Western Australia’s only Weekly HR and AI/HR News Digest…
- UNIONS FUME AS RIO TINTO SHAKES UP 90-DAY SICK LEAVE POLICY
Rio Tinto is replacing its 90-day annual sick leave allowance with 12 days plus a $1,000 wellness payment, sparking union outrage.
The Australian Manufacturing Workers’ Union, Australian Workers Union, and Mining and Energy Union have criticized the change, calling it corporate greed that undermines worker trust. Rio defends the policy as “industry leading,” highlighting up to 12 months of sick leave for serious illness.
The controversy intensifies existing union pressure in WA’s iron ore sector, where the Western Mine Workers Alliance is campaigning to re-unionize Rio’s operations. Their recent attempt at Paraburdoo fell short due to miscounting employee numbers. - BIG BELL GOLD FINED $945,000:
Western Australian mining company, Big Bell Gold Operations, received a record $945,000 fine for a fatal safety breach at its underground gold mine near Cue.
In December 2020, a truck struck and killed a worker during a night shift. Both workers involved were inexperienced, having received fewer than 80 hours of training.
The court found the company failed to provide adequate instruction and supervision to contractors, and lacked effective communication protocols between drivers and pedestrians underground.
Despite having written safety procedures, these weren’t properly implemented, highlighting the critical gap between policy and practice in workplace safety. - AUSTRALIA’S PRODUCTIVITY CRISIS
Treasurer Jim Chalmers faces “a tsunami of wish lists” as he prepares for the Economic Reform Roundtable (August 19-21, 2025). The major crisis is Australia’s productivity crisis, with “low investment for more than a decade” threatening economic growth.
The roundtable focuses on three themes: making the economy more productive, building resilience against global uncertainty, and strengthening budget sustainability. Australia’s economy, once “the envy of governments around the world,” is now “falling behind” other developed nations.
Chalmers must navigate competing demands from business, unions, and various stakeholders while extracting meaningful reform consensus from the three-day gathering. SKILL CRISIS SURGE BUILDING COSTS:
Perth’s construction industry faces a severe crisis with building costs surging 30% due to acute labor shortages. The mining sector’s high wages continue drawing skilled tradespeople away from residential projects, causing project delays and cancellations.Homeowners now wait over 15 months for completion—double the previous timeframe. Despite government intervention including 10,000 skilled migration places and construction visa subsidies, the crisis persists. Small builders are collapsing under financial pressure, while rental costs have jumped 76% since 2020.
Industry experts predict no substantial relief until 2028, with costs expected to rise 5% annually through 2026.- CBA ACCUSED OF ‘SHAM REDUNDANCY’
The Finance Sector Union has taken Commonwealth Bank to the Fair Work Commission over alleged “sham redundancy” of over 100 positions being offshored to India in breach of an enterprise agreement.
The FSU claims CBA announced 304 redundancies across technology and retail banking jobs on June 10, while simultaneously recruiting for 100 positions at CBA India.
LawyerlyFree Press Journal About 110 of the redundant Australian jobs had identical job advertisements posted for CBA India with the same titles.
Finance Sector Union Slams Commonwealth Bank For Offshoring Hundreds Of Australian Jobs To India Commonwealth Bank has refuted the union’s offshoring allegations Commonwealth Bank refutes union claims of offshoring roles | HRD Australia and met with the FSU to address these accusations.
TOP AI/HR – News Headlines
- AI could significantly transform Australia’s workforce by 2050, with 32% of jobs potentially automated or augmented. However, this won’t mean mass unemployment. Jobs requiring interpersonal skills like teachers, hairdressers, and carers will expand, as will construction roles including cleaners, carpenters, and bricklayers. The AI-driven economy will grow faster, creating more tax revenue and employment opportunities. During transition periods, unemployment may temporarily rise, but governments can help by preparing workers for growth sectors and investing in less AI-exposed industries. While the economy will be larger and better resourced, profit growth may outpace wage growth, requiring policy attention.
- Western Australia’s resources sector is facing a critical skills pivot. Major mining companies are accelerating the rollout of AI for predictive maintenance and autonomous operations, creating urgent demand for data scientists and AI specialists, prompting calls for new TAFE and university curriculum partnerships.
- Legal experts are sounding the alarm for HR managers over the unchecked use of AI in recruitment and performance management. They caution that without rigorous auditing for algorithmic bias, companies face significant legal exposure under the Fair Work Act for potential discriminatory practices against protected groups.
- A Federal Government skills initiative has been announced, targeting small and medium-sized businesses in WA. The “AI Advantage” grant program will co-fund specialised training for employees, aiming to help smaller enterprises compete for talent and leverage AI to boost business efficiency and innovation. (Source: Business News WA – www.businessnews.com.au/article/New-Federal-Grants-to-Help-WA-SMEs-Adopt-AI-Tech)
