Resources giant BHP says programs that boost Indigenous and female employment would be "unfeasible"' under the federal government's proposed workplace reforms.
The company's Operations Services (OS) unit was established to improve secure employment and productivity and help achieve a gender-balanced workforce by 2025 while also increasing its rates of Indigenous employment.
The unit has helped doubled the proportion of female workers at BHP to 35 per cent.
Of the trainees OS hires under its FutureFit program, 82 per cent are are women, while 25 per cent identify as Indigenous.
In a submission to a Senate inquiry on the government's "loopholes" legislation, BHP said the "same job same pay" part of the legislation would threaten its ability to reach its diversity goals.
"As a result of the government's legislation and given the risk to OS, BHP's continued FutureFit investment and the opportunities it is providing to a new wave of Australians to enter the resources industry may become unfeasible," the company said.
Mining and Energy Union acting Queensland district president Mitch Hughes called BHP's claims "shameful" and a reflection of BHP's desperation to maintain the status quo.
"Their admission they are using this model as a vehicle to boost representation of women and Indigenous workers is appalling," he said in a statement on Monday.
The same job same pay policy would close a legal loophole that allows employers to pay labour hire workers less and ensure their receive at least the same wages as those under enterprise agreements.
The government has previously said BHP's 4500-strong OS unit was a form of internal labour hire, which the union claims creates a two-tiered employment system that allows the company to hire women and Indigenous workers on lower rates.
“At the end of the day, BHP has built an employment model on unfair foundations – where some workers are paid less than others for doing the same job, merely to boost BHP’s mega-profits," Mr Hughes said.
“They don’t need special cut-price labour hire subsidiaries and training pathways to achieve diversity goals, and they certainly shouldn’t be threatening to trash these goals if they are required to pay all workers at the appropriate site rate.”
BHP's submission claims the internal labour hire label mischaracterised the OS unit, whose workers were permanent employees.
"OS has some employees near the bottom end of that range and others who are near the top," the submission stated.
"It is false to assert that OS 'undercuts' other BHP arrangements elsewhere in the business."
BHP also opposes the legislation because it claims requirements to increase wages will drive up labour costs and inflation, damage Australia's competitiveness in the resources sector and put jobs at risk.
"We support the principle of focused legislative reform to protect vulnerable workers ... however, the proposed legislation goes well beyond," the submission said.
A public hearing on the bill is scheduled for Tuesday in Rockhampton.
