and people.The company’s ability to carefully balance its group of

operations across cyclical markets and remain committed to diversity strategies and skilled workforce engagement will ensure this world-leading contractor continues to attract both clients and candidates of the highest quality.

Dharma Chandran


HUMAN RESOURCES10

THE BIANNUAL AMMA-PIT CREW Labour Market Index details the labour demand of major Australian resource and infrastructure projects, breaking down specific areas of the skills shortage and capital investment state-by-state.

“This index shows that while construction workforce numbers are coming off a massive peak in 2012, during 2013/14 Australia willstillsee98,869peoplewalkthroughthegateofamajorresources, energy or infrastructure projects,” says AMMA director of group services Tara Diamond.

“LNG investment is having the most significant impact on the demand for labour and, despite the need for urgent policy action to address productivity and cost pressures, employment numbers are still set to increase over 2013 towards an expected peak in 2014.

“The Index also shows that while Queensland and Western Australia are home to the majority of major projects, the Northern Territory will experience the greatest labour shortages.

“Labour demand for the Northern Territory’s emerging resource industry will peak at 5,644 skilled construction and trade workers in the coming year, but availability risks being just half of that.

“The ability to meet this demand requires a collaborative approach to facilitate greater domestic labour mobility between states and ongoing investment in training and skills development.”

The AMMA-Pit Crew Labour Market Index draws from the proven labour forecasting system developed by specialist firm Pit Crew Management Consulting.

The Pit Crew modelling reveals Australia’s resource employers will experience a potential skills shortage of 4,000 specialist welders and boilermakers as the mechanical phases of major

CONSTRUCTION SKILLS demand remains strongConstruction labour requirements on Australia’s mining, energy and infrastructure projects have potential to peak at nearly 100,000 workers this year, according to a new labour market index launched by national resource industry employer group AMMA.

LNG projects ramp up. Other skills shortages include: • PipeFitters• MechanicalFitters• ElectricalTrades• CraneOperators• RiggersandScaffolders• ProductionManagers• ExperiencedProductionOperators• EngineeringTechnicians.

“Pit Crew and AMMA have formed a strategic relationship to provide an updated labour market index twice a year,” says Pit Crew managing director Peter Dyball.

“Our modelling includes a range of infrastructure projects which also draw upon the resource industry’s construction labour pool. These projects include roads, power stations, port facilities, hospitals and public rail infrastructure.

“In addition to the construction labour, as these projects head towards completion they are ramping up an operations workforce, which will also require offsite support services.”

In developing the first of the bi-annual Labour Index, Pit Crew modelled 422 resources, energy and infrastructure projects within the Australian market, uncovering a total capital value of $728.8billion.

Approximately 259 projects are approved with a value of $446.4 billion, while a pipeline of 163 less advanced projects is poisedtodeliveranother$282.4billionofinvestment.


HUMAN RESOURCES 11

AMMA Skills Connect Project Manager Kim HetheringtonI’ve worked in the workforce development field for: More than 10 years and have experience in the design, development, management and promotion of staff development strategies and systems within the corporate sector, including construction, coal seam gas, mining, healthcare, hospitality and asset management, telecommunications and electrical industries.

For me, the resource industry represents: Opportunities for great project management. Multiple industries working together creating legacies for future generations.

My work with AMMA involves: Two key functions: business development for the AMMA Skills Connect suite of training services and project management for the government-funded workforce skilling project aimed at attracting and skilling workers for the resources, related construction and allied industries.

The greatest challenge of my work is: Juggling extensive project deliverables with many stakeholders to meet time-based outcomes while establishing and maintaining industry relationships.

The thing I love about my job is: Meeting new people and learning about different aspects of the resources, related construction and allied services industries.

My colleagues think I am: Short!

You wouldn’t know it but: I was one of the original cheerleaders for the Brisbane Bullets basketballteamfrom1986to1988,whentheymovedfromtheSleeman Sports Centre to the Brisbane Entertainment Centre.

My alternative career choice would be: Interior designer.

If I could be anywhere else in the world it would be: Anywhere that is warm and has a beautiful beach.

I couldn’t live without: My husband Rob and my nine-year-old daughter, Lucy.

I’m inspired by: Humble heroes.

The perfect day/night out involves: A day at the beach followed by a glass of wine overlooking the beach while feeling slightly sunburnt.

I would spend my last $100 on: A good mascara.

5 minutes with...

KIM HETHERINGTON


MEMBER FEATURE12

‘end of the mining boom’.“Sectors like iron ore are coming off a ‘boom cycle’ in terms

of new capital but there is a heavy investment base and still strong global demand for iron ore and steel, so while we certainly see sector adjustments as assets are sweated even harder, we can’t see the sector going into a downturn,” he says.

“I would describe the minerals sector as an ongoing sustainable operating environment, but we are also very excited about the emergence of the coal seam gas sector.

“It’s an enormous industry that is developing from what was close to a zero base in a very short space of time and it’s certainly one of our key growth areas.

“The sector feels like a good fit and we have some unique offerings in key areas including well drilling, servicing, completions and more traditional asset support services of project delivery, construction and maintenance.”

SHUTDOWN ExPERTISEAcross both minerals and energy production assets, Transfield Services is renowned as a master of complex project shutdown activities.

Sofra describes shutdowns as an intense campaign of construction, maintenance and upgrade works when a plant comes off its production cycle.

Transfield Services’ human resources capacity boasts qualified and productive people with great experience on shutdown

IN AN INDUSTRY where his customers’ needs are defined by cyclical periods of investment and production, Joe Sofra believes in a long-term focus for supporting client assets and building value.

But that’s not to say the chief executive of Transfield Services’ resources and energy business isn’t looking to seize more immediate opportunities.

Maintaining the energy and mining service provider’s competitive edge, he says, requires constant innovation in service delivery, a multifaceted approach to asset management and keeping a keen eye on emerging markets.

“We’re very much a long-term focused contractor and we go into new customer relationships with the view that we want to be working with them for the next five, 10 and 15 years,” says Sofra.

“But we are coming off a once-in-a-generation level of investment activity and the parameters in which Transfield Services and our customers are operating are rapidly changing.

“The same solution that worked three years ago is not going to work in three years’ time. This requires us to think about how we can best position ourselves to support our customers, which means we really need to be in tune with their critical business objectives.

“If we lose sight of that, we lose the ability to innovate and deliver a differentiated service.”

Transfield specialises in delivering site-wide maintenance, well and operations services, particularly to sustain the productivity of clients’ assets during the full operational lifecycle.

The company employs more than 24,000 people across 20 industries and 11 countries. Like the entire group, Sofra prides the resources and energy business on both its technical expertise and understanding of clients’ overall business goals.

With its mineral mining activities diversified and including BHP, Xstrata and Fortescue Metals as key clients, its hydrocarbons customer base is likewise diverse – and growing.

In late 2012, Transfield Services was awarded a five-year, $200 million contract for asset maintenance and operations services on the QGC Curtis Island LNG Project. The work covers processing plants, compression stations, about 2,000 gas wells and connecting infrastructure.

The operational contract came a month after Transfield wonan$80millionconstructioncontractfortheQGCprojectthrough its 50/50 JV with Clough Limited.

Targeting emerging hydrocarbons sectors appears to be a diversification strategy to protect Transfield Services from cyclical commodity price fluctuations, but Sofra insists he does not buy into recent political and media commentary about the

jOE SOFRA TRAnSFIELD SERVICES CEO –

RESOURCES AnD EnERgy

Future focus TRANSFIELD SERVICES’ greatest assetTransfield Services has forged a reputation as a leading asset management and energy and mining services contractor. Here, joe Sofra discusses how strategies for emerging markets and shifting conditions have set its resources and energy division on an ‘enticing’ growth pathway.


MEMBER FEATURE 13

and mining business he leads is a standout performer.“Coming in as the new resources chief executive, I wanted

to ensure we can only ever be satisfied with zero injuries. We should always be looking for ways to improve because there’s always something more innovative we can do,” says Sofra.

“The 10 Million Challenge has helped to keep safety front of mind, regardless of roles, industry or location. Our people know what they need to do to have a good safety day where nobody gets hurt and everyone goes home the way they came.

“A big part of this is encouraging self-leadership among our supervisors and crew leaders to ensure their teams are engaged, they understand what the risks are, they lead by example and there is a good line of communication.

“And it’s not just about protecting our own folks but also influencing the way our clients and sub-contractors operate on site so that safety performance increases collectively.”

BECOMING THE ‘OUTCOME CONTRACTOR’Sofra is pleased with the direction the resources and energy division is heading since he took the helm a year ago, but unsurprisingly sees plenty of room for improvement.

Reiterating the focus on expanding the company’s footprint in conventional and emerging hydrocarbon areas, he also notes better servicing the minerals sector is a critical strategy as market conditions shift.

“Certainly a big piece for me is about having that clarity of strategy and a value proposition to service those sectors moving forward, particularly given how rapid the market change has been and how quickly people are reacting to that,” he says.

“Another key strategy is looking at the commercial arrangements we have with our customers and recognising that being predominately a reimbursable contractor is probably less relevant to the changing commercial environment.

“We’re very much moving our whole commercial arrangement away from being a commodity provider of service to becoming far more a solution provider of service. We call it ‘outcome contracting’, if you like.

“I guess I’m bullish in what I see coming forward. If I stretch my horizon beyond the three feet in front of me and think about the five years to come, it feels like quite an enticing period.”

services, though just as much emphasis is put on managing client anxieties.

“Shutdowns make people feel incredibly nervous and uncomfortable. Every minute, hour and day the asset is offline and not producing is impacting the customer’s bottom line,” says Sofra.

“The typical shutdown process begins a long time before execution. Detailed planning and preparation for a 30-day major industrial or LNG plant shutdown will have started 12 to 18monthsinadvance.

“When you begin the shutdown execution, it’s a military-style operation. You’ve got a central headquarters, people are clear about what they have to do and the operator is clear about how they need to support the activity.

“It’s very well-orchestrated and we put a lot of effort into getting it right because it’s critically important.”

When it comes to recruitment of the often hundreds of people required to deliver a shutdown, Transfield Services’ strategy is multifaceted.

“Any one shutdown requires a large group of people to work on planning and preparation to execution and we maintain a strong network of supervisors, planners, project managers and engineers to utilise as we get closer to those key mobilisation periods,” says Sofra.

“We also maintain an extensive database across the country of trades-based personnel who are shutdown and asset-capable, including extensive LNG knowledge.

“Crucially, we are constantly looking ahead to ensure what we are doing is optimising our resourcing requirements and that we’re always retaining that core workforce capability. We don’t let that exit the business.”

SAFETY CULTUREAlmost two years ago, Transfield Services introduced its “10 Million Challenge” as a new vision for workplace safety across its global portfolio.

The challenge aims to achieve 10 million working hours without any lost time injuries and has so far succeeded in reducing the company’s total recordable injury frequency rate by 17%.

With the group’s managing director and CEO Graeme Hunt personally driving the safety mantra, Sofra ensures the energy


14 LEADERSHIP

to be proud.“I want to see everyone benefit from the mining industry just

as much as I want to see the small businesses in Toowoomba that support the sector remain strong. Those things won’t happen if you’re taxing it and berating it and changing the rules all the time.”

Early in the final week of the election campaign the Coalition released its policy for resources and energy focusing on cutting taxation and regulatory red-tape, kick-starting the next phase of exploration activity and better managing coal seam gas policy and oil and gas retention leases.

Specifically, the government’s $100 million Exploration Development Incentive (EDI) scheme will allow investors to deduct the expense of mining exploration against their taxable income, starting on 1 July 2014.

“The challenge for us now is to kick-start the industry, and that’s very much what the EDI is all about,” says Macfarlane.

“Exploration is the R&D of the resources industry and when your R&D stops the industry automatically goes into decline.

“We are sending a clear, unambiguous message to the mining industry that we want to see exploration kick-started, we want to see new deposits discovered and we want to see new mines developed.

“It takes 10 years at least from the time a deposit is discovered to get them up and running and this is why supporting exploration activity is so vital to the sector’s future.

“Another challenge is getting the resource industry to coexist better with farming, which is something I look forward to working on because resources and farming are both passions of mine.”

In a move designed to deliver certainty and confidence to the sector, Macfarlane has also begun working on an updated version of the Rudd-Gillard Government’s energy white paper. He says it will be ready for release within a year and will focus on industry consultation as well as investigate the role of alternative transport fuel sources including biofuels, LNG, CNG and LPG.

Most importantly, the Abbott Government is already demonstrating a greater understanding of the true breadth and value of Australia’s resource industry to the national wellbeing.

The former Darling Downs farmer appears back where he belongs and is tackling the current crop of challenges head-on.

“The Coalition supports a vibrant and competitive resources and energy sector, recognising the enormous benefits the sector delivers and its vital contribution to our national economy,” says Macfarlane.

“We believe in this industry and are consulting with industry and implementing our comprehensive policy plan as urgently as possible to encourage new investment and stimulate growth.”

CIRCUMSTANCES IN AUSTRALIA’S resource industry have changed dramatically since Ian Macfarlane was last the Minister for Resources.

When Macfarlane lost his ministerial role in the 2007 Rudd election victory, he left the sector well on its way to what would be another half decade of record new project investment, soaring commodity prices and 25% year-on-year employment growth.

However, regaining his resources responsibility under the ‘Industry’ portfolio in 2013, he faces the challenge of helping the industry turn around a year of stagnation where confidence is down, growth is slowing and international investment interest is looking elsewhere.

“The biggest thing I’m looking forward to is getting the sector going again,” says Macfarlane, who has been the Member for GroominQueensland’sDarlingDownsregionsince1998.

“We will make sure the ‘vitamin C’ that has been missing from the industry over the last few years – confidence – is reinjected into the industry.

“Not only do people in Australia need to have the confidence to invest, but internationally we will send the message that the shop is under new management and we want to see our resource industry growing again with confidence.”

Macfarlane attacks the former Labor Government’s track record on ‘choking both big and small business’ with the carbon and mining taxes and vows to reverse the impact of ‘21,000 new regulations introduced over six years’.

However, in an industry he has great passion for, his biggest disappointment with the prior government is the class war rhetoric and vilification of the resource sector that marred its latter months.

“Tony Abbott wants Australians to be proud of the mining industry like we’re proud of our farmers, like we’re proud of our innovators and like we’re proud of our educators. Australia should be proud of an industry that is a cornerstone of our economy,” says Macfarlane.

“I totally agree with that view, and there are plenty of reasons

BIG CHALLENGES for Macfarlane in familiar role The Abbott government’s Minister for Industry Ian Macfarlane is a familiar figure for many AMMA members, having held the resources portfolio under john Howard for six years. Speaking to Resource People, it is clear the Queensland ex-farmer brings passion, experience and vision back to his old post.

Minister for Industry Ian Macfarlane (left)


LEADERSHIP 15

WHEN IT OPENS its doors in mid-2014, the Michael Long Learning and Leadership Centre will instantly provide an education and sporting hub with facilities and services previously unavailable in the Northern Territory.

Located at TIO Stadium in Darwin, the centre is an extension of the AFL’s program to harness the popularity of football to engage Indigenous youth and introduce them to education and employment opportunities.

As its namesake, Long describes the construction of the centre as a realisation of a ‘dream’ and says it will become one of the most important educational facilities in the Northern Territory.

“The quality of life for Indigenous communities must improve and improve fast,” says Long.

“Education is the key. Without education the situation will remain unchanged and young Indigenous Territorians will not prosper and grow.

“Leadership is critical. Without strong leaders entire communities will continue to be blighted by chronic social dysfunction and third-world living conditions.

“I am confident that the Michael Long Learning and Leadership Centre will produce the leaders of tomorrow by engaging them in a suite of football-themed educational modules in a safe, culturally appropriate environment.”

Famed as a courageous advocate for Indigenous rights, Long’s stand against racial vilification in football led to the introduction of a racial abuse code in the 1990s.

In 2004 he completed what is now known as ‘the long walk’ from Melbourne to Canberra to bring his concerns about the plight of the Indigenous to the attention of Prime Minister John Howard.

Michael Long may be one of the northern Territory’s greatest AFL legends, but these days the sport is his catalyst for improving education and employment among Indigenous youth.

AFL LEGEND’S leadership centre takes shape

As his latest endeavour, Long says the Learning and Leadership Centre comes at a time when Indigenous attendance at Northern Territory schools is as low as 15% and numeracy and literacy levels show no signs of improvement.

“Football is part of the long term solution but ultimately it is education that will help young Indigenous Territorians succeed in life,” he says.

“If you are unable to read or write, your chances of succeeding in life, no matter what path you choose, are non-existent. Generations of young Indigenous Territorians don’t stand a chance of becoming the people they deserve to be.”

Long says the centre provides and important link between industries such as resources and the next generation of working Indigenous Australians.

“The relationship between the resource industry and Indigenous Territorians has often been an uneasy one but, like all relationships, honesty, transparency and frank discussion has gone a long way to improving this important relationship.”

The Michael Long Learning and Leadership Centre will house a gym and swimming facilities, offices, lecture theatres and break-out rooms.

A residential component consisting of 90 beds will accommodate children visiting from remote areas.

Michael Long

The Michael Long Learning and Leadership Centre


16 LEADERSHIP

THE AUSTRALIAN CHAMBER of Commerce and Industry’s (ACCI) blueprint ‘Getting on with Business: Reform Priorities for the Next Australian Government’ focuses on: • astrongereconomy;• raisingproductivityand competitiveness; • accessingglobalmarkets;• betterfunctioninginstitutionsand• supportingsmallbusiness.

“Getting on with business both literally and figuratively involves changes to policy and the way governments interact with the private sector,” says ACCI chief executive Peter Anderson.

“It’s hard work, but not impossible because the instinct of private businesses and private individuals is to grow new wealth and employ more people, so long as they are backed-

Australia’s business community has urged the Coalition to adopt five priorities for national reform as one of its first activities in federal government.

ACCI urges COALITION to ‘get on’ with reform blueprint

in by their governments.“Economic management and creating new national wealth

to pay the bills we are racking is the number one task of the government.

“ACCI’s five national priorities are developed by industry and there are literally 101 ideas in the blueprint on how they can be achieved.

“Quite deliberately, supporting small business is a top priority because two million small businesses creating half our national output and employing seven million Australians is, in the words of our election-year message, ‘Too Big To Ignore’.”

Some of the specific recommendations in the blueprint include: lower and better targeted taxes; tertiary education spending linked to industry skill needs; changes to the Fair Work Act; realistic penalty rates in service industries; restoration of employer incentives for offering apprenticeships; and a review of future superannuation levy rises.

PETER ANDERSON

CLIVE PALMER’S AMBITIOUS tilt at Prime Ministership brought great scrutiny and personal attacks on the gregarious mining identity, but regardless of your personal view, the Palmer United Party founder offered up his finances and reputation in the interests of keeping the major parties on their toes.So what’s the man who injected great colour into the 2013 campaign actually like? Resource People got a little insight

when we caught up with Clive for a quick word.

Why did you launch Palmer United and take a shot at the 2013 election?“We launched the Palmer United Party with full intentions to be the next government of Australia. Australian politics has become very boring and our country needs a genuine alternative that doesn’t waste taxpayers’ money and is attuned to the changing needs of the nation.”

What has been your most satisfying achievement to date?“I am proud of the businesses we operate in areas ranging from resources to tourism, which employ several thousand people around the country. I take pride in the success of operations

such as Yabulu nickel refinery near Townsville. BHP was going to close the plant before we bought it, but a strong commitment and tireless work from all staff made the plant a success once again. It was one of the highlights of my business career to reward those hard-working staff members with Mercedes Benz cars and overseas holidays.”

What do you think the future holds in terms of jobs and growth in Australia? “I believe in building competitive enterprise through breaking down centralised controls that have held back productivity. Australia’s best strategy for jobs and prosperity includes responsible fiscal management and industry policy that maximises Australia’s global competitive advantage and minimises the regulatory burden on business.”

Who have been your role models or mentors?“I greatly admire John F. Kennedy and have been fortunate to have made connections with the Kennedy family, including the late Senator Edward Kennedy. I’ve also been fortunate to have had many mentors starting with my late father George. Later I was privileged to work on election campaigns with Sir Joh Bjelke-Petersen, who was Queensland’s longest serving, and, in my opinion, a great premier.”

A quick word with CLIVE PALMER

CLIVE PALMER


POLICY18

THE RESOURCE INDUSTRY has a significant interest in ensuring Australia’s workplace framework provides maximum flexibility, optimal productivity and imposes a balanced regulatory burden on businesses seeking to respond quickly to changing markets and global demand.

So how do the policies of the new Coalition Government stack up to this challenge? AMMA’s executive director industry Scott Barklamb, says Prime Minister Tony Abbott’s team is clearly headed in the right direction, albeit with work to do in some areas.

“The Coalition’s workplace policies are a significant step in the right direction to address the triple threat to our international competitiveness - unsustainable wage escalations,

With productivity and flexibility more crucial than ever to doing business in the Australian resource industry, we look at how the new Coalition government’s policies stack up.

COALITION POLICY SCORE: where do they stack up?

a combative labour environment, and declining productivity,” Mr Barklamb says.

“A modern workplace relations system must provide employers and employees with the capacity to determine the working arrangements that best suit their needs. We look forward to working closely with the Abbott Government to get Australia’s workplace framework up to speed.”

AMMA has analysed and scored the Coalition’s policies across 10 criteria in its Election Year Policy Scorecard. The result - a satisfactory 29 from a possible 40 (73%). So where are the strengths and weaknesses? Read on.

NATIONAL REGULATORY FRAMEWORK/REGULATORY BURDENA single national workplace relations system, without the duplication and complexity resulting from the interaction of six states, two territories and a federal system is a prime requirement of a modern industrial relations system. The Coalition has acknowledged the importance of reducing the WR regulatory burden and supports some changes that will have a positive effect. Score: 3.5/4

AGREEMENT MAKINGIndustry needs a far broader range of agreement-making options including collective agreements, new project (‘greenfield’) agreements and individual agreements, with a duration of up to five years. The Coalition’s fixes to new project agreements are heading in the right direction, however their policy does not do enough to ensure there is a workable form of individual agreement. Score: 2.5/4

AGREEMENT PROCESSINGThe Fair Work Act’s agreement processing is vulnerable to delays depending on the number of agreements lodged, the review mechanism and the resources allocated by the federal tribunal for that function. A simple administrative process is needed and the Coalition’s policy supports two recommendations that would move towards this, including a workable better-off-overall-test (BOOT) for agreement approval. Score: 3.5/4

INDUSTRIAL ACTION AND COMPLIANCEAustralia’s workplace relations laws should prohibit the taking of industrial action during the life of an agreement and provide readily accessible remedies to prevent or stop the taking of unlawful industrial action along with the capacity to seek compensation. The Coalition’s policy addresses some needs of the resource industry by re-establishing the Australian Building and Construction Commission (ABCC) regulator, both onshore and offshore, and tightening the conditions under which protected action ballots can be approved by the Commission. Score: 3/4

UNFAIR DISMISSAL/GENERAL PROTECTIONSAMMA believes there should be a single unfair/unlawful dismissal system with exemptions for probationary employees and high-income earners. Such a system would confine remedies to the merits of the case and protect employers from vexatious and frivolous claims. Unfortunately, the Coalition’s policy will do little to repair the damage that Labor has done in this area, by supporting a new jurisdiction for workplace bullying within the Fair Work Commission and doing nothing to overhaul the existing adverse action provisions. Score: 2/4

MINIMUM STANDARDS AND AWARDSThe Coalition did not oppose Labor’s mid-2013 overreach of employee rights to request flexible working arrangements, and its boosted paid parental leave scheme will impose a new tax on business to foot the bill. However, the Coalition’s policy provides long-awaited clarity about annual leave loading upon termination of employment which AMMA welcomes. Score: 3/4


19POLICY

NEW EMPLOYMENT MINISTER Eric Abetz inherits a policy framework marred by six years of broken promises to the business community and Labor imposing unions and excessive regulation between employers and employees.

Here are the top six priorities, as identified by the resource industry, for new employment minister Senator Eric Abetz to address in order to restore

confidence in the workplace system.1) Urgently address the aspects of the current bargaining

system which have seen premature and damaging industrial action become a hallmark of the current framework.

2) Reform the scope and number of allowable matters in agreements and bargaining for simpler, more flexible and productive agreement-making.

3) Create a system where employers can make ‘greenfield’ agreements for new projects in a timely fashion and have a

SIx KEY CHALLENGES Labor left for the Coalition

safety valve in the event that unions refuse to negotiate.4) Revise the foundation for individual flexibility arrangements

(IFAs) to create genuine scope for flexibility in the workplace.5) Better regulate union access to workplaces, reverse Labor’s

most recent changes that will open up lunch rooms and remote sites to unions, and return union entry rules to those that existed prior to 2009.

6) Remove the Fair Work Act’s adverse action provisions entirely or, at the very least, enact targeted changes to stop adverse action being used to bring frivolous claims and unjustified actions against employers.

In addition to these six priorities, the Coalition should urgently progress its promise to restore the Australian Building & Construction Commission (ABCC) with all its full former powers and legislative backing, ensuring the rule of law is extended to offshore construction sites as well as onshore projects.

Key changes in this area will be bringing penalties for breaches of the law back up to what they were, after the Labor government reduced penalties by two-thirds and weakened their deterrent value.

ERIC ABETZ

UNION ENTRY INTO WORKPLACES AND ACCESS TO RECORDSUnion access to worksites and employee records must be balanced and controlled. Employers deserve a system where under a single national law unions can only access sites for discussion purposes where they have a current or historical connection to a worksite via a workplace agreement or award. The Coalition’s policy on union access to workplaces comes very close to meeting resource industry needs by seeking to restore the pre-2009 right of entry system. Score: 3.5/4

INDEPENDENCE OF THE INDUSTRIAL TRIBUNALDuring Labor’s six years in parliament, two-thirds of appointments to Fair Work Australia were from a union or Labor-affiliated background. To ensure the independence of the tribunal, further appointments should be based on merit and not favour one side of politics over another. The Coalition is considering a jurisdiction within the tribunal where appeals of decisions can be heard independently. Score: 2.5/4

IMPACT ON PRODUCTIVITYAustralia’s workplace relations system must foster productivity by being as flexible as possible and putting productivity on the agenda in enterprise bargaining and agreement making. The Coalition’s score in this area is only slightly ahead of Labor’s given that its policy at least directly addresses productivity issues. Tasking the Productivity Commission with a thorough review of the Fair Work laws is an important initiative and could see the Coalition deliver a more productive system. Score: 2/4

ACCOUNTABILITY OF REGISTERED ORGANISATIONSAMMA is incorporated with the Australian Securities and Investments Commission (ASIC) and is of the view that all registered organisations (both unions and employer groups) should be subject to the same processes, rules and penalties applying to corporations rather than receiving special treatment. The Coalition has proposed significant reforms in this area including introducing the same rules for unions and employer organisations as apply to companies and directors, but keeping separate legislation rather than using the Corporations Law. Score: 3.5/4


POLICY20

THE LATTER HALF of 2013 has seen significant changes developed and passed into law that will mean Australian businesses are facing a greater level of regulation in this area than ever before and greater obligations to proactively manage bullying in their workplaces.

The most hotly-contested development is the new jurisdiction for the national industrial tribunal, the Fair Work Commission (FWC), which will be able to deal with complaints

from workers who believe they have been bullied at work from 1 January next year.

The creation of this new jurisdiction under the workplace relations framework was opposed by employer representative groups including AMMA, saying instead it was a matter for regulators in the workplace health and safety area.

Giving the low threshold for accessing this new jurisdiction, AMMA also flagged its potential to encourage frivolous claims or claims about genuine performance management that should not be captured under the new bullying framework.

In some instances employers may be encouraged to settle matters by paying ‘go-away money’.

AMMA senior workplace policy adviser Lisa Matthews says having the policies and internal reporting systems in place will help employers manage their liabilities in this area.

“Resource employers take workplace bullying extremely seriously, however, there are concerns that these new measures could overlap and undermine employers’ own investigations, as well as the types of claims that be brought before the commission,” says Matthews.

“There also remains uncertainty as to how this industrial jurisdiction will operate and intersect with other anti-bullying measures under Australia’s OHS jurisdiction. One thing that is clear is that employers face significantly increased regulation, obligations and potential liabilities.

“One positive note is that AMMA’s lobbying on the issue has seen the Coalition Government promise to explicitly include bullying by unions in the new jurisdiction, while it is also planning to introduce new requirements for employees to meet before they can take claims to the commission.”

Another big concern for employers, according to Matthews, is a proposed new national code of practice for Preventing and Responding to Workplace Bullying which is likely to be

Big changes to how workplace bullying is regulated and investigated in Australia come into effect in 2014 and AMMA’s specialists say being prepared with the right policies and processes will help protect your business’ exposure.

Know your obligations and risks under new BULLYING FRAMEWORK

adopted in most states around the same time as the FWC’s new jurisdiction takes effect.

“AMMA urged Safe Work Australia to adopt the information as guidance material rather than a code, which could be used in legal proceedings against employers,” says Matthews.

“However at this stage, we expect all states other than Victoria will adopt this national code once finalised in the coming months.

“As the document stands in its current draft form, it would be extremely difficult for employers to comply with all the requirements, which in AMMA’s view go further than what the work health and safety legislation warrants.”

AMMA’s director of legal services, Amanda Cochrane, says it is vital for employers to prepare for this new two-fold regime, also keeping in mind they have obligations under state and federal anti-discrimination laws in relation to workplace bullying.

To both minimise exposure to complaints in the first instance and then manage them if they are received, she says employers must ensure they have adequate policies and procedures covering the new developments, communicate these policies and all internal processes to staff, and ensure they know who the key contact points are for raising issues.

“Many employers have policies called ‘discrimination, bullying and harassment’, which incorporates workplace bullying. That is fine as long as you check they are updated to reflect these latest legislative changes,” says Cochrane.

“If you don’t have a policy that adequately covers workplace bullying, you will need to implement one that is reasonably comprehensive and ideally give examples of behaviour that you consider to be workplace bullying as well as examples of what is not considered workplace bullying, to avoid confusion.

“Once your policies are updated, you’ll need to communicate them again to all staff, ideally both verbally and in writing given that English may not be the first language of some of your employees. The final step is to provide regular refresher training in your policies. AMMA can assist you in all of these areas if required.

“Once you have strong procedures and policies in place, you must ensure you take immediate action if a complaint is received, and ensure you fulfil your number one duty of care to provide a safe and bully-free workplace for your staff.”

For advice about how to protect your business, comply with new bullying obligations and understand how to navigate Fair Work Commission processes, Cochrane can be contacted via your local AMMA office.

LISA MATTHEWS


21POLICY

PRODUCTIVITY COMMISSION REVIEWThe Coalition Government has indicated it will undertake a Productivity Commission-led review of Australia’s workplace laws, the Fair Work Act. AMMA will build on its close working relationship with Prime Minister Tony Abbott and his government to ensure our members’ concerns are appropriately represented both in the scope of the review and the evidence provided to support change.

RMIT WORKPLACE RELATIONS RESEARCH PROjECTThe sixth and final edition of The AMMA Workplace Relations Research Project has been published on AMMA’s website. This series of six-monthly surveys was conducted by RMIT University and analysed the workplace relations environment for AMMA members in the resource industry, providing an integral body of research for AMMA’s policy and lobbying activities. Findings from the latest report include that over-regulation of workplace relations has created a costly, time-consuming and unproductive framework for doing business and employing people. The full scope of results covers feedback on industrial action, union site access, wages, workplace flexibility, enterprise bargaining and engagement with the workforce. Thank you to all participating members.

NEW MARITIME REGULATIONA raft of amendments to primary legislation, regulations and Marine Orders have been put in place, many of which are to implement the International Labour Organisation’s Maritime Labour Convention, 2006, and other international obligations. Revision and redrafting of Marine Orders, for example, will continue into 2014 and AMMA will continue to make submissions seeking to influence this process. For information about the commencement and practical effect of the legislative changes contact Julie Copley in our policy team.

OFFSHORE MIGRATION ZONE ExTENDEDThe Migration Amendment (Offshore Resources Activities) Act 2013 (Cth) will commence in 2014, deeming all people operating in support of offshore resources activities to be in an extended Australian migration zone and needing working visas. AMMA has provided clear evidence that the legislation is ill-founded and inconsistent with other nations and we are working at all levels with the new government to ensure its repeal. Prior to this we are working to shape the new visa requirements and be able to advise members accordingly.

POLICY PAPER ON UNION ACCESS TO WORKPLACES In the first of a series of Resource Industry Workplace Relations Papers, AMMA has released its paper Trade union access to workplaces. The paper provides a comprehensive review of the Fair Work Act’s ‘right of entry’ system backed by facts, evidence and independent research into resource industry employers’ experiences under the current rules. This paper will shortly be followed up by the release of two other papers in the series

A wrap-up of recent resource industry policy activity by AMMA executive director, industry, Scott Barklamb.

POLICY at a glance

on Greenfield (new project) agreements and Adverse Action / General Protections.

CFMEU VS MAMMOET AUSTRALIA PTY LTDThe High Court has unanimously allowed an appeal from the decision of the Federal Court of Australia in CFMEU v Mammoet Australia Pty Ltd. The matter relates to industrial action on Woodside’s Pluto Project in April 2010 where originally, the Federal Magistrates Court found providing accommodation to striking workers was prohibited because it constituted ‘strike pay’ and the employer was right to withdraw it. In 2012, the Federal Court upheld this decision after the CFMEU appealed, however the High Court has now set aside both earlier decisions and remitted the matter back to the Federal Circuit Court to be determined afresh. AMMA’s legal team can advise you on implications for your operations.

SUBMISSION ON LABOUR MOBILITYAMMA has made a submission to the Productivity Commission’s study into labour mobility, highlighting that it is vital for policy makers to take a realistic and pragmatic look at the complex challenges associated with domestic labour mobility. We argued that understanding the real-world challenges associated with labour mobility will generate sensible and practical policy making that takes into account the necessity and benefits of supplementary labour sources while at the same time seeking to ensure the local population is as highly and relevantly-skilled as possible. This submission can be read on AMMA’s website.

AMMA’s policy specialists, employee consultants and legal professionals are best placed to advise you on how any of these policy developments may impact your operations. Contact your local AMMA office via www.amma.org.au.

SCOTT BARKLAMB EXECUTIVE DIRECTOR, InDUSTRy, AMMA


MIGRATION22

RESOURCE EMPLOYERS ARE hopeful new Minister for Immigration and Citizenship Scott Morrison will act on his pre-election promise to restore business confidence in Australia’s skilled migration program.

Speaking at the AMMA Brisbane Migration Forum ahead of the federal election, then-shadow minister Morrison said Labor’s legislative changes to the 457 visa program were threatening the viability of $350 billion worth of projects yet to come to market.

“Labor’s attack on skilled migration through the measures introduced to choke the 457 visa program with union red tape was nothing more than economic vandalism,” Mr Morrison said.

“The innovation, commitment, skills and application shown in this sector is a leader to the rest of the economy and one we want to encourage and support because we are all the beneficiaries.

“Australia’s competitiveness on a global stage is slipping, business is competing for a pool of global capital and currently

AMMA migration services manager Jules Pedrosa reviews Migration Act amendments passed through the last sitting week of the rudd Government, including the introduction of labour market testing and changes to the 457 visa program.

UNTIL NEW MINISTER for Immigration Scott Morrison reviews and puts forth the Coalition’s changes to the Migration Act (see

above article), resource industry employers will need to know how the previous Labor Government’s amendments affect them.

Labour market testing (with some exemptions): A labour market testing (LMT) requirement for the 457 visa program is due to take effect on 1 January 2014. Under LMT, employers must provide details of job advertising (paid or unpaid) and relevant expenses paid (or payable) for that advertising in their 457 application. This applies to all engineers and trade and technical roles.

no longer in the shadow cabinet, new Minister for Immigration and Citizenship Scott Morrison has promised resource employers the Coalition government will return certainty to Australia’s 457 visa program.

new IMMIGRATION MINISTER to look at onerous 457 changes

Wrap-up of LABOR’S LAST migration changes

there is a real risk of being overlooked because of the perception we are high cost and low productivity.

“If this continues, projects worth billions of dollars, not to mention the thousands of jobs that go with them, will only move in one direction – offshore.

“We need to be tight when it comes to the enforcement of the regulations, but fixing those problems doesn’t require more regulation.”

“The Coalition believes in a well run migration program that focuses on skills and creates jobs for Australians.”

Labor’s raft of changes followed union campaigns against ‘rampant abuse’ of the 457 visa system and included the reintroduction of onerous labour market testing, stricter English language requirements and more than doubling of the $455 visa application fee to $1035.

AMMA chief executive Steve Knott urged the government to send a clear message to the global business community that Australia’s resource employers would have access to a skilled migration program that responded to commercial needs.

SCOTT MORRISON

jULES PEDROSA

FWo inspectors: Greater scrutiny should also be expected as Fair Work inspectors have greater powers to monitor and enforce employer compliance with 457 visa obligations. These powers include undertaking worksite inspections, interviewing employees and requesting pay slips and other records from employers.

Increase in fees: On top of the existing doubling of fees from $455 to $900, additional fees for the ‘dependants’ of the primary visa holders have also been introduced – $900 for dependants over age18and$225fordependantsunderage18.

More time to renew sponsorship:Thebillalsoextendsfrom28to 90 consecutive days the period in which 457 visa holders can seek new sponsors after the termination of their job.

Sponsorship obligations: The bill enshrines into law increased marketratesthreshold(from$180,000to$250,000);stricterEnglishlanguage requirements; the requirement for ongoing demonstration of training; and new restrictions for on-hire arrangements.

A range of additional regulatory changes and costs, were introduced by the amendment bill earlier this year, contact AMMA Migration services for more information.


MIGRATION 23

457 VISA program effective, says Migration CouncilA WIDE-RANGING STUDY into Australia’s 457 visa program reveals both employers and skilled migrant workers were satisfied with the scheme prior to the Labor Government’s recent amendments which included tighter labour market testing and increased application fees.

The Migration Council of Australia (MCA) report, More Than Temporary: Australia’s 457 visa program also found that 457 visa workers are critical to keeping Australia competitive in an erawhere98%ofinnovationhappensinternationally.

“The 457 visa program has become a critical part of the economic toolkit. It was deliberately designed to respond to skills shortages, but the other function was to connect Australia to international development,” says MCA CEO Carla Wilshire.

“In order to secure a foothold in innovation break-throughs, access new knowledge frameworks and keep abreast of technology in different sectors, we need to have mechanisms that can rapidly connect us to other parts of the world.”WilshiresaystheMCAsurveyof3,800visaholdersand1,600

businesses debunks the myth that 457 visa workers are not contributing to Australia’s permanent skills capacity and are

negatively impacting training and workforce planning.“The one-way negative effect on training was not evident

at all; what we saw was a positive correlation between temporary migration and the development of human capital of Australia,” she says.

“About 76% of 457 workers said they helped train or develop other workers. That increased with firm size with four out of five multinational companies specifically using 457 visa holders to train their Australian workforce.”Thesurveyalsofoundthat88%of457visaholderswere

satisfiedorverysatisfiedwiththeiremployersand85%ofemployers were either satisfied or very satisfied with the program.

Wilshire says the survey results do not support the federal government’s case for wide-ranging reform to the scheme.

“Employers are using the program as they are intended to. It is a well functioning program that needs to be constantly monitored, but it is not out of control,” she says.

“The way some elements of the debate were handled would have had quite a negative impact on global perceptions and also the sense of belonging that migrant workers have.”


OHS & WELLBEING24

SPORTING A SOUPED-UP 1974 Holden Kingswood complete withanewV8motorandrollcage,managingdirectorJulianSmith joined more than 60 fellow contestants on a 4,500km bush rally to raise much-needed funds for Kidney Health Australia’s Kidney Kids program.

The flag dropped in Tamworth and over the eight-day bash, the ‘Kidney Kars’ crossed all manner of Australia’s toughest terrain to pass a checkpoint in Bundaberg, before again turning south towards the Armidale finish line.

“Kidney disease affects more people than most realise, and the annual Kidney Kar Rally is a great measure to help kids living with, and affected by kidney disease,” says Smith.

“It’s a great cause and opportunity to connect with wonderful people from other competing cars, not to mention the opportunity to travel throughout Australia each year, take some time off work and raise money for the kids.”

Now a five-year veteran driver for Diamond Protection, Smith rates the 2013 rally a resounding success – especially compared to his second drive during which he rolled Diamond Protection’s first car, a rebuilt 4WD Toyota Hilux now know as ‘the Rollux’.

“Over the first three days the Diamond Protection team was sitting at equal second, which is a great result, but as with every year the rally is very unpredictable,” he says.

“On Day Four, we blew a rear shocker that needed attention from a bush mechanic, but I am pleased to say we didn’t roll

Diamond Protection has proven to be a cut above when delivering hard-line security, emergency and training solutions for the resource industry, but the company recently swapped its uniforms for race suits as it made tracks against childhood kidney disease.

Making tracks against KIDNEY DISEASE

three times on day one, as we did three years ago.”Despite the delay, the Diamond Protection team placed 12th

overall and raised more than $7,700 for Kidney Health Australia, making the ‘Kidney Kids’ the real winners.

“This rally is an amazing journey experiencing different parts of Australia, making life-long friends and raising funds for kids who need this kind of support,” Smith says.

“Funds raised through these rallies provide children with Kidney Health Australia’s Kidney Kids program the opportunity to meet others living with the same condition in a safe and fun environment while building self-confidence and providing respite.”

The rally also raises awareness for kidney disease as it progresses through New South Wales and Queensland. At each stop Kidney Health Australia takes to the streets of local towns and offers free kidney disease risk assessments.

“One in three Australians is at risk of kidney disease and yet kidney disease flies under the radar of awareness, because it has no warning signs,” says Kidney Health Australia chief executive Anne Wilson.

“But it is treatable if caught early, and we hope that every kilometre of the Kidney Kar Rally made one more person aware of their risk.”

In its 25th year, the 2013 Kidney Kar Rally raised a total of $620,000 to help support the Kidney Kids program in 2014.

Diamond Protection’s V8 Kingswood named “Kar 1995”


OHS & WELLBEING26

INFLUENZA IS THE most common reason for absenteeism in the workplace, causing an average of four days absence per employee each year, according to Deloitte research. While ‘the flu’ is certainly more prevalent in winter, employee wellness is a year-round issue.

Not only does an individual’s health affect their wellbeing, it also influences their productivity, morale and ultimately the organisation’s profitability.

Here are some simple tips for demonstrating a commitment to employee health that your organisation can easily adopt:

FITNESS – ENCOURAGE YOUR EMPLOYEES TO GET UP AND MOVINGImplementing a company-wide fitness program can have overwhelming benefits to your employees and your organisation. Studies have shown that employees who exercise on a regular basis have increased job satisfaction, improved morale, reduced injuries and increased productivity. Plus, employees who are healthy and in shape have a lower risk of high blood pressure and lower their risk of developing high cholesterol.

Many companies get creative with their employee fitness programs. You could try engaging a personal trainer for the building; consulting with local gyms for corporate discounts; introducing after-hours yoga or pilates classes; or setting up a corporate massage program designed to reduce stress and boost workplace morale.

These types of programs don’t take up much room and need even less resources, but can be very beneficial to the physical and mental health of your employees.

MENTAL HEALTH – CREATE AN OPEN AND SUPPORTIVE ENVIRONMENT FOR EMPLOYEES Addressing depression and other mental health disorders is an extremely important part of your employees’ overall health.

Beyond Blue research suggests that depression affects one in five people; with undiagnosed depression predicted to cost organisations about $9,660 in absence each year. Start creating a culture where it is ok to talk about mental health, without judgement.

Educate your managers on how to deal with employees who experience symptoms and communicate your commitment to helping those in need.

DIET AND NUTRITION – ENCOURAGE HEALTHY HABITSChamomile tea contains polyphenols that help increase antibacterial activity and prevent illness. It also has a calmative effect, minimising stress and boosting energy.

Aon Hewitt’s services cover the full spectrum of human resources solutions but according to its wellness specialist Danni Hocking, getting the best out of your people can be as simple as helping them stay fit and healthy.

Empowering HEALTHY HABITS

What workplace wouldn’t benefit from less stress and more energy? Providing herbal tea in the employee lunchroom doesn’t

sound like cutting-edge human capital management, but this is just one example of how making small changes can make a big difference on the morale and general health of your workforce.

There are many low cost ways for an organisation to show its employees that their health and wellbeing is an ongoing priority.

Providing healthy food in the lunchrooms is a popular method for keeping employees healthy and engaged. Promote items that are high in vitamins, nutrients and minerals such as fruits and nuts.

Hydration is a key factor in optimal health. Making water readily available around your office will help your employees stay hydrated and healthy all year long. Ensuring your employees don’t have far to go for water can also discourage them from snacking on unhealthy drinks such as coffee or soda.

COMMITTING TO LONG-TERM WELLNESS One of the most important elements to keeping your office healthy is to encourage employee self-care by empowering your staff to make decisions based on their own individual wellbeing. Have you considered conducting health risk profiling for your employees? They will learn more about their own health profile and be more motivated to engage in healthy behaviours.

Aon Hewitt believes people are key to the success of any organisation. The health and wellbeing of employees directly impacts an organisation’s success as a workplace and as a business. A year round commitment to employee health and wellbeing can not only drive productivity by reducing absenteeism and presenteeism, but can increase employee engagement and make a real difference to your workplace.

Danni Hocking is principal – workforce risk solutions, wellness with Aon Hewitt.

DANNI HOCKING


OHS & WELLBEING 27

SODExO fast tracks healthy lifestylesAFTER FOUR YEARS of development and offshore trials in the North Sea, foodservices and facilities management company Sodexo is preparing to launch a comprehensive health and well-being program in its Australian operations. The program supports Sodexo’s new positioning as a provider of ‘Quality of Life Services’.

The roll-out of ‘Well Track’ has commenced at South Australia’s Prominent Hill copper-gold site, where Sodexo manages the village facilities for OZ Minerals, and focuses on physical fitness activities and nutrition, supporting family communications and mental health and boosting workforce motivation for a healthier mining lifestyle.

Participants are given a comprehensive program to follow, combining exercise and diet with personal-motivation goals.

“Without a healthy, positive work environment, you’re faced with high absenteeism and presenteeism (present for work but mentally unfit for duty), accidents, productivity loss and major health care costs. It also makes retaining quality workers harder,” says Sodexo Australia’s marketing director Maria Kucherhan.

“At Sodexo, we’ve been studying this issue for many years. Based on extensive analyses and consumer research, we’ve developed a unique, new value proposition; a results-driven offering designed to tackle wellness head on and yield

positive, quantifiable benefits.“Instead of just hearing pep talks about why healthy habits are

so important, Sodexo’s Well Track initiative provides workers with a dedicated coach to guide and support. Our wellness coaches assess, instruct, encourage and monitor participants both at work and at home as they strive to earn points and reap rewards.”

R&D for Well Track began at Scotland’s Aberdeen University in 2009 with the program first piloted by Sodexo on North Sea offshore platforms managed for Dolphin Drilling.

Prominent Hill marks the first onshore location to undertake the initiative, while expansion plans include Sodexo’s other remote sites across Australia and in the UK, Norway and Gulf of Mexico.

“Our local roll-out of Well Track has been complemented by a literature review conducted by Professor Kerry Carrington of the Queensland University of Technology,” Kucherhan says.

“The research focused on health challenges of the mining environment and lifestyle, the impact of wellness and well-being on the performance of mining workers, and the impacts of alcohol, tobacco and obesity on company productivity.”

Ensure you read the next edition of Resource People for an update on how Sodexo’s Well Track program is tracking at Prominent Hill.

PEOPLE, PROjECTS, PERFORMAnCE: 60 YEARS OF BECHTEL IN AUSTRALIA

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www.amma.org.au | Spring ’13 – Summer ‘14 |

COVER STORy

Globally, Bechtel’s mining and metals business employs 50,000 people across 11 countries and turns over about $7 billion per annum. We’re running that out of Brisbane and taking Australia to the world – I’m pretty proud of that.

ANDY GREIG

President of Bechtel’s global mining business Andy Greig oversees $20bn of contracts and 50,000 employees across the world from his Brisbane office. While constructing seven cutting-edge engineering projects in this country alone, the 32-year Bechtel veteran is most focused on developing his people and having a positive impact on local communities.


29COVER STORy

UNASSUMINGLY SITTING jUST offshore the central Queensland industrial city of Gladstone, Curtis Island has been transformed into a bustling hub of world-class engineering and construction activity as the processing and export facilities for three landmark LNG projects come to life.

Bechtel, a global leader in project management and one of the world’s largest privately owned companies, is designing an

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Transfield Services - AMMA · 2013. 9. 25. · Issue 005 Spring ‘13 – Summer ‘14 Bechtel’s Andy Greig Transfield Services talks Curtis Island Lng projects and 60 years in