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Pay rises planned as skills shortages emerge

Hays predicts increase in permanent hires

Andrew Hobbs

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Half of Australia’s mining employers have reported plans to give their staff a pay rise of up to 3% in their next review, according to a major survey conducted by recruitment company Hays.

And while the staff of a lucky 12% of employers could expect an increase of 3-6%, and another 3% above that, 35% of employers surveyed do not plan to increase salaries at all, according to the Hays Salary Guide, based on a survey of more than 2950 organisations.

Where these employees were based would also play a role, according to the survey, with a Western Australian mining engineer able to command a salary of A$100,000-145,000, below the $120,000-150,000 commanded by a Queensland coal mining engineer but below the $90,000-$120,000 paid in South Australia and Tasmania.

Hays Resources & Mining regional director Chris Kent said the company had seen a rise in job vacancies and renewed optimism in the Australian mining industry towards the end of last year.

“Looking ahead to the next six months, if global uncertainty subsides and commodity prices stabilise, we expect to see a spike in permanent hires, with wage inflation to follow,” he said.

Kent said that new skills shortages were beginning to emerge, particularly in north Queensland, which he said were the result of mass redundancies and the uncertainty of employment in recent years.

“We do expect an increase in temporary and contract roles and rates as employers supplement new entrants to the mining industry with flexible and experienced contractors,” he said.

“As the available candidate pool drains, we would then expect to see more of these workers converted into permanent headcount.”

Region by region, the Hays Salary guide predicted rising demand for geologists in WA as gold exploration budgets were increased, while drill and blast specialists and metallurgists would also enjoy positive conditions.  

Mechanical, electrical and heavy diesel fitters would be in high demand in Queensland and the Northern Territory, while rubber liners and belt splicers would be sought after in in South Australia.

“In NSW and Victoria we are observing marked demand for boilermakers as many transitioned back into the manufacturing industry,” the report added.

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