BY DAKOTA TAIT
A new study has revealed, the Hunter is losing out on more than $250 million in economic activity each year, due to wage-cutting strategies by mining companies through labour hire.
The McKell Institute report found, mining regions across the country are missing out on more than $1 billion.
The local electorates of Hunter and Paterson alone, which have the highest proportion of employment in coal across NSW, are estimated to be shortchanged $235.85 million.
The Mining and Energy Union is slamming labour hire practices, arguing outsourced jobs allow companies to circumvent long-standing enterprise agreements and offer lower wages instead.
Northern Mining and NSW Energy District President Robin Williams says the loopholes are unfair on working people.
"Obviously the model that employers are currently using, outsourcing labour to casual contractors, those people are casual, they're paid significantly less," Mr Williams said.
"$30,000 to $40,000 a year, doesn't give them the ability to turn up to the bank and get a home loan, because they're casual employees.
"That's the big impact."
It's believed, Hunter Valley coal workers could be losing out on as much as 40 percent of their wages, as well as redundancy entitlements.
The union is hoping the upcoming Federal Election is a chance to turn things around.
Mr Williams says the coal industry is the backbone of the region, and voters should consider the issue at the ballot box.
"The solution from our perspective is that we need to change the government," Mr Williams said.
"We need same jobs, same pay - when you've got a coal company employing people directly, that's fine.
"When they employ labour hire at reduced rates, we need legislation to circumvent that."
