The Fair Work Commission has commenced hearings in a case that tests the Albanese government’s Same Job, Same Pay laws. 

The Mining and Energy Union (MEU) has alleged that BHP underpaid 1,600 labour hire workers at its Queensland mines, calling for wages equivalent to permanent employees.

The MEU claims that workers at the Peak Downs, Saraji, and Goonyella Riverside mines are earning $10,000 to $49,000 less annually than their full-time counterparts, despite performing the same roles. 

The union argues the alleged wage gap is a clear violation of labour hire reforms designed to close loopholes and ensure fair pay.

BHP has countered the union’s allegations, claiming that its labour hire subsidiary, Operations Services (OS), operates under different conditions. 

According to the company, OS employees are service contractors whose compensation is tied to performance metrics rather than traditional labour agreements. 

A company statement highlighted that OS has created “more than 4,000 permanent, high-paid jobs” and offers competitive conditions.

The union has dismissed this defence. 

MEU General Secretary Grahame Kelly said outside the hearing; “BHP's going to turn up here, and they're going to try all this smoke and mirrors. We call on BHP to pay up now”. 

MEU legal representatives argued the company’s case was “untenable”, asserting that the legislation was specifically enacted to address such disparities.

The case will serve as a critical examination of the Same Job, Same Pay laws introduced last year. 

These laws require that labour hire workers performing identical roles to permanent staff receive equal pay and conditions. Union representatives have noted similar cases have already resulted in significant pay increases across the mining sector.

If successful, the application could result in wage adjustments for workers employed through BHP’s subsidiary and other labour hire providers. 

Union leaders and advocates for labour rights have framed this case as emblematic of a wider struggle against wage suppression. 

“Whether it is Qantas or BHP, Australian unions are determined to stamp out exploitative labour hire practices,” ACTU Secretary Sally McManus said.

BHP’s representatives are expected to present their case in the coming days. 

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