In a pivotal decision that is expected to have wide ranging impacts across the mining and labour hire sectors, the Fair Work Commission (FWC) has upheld an application by the Mining and Energy Union (MEU) concerning the use of labour hire workers at BHP’s Goonyella Riverside, Peak Downs and Saraji mines located in Central Queensland.
The ruling clarifies the intent and strength of the “Same Job, Same Pay” provisions under the Fair Work Act 2009, as amended by the Closing Loopholes No. 2 Act 2024.
Case Overview
The MEU submitted a significant application on behalf of over 1,600 labour hire workers across several of BHP’s Queensland coal sites, including Goonyella Riverside, Peak Downs, and Saraji. These workers, employed by BHP’s in-house labour hire subsidiary Operations Services (OS), as well as external agencies such as WorkPac and Chandler Macleod, were found to be earning between $10,000 and $49,000 less per annum than directly employed mineworkers performing equivalent roles (ABC News, 2025).
BHP had argued that OS was providing a separate “service” and that the arrangement did not fall under the labour hire provisions outlined in the new laws. The company claimed these workers were engaged on different performance frameworks and rosters that distinguished them from enterprise agreement covered employees (The Australian, 2025).
FWC’s Decision and Its Significance
The Commission rejected BHP’s argument, ruling that the OS arrangement was, in substance, a labour hire model. The FWC stated that OS workers were doing “the same, or substantially the same, work” as directly employed mineworkers and were therefore entitled to the same full rate of pay (Fair Work Commission, 2025). This means BHP must now ensure that all labour hire workers across these sites receive parity with employees covered under the applicable enterprise agreements.
The decision will see approximately 2,200 labour hire workers receive pay rises of up to $30,000 per year, with BHP facing a total cost impact of around $66 million (Australian Financial Review, 2025). This outcome sends a clear message to employers that internal subsidiaries or alternate structures cannot be used to circumvent enterprise bargaining outcomes.
Implications for Employers
This case is a landmark test of the new Same Job, Same Pay provisions and demonstrates that:
- Host employers cannot avoid pay parity by creating in-house labour hire companies or using third-party agencies where workers perform the same work as their direct employees.
- Labour hire providers and host businesses must closely assess job equivalence and ensure workers are paid in line with enterprise agreement conditions.
- Fair Work Commission orders can be sought by unions, employees or the Fair Work Ombudsman, making non-compliance highly visible and enforceable.
This Goonyella Riverside ruling highlights the Fair Work Commission's intent to strictly apply equal pay for equal work principles, reinforcing protections for labour hire workers and promoting wage fairness in the mining sector and beyond.
Employers using labour hire arrangements, particularly in sectors such as mining, manufacturing, logistics, and construction, should urgently review their compliance with the Fair Work Act’s amended labour hire provisions ahead of increased enforcement.
For further information or assistance in aligning your labour hire practices with current legislation, please contact Linq HR.
References
ABC News (2025) Fair Work Commission case accusing BHP of underpaying labour hire workers. Available at: https://www.abc.net.au/news/2025-01-20/qld-meu-bhp-same-work-same-pay-fair-work/104837684
Australian Financial Review (2025) BHP loses $66m fight over labour hire laws in landmark ruling. Available at: https://www.afr.com/work-and-careers/workplace/bhp-loses-66m-fight-over-labour-hire-laws-in-landmark-ruling-20250704-p5mclj
Fair Work Commission (2025) Decision: Mining and Energy Union v BHP – Goonyella Riverside Mine (Labour Hire Provisions).Available at: https://www.fwc.gov.au/documents/decision-pdf/2025fwcdecision-bhp-goonyella-samejob-samepay.pdf
The Australian (2025) Unions win landmark test case against BHP for ‘same job, same pay’. Available at: https://www.theaustralian.com.au/nation/unions-win-landmark-test-case-against-bhp-for-same-job-same-pay/news-story/87bccf967c7c9275296fb64444063dc7