Rio Tinto slams controversial Closing Loophole reforms, arguing amendments still leave questions unanswered

Rio Tinto’s iron ore boss Simon Trott has slammed Labor’s controversial industrial relations laws shakeup, arguing last minute amendments have left a raft of questions still unanswered. The mining giant has joined Roy Hill and the Minerals Council of Australia in warning service contractors are still at risk of being captured despite a deal to carve them out. “We have serious concerns about the Bill as its currently drafted,” Mr Trott said. “The amendments in no way exempt or simplify the use of service contractors, which the mining industry in this State relies upon.” The chief executive of the major division of the mining giant confirmed the company’s frustration with the Closing Loopholes Bill, which on Wednesday cleared its first legislative hurdle by passing the lower house, with dozens of last-minute changes. Those last minute changes not only angered Rio Tinto, but a number of business and industry groups, which claim to have been blindsided by the amendments. Mr Trott said the current draft of the reforms places a “handbrake” on the economy, claiming the Government has made no indication on how it would boost productivity and a number of concerns it raised during a Senate inquiry “remain unaddressed”. “There is no link to productivity in the Bill,” he said. “All we can see is an increase in complexity and costs. These factors will increase uncertainty and ultimately act as a handbrake on the national economy.” Rio Tinto has largely been silent on the Bill, which proposes sweeping changes to the industrial relations system that includes a new definition of casual employment, “same job, same pay” rules for labour-hire workers, minimum conditions for gig workers and the criminalisation of wage theft. Labor in the House of Representatives was able to pass the Bill with more than 90 amendments made. The real fight will be in the Senate, where the Government needs to secure the support of the Greens and a pair of crossbenchers to get it across the line. A Senate vote isn’t expected until after an inquiry into the Bill hands down its final report, due on February 1. Qantas and Rio’s major competitor BHP have largely been a central point of attack among the Labor and union ranks for rorting labour hire arrangements. BHP has attempted to counter this claim, arguing its Operation Services business in WA and Queensland is being mischaracterised and outlawing its service contractors arm would cost thousands of jobs at the economy and damage the sector. Workplace Relations Minister Tony Burke said the reforms “closes the loopholes that certain employers use to undercut wages, conditions and safety for Australian workers”. But a number of business leaders say they were caught off guard on Tuesday after Mr Burke put forward dozens of surprise amendments – including a new provision that could extend the potential scope of the “same job, same pay” to all companies involved in joint ventures. Joint ventures are common in WA’s oil and gas industry – with Woodside, Shell, Chevron and Inpex all partnering with other companies on projects. Minerals Council of Australia boss Tania Constable said the last-minute amendments had made a “terrible” Bill even worse and was adamant service contractors were still at risk of being captured under the new labour-hire regime. The amendment was the result of a deal between Mr Burke and the Australian Resource and Energy Employer Association which has caused a split in the mining industry. Ms Constable blasted Mr Burke for targeting labour hire in the first place, saying mining companies relied on surge workforces as projects scaled up and down. “Why would the Government target the resources industry, the most productive industry across Australia when we need at this particular time to bring down the cost of living, bring down the cost of housing, bring down the cost of transport, bring down the cost of groceries,” she said. Ms Constable voiced her concerns in Parliament House alongside the heads of the Business Council of Australia, Council of Small Business Organisations Australia, Master Builders of Australia and Recruitment, Consulting and Staffing Association and the Australian Chamber of Commerce and Industry. ACCI chief executive Andrew Mckeller said the handling of the Bill was starting to test the business community’s relationship with the Government. “It is causing damage, it is making it much more difficult in an environment where there are real risks for the Australian economy,” he said. Business Council of Australia chief executive Bran Black said the Government had failed to consult and listen to its concerns. “The result is you have a Bill that adds uncertainty, it adds risk, and it adds cost at a time Australians can least afford it.”