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Calls to review benefits to workers in mining towns

Caitlyn Gribbin reported this story on Tuesday, January 7, 2014 12:21:00

SIMON SANTOW: There's a move on to look at cutting the extra money and benefits flowing to workers in some of the nation's most remote towns.

The practice of paying more to attract workers is popular in the mining towns of Western Australia.

But while workers might miss the money, others argue doing away with subsidies will encourage more people to put down roots and stay longer.

From Perth, Caitlyn Gribbin reports.

CAITLYN GRIBBIN: WA mining towns have a reputation of being very expensive. Coffees can set you back $6, a pint of beer $12. In some towns it cost $2000 to rent a home during the mining boom, which made it hard to lure workers to the region.

ANNE GISBORNE: Historically has been and continues to be difficult for the department to attract people up into these rather isolated regions.

CAITLYN GRIBBIN: Anne Gisborne is the outgoing president of the WA State School Teachers Union.

To combat the high cost of living, teachers, government and mining employees have been offered allowances to work in areas like WA's Pilbara. For example, many employers provide financial incentives and residential allowances, which basically means the employee doesn't pay much, if any, rent.

But as mining slows and costs are coming down, there's a push to review those lucrative entitlements.

ANNE GISBORNE: It's about really I guess attracting people that can work and live in the Pilbara on what would be seen as a normal wage, especially in other sectors that can't offer those incentives, like the not for profit and small business sector.

CAITLYN GRIBBIN: Fiona White-Hartig is the Pilbara chair of Regional Development Australia and a Roebourne Shire councillor.

She says there's already an initiative in place to turn Pilbara resources towns into sustainable, liveable cities. And to do that, she says incentives paid to workers should be scrutinised.

FIONA WHITE-HARTIG: We're getting into a situation where the rents are coming down and the cost of living is coming down and it certainly does need to be reviewed.

CAITLYN GRIBBIN: What are the risks of reviewing the entitlements and ultimately reducing them? I suppose a lot of people have been lured to work in the Pilbara because of the allowances and extra money they can earn.

FIONA WHITE-HARTIG: Yeah absolutely, look whether companies or the Government take an action to actually reduce those entitlements is entirely up to them and it's a bit of a catch 22. You don't want to be losing people from the Pilbara because of the decrease in wages but you don't want to keep it highly inflated as well so it's a little bubble.

CAITLYN GRIBBIN: But the school teachers union's Anne Gisborne says most of her members wouldn't work in mining towns if it weren't for financial incentives.

ANNE GISBORNE: Any attempt to adjust the allowances will only be of detriment. There are elements in it to attempt to keep people there beyond the required two years.

CAITLYN GRIBBIN: But if mining has slowed down in the region and costs have also decreased, is it fair that entitlements should be reduced a bit?

ANNE GISBORNE: I don't think there's actually been an increase in these allowances in response to the cost of living associated with the mining boom. In actual fact I think it would be fair to say that these allowances are not even sufficient as they stand.

CAITLYN GRIBBIN: Fiona White-Hartig says the debate is in its early stages but a reduction in entitlements could increase home ownership in the region.

FIONA WHITE-HARTIG: The incentive to buy your own home isn't there when you're provided with housing. Now that prices are coming down, it is more affordable and the hope is that if mining companies ease back on those entitlements that more people will buy a house.

SIMON SANTOW: Fiona White-Hartig, from Regional Development Australia, ending Caitlyn Gribbin's report.



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