• Skills shortage drives up wages
Skills shortage drives up wages
03 Dec, 2018, 2 Comment

Summary: In the midst of mining skills shortage, the rate of employees who received a pay rise in the last year has jumped, according to Mining People International.....

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The number of employees who reported to have received a pay rise less than a year ago (33.08 per cent) in October 2018 has increased 6.64 per cent since March this year.

Hays in its 2018 salary guide showed that increasing job vacancies has ended wage erosion for loyal workers who remained in the industry over recent years.

“In fact, by early 2018 many jurisdictions began to increase wages in an attempt to lure back those blue collar workers who secured jobs in alternative industries closer to home,” Hays stated.

“This is particularly evident in North Queensland where drive-in, drive-out roles were common.”

But in contrast, an entrenched 42 per cent of people haven’t received a rise for more than three years, reported Mining People. It is not clear which type of work arrangement these employees belong to.

According to Hays, employers are offering proven temporary staff permanent positions. Companies’ appetite for a dwindling pool of experienced people and trialling blue collar workers in contract roles will also push up hourly rates.

In March this year, 27 per cent of mining employees said they were “somewhat likely” to change jobs if they continued to be underpaid, with 59 per cent saying it was “very likely”. A total of 70 per cent of people also believed they were underpaid.

But Mining People managing director Steve Heather said more companies were looking to invest in other employee benefits instead of pay rises.

“These obviously also come at a cost. … If a company improves work rosters so employees get to spend more time at home, this means more people in total have to be employed to make up for the working hours lost on site,” Heather said.

Companies’ provision of better accommodation and communication facilities onsite might considerably improve the wellbeing of employees and their families.

Mining People suggested companies to take a serious look at going outside the traditional pools of talent and more inexperienced people with a better fit and all-around motivations.



  • MyPassion

    Craig Le Couteur
    07 Dec, 2018

    I get sick of hearing about the skills shortage, I have an MC Licence, Haul truck ticket and many more and have applied for over 350 jobs in the mines without a single call. I have had my Resume done to (mine standards) I am applying for anything to get a foot in the door. I have spoken to many recruitment agencies and they (many different companies) have told me if i don’t know anyone in the mines and don’t have experience then just give up. WHAT??? There is a shortage of staff and like myself there are thousands of Australians breaking their neck to get in and work and we are not even getting looked at. No-one is born with experience. If you want good workers then employ men or women like myself that has heavy vehicle experience and has no money, then you will end up with a dedicated hard working team. I have even offered the recruitment offices to give me a chance at scrubbing toilets and I will work up from there, only to be told I need a minimum two years experience. What has this country become. Any wonder there is staff shortages.

  • MyPassion

    Ray Pavri
    06 Dec, 2018

    Wage growth I gather is on average 3% this year. This follows several years of 0% wage growth in the past. 3% growth after 2-3 years of 0% growth means people have gone backward. After all inflation is running at 1.5% each year for the past several years. 1.5% each year over 3 years is 6% in total and that means what you buy has gone up by 6%. Then you get a 3% increase. So you've gone back by 3% is a better way to describe this Mining International. Ray Pavri, 06/12/18

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