Recent research has highlighted significant safety risks associated with the hiring of contractors in the mining industry, primarily driven by cost reduction strategies.
This has prompted urgent calls for stronger regulatory oversight to protect workers’ safety.
Michael Quinlan, Emeritus Professor at UNSW Business School, pointed out the need for more effective government and regulatory oversight of contractor safety.
He stated that in regions like Western Australia and Queensland, contractors are disproportionately represented in mine fatalities, suggesting that the frequency of such incidents has not improved over the past decade.
The study, conducted by Quinlan and Heather Jackson from the University of Newcastle, analysed 120 publications across various countries and industries.
It found that traditional contractor management practices focused on cost reduction can lead to unforeseen risks and potentially catastrophic outcomes.
The research published in The Economic and Labour Relations Review revealed that contracting practices have transformed traditional work arrangements, creating new challenges for workforce management and safety.
The use of fly-in-fly-out (FIFO) and drive-in-drive-out (DIDO) arrangements, along with practices like ‘hot-bedding’, have introduced additional fatigue management challenges and potential safety risks.
Contract workers were found to work longer hours than direct employees, increasing their risk of injuries.
The study noted that contractors often perform more hazardous work with less job autonomy and face paternalistic attitudes from principal contractors.
The primary driver for increased contracting is economic, as contract labour is typically cheaper than directly engaged mine workers.
However, these apparent savings often lead to increased costs elsewhere due to safety compliance failures and competitive tendering processes.
The study highlighted that market conditions, such as coal prices below $55/tonne, are associated with increased fatality incidents involving contractors.
An unpublished review of Queensland mining incidents showed that a significant majority of recent fatalities involved contractors.
The research underscores the need for a systematic approach to contractor management to improve safety outcomes.
Recommendations include comprehensive hazard identification, rigorous monitoring, and developing long-term relationships with specialised contractors.
There is also a call for reducing the reliance on contractors except where they have specialised expertise.
Professor Quinlan’s findings stress the urgent need for regulatory bodies to enhance oversight measures to address these safety risks effectively.
The study suggests that business leaders should evaluate contracting strategies beyond mere cost considerations to ensure safer working environments in the mining industry.
