About Same Job Same Pay
Need to know:
- Same Job Same Pay passed on 7 December 2023, following the Mining and Energy Union’s campaign for this change
- Same Job Same Pay works by your union applying to the Fair Work Commission for Same Job Same Pay in your workplace
- Same Job Same Pay orders can only be issued at sites where permanent employees are covered by an Enterprise Agreement
- There are exemptions for registered trainees and apprentices, short-term placements, small businesses and genuine specialist contractors
- Same Job Same Pay orders can be issued by the Fair Work Commission now, but will not commence operation until November 2024
What is Same Job Same Pay?
Same Job Same Pay was introduced to stop labour hire workers from being paid less while doing the same job as workers directly employed under an Enterprise Agreement. It passed on 7 December 2023.
Same Job Same Pay depends on the Enterprise Agreement of the host company. In order to receive Same Job Same Pay at your site, your union is required to apply for an order with the Fair Work Commission. The union must prove to the Commission that labour hire workers are performing the same work for less pay than direct employees. There are exemptions for registered trainees and apprentices, short-term placements, small businesses, and genuine specialist contractors.
In issuing a Same Job Same Pay order, the Fair Work Commission sets a ‘Protected Rate of Pay’, which must be paid to all labour hire workers undertaking the same work as directly employed workers. The PROP is based on the rate outlined in the host company’s Enterprise Agreement, but does not include other conditions such as leave entitlements.
Same Job Same Pay will only increase the wages bills of those companies who have used labour hire loopholes to cut wages and undermine collective bargaining. We are optimistic that once the financial incentive for outsourcing jobs is removed through ensuring equal wages, then mine operators will begin employing more workers directly.
Help us win Same Job Same Pay at your worksite
Same Job Same Pay orders will come into effect in November 2024, but the MEU has already begun making applications. Our cases are stronger with the more members we have on site, so there has never been a better time to get involved, or to talk to your workmates about joining.
Thank you to everyone who has contributed or supported the campaign over the years. This law is an extraordinary accomplishment.
We will keep members up to date with next steps as we make fairer wages a reality.
Frequently Asked Questions
The law allows for applications to be made to the Fair Work Commission (FWC) for an order that labour hire employees must be paid at least what they would receive under a host’s EA.
There are exemptions for registered trainees and apprentices, short-term placements, small businesses and genuine service contractors.
The Fair Work Commission will then make an assessment that a Same Job Same Pay order would be fair and reasonable – including whether labour hire workers are performing the same work as EA employees – and can make an order setting a ‘Protected Rate of Pay’.
The ‘Protected Rate of Pay’, which sets minimum pay rates in line with the relevant Enterprise Agreement on site, is how Same Job Same Pay would be delivered at a worksite.
Additionally, we are optimistic that once the financial incentive for outsourcing jobs is removed through ensuring equal wages, then mine operators will employ more workers directly.
The MEU is applying to the Fair Work Commission for Same Job Same Pay. We are making applications at eligible workplaces based on circumstances at the site and in consultation with MEU labour hire members. We made the first applications in NSW and Queensland in March – follow along here!
Same Job Same Pay orders issued by the Fair Work Commission will commence operation 1 November 2024.
The FWC will apply a test to determine whether workers are considered labour hire or ‘service contractors’. In general, labour hire means workers supplied by a labour hire company to work in roles which are supervised or managed by the host.
In contrast, the Commission will assess whether a company is a service contractor based on a number of facts, including whether a company is supplying their own supervisors and equipment for use by the workforce, and whether they perform specialist work on a site.
We expect employers to misrepresent the nature of their engagement of workers in opposing our applications, however the Fair Work Commission will ultimately determine whether a Regulated Labour Hire Order is applicable in any circumstance.
We are confident that many workers in the mining industry can be classified as ‘labour hire’ and we will be encouraging labour hire workers to join the union to strengthen our applications.
The Bill establishes stronger rights for union Delegates. Importantly, the Bill provides for specific rights for Delegates to represent the industrial interests of union members and potential members, including in disputes. This provides for a more active and recognised role for Delegates to be a representative, not just a support person or a shoulder to cry on.
The Bill also provides for reasonable access to paid training for Delegates. This will be helpful for Delegates who won’t have to take their own leave to undertake training.
Additionally, Delegates will have more reasonable access to communicate with members and potential members about workplace matters.
The Bill also criminalises wage theft. Closing Loopholes Part 2 will address a range of other matters including stronger rights for casuals and gig workers and will come before the Parliament in early 2024.
Same Job Same Pay orders issued by the Fair Work Commission will commence operation in November 2024, however the MEU has begun the process of making applications. There has never been a better time to be a member of the Union, so make sure you get involved and help us secure Same Job Same Pay at your site.
Mining and Energy Union Submission to the Fair Work Legislation Amendment (Closing Loopholes) Bill.
Follow the Senate Inquiry into the Fair Work Legislation Amendment (Closing Loopholes) Bill.
‘Sets out key issues and questions’: ‘Read the Australian Government’s Same Job Same Pay consultation paper, outlining the issues and the approach to consulting with industry stakeholders
‘Employers seem to be jumping at shadows’: Read this explainer from the Guardian about whether the employers’ ad campaign stacks up
‘A kick in the guts’: Watch this WIN News report about our Queensland campaign launch, where a labour hire worker explains what it’s like to earn $40,000 a year less for the same job
‘$1 billion a year loss in economic activity’: Read this 2022 report by the McKell Institute about mining companies’ labour hire wage-cutting strategies and how they cost regional communities
‘If they raise a safety concern they’ll never get a permanent job’: Read this report in the Newcastle Herald about our member Rebecca McDonald travelling to Canberra to back Same Job Same Pay
‘The misuse of labour hire is allowing this to happen’: Read our MEU overview of the labour hire loopholes in mining
‘Business is trying to scare us about ‘same job, same pay’. But the proposal isn’t scary’: Read this explainer from The Conversation that dispels myths about Same Job Same Pay