csrmIn the AustralianMinerals Industry

Indigenous Employment

The Centre for SocialResponsibility in Mining

THE CENTRE FOR SOCIAL RESPONSIBILITY IN MINING Postal Address: The Centre for Social Responsibility in MiningThe University of Queensland, Brisbane QLD 4072 AUSTRALIA

Director: Professor David BreretonOffice: 4th floor, Sir James Foots Building (Bldg 47A)Phone: 61 (7) 3346 4043 Fax: 61 (7) 3346 4045Email: d.brereton@smi.uq.edu.au

General EnquiriesPhone: 61 (7) 3346 4003 Email: csrm@uq.edu.au

CSRM is a Member of the Sustainable Minerals Institute

www.csrm.uq.edu.au

Printed on environmentallyresponsible stock

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About CSRMBackground to the projectThe workforce diversity challengeThe people factorRecruitmentRetentionResources for practitionersReferencesResearch methodStatistical data on Indigenous employment in mining

CONTENTS

STATISTICAL DATA FROM PARTICIPATING OPERATIONS

> Indigenous representation in the workforcesvaried from 0.7 per cent to 22 per cent.Representation was highest at those opera-tions located in regions with relatively largeIndigenous populations.

> Most Indigenous employees were working insemi-skilled jobs, rather than trade areas orprofessional roles.

> The proportion of Indigenous employees inapprenticeships and traineeships varied sig-nificantly across operations.

> At several operations, a substantial propor-tion of Indigenous employees were not fromthe local area.

> Across all operations females accounted for 20 per cent of the Indigenous workforce,which is above the overall level of femalerepresentation in the industry.

> Ten sites employed a total of 100 Indigenousapprentices and 160 trainees.

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This study was made possible by the generous financial andin-kind support provided by Rio Tinto Australia. We wish torecord here our appreciation of this support and, in particular,thank Bruce Harvey for his leadership in initiating this project.We also acknowledge the support and assistance provided byBHP Billiton, Newmont Australia, Zinifex, Roche Mining andNgarda Construction and Mining.

Janina Gawler (Principal Co-operative Change) played a leadrole in designing the project and managing the work program,and also provided detailed comments on earlier drafts of thereport. Her contribution to the project was substantial. PeterRush (BHP Billiton) and Daniel Archer (Roche) also providedvaluable feedback. Our thanks are also due to all those peoplewho provided case study material, facilitated site visits anddealt patiently with our many data requests.

Finally, we would like to thank the trainers and communityrelations practitioners working 'on the ground' for their generousassistance and valuable insights. Their skills, experience andcommitment to working with Aboriginal people are major factorsin improving Indigenous employment outcomes.

RESEARCH TEAM

PROJECT ADVISOR

ACKNOWLEDGMENTS

Tony TipladyMary Anne Barclay Tanuja BarkerJoni ParmenterDavid Brereton

Janina Gawler, Principal, Co-operative Change

Tony TipladyMary Anne Barclay

AUTHORS

CSRM is a member of the Sustainable Minerals InstituteDirector: Professor David Brereton

About CSRMTHE CENTRE FOR SOCIAL RESPONSIBILITY IN MINING

Tony Tiplady, an experienced educator, trainer and miningoperations manager, was seconded from Rio Tinto to theCSRM for 2 years to conduct this research project. He nowworks for Education Queensland.

Mary Anne Barclay is a Research Fellow at CSRM.Her research interests include workforce management issues,education and training, and corporate governance.

ABOUT THE AUTHORS

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Executive summary

THE CHANGING LANDSCAPE

Within the minerals sector there is an emerging body ofgood practice in Indigenous employment andrecruitment. The most progressive mining companies aretaking a long-term view and, in addition to providingemployment opportunities, are participating in initiativesto address the root causes of Indigenous socio-economicdisadvantage – poor education, poor health and poverty.

A key business driver is the recognition by miningcompanies that robust relationships with Indigenouspeople based on recognition, respect, trust andhonouring commitments are fundamental to maintainingthe industry’s ‘social licence to operate’ and ensuringlong-term access to land and new resources.

Other factors driving the increased focus by companieson Indigenous employment and addressing socio-economic disadvantage include social anddemographic changes in the regions of Australia wheremining occurs, particularly the projected Indigenouspopulation growth, and continuing skills shortages inremote and regional areas.

OBSTACLES TO EMPLOYMENT

Factors that can make it difficult for Indigenous peopleto obtain work in the minerals industry include:> lack of education and relevant training> lack of exposure to the mainstream workforce, the

‘industrial culture’ of the mining industry and theexpectations of employers

> geographical isolation> the challenges involved in balancing family and

community obligations with the demands of full-time work

> poor health and difficulties in complying with drugand alcohol testing regimes.

For mining companies wishing to employ moreIndigenous people the obstacles include:> the lack of a ‘job-ready’ labour pool> insufficient appreciation of how socio-economic

disadvantage impacts on the recruitment andretention of Indigenous employees.

CSRM UNIVERSITY OF QUEENSLAND RIO TINTO

This report presents the findings of the Minerals Industry Indigenous Employment ResearchProject, a collaborative research project between The Centre for Social Responsibility in Mining(CSRM) at the University of Queensland, Rio Tinto and other companies that have been active inthe field of Indigenous employment.

Key objectives of the project were to:> inform the minerals industry and policy makers about key trends and issues relating to

Indigenous employment in the minerals industry> develop a toolkit to assist mining companies achieve improved Indigenous employment outcomes> develop a standard framework for evaluating and comparing the Indigenous employment

practices of mining operations> facilitate the sharing of good practice within the industry.

The study involved 12 site visits, 113 face-to-face interviews, a practitioners’ workshop, a reviewof published and unpublished research, and the collection and analysis of a comprehensive arrayof site data, including internal company reports and employment statistics.

Key findings

A key finding of this study is that when operations givethe same commitment to Indigenous employmentinitiatives as other business activities, good outcomescan be achieved in relatively short time frames. Criticalsuccess factors are:

THE PEOPLE FACTOR

First and foremost, achieving sustainable improvementsin Indigenous employment requires organisationalcommitment. Companies with successful Indigenousemployment strategies are characterised by:> an executive leadership team that has publicly

committed to improving Indigenous employmentoutcomes and backs this commitment by providingadequate financial and human resources

> a commitment to the development of honest andtransparent relationships with Indigenous communities

> corporate champions who ‘go the extra mile’ insupporting Indigenous employees and who haveinfluence with the operation’s management team toensure that Indigenous employment issues remainon the corporate agenda

> suitably qualified, skilled, informed and committedpersonnel in training and liaison positions, who arerespected by the local Indigenous community.

RECRUITMENT STRATEGIES

Traditional HR systems and processes can presentbarriers for Indigenous people seeking to enter themainstream workforce. Leading companies havedeveloped a range of strategies to assist Indigenouspeople overcome these barriers. These include:> focusing more on face-to-face rather than written

communication with potential applicants> using selection centre workshops to identify

individual skills and abilities> adopting flexible strategies to manage problems

with drug and alcohol use> developing work readiness programs that prepare

Indigenous people for the transition into themainstream workforce

> provision of cultural awareness training for allrecruits, Indigenous and non-Indigenous, as part ofthe induction process.

RETENTION STRATEGIES

While considerable effort has been put into developingnew approaches to Indigenous recruitment, relativelylittle has been done in the way of developing specificretention strategies for Indigenous employees.Indigenous employees face particular challenges inbalancing work and family commitments and makingthe transition to a new organisational and culturalenvironment. For employees of fly-in, fly-outoperations, an added pressure is the need to spendextended periods away from home.

Strategies for increasing retention include:> provision of ongoing mentoring and support> more flexible work rosters> provision of career development opportunities> provision of family support> addressing racism in the workforce.

CONTRACTOR ISSUES

All the sites visited for the study made substantial use ofcontractors including, in some cases, contracting out themining operation. Some of the contracting companieshave invested substantial resources in developing andmaintaining an Indigenous workforce.

Some relevant issues are:> The cost associated with training Indigenous

people and their limited productivity during trainingappears not to be factored into mining companytendering systems.

> Mining company tendering systems do notnecessarily consider Indigenous employment intheir tender evaluation system weightings.

> Cooperative efforts between mining companies andcontractors will be required to overcome thesebarriers and deliver equitable systems for managingIndigenous employment initiatives.

RESOURCES FOR PRACTITIONERS

Having robust management systems in place makes itmuch easier for operations to monitor the effectiveness oftheir employment initiatives and ensure that there isappropriate follow-up. Most of the sites that were visited forthis study operated without the benefit of such a system.

To assist operations to improve their managementprocesses we have developed two tools:> the Organisational Maturity Chart, which enables

practitioners and company personnel to evaluatethe level of maturity of their Indigenous employmentpolicies and practices and identify the steps thatcan be taken to improve performance

> the Indigenous Employment Evaluation Tool(published separately), which provides a model foroperations to use in developing their ownIndigenous employment management systems.

CONCLUSION

The public commitment by the minerals industry toincreasing Indigenous workforce participation has thepotential to deliver better socio-economic outcomes forthose Indigenous communities located in or near regionswhere there is large-scale mining. The knowledge andgood practice examples shared in this report should assistthe industry to translate its commitments to Indigenouscommunities into improved performance on the ground.

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Critical success factors

A COLLABORATIVE RESEARCH PROJECT

This report documents the findings of the Minerals Industry Indigenous Employment ResearchProject, a collaborative research project between The Centre for Social Responsibility in Mining (CSRM) at the University of Queensland and severalleading mining companies. The project was initiated by Rio Tinto as part of its commitment to the MineralsCouncil of Australia (MCA) / Australian governmentMemorandum of Understanding (MOU) signed in 2005.

The MCA companies that participated in this researchwere:> Rio Tinto> Newmont Tanami> Zinifex> BHP Billiton> Roche Mining.

Introduction

Objectives Key objectives of the project were to:> inform the minerals industry and policy makers

about key trends and issues relating to Indigenousemployment in the minerals industry

> develop a toolkit to assist mining companiesachieve improved Indigenous employmentoutcomes

> develop a standard framework for evaluating andcomparing the Indigenous employment practices ofmining operations

> facilitate the sharing of good practice within theindustry.

The outputs from the project are contained in twoseparate documents, this final report and a guide forpractitioners. This report outlines the background to thestudy, the project methodology and key findings. Itprovides examples of good practices from differentoperations that are intended as a practical guide formining companies wishing to improve their Indigenousemployment participation rates. The practitionersguide, The Indigenous Employment Assessment Tool isdesigned to be read in conjunction with this report. Itprovides a framework for designing and assessing acompany’s Indigenous employment practices andincludes an Organisational Maturity Chart to assistcompanies in identifying good practices and howimprovements can be made.

The findings and good practices identified in this reportwill assist MCA companies to:> fulfil the aims of the MOU, namely “to work

together with Indigenous people to buildsustainable, prosperous communities in whichindividuals can create and take up social,employment and business opportunities in miningregions” (Australian government and MCA, 2005: 1)

> meet their obligations to implement progressivelythe Australian minerals industry’s commitment to Enduring Value (MCA 2004), which builds upon International Council on Mining and Metals(ICMM) Principles for Sustainable Development(ICMM, 2003).

ICMM PRINCIPLES

3: Uphold fundamental human rights and respectcultures, customs and values in dealings withemployees and others who are affected by ouractivities.

9: Contribute to the social, economic and institutionaldevelopment of the communities in which weoperate.

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BACKGROUND TO THE PROJECT

In the first part of the report, we describe thebackground to the research project and presentstatistical data highlighting the disadvantaged status ofIndigenous communities. We then discuss some of theinitiatives that have been adopted by government andthe minerals industry to address the sources of socio-economic disadvantage. We conclude the section byoutlining the business case for industry support ofIndigenous employment initiatives.

THE WORKFORCE DIVERSITY CHALLENGE

The body of the report contains case studies andexamples of good practice to assist companies inimproving their Indigenous employment outcomes.These good practice examples are discussed under fivemain headings:> the workforce diversity challenge, which provides

examples of good practice that focus on improvingthe root causes of unemployment in Indigenouscommunities

> the people factor, which highlights the key role thatcorporate leadership and commitment play inimproving employment outcomes for Indigenouspeople

> recruitment strategies> retention strategies,> resources for practitioners, including management

systems for documenting, monitoring andevaluating performance in relation to Indigenousemployment strategies.

RESEARCH METHOD

This section describes the research method and theparticipating companies and operations in the study.

STATISTICAL DATA ON INDIGENOUSEMPLOYMENT IN MINING

This section presents statistical data derived from:> the 2002 ABARE study> statistical data from participating operations.

Structure of the report

Over the past two decades there has been a major shift in relations between Indigenous communities and theminerals industry.

In particular, the High Court’s Mabo decision in 1992 and the subsequent passage of the Commonwealth Native TitleAct in 1993 have conferred on Traditional Owners a ‘right to negotiate’ with mining companies and the government inrelation to the granting of a mining lease. Many minerals operations in Australia are located on land where Indigenouspeople have had, and claim, traditional rights and interests in country. Increasingly, agreements between Indigenousgroups and minerals companies require companies to engage effectively with Indigenous communities and provideassistance to help achieve long-term development objectives. Companies that are unable or unwilling to do so, or failto follow through on undertakings, are likely be seriously disadvantaged when it comes to negotiating future agreementswith Traditional Owner groups (federal Department of Industry Tourism and Resources, 2006).

Background to the project

As recent evidence of industry commitment in this area, in2005, the federal government and the MCA signed aMOU with the aim of working together with Indigenouspeople to “build sustainable, prosperous communities”(Australian government and MCA, 2005:1). The keydeliverables identified for the agreement are:> increased employability and jobs for Indigenous

people, both within the minerals sector and moregenerally

> increased business enterprises for Indigenous people> prosperous Indigenous individuals, families and

communities that endure beyond the life of miningin the region

> a strong partnership between industry and government that works with Indigenous people locally togenerate solutions to complex issues on a local and regional basis (federal

government and MCA, 2005:2).

The key issues that underpin the MOU are that:> Indigenous communities are economically and

socially disadvantaged> mining companies have a capability to provide

education, training and employment opportunitiesfor Indigenous people

> mining companies have an important role to play incommunity capacity building, especially in theareas of leadership, management and governance.

In 1982, Indigenous Australians were described as “themost disadvantaged and under-privileged sector of theAustralian community, with the highest death rates,highest morbidity rates, the worst health and housingconditions and the lowest educational, occupational,economic, social and legal status of any community withinAustralian society” (Perkins, 1982: 154). Despite a raft oflegal, social and political initiatives that have attempted toaddress this inequality, numerous research projects overthe past decade confirm that Indigenous Australiansremain the nation’s most disadvantaged citizens in termsof education, health and socio-economic status.

The disadvantaged socio-economic status ofIndigenous people is clearly confirmed by ABSstatistical data. In particular, the National Indigenousand Torres Strait Islander Social Survey (NATSISS)(ABS, 2002), the National Indigenous and Torres StraitIslander Health Survey 2004-05 (ABS, 2005a) and theSchools Australia report (ABS, 2005b) demonstrate thatmany Indigenous communities are trapped in a cycle ofpoor education, poor health and poor employmentoutcomes.

In terms of general socio-economic status, Indigenouspeople have lower household incomes than otherAustralians, are much more likely to rent than own theirown homes, have lower workforce participation ratesand are much more likely to live on welfare payments(ABS, 2002) (Table 1).

These poor socio-economic conditions impact on theeducational outcomes of Indigenous children. Whileschool retention rates have improved considerably inrecent years (ABS. 2005a), they nevertheless continueto lag behind retention rates for other Australians,especially in remote and rural communities. In Australia,while virtually all non-Indigenous children completeyear 10 (99 per cent), the figure is 88 per cent forIndigenous children. The difference at year 12 level iseven more marked, with 77 per cent of non-Indigenousstudents completing year 12, compared with 40 per cent of Indigenous students (Table 2).

Indigenous people also suffer greater ill-health, aremore likely to experience disability and reduced qualityof life and to die at younger ages than other Australians.The average life expectancy for Indigenous males (56years) and females (63 years) is significantly lower thanthat of non-Indigenous males (77) and females (82).Indigenous people are 1.6 times more likely to sufferfrom asthma than other Australians, 1.3 times morelikely to suffer from cardiovascular disease and threetimes more likely to suffer from diabetes (ABS, 2005b).

As well as suffering from greater ill-health, IndigenousAustralians are also more likely to report a greaterprevalence of health risk factors. Health risk factorsinclude behavioural risks, such as smoking andexcessive alcohol consumption, and environmental riskfactors, such as stress, including financial stress andexposure to violence. For example, about half (49 per cent) of the Indigenous population aged 15years or over smoked on a daily basis and one in six (15 per cent) reported consuming alcohol at risky orhigh risk levels in the past 12 months (Table 3).

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STATISTICAL DATA ON INDIGENOUS SOCIO-ECONOMIC DISADVANTAGE

Table 1: Socio-economic status of Indigenous andnon-Indigenous AustraliansSocio-economic indicator Indigenous Non-

Indigenous

Unemployment rate* 18% 6%Home owner 26.5% 73.1%Home renter** 69.6% 24.3%Government pensions and 51.7% 27.1%allowances as chief household incomeMean equivalised gross $394 $665household income per weekPersons aged 18 years or over* Age standardised. NB also that ABS figures define a person working on CDEP

programs as employed**State or Territory Housing Authority, Other landlord types, Indigenous Housing

Organisation / Community housing. Source: ABS 2002

Table 2: Comparative education indicators forIndigenous and non-Indigenous AustraliansEducation Indigenous Non-

% Indigenous %Year 12 retention rate 39.5 76.6Year 10 retention rate 88.3 98.9

Source: ABS 2005b

Indigenous people are more likely to be exposed thanother Australians to a range of other stressors. Forexample, 83 per cent of Indigenous people reportedsuffering stress compared with 57 per cent of non-Indigenous people in the previous 12 months. Financialstress (defined as the ability to raise $2000 within aweek) was experienced by 54 per cent of IndigenousAustralians, compared with 24 per cent of non-Indigenous Australians. Similarly, 20 per cent ofIndigenous Australians reported being affected byviolence as opposed to nine per cent for non-Indigenous Australians (Table 4).

These statistical data are supported by the findings froma recent socio-economic profile of the Pilbara miningregion in Western Australia, prepared by Taylor andScambary (2005). They found that, in spite of a thriving

local economy generated by the current mining boomand increased employment opportunities for the non-Indigenous workforce, Indigenous inhabitants were, onthe whole, failing to reap the economic benefits.

Key findings from the Taylor and Scambary study were that:1. Despite substantial growth in economic activity in the

Pilbara since the 1960s, the overall employment ratefor Indigenous people rose only slightly from 38 per cent to 42 per cent in 2001. In comparison,the non-Indigenous employment rate in the Pilbarahas been consistent at 81 per cent (p.27).

2. In 2001, only 30 per cent of Indigenous adults wereemployed in non-CDEP (mainstream) jobs, with 12 per cent in CDEP (work for the dole) schemes.Anywhere between six per cent and 18 per cent wereunemployed, while 50 per cent were not in the labourforce (p.28).

3. Indigenous students comprised 26 per cent of thetotal compulsory enrolment but only nine per cent ofYear 12 school enrolments (p.79).

4. Indigenous people accounted for 36 per cent of the4740 TAFE sector enrolments in the Pilbara.However, Indigenous enrolments were concentratedin short enabling courses that have no formalcertification attached. Only 19 per cent of Indigenousenrolments were in Certificate level III courses andabove, compared with 46 per cent of all non-Indigenous enrolments (p.87).

5. A primary barrier to the enhanced participation ofIndigenous people in the Pilbara labour market is poorhealth status and associated high mortality. Accordingto Taylor and Scambary, a 15-year-old Indigenousmale in the Pilbara has a less than 50 per cent chanceof surviving to the age of 65 (p.153).

Unless the critical issues of education and health areaddressed, Indigenous people, especially those living inremote and rural areas are likely to remain a marginaland largely unskilled labour force.

Table 3: Behavioural health risks for Indigenous andnon-Indigenous AustraliansHealth Indigenous Non-

IndigenousLife expectancy male* 56 yrs 77 yrsLife expectancy female* 63 yrs 82 yrsCurrent daily smoker** 49% 21%High risk alcohol 15% 14%consumption**

Source: *ABS 2006; **ABS 2005a

Table 4: Other risk factors for Indigenous and non-Indigenous Australians

Indigenous Non-% Indigenous %

At least one stressor 82.6 57.3experienced in past 12 months

Unable to raise $2000 54.3 13.6within a week for something important

Victim of physical or 19.5 8.9threatened violence in past 12 months

Source: ABS, 2005a

The problems that confront many Indigenouscommunities represent an enormous challenge forgovernment. The federal government’s response hasbeen to encourage joint initiatives between governmentagencies, Indigenous advocacy groups and privatesector organisations to tackle the causes of socio-economic disadvantage. Under the banner of ‘mutualobligation’, the federal government is seekingcommitment from these groups to work together tofund, organise and promote a range of strategies aimedat assisting Indigenous people.

The federal government has been particularly keen tofoster links between Indigenous communities and theminerals industry. Government funding has beenmade available for a range of initiatives, including theWorking in Partnership program, the StructuredTraining and Employment Program (STEP), theCorporate Leadership program and programs run byIndigenous Business Australia. A good example of thepartnership approach has been the signing of theMOU between the federal government and the MCA(see above).

ADDRESSING SOCIO-ECONOMICDISADVANTAGE

Government initiatives

9Industry initiativesSustainable development (SD) and corporate social responsibility (CSR) are topics that are now firmly on the industry agenda. Evidence of commitment to these principles can be seen in thedevelopment of the International Council on Mining and Metals (ICMM) Principles of SustainableDevelopment, released in 2003. Since then, the MCA has incorporated these principles into itsEnduring Value framework, and a number of individual companies and industry leaders have made commitment to these principles in their ownpolicy statements.

As part of this study, a review was conducted of annualreports and corporate policy documents for the majormining companies. Clear evidence was found ofcorporate commitment to the principles of SD and CSRby most of the larger companies.

In particular, there has been a gradual shift over thepast few years from generalised statements ofcommitment to minimising the negative impacts ofresource developments on the environment and localcommunities, to a cautious acknowledgement that goodcorporate citizenship requires companies to take a moreactive role in promoting sustainable development.

Responsible mining companies now acknowledge thatthey have both the capacity – and an obligation – tocontribute to the development of the communities wherethey operate. This is particularly true in remote areas,where mining companies may be the only businesseswith the capacity to catalyse major communitydevelopment initiatives. As potential employers, minescan provide Indigenous people with opportunities forwork in areas when there are few other commercialventures and limited opportunities for employment.

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Global forces are driving the CSR agenda. Today,mining companies operate in a global marketplace thatis highly competitive and where improvedcommunications technology has made their activitiesmore apparent to a much wider audience. Globalisationhas also facilitated the rapid dissemination ofinformation about Indigenous rights. Since the 1980s,international bodies such as the United NationsConference on Environment and Development and theInternational Labour Organisation (ILO) have draftedinstruments that acknowledge Indigenous land rightsand the rights of Indigenous people to participate indecision-making processes that affect them and theirland. Many people and governments now acknowledgethat Indigenous people have the right to live on theirtraditional lands and to enjoy a reasonable quality oflife. It is no longer considered acceptable to operatemines alongside Indigenous communities that do notshare in the economic benefits derived from mining.

There is also a growing expectation that miningcompanies will contribute their resources, skills andexperience to improving the quality of life in localIndigenous communities. There are many situationswhere mining companies are particularly qualified toprovide assistance to local Indigenous communities.For example, by providing employment, education andtraining opportunities, business development andgovernance support, mining companies can assist inbuilding capacity in Indigenous communities. Thismeans that Indigenous people will have enhanced skillsto build sustainable communities that support currentoperations and will last beyond the life of the mines.

Benefits of the partnership approachWhile the partnership approach places clear obligationson government, industry partners and Indigenouscommunities to improve socio-economic outcomes for Indigenous people, it also offers potential benefits to all parties.

GOVERNMENT

As employers, mining companies are a potential sourceof new jobs for Indigenous people. Especially in remoteareas where there are few business alternatives, theymay be the only large-scale employers. Since thealternative to work for many people is welfaredependency, there are sound financial and policyreasons for governments to promote partnerships withindustry as a means of getting people into themainstream workforce and becoming taxpayers.

Mining companies are also experienced in sourcingeducation and training opportunities for theiremployees. Apart from public sector organisations, only large corporations have the resources to sourceand deliver targeted education and training programs.Again, from a policy perspective, it is clearly anadvantage to government to be able to link education and training with employment opportunitiesin the local area.

THE CHANGING FACE OF THEMINERALS INDUSTRY

INDIGENOUS COMMUNITIES

From the perspective of Indigenous communities, thepartnership approach opens up the possibility ofdeveloping prosperous communities that will survivebeyond the life of the mines. First, partnering withmining companies gives Indigenous people theopportunity to participate in the mainstream workforce.Access to paid work is a fundamental prerequisite forparticipation in the mainstream economy. Second,access to training and education is essential ifIndigenous people are to develop the necessary skillsto participate in that economy.

Access to education, training and employment is thekey to building sustainable Indigenous communities.Mining companies have a critical role to play in capacitybuilding because they can provide training, not just foroperational roles, but in the areas of leadership training,and the development of management and governanceskills. If Indigenous people are to live in prosperous andsustainable communities, it is essential for them todevelop leadership and management skills, which areessential competencies of viable communities.

The other huge advantage of the partnerships approachfor Indigenous people is that it gives them a voice inplanning for the future. Instead of being the passiverecipients of welfare or educational and trainingprograms that others have deemed beneficial to them,Indigenous people become partners in decision-making processes that affect their future. Without ‘buyin’ from local community members, efforts to improvethe socio-economic conditions in Indigenouscommunities are unlikely to be successful.

Benefits for the minerals industryThere are sound business reasons for miningcompanies to partner with Indigenous communities andgovernment to deliver better employment outcomes forIndigenous people. In the case of individual companies,these relate particularly to enabling land access and thepossibility of developing a regional workforce to sustaincompany operations into the future. At the industrylevel, there are also benefits in terms of enhancing thereputation of the industry in the eyes of governmentand local communities.

LAND ACCESS

Mining must take place where ore deposits occur. There is little opportunity to choose the location of amine on the basis of optimum social, environmental,logistical or economic factors. Establishing goodrelationships with Traditional Owners, therefore, isessential to enabling ongoing access to the land onwhich mineral resources are located.

Sixty per cent of mining in Australia currently occursnear Indigenous land and many of the new mines likelyto be developed in the future will also be on land subjectto native title. According to one study (Pollack, 2001),the Indigenous-owned land base in Australia has grownsignificantly since 1993 and the trend is expected tocontinue. Pollack found that the Indigenous share of thenational estate comprised 14.2 per cent of Australia in1993, 15.1 per cent in 1996 and somewhere between16-18 per cent in 2000 (Pollack, 2001).

Since there are numerous land rights claims still to bedetermined before the courts, it seems likely that theamount of land where native title is deemed to exist willcontinue to grow. This means that establishing andmaintaining good relations with local Indigenouscommunities will be essential to the protection ofmining companies’ current investments and their abilityto access new resources.

As noted above, since the commencement of theNative Title Act (Cwth 1993) Indigenous communitieshave had the legal right to negotiate land-useagreements with mining companies. Similarly, CulturalHeritage legislation has imposed obligations on manymining companies to engage with Traditional Owners.Companies that have failed to follow through on commitments made during these negotiations arelikely to be seriously disadvantaged when it comes to negotiating future agreements with Traditional Owner groups.

A partnership approach also demonstrates that acompany is acting in good faith and honouring the mining industry’s commitment to sustainabledevelopment. This is an important way of building a company’s standing with local communities. By developing a reputation for acting openly andhonestly, and demonstrating a preparedness tonegotiate fairly with Indigenous communities,companies build a reputation that will assist in othernegotiations in the future.

REGIONAL WORKFORCE

Fostering a partnership approach and creatingemployment opportunities for Indigenous people canbe regarded as an investment in the creation of a skilledregional workforce that will provide the labour for themines of the future. The majority of Australia’s miningoperations are in remote and rural areas. Accessingskilled staff in these locations has always been difficultfor mining companies and enormous amounts ofmoney have been spent on developing expensive towninfrastructure and services to support their operations.More recently, there has been a trend towards fly-in fly-out (FIFO) operations, but these, too, have a number ofdisadvantages for companies.

Historically, these significant investments have beenmade without consideration for the sustainability of theregional economy beyond the life of the mine andwithout considering local Indigenous people as apotential labour force for the operation. Increasingly,however, companies are coming to see that there arebenefits to their operations in building regional capacity.By supporting and promoting education, training andother local initiatives that increase the skills base ofIndigenous communities, companies are contributing tothe development of a skilled local workforce and aprosperous local economy. The benefits to companiesof a skilled Indigenous workforce and a strong regionaleconomy include:> a mobile pool of local employees who can move

between different businesses as demand orpersonal preferences dictate

> a selection of locally-based service and supplyenterprises

> competitive forces that lower costs of service andsupply to the mine and the community

> diverse local capacity for non-core businesscontracting,

> a stable mature workforce of reliable, locally-committed employees living ‘at home’.

An analysis of demographic trends supports theargument that, over the longer term, there are soundeconomic benefits to be had from investing inIndigenous employment and training programs. First,unlike non-Indigenous Australians, the majority of theIndigenous population (69 per cent) lives outside themajor urban centres (ABS, 2002). This means that manycommunities in close proximity to mine sites have large,sometimes predominantly, Indigenous populations.Second, Indigenous people are also less likely thanother Australians to migrate to new areas. Whilemobility between communities can be frequent, there islittle tendency to relocate to urban areas or interstate(DEET, 2006). This implies a geographically stableworkforce. Finally, unlike the rest of the Australianpopulation, the Indigenous population is young andgrowing. A recent study in the Pilbara (Taylor and

Scambary, 2005) suggests that people of working age,namely 15 to 54-year-olds, will comprise more than 50 per cent of the Indigenous population by 2016 (Table 5). Potentially, these people can form the basis ofa sustainable regional workforce.

INDUSTRY REPUTATION

Commitment to a partnerships approach is a way ofimproving the reputation of the minerals industryglobally. Companies that form successful partnershipswith government and Indigenous communities are likelyto find that their reputations are enhanced beyond theboundaries of Australia. Successful partnerships send asignal that the company has the credentials fornegotiating fairly and successfully with Indigenouscommunities in other parts of the world.

Commitment to sustainable development is also likelyto improve the image and reputation of the mineralsindustry. In particular, it connects the minerals industrywith major social changes that are occurring elsewherein the world, especially those surrounding socialresponsibility and Indigenous rights. This places theindustry in a position to argue for its causes, whilerespecting the rights of others.

Potentially, there areenormous benefits to Indigenouscommunities,government andmining companiesalike in achievingbetter employmentoutcomes. Theremainder of thisreport documents arange of processes,procedures and goodpractice case studiesto enable miningcompanies to participate actively in this commitment toimproving Indigenousemployment outcomes.

Table 5: Indigenous population projections Pilbararegion by select age groups 2006– 2016

Age group 2006 2016 Change (no) % Change0 – 4 911 1059 148 16.25 – 14 1470 1899 429 29.215 – 24 1371 1450 79 5.825–54 2769 3244 475 17.155+ 619 863 244 39.4Totals 7141 8515 1372 19.2

Source Taylor and Scambary (2005: 22)

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The site data collected for this study confirms that Indigenous people are under-represented inthe minerals industry workforce and hold predominately semi-skilled positions (see page 71 forsupporting materials).

Only a small proportion of the Indigenous workforce is undertaking apprenticeships that willlead to more skilled roles, although some traineeship programs involve significant up-skilling(e.g. training certificates II and III). In this section of the report we discuss the reasons for lowworkforce participation rates, and provide good practice examples of strategies undertaken bycompanies that attempt to alleviate some of the acute problems that lie at the heart ofIndigenous socio-economic disadvantage.

Differences in opportunity and life experiences mean that many Indigenous people are poorlyequipped to enter the workforce. While there are many reasons for poor workforce participationrates, the factors that particularly impact on individual outcomes are:> education> cultural differences> cultural communication issues> family relationships> health and social aspects> social and geographic isolation.

The workforce diversity challenge

EDUCATION Perhaps the greatest obstacle to increasing Indigenousworkforce participation rates is poor education levels. MostIndigenous people living close to the mining operations inthis study come from communities that have beenmarginalised from the mainstream social and economicinstitutions. As a result, most have received little formaleducation and lack the basic literacy and numeracy skills toperform tasks that most people take for granted-reading thepositions vacant section of a newspaper to look for jobs,getting a driver’s license, preparing a résumé, or filling out astandard job application form.

Companies in this study have adopted a two-prongedapproach to dealing with these problems. First, they haveadapted their standard HR recruiting practices to take intoaccount these skills differences. These issues are discussedin detail in the sections of this report dealing with recruitment,retention and staff development strategies. Second, theyhave taken a longer term view and committed to aninvestment in the future of local communities, by partneringwith government and local community members to improveeducation outcomes in local schools. One initiative showinggreat promise is the Western Cape College.

Catalyst for change

On 14 March 2001, Comalco Aluminium Ltd, theTraditional Owners of the bauxite mining lease atWeipa, the state government and the Cape York LandCouncil signed the Western Cape CommunitiesCoexistence Agreement. At the time of the signing,student outcomes from Cape York schools reflectedthe overall disastrous standards in literacy andnumeracy apparent in remote Indigenouscommunities throughout Australia.

As part of the agreement, the local Indigenous peoplewere to be given priority access to 35 per cent of thejobs available at the mine site over a period of 10years, providing applicants could meet the requiredacademic standards for employment. Failure by thecompany to meet annual Indigenous employmenttargets would incur financial penalties. This provided aclear incentive to improve Indigenous educationoutcomes on Cape York.

Identifying the problemIt soon became apparent that the students, teachersand parents were inculcated in a culture of failure, whereIndigenous students were not expected to succeed. Thechallenge for Comalco, Education Queensland and localIndigenous groups was to turn this culture around. Theaccountability of the schools, rather than the usualrationales for failure (poor attendance, inappropriatecurriculum, resource shortages, language and culturalissues, disturbed social environment, etc) became thefocus of attention. This approach required a majorchange to school systems and in the behaviour of thestaff. Unfortunately, there was little practical educationalleadership expertise available to the school leaders tobring about this change.

The successful strategyThe successful strategy for bringing about culturalchange involved the followings steps:1. Education Queensland agreed to combine four

schools in the region into one college with fourcampuses, to be managed by a Group Principal.The Group Principal was appointed with theaccountability to improve the education outcomes ofIndigenous students, in the spirit of the agreement.

2. Comalco provided two years funding for anorganisational effectiveness consultant to work withthe Group Principal to bring about the desired change.

3. Comalco made a public commitment to employinggraduates from the college. At the opening of thenew college on 16 July 2002, Comalco’s then CEOdeclared: We at Comalco have taken the step to offeremployment and training to all local Indigenouschildren who successfully complete year 10 orbeyond on the Western Cape.

Outcomes1. Enrolments of Indigenous students at the Weipa

campus of the college have more than trebled from136 in 2001 to 424 in 2005.

2. Overall attendance has improved from 79 per centin 2001 to 88 per cent in 2004.

3. Indigenous academic performance has beenmaintained or improved, even though the school sizehas grown rapidly.

4. Progressively during 2001, 2002, 2003 and 2004 themajority of Indigenous parents from Napranum, theIndigenous township 10 kilometres from Weipa,chose to send their students to the Weipa campusbecause they saw the benefits of the Western CapeCollege approach. This resulted in the Napranumcampus being closed in 2005.

Source: Hunter, 2005

COMALCO WEIPA and the WESTERN CAPE COLLEGE

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There are a number of cultural factors that constrainIndigenous people from integration into the mainstreamworkforce. These include: the prevalence of multi-family households, low labour migration rates to areaswhere work may be available because of regional andfamily commitments, living in households where Englishis not the primary language, and the maintenance oftraditional ceremonial obligations.

While certain actions may be taken to address thedisadvantages often imposed by cultural differences, itis important to acknowledge that some Indigenouspeople are not able, and others are not willing, toengage in the mainstream labour market.

For example, some residents in remote communitiesprefer to pursue a more traditional lifestyle and see thisas a reasonable choice. Other Indigenous people aresimply uncomfortable working in a labour market wheremainstream values dominate and where they are adistinct minority.

If we accept that some Indigenous people will never beparticipants in the mainstream workforce because ofthe clash with traditional cultural values, we must alsoaccept that many Indigenous people wishing to join themainstream workforce will have those major culturalbarriers to overcome.

CULTURAL DIFFERENCES

The fact that English is not the first language for manyIndigenous people living in remote regions is a majorbarrier to workforce participation. As with others whoare not native English speakers, the inconsistenciesand peculiarities of a foreign language provide plenty ofopportunities for communication breakdown and theresultant misunderstandings. These misunderstandings canbecome barriers to engaging in the mainstream economy.

Cultural barriers place Indigenous people at a significantdisadvantage when it comes to negotiating mainstreamhealth, legal and education systems and severely limittheir chances of gaining employment. These barriers arewidely recognised by educators, health professionalsand the legal community. A report by the QueenslandCriminal Justice Commission (1996), for example,specifically recognised the cultural barriers Indigenouswitnesses face within the Australian legal system. The report made several recommendations to addressthese barriers, including a recommendation for anamendment to The Evidence Act 1997 (Qld) that would allow Indigenous people to give evidence in narrative form. The report also recommended cross-cultural training for all court staff.

Cultural communication differences can cause difficultiesfor the employers, managers and co-workers ofIndigenous employees. For example, some Indigenouspeople avoid eye contact in face-to-face discussionsand are silent in circumstances where non-Indigenouspeople expect a response. Silence in conversation is anactive communication method for some Indigenous people,but it can be easily misinterpreted by non-Indigenouspeople as a sign of dishonest or insolent behaviour.

Direct questioning is not part of the traditional Indigenouscommunication style either, so the way in which someIndigenous people respond to questions can give theimpression of contradictory answers. Some confusion,too, can be caused by Indigenous people givingqualitative information about numbers, dates and times,where non-Indigenous people would give numericalresponses. For non-Indigenous people inexperienced incommunicating with Indigenous people, thesebehaviours can be misinterpreted as signs of dishonesty,rudeness or incompetence when, in fact, they simply

reflect different communication norms. On the basis ofthis misinterpretation, it is easy for Indigenous people tobe overlooked in interview situations.

Another cultural communication difference oftendisplayed by Indigenous people is a preference forface-to-face communication. The oral tradition is verypowerful and many Indigenous people only feelcomfortable when talking directly with someone theytrust and with whom they have developed a personalrelationship. This preference for spoken communicationmeans that, in a recruitment situation, for example,circulating written material such as job advertisementsvia company newsletters or in the print media is unlikelyto reach the target audience.

Cultural communication differences create barriers toemployment for Indigenous people and it is importantfor potential employers to understand thesedifferences. All the operations in this study conductcultural awareness programs as part of their inductionprograms for new employees and some conductperiodic training for all employees. Another initiativethat would assist even further in overcoming culturalcommunication barriers is the provision of targetedcultural awareness training for supervisors andsuperintendents. People occupying these roles are theinterface between Indigenous recruits and theorganisational hierarchy. If they have a fullunderstanding of cultural differences, they are in aposition to limit the potential for discriminatory or racistbehaviour from other employees.

Workforce tensions created by a lack of understanding orrespect for cultural differences and racist attitudestowards Indigenous employees are problems that theminerals industry has traditionally been reluctant todiscuss. Described by Mitchell Hooke, Chief Executive ofthe MCA (Hooke, 2006), as “the elephant in the room” –the issue we all see but dare not mention – racism is asocial problem that needs to be addressed if Indigenousemployment rates are to improve. While we discusspractical steps for addressing racism in the workforce inthe retention section of this report, their successfulimplementation depends ultimately on building cross-cultural awareness, appreciation and acceptance.

CULTURAL COMMUNICATION ISSUES

Major health problems such as cardio-vascular diseaseand diabetes are endemic in remote Indigenouscommunities and drug and alcohol abuse are widelyrecognised as serious social problems. Drug andalcohol abuse damage individual health, lead toincreased crime rates and severely limit the chances ofIndigenous people finding and keeping work.

While we were unable to access employee turnoverdata as part of this study, we do have details from thesite data that confirm that health issues, including drugand alcohol problems and legal problems, limitemployment opportunities for some Indigenous people.For example, one site was recruiting for its traineeshipprogram. Of the 32 people who applied for thetraineeships, only 17 were short listed for selection. Ofthe unsuccessful applicants, six (18 per cent) failed thealcohol and drug test, three (nine per cent) failed themedical examination, four (12.5 per cent) failed thesecurity screen and another four (12.5 per cent) failedfor unidentified reasons (Table 6).

One company in this study, GEMCO, has taken theinitiative in tackling the alcohol abuse problem. GEMCOowns a manganese operation located on Groote Eylandtin the Gulf of Carpentaria, in the Northern Territory ofAustralia. The mine is on Indigenous land owned by theAnindilyakwa people. Under an agreement with theTraditional Owners, the company is committed toreducing the negative impacts of alcohol on the localcommunity. The case study on the following pagedemonstrates how GEMCO has addressed this issue.

FAMILY RELATIONSHIPSIndigenous people are bound by strong kinship ties thatlink them to their families and communities. This cancreate many problems for Indigenous people in theworkforce. According to several studies (e.g. Hall andDriver, 2002, Barker and Brereton, 2005) family reasonsare one of the most commonly cited reasons for leavingthe workforce. Reasons include homesickness, living toofar away from children and the inability to assist whenmembers of the extended family are experiencingproblems, such as with childcare, ageing family members,domestic violence, drug problems or financial difficulties.

While family reasons are also commonly cited by non-Indigenous employees as reasons for leaving the miningindustry workforce, these difficulties are oftenexacerbated for Indigenous employees because of thecomplex nature of kinship ties. Especially for employeesfrom the remote communities where a largely traditionallifestyle is maintained, the ties of home and family are

likely to be stronger than commitment to an employer.Other research (Hall and Driver, 2002) also indicates thatlack of a stable home life is the major factor influencingan Indigenous employee’s chance of adapting tomainstream employment or completing a training course.

It is important for mining companies to recognise thestrength of family attachments. One company in thisstudy has made provision for cultural leave to beincorporated in its HR policies as a way of recognisingthe importance of kinship ties and traditionalceremonies to Indigenous people.

Most companies find they can cater for these needs innormal leave provisions. All companies in this study wereaware of the influence of family ties on Indigenous retentionrates. All, as part of their work readiness schemes, alsoprovided mentoring to trainees, to help them learn how tobalance the demands of work and home life.

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HEALTH AND SOCIAL ASPECTS

Table 6: Traineeship assessment criteria

Assessment criteria Number %Total applicants 32 100Failed alcohol / drug test 6 18.7Failed medical 3 9.3Failed security screen 4 12.5Failed other reason 4 12.5Total short listed 17 53.1Total accepted 17 53.1

Identifying the problemOver the past 40 years, GEMCO and the Indigenouscommunity have tried various strategies to managealcohol-related issues, with limited success. Theeffects of alcohol abuse, leading to high crime ratesand absenteeism from the mine workforce led, attimes, to a strained relationship between the companyand Groote’s Traditional Owners.

Catalyst for changeUnder the terms of GEMCO’s agreement with GrooteEylandt’s Traditional Owners, the company committedto managing the impacts of alcohol on the localpeople.

The strategyThe strategy for bringing about change involved thefollowings steps:1. The company initiated an extensive consultation

process that involved all stakeholders and ensuredthey had a voice. Stakeholders included residents,the two liquor outlets on Groote, andrepresentatives from the airlines, police, LandCouncils, NT Government and the mine.

2. Together, the stakeholders developed a liquormanagement plan that they believed would reducethe harm done to the community through excessivealcohol consumption.

Elements of the planThe key elements of the plan were to:1. End the existing rationing program, which was seen

as unfair and difficult to manage2. Retain the island’s status as a restricted area, where

alcohol consumption was restricted3. Declaring two exempt areas within the restricted

area. These were the island’s two liquor outlets.4. Introducing a closely monitored permit system to

enable the purchase, possession and consumptionof take away liquor

5. The right to suspend take away liquor sales at timesof community tension.

OutcomesThe impact on the Groote Eylandt community hasbeen extremely positive. The outcomes include:1. A reduced crime rate2. Decreased absenteeism rates at the mine, from an

average of nine per cent to 2.5 per cent3. A similar decrease in absenteeism rates at the local

CDEP program4. A major change in community attitude – the Groote

Eylandt Liquor Management Plan has beenaccepted by the local people as “the way we dothings on Groote” and is seen not as the exceptionbut the norm

5. Stakeholders also acknowledge that critical to theongoing success of this intervention is thecommitment demonstrated by the local liquormanagement committee.

Source: Provided by BHPB GEMCO, 2006

July 2004to April2005 (pre LMP)

July 2005to April2006 (post LMP)

250

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GEMCO AND THE GROOTE EYLANDT LIQUOR MANAGEMENT PLAN

GROOTE EYLANDT CRIME RATES,PRE AND POST THE INTRODUCTION OF

THE LIQUOR MANAGEMENT PLAN

Another factor leading to poor Indigenous employmentoutcomes is the relative isolation of many Indigenouscommunities. While isolation is a function of geography, italso has social dimensions. Indigenous people in remotelocations often have little experience of living or workingoutside their own communities. This means that they maylack the social skills or broader knowledge of the outsideworld that prepare them for workforce participation. Theironly experience of employment (if any) is likely to havebeen through CDEP, such as work for the dole schemes,which do not necessarily prepare people adequately forentering the mainstream workforce.

Indigenous people in isolated communities also havelimited access to modern communications technology.This makes it difficult for potential employees to find outabout job opportunities, to get to a site to apply forwork or to find out about work readiness schemes.They need to go to special community centres to findout about job availability, or to gain assistance inpreparing job application forms.

In recognition of the problems experienced by Indigenouspeople living in remote communities, the sites in thisstudy have adopted a range of strategies to reduce theimpacts of isolation. These include using staff membersfrom the Community, Training and HR department to liaisedirectly with local Indigenous communities, introducingwork readiness programs to prepare potential employeesfor mainstream employment, and developing programs inconjunction with local schools to teach Indigenousstudents about work opportunities in the mines.

Opportunities for studentsMost operations have developed a variety of structured programs in conjunction with local schools that introduce students to working life at amine. The Indigenous students spend time on sitewhere they observe and interact with mining personnel, who carry out the range of different rolesassociated with mining. These observations andinteractions are then followed up by classroomactivities back at school to reinforce what was learned. These programs are a common school activity in many parts of Australia but are of particular relevance to Indigenous students in remote and rural regions because they:> provide an opportunity for students to step out of

the isolation of their communities to spend time ina mainstream work environment

> are based on learning by observation, which is thetraditional method of learning in Indigenouscommunities

> provide students with the opportunity to see first-hand male and female Indigenous employeesmodelling workforce behaviour.

These programs include primary school classexcursions and, for some high school students at onesite, the opportunity to ‘shadow’ employees in differentroles for a day. Secondary students are also offeredwork experience from five to 10 days’ duration, school-based traineeships and apprenticeships during years11 and 12 and access to career markets.

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SOCIAL AND GEOGRAPHIC ISOLATION

Building community relationshipsSeveral companies have created roles with specificaccountabilities for community liaison and / orrecruitment and training. These people areresponsible for visiting local communities to improvecommunication between mine sites and localIndigenous people. This is primarily a liaison role,where the appointee acts as an interface between thecommunity and the site, letting communities knowwhen jobs are available, getting to know individualcommunity members to identify their level of workreadiness and availability, and reporting back to thesite on key issues affecting the communities. This isan important role because it can form the basis of anongoing relationship between the site and thecommunity, building trust between the two parties.

Work readiness programsWork readiness programs that prepare Indigenouspeople for entry into the workforce are a valuable toolin assisting them to overcome the effects of socialisolation. The main purpose of work readiness

programs is to assist Traditional Owners to make thetransition from unemployment or CDEP programs tothe mainstream workforce. The programs emphasisethe importance of regular attendance at work andpunctuality as well as providing pastoral care andadvice on issues such as managing personal financesand banking. The focus of these programs is ondeveloping communication and interpersonal skills, aswell as life skills, to accustom Indigenous people tothe demands of the working environment.

Student visits and work experience at Century MineCentury Zinc brings local Indigenous students fromboarding schools more than 1000 kilometres away forwork experience at their operation. Students get theopportunity to:> see a working mine in operation> see Indigenous role models at work. This is a

particularly important aspect of the visits becausestudents often see they own relatives workingthere

> experience camp life at a fly-in, fly-out operation.

STRATEGIES TO OVERCOME ISOLATION

The key implication for employers who are looking toinclude more Indigenous people at their operations isthat, because of major education, health and socialproblems, there is only a limited pool of Indigenouspeople who are ‘work-ready’, that is who have thenecessary job experience and skills to move directly intothe workforce. In several remote locations there are signsthat the majority of work-ready people have already beenrecruited and some operations are having difficulty inmeeting their Indigenous employment targets. Therefore,to achieve sustained improvement in Indigenousemployment outcomes, mining companies need to:> Focus recruitment efforts on Indigenous people

who may not have participated previously in themainstream workforce. As we discuss in thefollowing section on recruitment, some miningcompanies are already doing some very good workin this area. In particular, they are investing in arange of work readiness or prevocational schemesto prepare Indigenous employees for the workforce

> Consider re-employing Indigenous people whohave worked at the operation previously, but whodid not complete training programs or resignedfrom their jobs. There are indications that someIndigenous people come and go from theworkforce several times before settling morepermanently into a job. Therefore flexible HR

systems and working arrangements that enablethem to acclimatise gradually to the demands ofthe workforce should be considered.

> Reconsider the educational standards that are setfor particular entry level positions. There may be acase for redefining the selection criteria forIndigenous applicants, just to get them into theworkforce

> Engage with the ‘bigger picture’ issues, such asproviding education and training for schoolchildren. The Western Cape College story is anexample of investment in a longer-term strategy tocreate job-ready people

> Engage with partners to address the larger socio-economic issues, such as the provision of healthservices, and drug and alcohol programs. Thepurpose of the partnership approach is to sharecommitments and responsibilities betweenpartners. It is not the role of the minerals industryalone to solve Indigenous health and socialproblems. It is their responsibility, however, to findmore effective ways of working with governmentand local communities on these issues. By aiding inthe development of new ideas, offering skills andcontributing to the funding of initiatives, theindustry will play a major role in the development ofsustainable Indigenous communities.

IMPLICATIONS FOR EMPLOYERS

> Indigenous people are severely under-represented in the mainstream workforce.

> Critical socio-economic factors limitIndigenous workforce participation.

> There is a limited pool of Indigenous peoplewho are ‘work-ready’.

> To achieve sustained improvement inIndigenous employment outcomes, miningcompanies need to focus recruitment effortson Indigenous people who may never haveparticipated previously in the mainstreamworkforce.

> Some companies are beginning to developprograms that are directed towards people with no experience in mainstream employment.The best of these programs tackle the rootcauses of Indigenous unemployment – lack of education, cultural differences, health andfamily problems and isolation.

THE INDIGENOUS DIVERSITY CHALLENGE

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The people factor

As long as Indigenous people face major barriers toentering the mainstream workforce, it will requiregoodwill, commitment and partnerships to improveIndigenous employment outcomes. While policyinitiatives such as the MOU between the MCA and thefederal government are very important in driving change,dedicated commitment by individuals is needed to turnthese policy commitments into reality. In this section ofthe report we address the critical factor without whichthese programs and strategies cannot succeed – peoplewho are committed to achieving better Indigenousemployment outcomes in the Australian minerals industry.

The importance of the people factor emerged as amajor theme at the practitioners’ workshop conductedas part of this project. Participants were asked tocomment on the challenges they face to reach goodIndigenous employment outcomes. The mostcommonly reported challenge related to organisationsupport. Many noted that there was no engagementwith, or support from, HR personnel and sitemanagement to promote Indigenous participation in theworkforce. Specific challenges included getting ‘buy in’at the executive level, insufficient corporate drivers forchange, inconsistencies within the operation on howIndigenous employment issues were managed and anon-supportive organisational culture.

Participants identified the following factors as essentialto the improvement of Indigenous employment rates:> Commitment Leadership commitment was

identified as crucial to the success of Indigenousemployment initiatives.

> Relationships Participants emphasised that, withoutan honest and transparent relationship with the

relevant Indigenous communities, it was not possibleto achieve and sustain good employment outcomes.

> Access to skilled people Practitioners felt that theyneeded access to people who had extensiveexperience working with Indigenous people to buildrelationships and gain the trust of local Indigenouscommunities.

In support of this view, we found that the operations inthis study that are taking the lead in improvingIndigenous workforce participation rates exhibit threeimportant qualities:> an executive leadership that has publicly committed

to improving Indigenous employment outcomes> corporate champions who ‘go the extra mile’ in

supporting Indigenous employees and who haveinfluence with the operation’s management team toensure that Indigenous employment issues remainon the corporate agenda

> suitably qualified, informed and committedpersonnel in training and liaison positions who arerespected by the local Indigenous community.

Improving Indigenous employment outcomes, like allsuccessful business initiatives, requires the participationand support of all parts of an organisation. In particular,it is the attitudes and actions of the operation’s executiveleadership team that sets the tone for the rest of theorganisation. In general, mining companies have beenslow to take the initiative in recognising any obligationstowards the communities in which they operate. Animportant outcome of this study, therefore, has been theidentification of a number of corporate leaders who havebeen prepared to state publicly their commitment toimproving Indigenous employment outcomes.

The first step in displaying executive leadership is toacknowledge that Indigenous communities face majorsocio-economic disadvantages and the mineralsindustry has a role to play in helping them to meet thesechallenges. Companies who acknowledge thisresponsibility are aware that long-term engagementwith local Indigenous communities is essential. It takestime to address the issues that limit Indigenousparticipation in the workforce (lack of education, poorhealth, and social isolation) and requires an activepartnership between mining companies, governmentand Indigenous communities to improve Indigenousemployment outcomes. Charlie Leneghan, ManagingDirector of Rio Tinto Australia, said:

There are two fundamental facts that say that ourindustry (and everyone else) needs to take a long-term view of Indigenous employment. The first isthat the social and educational barriers toemployment will not respond to a quick fix. The second fact is that Indigenous populationincrease is both an extraordinary opportunity anda potential problem if it is not adequatelyanticipated by government and employers.Charlie LeneghanManaging Director, Rio Tinto AustraliaMinerals Week 2005

Other corporate leaders are acknowledging publiclythat establishing and maintaining good relationshipswith local communities is an important part ofsuccessful business planning. As all mining companiesare aware, poor relations with community stakeholderscan lead to delays in getting projects underway (e.g.new mining initiatives in the Philippines), political unrestand enforced mine closure (Bougainville), productiondelays (Yanacocha, Peru) and the abandonment of newdevelopment projects (Esquel in Argentina andTambogrande, Peru). Christine Charles, NewmontRegional Director Environment and SocialResponsibility, Australia and NZ has clearly stated the

business case for adopting socially responsiblepractices when engaging with Indigenous communities:

Gaining community acceptance is fundamentalfor business development and continuity. This isparticularly true of our relationship withIndigenous Australia, which is one of the highestpriorities for Newmont (and many miningcompanies) in this region. We have made acommitment which says in part that we recognisethat success in our business is integrally linked tolocal Indigenous communities’ capacity todevelop and maintain sustainable livelihoods.Christine CharlesNewmont Regional Director Environmentand Social ResponsibilityAustralia & NZ, July 2004

There is a range of reasons why Newmont sees itsrelationship with Indigenous Australians as so important:> mining largely occurs on Indigenous land.> the company needs to be a responsible tenant and

contribute to employment, business development,community capacity building, governance support,education and health

> there are opportunities for a strong regionalemployment base.

The final aspect of the executive leadership role that isessential for improved Indigenous employmentoutcomes is a public statement of commitment tospecific goals and targets to improve participationrates. Without the development of specific programsand initiatives and the provision of the resources toback up a company’s commitments, media statementsremain publicity exercises. In short, it is the role of theexecutive leadership team to ensure that the companyfollows through on its public commitment to improvingIndigenous employment outcomes.

Examples of specific commitments include theundertaking by Sam Walsh, the then CEO of Comalco,who said in 2002:

We at Comalco have taken the step to offeremployment and training to all local Indigenouschildren who successfully complete year 10 orbeyond on the Western Cape.Sam WalshComalco CEO, July 2002

Committed executive leadership is essential to thesuccess of industry efforts to improve Indigenousemployment outcomes.

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Executive leadership

Corporate championsIf Indigenous employment is to remain a topic on thecorporate agenda, there needs to be a champion,preferably based in the company’s corporateheadquarters, who has influence over decision makers.With the role and accountability for achieving theoutcomes embodied in the company’s Indigenousemployment policies, the corporate champion has the authority to influence the development of corporate strategy in relation to community andexternal relations policies.

The role of the corporate champion includes providingadvice and support to the Managing Director or ChiefExecutive Officer, contributing to the development andimplementation of corporate strategy, and participatingin industry initiatives (such as MCA working groups). This may include:> building, selling and embedding the business case

for investing in Indigenous employment, educationand training initiatives.

> developing and maintaining good relationships withIndigenous leadership at a national and regional level

> monitoring and influencing policy debate anddirection at State and Federal government levels.

Without corporate champions who have a high level ofcompetence and commitment to improving relationswith Indigenous communities, it is unlikely thatIndigenous employment initiatives generated by acompany’s leadership team will be implementedeffectively. Five of the companies in this study haveexecutives with Indigenous accountabilities and thesewere also the companies that provided many of thegood practices identified in this report.

Corporate champions are resourced and competent in thisarea of work. They are also working towards a level oforganisational commitment to Indigenous employmentinitiatives from their organisations that is comparable tothe commitment that companies now demonstrate in theareas of health, safety and environmental protection.

The right people The minerals industry as a whole places a great deal ofemphasis on having the right people in the right roles.For example, operations are generally quite clear aboutthe technical skills they require from their engineers,accountants, geologists, environmental scientists,human resources managers and tradespeople. Miningcompanies are also heavily involved in developingeducation and training systems throughout Australiathat will meet the needs of industry. Initiatives such asthe Mining Tertiary Education Council (MTEC) andcollaborations with the Technical and Further Education(TAFE) sector illustrate the industry’s commitment todeveloping people with the technical and managerialskills they require to run their businesses effectively.

Individual operations, however, seem to be less clearabout the skills and knowledge required of peopleinvolved in the training, mentoring, and engaging ofIndigenous people. Few companies have roles thatpertain specifically to Indigenous employmentinitiatives and, at site level, companies often only haveone person who is expected to combine responsibilitiesfor general community engagement and Indigenousemployment with a range of other responsibilities.

Most of the operations participating in this study haverecognised the importance of having people with specificskills in community liaison roles. In the majority of casesthe people filling these roles were either community and/ or training personnel. In one or two cases, the role wasfilled by a staff member from the HR department. Theattributes these people had in common were:> very well developed social process skills, where

they demonstrated empathy and understanding intheir dealings with Indigenous people

> knowledge of and respect for Indigenous people andrespect for other people’s opinions and lifestyles

> well-developed technical skills, namely, the abilityto educate and train Indigenous employees and to

develop learning tools that are attuned to the needsof Indigenous people

> application to the task and the ability to achievesuccessful education and training outcomes forIndigenous people.

Those operations that had both community and trainingpersonnel with these attributes had the greatestsuccess in increasing Indigenous workforceparticipation rates. While we saw Indigenous and non-Indigenous people filling these roles successfully, thevalue that Indigenous people bring to such positionscannot be overstated. They bring a level of socialprocess skills and technical skills of the type thatcompanies need to build the capacity of theiroperations to integrate Indigenous employeessuccessfully into the workforce.

CENTURY MINE AND INDIGENOUS LEADERSHIP

Century mine has employed a succession of Indigenoussuperintendents and other Indigenous personnel withkey accountabilities that include implementing andmaintaining the Gulf Communities Agreement (GCA).These personnel have been and are instrumental in thedevelopment, ongoing maintenance and success ofCentury’s employment and training initiatives.

Having capable, committed, assertive, politically astute,local Indigenous superintendents in positions ofauthority has provided the operation with a level ofinternal capability, continuity and expertise not found atother operations. These personnel have ensured thateven under conditions of high management turnover theemployment and training of Indigenous peoplecontinued and the recruitment and work readinesssystems that have been specifically developed forIndigenous people by the GCA team are maintained.

> Sustained improvements in Indigenousworkforce participation rates will not beachieved without organisational commitmentand cultural change.

> Organisational change depends on a clearcommitment from the company’s executiveleadership.

> Leaders must ‘walk the talk’ by providingresources and dedicated people to enacttheir policy decisions.

> A corporate champion is needed to keepIndigenous issues on the corporate andpublic policy agenda.

> Community relations and trainingprofessionals with the appropriate skills andexperience are essential if the organisation isto employ and train Indigenous people.

THE PEOPLE FACTOR

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Having identified the ‘big picture’ items that influence thesuccess of strategies to increase Indigenous participation ratesin the work force, in this section we move to a discussion ofspecific strategies that companies are implementing to recruitmore Indigenous employees. We found that mainstreamrecruitment practices are not always appropriate for Indigenouspeople and that leading companies have adapted theirrecruiting programs to meet the needs of Indigenous people.

We begin this section with a discussion of standardrecruitment processes, and why they are inappropriate formany Indigenous people. We then provide examples ofgood practice recruitment strategies that are operating atsome of the sites we visited. Table 7 summarises thedifferences between the mainstream approach and goodpractice Indigenous recruitment processes.

Recruitment

Table 7: Summary comparison between good practices in mainstream and Indigenous recruitment processes

StepAdvertise/promote

Applications/résumés

Short-list

Selection

Offer/s ofemployment

Mainstream> advertise in newspapers and on

company websites

> submitted in hard copy orelectronically

> assessing applications and résumés> telephone interviews, reference checks> final short list of applicants drawn up> interview by HR Officer

> psychometric test> medical> alcohol and drug test

> security clearance, if required> best candidate chosen

> successful applicant/s are informed in writing

> unsuccessful applicants informedin writing.

IndigenousCompany personnel who:> go to the community/s, hand out ads, talk / explain

to individuals, families about the positions vacant,answer questions

> talk to previous applicants and / or people on thecompany regional data base who have the requisite skills

> post ads on community notice boards> prepared in hard copy or electronically> assistance provided to applicants in completing

application forms and writing résumés duringcommunity visits

> collect applications and résumés during community visits> assessing applications, résumés> reference checks, local knowledge> selection centre workshops from one to four days> in very small regions where all Indigenous applicants

are known Interviews are conducted by experiencednon-Indigenous and local Indigenous company personnel

> culturally appropriate psychometric tests> medicals that include appropriate feedback> alcohol and drug testing that includes appropriate

feedback and follow up> security clearance that includes appropriate screening> affirmative action policy and practice that allows

Indigenous people who meet a range of acceptablelevels for the role to be selected, rather than justthe ‘best candidate’

> successful applicant/s are informed in writing> unsuccessful applicants are briefed and supported

appropriately as required.

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MAINSTREAM RECRUITMENTPRACTICES

The mainstay of modern HR practice is systems,procedures and practices that enable standardisedinformation to be produced. All the mining companies in this study have in place professionally developed HR systems that are designed to be equitable, efficient and cost effective.Each of these systems meets the requirements of Equal Employment Opportunity legislation.

The standard recruitment process adopted by each ofthe operations follows the same basic format: 1. Advertisements are placed in newspapers and on

company websites.2. Applications are submitted in hard copy form or

electronically.3. Applicants are short-listed by assessing their

application letter and résumé.4. Applicants whose letters and résumés meet the

basic criteria are interviewed by phone.5. A final short list is decided after the phone interviews.

Those on the short list are then interviewed andsubject to a range of tests. These include a medicalcheck, including tests for drug and alcohol use, andpsychometric testing. Some operations also requirea police check.

6. Offers of employment are then made in writing tosuccessful applicant/s and unsuccessful applicantsare likewise informed in writing.

This process is generally effective in recruiting mainstreamapplicants from mainstream communities. It does not,however, take into account the needs of Indigenouspeople, particularly those living in remote and rural areas. Mainstream recruitment processes rely on a number ofkey assumptions that are simply not applicable toIndigenous communities. These include:> applicants have the available technology and skills

to access the internet to get information andsubmit applications

> applicants have access to newspapers or bulletinboards where jobs are advertised

> applicants have the skills to prepare letters and résumés> standard screening processes are fair, and not

culturally biased (e.g. psychometric testing)> standard interview techniques are culturally

appropriate for all applicants.

While these systems may appear to be equitable,applying, as they do, the same procedure for theselection of a supervisor as for an operator, they do notacknowledge the realities of the employment situationfor Indigenous people. First, the majority of positionsoffered to Indigenous people are of a semi-skillednature; in fact, it could be argued that the skill levelsrequired to negotiate the standard recruitment processis greater than the skill levels required to undertakecompetently the positions being advertised.Relatively high levels of education, technical expertise

and interpersonal skills are required to accessinformation electronically, prepare a résumé, andperform well in a mainstream interview situation.

Second, the job search behaviour of some Indigenouspeople is significantly different from that of non-Indigenous job seekers. Non-Indigenous job seekersare more likely to use proactive search methods, suchas answering newspaper job advertisements, directlycontacting employers, advertising or tendering forwork, or checking notice boards on employers’premises. Non-Indigenous job seekers are more likelyto have contacted employers directly while Indigenousjob seekers, are more likely to report having askedfriends or relatives about jobs (Hunter and Gray, 2005).

There are a number of reasons why Indigenous jobseeking practices may be less effective than those ofnon-Indigenous job seekers. First, the approach ofsome Indigenous people to job searching tends to bemore passive than proactive, with a preference forasking friends or relatives about the availability of work.Indigenous peoples’ social networks tend to be lesseffective in helping them to find employment becausefamily and friends are often unemployed themselves,with the same limited access to information aboutpotential jobs as the job seeker.

Second, lifetime labour force experience is important inconditioning job search behaviours (Hunter and Gray,2005). In other words, the more experience we have atapplying for jobs, the better we get at working outwhich techniques are most successful. For Indigenouscommunities with a history of welfare dependency, forexample, there are few role models whose job searchbehaviour can be modelled.

Third, there are large differences in job search methodsaccording to geographic location. The largest differenceis that job seekers in regional centres and remote areasare much less likely than their city-based counterpartsto have answered a newspaper advertisement. Oneexplanation for this is that labour demand is lower inregional centres and remote areas and therefore fewerjobs are advertised in newspapers, so job seekers sooncome to regard this is an ineffective search mechanism.Finally, the lack of facilities such as internet access andthe ready availability of newspapers and job networkoffices in rural and remote locations also limitIndigenous job search opportunities.

In summary, mainstream recruitment practices areprimarily geared towards non-Indigenous urbandwellers who have access to information about jobopportunities and an understanding of the job searchprocess. Mainstream recruitment practices assume alevel of experience, infrastructure and access toinformation that is not readily available in mostIndigenous communities.

GOOD PRACTICE INDIGENOUSRECRUITMENT PROCESSES

Most of the participating sites in this study haverecognised the limitations in using standard recruitmentsystems to recruit Indigenous employees. Theirresponse has been to adapt existing practices andprocedures to meet the needs of Indigenousemployees. In this section we discuss the various waysin which operations have changed their practices, byadopting a ‘pull’ rather than a ‘push’ strategy.

Advertising the vacancyThe first stage of the recruitment process is normally to advertise the vacancy. Operations in this study that have been successful in attracting Indigenousapplicants for job vacancies tend to adopt a more proactive approach to Indigenous recruitment. In particular, they recognise that different approaches may be needed for remote areas and rural or regional centres.

In remote areas, instead of assuming that suitableapplicants will read newspaper advertisements or haveaccess to company websites, company personnel visitlocal communities personally to spread the word thatthe local operation is looking for employees. Typically,staff members travel to the local community, hand outcopies of the advertisement, post the notice on thelocal bulletin board and then talk to individuals or theirfamilies about the vacancy. This approach enablesthem to identify new recruits and also to maintaincontact with people who may have appliedunsuccessfully for jobs in the past, but are now ready toreapply, or who have previously worked for thecompany and may be interested in returning to the site.

While most operations use company staff members tovisit communities to advertise job vacancies, oneoperation in this study uses the local Land Council tocontact potential employees. In this case, the LandCouncil has a group of people working specifically ondeveloping opportunities for Indigenous employment.Since the Land Council already has establishedrelationships with the local Indigenous community, thecompany prefers to use their expertise to identifypotential employees. This approach also enables thecompany to build its relationship with the Land Council.

In the case of small Indigenous communities in remoteareas, word of mouth is the most popular method ofadvertising vacancies. Indigenous employees currentlyworking at a site will put forward the names of peoplefrom their community that they know are looking forwork. Other successful methods include thedistribution of flyers and broadcasting on localAboriginal radio stations to activate the local grapevine(Archer & Widdeson, 2002).

For rural and regional centres, job vacancies are usuallyadvertised via mainstream methods; namely,newspaper and radio advertisements. Many regionalcentres have their own employment agencies with linksinto the local Indigenous communities. Typically, whenoperations are looking for new employees, they contactlocal service providers to ask them to spread the wordabout job vacancies through their Indigenous networks.Company employees in the HR and / or communityteams who have good local knowledge andrelationships with Indigenous people may also get intouch with potential recruits they know who may beinterested in a position.

The application processThe next stage in the recruitment process is theapplication stage. The most important way an operationcan increase the chances of Indigenous people makingit through the application stage is to help them toimprove the quality of their applications. This is bestachieved by providing Indigenous applicants withassistance to complete the application forms anddevelop résumés.

In large remote regions the application stage isconducted at the same time as the advertisement stageor during a follow up visit. Company personnel providepotential recruits with assistance to complete theapplication forms and write résumés. Where an agent isused such as a Land Council, Land Council employeesprovide this assistance. In rural and regional centres,employment agencies provide any support required tocomplete applications and write résumés.

The selection processThe fourth stage of the recruitment process, theselection stage, is the one that differs most fromstandard recruitment practice. While the samescreening checks are conducted, the way that theinformation is provided to Indigenous applicants issomewhat different. The actual process for allapplicants involves:> short listing the applicants> psychometric testing> drug and alcohol testing> selection centre workshops> selecting the right person> making the offer of appointment.

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Short listing the applicantsIn some of the large remote regions a major part of thisprocess is completed during the community visitsdescribed previously. Applicants who apply duringcommunity visits generally require some furtherscrutiny, so their applications and résumés areassessed and reference checks conducted in the usualmanner by the employer. A common practice is toinformally access local knowledge about applicants asa more useful way of gaining an accurate impression ofthe applicant’s abilities than the standard telephoneinterview. This process of assessing application formsand résumés, conducting reference checks andconducting informal checks by talking to local peopleabout the capabilities of the applicant is most generallyadopted in rural and regional centres.

Psychometric testingIn conjunction with the interview process, sites routinelyconduct a series of screening tests; psychometric tests,a medical check, alcohol and drug testing and, in somecases, a security check. These present a major hurdle forsome Indigenous people and are one of the chief reasonsfor failing to make it through the selection process.

The issue of psychometric testing is a problematic one.Psychometric testing falls into three main types: abilitytesting, aptitude testing and personality questionnaires.Ability tests measure a person’s potential, for instance tolearn the skills needed for a new job or to cope with thedemands of a training course. Aptitude tests are tests ofattainment, designed to assess specifically what peoplehave learned. Aptitude tests are usually job related; forexample, they may test driving ability or typing skills.Personality tests are usually carried out to assess aperson’s ability to fit in with a given work environment.

Most minerals operations use some form ofpsychometric testing when recruiting. However, most ofthe operations in this study did not use them forIndigenous applicants because they found that manyIndigenous applicants perform poorly in these tests.The problem with psychometric testing is that resultsare easily misinterpreted and subject to cultural bias.First, experienced professionals are needed toadminister the tests and interpret the results. Second,psychometric questionnaires cannot be used inisolation – their output must be interpreted in the lightof a number of factors such as the individual's pastexperience, skills and future goals. Third, and mostimportantly, factors other than the characteristic orability being measured can influence the results; forexample, cultural background, type of education orfamiliarity with testing procedures.

The issue of cultural bias is the reason why most of thesites in this study do not generally use psychometrictesting for Indigenous employees. However,psychometric testing can be a useful tool in assessingthe capabilities of potential employees and there is atleast one test that would appear to be appropriate for

testing Indigenous applicants. This test, the QueenslandTest, is the subject of our next case study because it iscurrently being trialled by an Australian mining operation.The advantages of establishing a testing regime like theQueensland Test, especially for companies that operateglobally, is that it readily fits in with standard recruitingpractices and provides them with a tool that can be usedsuccessfully at any operational location.

THE QUEENSLAND TEST

The Queensland Test, developed by two Australianpsychologists (McElwain and Kearney 1970), wasdesigned to address the issues of cultural specificitythat led to bias in traditional psychometric test results.Based on extensive research conducted in PapuaNew Guinea, the tool was developed to enable cross-cultural testing programs.

Key features of the test> the subtests are based on known test types with

established validity> speed of response is of little relevance to the test items > tests are non-verbal, based on demonstration,

unspoken instruction and mime> scoring is based on three contact norms relevant

to the degree of contact with technologicallydeveloped societies and education

> the unique feature of this test is that it can beadministered by a trained psychologist orpsychological test administrators from one culturalbackground to test participants from entirelydifferent cultural and ethnic backgrounds, where thetwo have no common language or cultural similarity

> the test should only be administered bypsychologists or trained psychological testadministrators trained in the test.

Effectiveness > the test is effective in identifying those applicants

who have little difficulty with training programsand those who are unlikely to be successful in atraining situation

> the test has been used successfully withIndigenous populations in Australia, New Zealand,Fiji, the Philippines and India.

ApplicationsFreeport mine, West Papua, Indonesia> Freeport use the test because it potentially draw

its workforce from more than 250 differentlanguage groups and many applicants have notacquired literacy in Bahasa Indonesian, theirtraditional language, or any other language.

RTA Weipa, North Queensland> RTCA has introduced the Q-test into its Indigenous

assessment process to assist in the recruitment andselection of local indigenous people.

Energy Resources Australia (ERA) NT, Australia> ERA is considering the potential applications of

the test to meet its Indigenous assessment andselection needs.

Source: Professor G Kearney, c/- ValueEdge Management Consultants,http://www.valuedge.com.au/index.php

Drug and alcohol checks are very importantthroughout the industry due to the strong focus onsetting high health and safety standards. Each of thesites in this study required applicants to undertakemedical examinations and drug and alcohol testing.This procedure is the same for all applicants –Indigenous and non-Indigenous. Where the sitesdiffered was in the way in which they responded to thetest results. At some operations, failure to pass thesemandatory testing regimes means that applicants areimmediately rejected and informed that theirapplication has been unsuccessful. Other sites,however, used test failure as an opportunity toprovided feedback to applicants. The good practicesites took on an educative role, explaining toapplicants why they had failed and giving them adviceon how to get help for their medical problems. Thistook place during regular visits to communities.

They also advised applicants that they were able toreapply for positions at the site when their alcohol andother health problems were under control.

In some cases, the companies also provide drug testingkits to communities, so that Indigenous people can betested prior to applying for a job to ensure they areclean. This process of continuous education hasresulted in many people who originally tested positivefor alcohol and drug use coming back and re-applyingfor work and being successful in gaining employment.

One mining operation also conducts security screeningof all potential employees. This security check is similarto other good practice screening checks in thatapplicants are kept fully informed about what ishappening and that they are not used to excludeemployees from the operation on a permanent basis.

SECURITY SCREENING AT ARGYLE DIAMOND MINE

Everyone who applies for employment or visits theArgyle operation is subject to a police security screento check on his / her criminal record. Once a personapplies for a position at the mine, a security screen isautomatically triggered.

If the screen identifies a criminal record, this iscommunicated confidentially to the appropriatepeople in the company. Although those with criminalrecords are not named in the police report, localIndigenous people are usually identifiable throughlocal knowledge. In these circumstances, anexperienced company person with local knowledgewill get in touch with the applicant to discuss thepolice check, if the applicant agrees to discuss thematter. In general, Indigenous people are prepared toexplain why they have failed the test.

Following this discussion, the company representativewill make one of two recommendations – either thatthe applicant should be allowed through the securityscreen into the next stage of the recruitment processor to reject the application. If the person’s applicationis rejected, he or she is usually advised to stay out oftrouble. If this can be done for a specified period, theperson is eligible to reapply at a later date.

Source: Case study material provided by Argyle, 2006

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GOOD PRACTICE SCREENING CHECKS

Providing feedback Many Indigenous applicants fail the standard medicalexamination and mandatory drug and alcohol testing.Company personnel with expertise in communicatingwith Indigenous people fulfil an important educativerole when they provide feedback to applicants on whytheir application was unsuccessful.

Examples of good practice include:The medical check> in the case of the health check, explaining what

exactly is wrong and why it makes them unfit forwork

> explaining what people can do in terms of lifestylechanges to improve their condition

> advising them to get further medical advice(if appropriate) and where to get it.

Drug and alcohol testing > explaining why they have failed the test> directing them to help for their drug or alcohol

problem> informing them how long it will take to ‘get clean’> advising them that they can reapply for a position

once they are confident they can pass thescreening test

> supplying alcohol and drug testing kits tocommunities for self testing.

Drug and alcohol testing

Selection centre workshopsOne good practice strategy for Indigenous recruitmentthat overcomes the difficulties posed by mainstreaminterviewing and psychometric testing practices is to useselection centres to evaluate potential applicants.Selection centre workshops, based around a culturallyappropriate selection methodology (Archer & Widdeson,2002), have become increasingly popular over the pastfour or five years. The workshops generally run for a day inthe larger regional centres and up to four days at remoteoperations. The workshop process involves theobservation of applicants over an extended period as theyparticipate in a broad range of activities. These include:> class room activities> workshop sessions > practical outdoor and indoor exercises > site visits> social activities.

The purpose of selection centre workshops is toobserve Indigenous applicants in action as they interactin a range of real life situations. Skills being assessedinclude completion of practical tasks, demonstrateproblem-solving skills, interpersonal skills, and themotivation to succeed. For example, literacy andnumeracy skills are assessed in part during traditionalclassroom activities but also through practicalexercises that relate to real work situations. Applicantsare also assessed on their ability to get along withothers, to understand instructions and follow themconsistently, and to complete tasks willingly andcooperatively.

The selection centre process is far more effective than thestandard interview and psychometric testing foridentifying potential Indigenous employees. The employergains a much more accurate assessment of theenthusiasm, aptitude for the job and current state of workreadiness of potential recruits because performance isbeing evaluated across a range of environmental settings.The selection centre process is also beneficial for potentialrecruits. Applicants who do not perform well in atraditional classroom setting can be perfectly competentin work-related situations and this process gives them theopportunity to demonstrate their skills. Similarly, theextended selection period is valuable because it can helpto build the applicant’s self-confidence.

Four operations in this study used selection centres torecruit Indigenous employees. In two cases the actualgrading of applicants was conducted by skilled trainerswho have experience in working with Indigenouspeople. In the other two cases, the assessment isconducted by a panel of company personnel who runthe workshop sessions. By using selection centres andpersonnel who are experienced in working withIndigenous applicants, companies are more likely toidentify Indigenous people who have the aptitude andthe right attitude for work.

See opposite ‘The Argyle Diamond Mine SelectionCentre Workshop’.

Selecting the right personOnce the testing phase has been completed, it is thenup to the site to decide who will be offered a position.Under mainstream practices, the approach is to selectthe person considered to be the best for the job. This isgenerally considered to be the person with highestqualification, broadest experience or who hasperformed best at the different stage of the testingprocess. On the basis of these criteria, manyIndigenous people would be unsuccessful in applyingfor jobs without the assistance offered by EqualEmployment Opportunity (EEO) programs.

The aim of EEO legislation is to ensure that workplacesare free from all forms of unlawful discrimination andharassment, and to assist Indigenous Australians (asspecifically identified members of an EEO-recognisedgroup) to overcome past or present disadvantage.Implicit in the legislation is recognition that somegroups may require additional assistance to overcomesocial disadvantage. Under the requirements of EEOlegislation, companies are expected to provideprograms that will support Indigenous employees togain the skills they need to participate effectively in themainstream workforce.

The operations in this study had a variety of EEOprograms in place. These included recruitmentstrategies designed specifically for Indigenousapplicants, targeted training programs (such as thework readiness schemes described in the followingsection), career development and planning, andaffirmative action policies that attempt to provide abalance between equity and diversity.

The offer of appointmentThe final stage of the recruitment process is to adviseapplicants whether or not they have been successful ingaining a position. Applicants are generally advised inwriting. At some sites where Indigenous applicants havebeen unsuccessful, the applicant is provided withfeedback. By providing support and encouragementand explaining why the applicant has beenunsuccessful, these operations are encouragingIndigenous applicants to persist in their search for work.With appropriate feedback and advice, applicants aremore likely to understand why their application has beenunsuccessful and what steps they can take to improvetheir chances of getting a job next time.

In one operation, the feedback process includesworking with unsuccessful participants to createpersonal development plans. Participants are thenencouraged to follow the plan and reapply for a positionlater. At this later stage, they are more likely to applysuccessfully for a position because they havedemonstrated the necessary commitment to succeed.

THE ARGYLE DIAMOND MINE SELECTION CENTRE WORKSHOP

Argyle conducts four-day selection workshops for allits Indigenous apprentice and trainee intakes. Theworkshops are for applicants who have completed theapplication process and passed the medical, security,and drug and alcohol checks. The workshops arecoordinated and run by the company’s training teamand take place at the mine site. The trainers are skilledpractitioners who are experienced in working withIndigenous people. All applicants know prior to thestart of the workshop that they are being assessed fortheir suitability at all times during the four days, nomatter what type of activity is being undertaken.

ActivitiesDuring the four days, the applicants participate in:> a visitors’ induction> literacy and numeracy assessment> practical workshop assessment of basic manual

skills> mine tours, accommodation tours> presentations / talks by mine personnel, including

Indigenous personnel who describe the jobs theydo and what is expected of them

> health and safety requirements> healthy lifestyle expectations> leadership and team building exercises> social activities, such as a barbecue and cricket> conversations with individuals and in group

situations.

Performance expectationsPotential apprentices and trainees are assessed primarilyon their literacy and numeracy skills and their ability tofollow instructions and work cooperatively with others.Literacy and numeracy testing is conducted throughoutthe workshop and much of the literacy assessment isfocused around safety training. During the assessmentworkshop, applicants are expected to demonstrateliteracy and numeracy standards to a predeterminedlevel. Individual training plans are then developed toimprove the literacy skills of individuals. As a general rule,literacy and numeracy skills improve significantly duringthe course of the traineeship or apprenticeship.

Apart from literacy and numeracy skills, the othercrucial attribute being assessed during the entireworkshop is the applicant’s ability to get along withothers. This includes the ability to work cooperativelywithin teams and to follow instructions consistently,competently and without argument.

The assessment processThe assessment process is continuous and updateddaily during the workshop. This means that beforethey leave the site, applicants are told whether theyhave been successful or not. In cases where there aremore successful candidates than apprenticeshipsavailable, those not granted apprenticeships areoffered traineeships roles. In the case of unsuccessfulapplicants, trainers work with them to devise adevelopment plan that will help them to overcometheir weaknesses. They are then told that, if theyfollow through with the development plan, they canreapply at the next intake and will be accepted intothe selection centre workshop.

Finally, at the end of the workshop, the programcoordinator meets with the family and other interestedcommunity stakeholders to explain why the applicantwas successful or not. The purpose of this meeting isto manage family expectations as there have beeninstances where community members have assumedthat, once an applicant has reached the workshopstage, they will be guaranteed a job. Feedback is vitalto managing expectations, disseminating informationabout how the recruitment process operates andmaintaining robust relationships with the community.

BenefitsThis comprehensive assessment process provides theopportunity to evaluate much more accurately aperson’s capability and potential for further training fora role in the operation. While this model has relativelyhigh up-front costs compared with the standardinterview process, it is much better at identifying therecruits who are likely to stay on and complete theirapprenticeships or traineeships. This makes it morecost effective in the longer term because operationsare more likely to have selected apprentices andtrainees who will stay with the operations for a longerperiod, and the costs of turnover will be reduced.Finally, the selection centre process also provides theopportunity to identify people who may be suitableapplicants following further development.

Source: Case study material provided by Argyle, 2006

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One of the major developments in providingemployment opportunities for Indigenous people hasbeen the instigation of work readiness programs. Theseprograms, developed at different sites and inconjunction with local Indigenous communities and thefederal government, aim to provide Indigenous peoplewith practical work skills and experience in holding aregular job. While the programs vary somewhat fromsite to site, they share a common focus on personaldevelopment.

The objectives of these programs are to:> instil work habits such as attendance and

punctuality> teach trainees how to listen to, and follow,

instructions> provide trainees with the skills to manage their

social, cultural and work obligations> build self-esteem by providing trainees with positive

educational experiences.

These programs also fulfil the more traditionaleducational role of teaching literacy and numeracy skillsand providing job-related training, such as occupationalhealth and safety training. Three types of work readinessprograms were found during this study. These wereAustralian Qualifications Framework (AQF) Traineeships,pre-vocational, sometimes called pre-employmentprograms, and all Indigenous Work Groups.

Australian Qualifications Framework (AQF)Traineeships The Australian Quality Training Framework (AQF),developed by the federal government, provides thebasis for a nationally consistent, high quality vocationaleducation and training system. A major objective of theprogram is to assist in the development of flexiblepathways to assist people to move more easily betweeneducation and training sectors and the labour market.

Traineeships combine work and structured training overa defined period of time, normally one or two years. Thecombination of on-the-job experience and trainingenables the trainee to develop practical skills andworkplace knowledge. The entry level for these

traineeships is based on criteria developed byexperienced trainers who have worked extensively withIndigenous people. Good levels of literacy andnumeracy are not essential as the traineeship isstructured in such a way that people who needassistance in this area are supported in their learning.Notwithstanding this, some operations have set literacyand numeracy entry standards.

Traineeships result in nationally recognisedqualifications, usually a Certificate I or II under theAustralian Qualifications Framework (AQF), which is thename given to the system of national qualifications inschools, the vocational education and training (VET)sector (TAFEs and private training providers) and thehigher education sector (mainly universities). The AQFsupports flexible pathways which assist people to movemore easily between education and training sectors andbetween those sectors and the labour market. Thesetraineeships will be recognised throughout Australia andthere is the option for these qualifications to bearticulated into higher level qualifications.

Work readiness programsWork readiness schemes, sometimes called pre-vocational or pre-employment programs, have beendeveloped by several of the operations in this study toprepare Indigenous people either for traineeships or fordirect employment in operational roles. These programshave been established specifically for local Indigenouscommunities to improve their employment prospects.

Since these programs have been developedindependently by different operations, there are no setstandards for them. They tend to vary in duration andcontent and most have been developed to suit localrequirements. The evidence so far suggests that theseare very effective programs for enabling Indigenouspeople to make the transition from community life to themainstream workforce. The most successful programsare the ones that guarantee an offer of employment ifthe course is completed successfully.

The following case studies provide examples of threedifferent approaches to work readiness programs.

WORK READINESS PROGRAMS

ZINIFEX CENTURY MINE – DOOMADGEE CDEP PARTNERSHIP

This initiative, which has been in place for around fouryears, aims to create opportunities for people from thecommunity of Doomadgee to obtain experience ofworking and living at a FIFO mining operation,develop work skills and potentially obtain full-timeemployment at Century mine.

Participants in the scheme undergo initial inductiontraining and health checks and then go into a labour‘pool’ which is used to provide short-term labour for

Century in areas such as grounds maintenance,cleaning and concreting. Participants in the schemework a one week on / one week off rotation andreceive a substantial top-up to their CDEP wage.Century covers all costs, including flights andaccommodation.

The size of the ‘pool’ varies between 12 and 25people. In the past 12 months six participants havemade the transition into permanent employment atCentury; for most, this was their first full-time job.

Source: Case study material provided by Zinifex Century, 2006

BHP BILLITON IRON ORE’S INDIGENOUS MININGSKILLS PROGRAM

In 2006, BHP Billiton (BHPB) piloted its Indigenousmining skills program, a training scheme that wasdeveloped to provide a pathway to employmentopportunities in the mining industry for Indigenouspeople. The program was a joint initiative of BHPBIron ore, MacMahon Contractors and Pilbara TAFE. Allnine participants completed the program successfully.

About the programThe program ran for 14 weeks, with participants dividingtheir time between TAFE studies and work experience attwo BHPB sites. At TAFE, they undertook:> BHPB’s Steps to Success program> numeracy, literacy and computer competency

skills training> money management> senior first aid training> an HR information session> C class (car) drivers license and defensive driver

training.

The participants then spent four weeks on site atWhaleback and Orebody 18 respectively. During thiswork experience phase, the students visited theprocessing plant, went on trucks and witnessed oresampling, drilling and blasting.

Outcomes> two participants were offered fixed plant

apprenticeships.> two chose to undertake clerical traineeships> one began studying for his certificate II in

Metalliferous Mining Open Cut.> the remaining participants completed the course

successfully but were not job-ready – they werereceiving further mentoring and support to reachthe job readiness stage.

The program was judged to be a success and BHPB,Macmahons and Pilbara TAFE were intending to run itagain, later in the year.

Source: BHP, 2006

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NEWMONT TANAMI’S PRE-VOCATIONAL PROGRAM

The problemHistorically, Newmont Tanami had a poor reputation interms of promoting Indigenous employment. Althoughsmall scale courses targeting people from localIndigenous communities had been run since 2001,their outcomes were disappointing, with poorcompletion and retention rates. So, in consultationwith Newmont’s Regional Office, governmentdepartments and the Central Land Council (CLC),Newmont Tanami designed a new training program.

Catalyst for changeTraditionally, Tanami had relied on mainstreamrecruitment processes to recruit Indigenous peoplefrom outside of its operational area to meet itsIndigenous employment obligations. However, thismeant that few Indigenous people from the small localcommunities were employed. The TraditionalLandowners of the mining lease expressed a desire tohave “their people working on their lands” and Tanamiagreed to fulfil this commitment.

A successful strategyNewmont Tanami undertook an extensive review oftheir current recruitment strategies that involved:> conducting a critical analysis of previous courses

to identify what worked and what did not.> identifying major community problems that

needed to be faced> identifying the difficulties that prevented local

Indigenous people from being ‘work-ready’> consulting with on site contractors to identify the

base requisite skills they required.

After this consultation process, the operationdeveloped a new training program to provide theunderpinning skills, knowledge and safe workpractices required to enable a smooth transition oftrainees into the workforce.

Elements of the training programThe pre-vocational program comprises the followingelements:> A collaborative approach with the CLC, the

Department of Employment, Education andTraining (DEET) and several training providers.

> An extensive screening process at the selection andinterview stage by an experienced language, literacyand numeracy assessor using assessment materialsspecifically designed for Indigenous people.

> The course is delivered by trainers well skilled inworking with Indigenous students.

> Those who successfully complete the course areoffered long-term employment.

> The 10-week training program gives transferableskills should candidates choose to leave.

> On completion of the program, trainees areprovided with a comprehensive and culturallyappropriate introduction to the mine site during an‘orientation week’, which is delivered by onsitetrainers and a Traditional Owner.

> Trainees graduate with a nationally recognisedqualification on completion of the course. Theprogram includes 16 accredited modules and sixnon-accredited, including literacy and numeracyassistance.

> Trainees receive a training wage during the firstphase of training that is incrementally stepped toreward performance.

> On graduation, trainees move into a labour poolwhere they are deployed to various operationaldepartments for on-the-job training andexperience.

> Once they join site operations, trainees receive awage increase.

> Mentoring support is provided by the programcoordinator.

> The CLC Employment Unit and Yuendumu MiningCompany work with the program to ensuretrainees return to the operation after R&R breaksat home.

OutcomesSince the program began in 2004, there have beenthree separate intakes for trainees. To date, 23 peoplefrom a total of 35 participants have completed thetraining, are undertaking training, are directlyemployed or have gone on to further training.

Source: Provided by Newmont 2005

All Indigenous work groups

In 1997 GEMCO implemented the “Making aDifference” (BHPB 2004) Indigenous EmploymentStrategy to provide Groote Eylandt Aborigines withthe opportunity to develop the necessary skills andknowledge to pursue employment opportunities inthe mining industry, take back to their localcommunity to build capacity, or that could lead themto mainstream employment elsewhere. The programis focused on the Traditional Owners of the area, withexceptions made for the Indigenous spouses ofTraditional Owners who come from other areas.

The programThe core of this employment and training program isreal work in the Rehabilitation and Mine Services(RMS) section of the mine. A training program calledthe Employee Development Module (EDM) supportsthe practical skills being learned on the job. The EDMis a self-paced program covering four levels with avariety of options available to trainees as theyprogress through the levels. All levels have a literacyand numeracy component and on successfulcompletion of the program, the trainee receives aCertificate 1 in Preparatory Education. The majority ofskills in the EDM are nationally accredited.

Priority areasOver the past 12 months, the program has focused on improving outcomes through thefollowing strategies:> sourcing potential employees from pre-

employment programs such as Groote EylandtBickerton Island Enterprises and CommunityDevelopment Employment Programs

> high focus on mentoring new starters to reducerisk exposure

> tailored drug and alcohol training > performance management of crews and individuals

and individual key performance indicators

> individual training and development plans> leadership and teambuilding camps> reverse cross-cultural training to facilitate

Indigenous employees coming to terms with workculture

> movement of RMS employees into mainstreamemployment

> improving the EDM through more emphasis onrisk management and education

> introducing computer courses> mentoring> revision of the literacy and numeracy courses to

include a practical component focused onGEMCO’s risk management processes.

OutcomesThese changes appear to be having very promisingresults especially in terms of reduced absenteeism.

RMS performance 2003 2004 2005 2006 YTDindicator (Indigenous)Sick leave 5% 6.5% 7.1% 2%Unplanned leave 14% 9% 12% 3.2%Average No of 15 20 15.5 26employeesWorking in 0 0 0 5mainstream employment

Source: Provided by BHPB GEMCO, 2004, 2005

GEMCO’s ALL INDIGENOUS WORK GROUP MODEL

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Two sites participating in this study have made thedecision to focus training initiatives on all-Indigenouswork groups. While the program content for trainees inall-Indigenous work groups is similar to that provided inwork readiness schemes at other sites, the fact thatIndigenous employees and experienced trainers ofIndigenous people work together provides apsychological safety net for the participants.

The aim of all-Indigenous work groups is to boostindividual self-confidence and provide trainees with asense of cultural security. On the basis of the evidencefrom the two programs currently running, all-Indigenouswork groups are a very effective way of keeping youngIndigenous men from remote communities involved intraining schemes.

An important way of improving recruitment and retention rates for Indigenous employees is to make them feel accepted in the workplace. The effective integration of Indigenous employees into the workforce is, in part, dependent on them joining a workplace in which their cultural values areacknowledged and respected.

All of the operations in this study, except two, conductcultural awareness training for all of their newemployees and contractors as part of their inductionprograms. Cultural awareness training courses have anumber of objectives, including:> recognising and respecting the Traditional Owners

of the mining lease> meeting agreement requirements> clarifying the company’s expectations in relation to

Traditional Owners> clarifying agreement requirements such as

employment, training and land access rules> creating awareness and sensitising the workforce to

Indigenous culture, history, expectations and issues> welcoming new people to Country.

These programs vary in length from half a day to two full days, with some companies requiring their staff to take refresher courses every two years. Dependingon the operation, the program leaders may beIndigenous employees or specialist consultants.Sometimes programs are run by Indigenous people,others by non-Indigenous trainers with specialexpertise. In each case, the program leader has the support of the representatives of the Traditional Owners.

Cultural awareness training is a requirement of someland-use agreements, with input and approval byTraditional Owners often being a requirement of theagreement. Consequently, the training generallyincludes a discussion of the importance of therelationship between site personnel and the TraditionalOwners of the mining lease. While a primary aim ofthese programs is to ensure that employees understandthe significance for the business of maintaining goodrelations with local communities, some operationsrecognise the symbolic importance of culturalawareness training as a means of building goodrelationships with Traditional Owners.

CULTURAL AWARENESS: A TRADITIONAL SMOKING CEREMONY

One operation includes a traditional smoking ceremonyas part of its induction program. The ceremony is heldfor all new employees and contractors at the site. Theceremony, which is conducted by the TraditionalOwners of the land, welcomes newcomers to Countryand offers them safe passage.

The inclusion of this ceremony in the inductionprocess has enormous symbolic value.> It demonstrates the company’s recognition of, and

respect for, the Traditional Owners and their culture.> It sends a message to all new recruits that being

culturally aware is a part of their responsibilitiesas employees of the company.

> It is a recognisable symbol for Indigenous recruitswho may be entering the mainstream workforce forthe first time. By placing new experiences in thecontext of something familiar, the aim is to makethe transition smoother for the recruit who ismoving from one cultural tradition to another.

Source : Case study material provided to CSRM researchers

Cultural awareness training is an important aspect of theinduction process. However, the most successful culturalawareness programs tend to be conducted separatelyfrom the main induction process. This is because theimpact of the training can be diluted when it is conductedin conjunction with a range of other training programs.Inductees are presented with huge volumes of newinformation and it may be difficult to process all of it atonce. Cultural awareness training is much more likely toinfluence people’s behaviour if there is time to absorb theimportant messages that it is promoting.

Finally, cultural awareness training is not just an inductionprocess for new recruits. These programs promote ashared understanding of, and demonstrate respect for,the values and customs of others. This means that it isimportant to run cultural awareness training coursesperiodically for corporate personnel. This serves toremind all employees that respecting the values of othersis an important part of a company’s culture. Keepingthese values ‘front of mind’ with employees is a way ofreducing discrimination and racism in the workforce.

CULTURAL AWARENESS TRAINING

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The good practice recruitment initiatives documentedso far relate to direct employment of Indigenous peopleby individual mining companies. However, anydiscussion of Indigenous employment initiatives wouldbe incomplete without reference to the role ofcontractors. Contractors are involved in all aspects ofthe minerals industry supply chain from sourcing andprocurement (of labour, machinery, materials) throughto transportation and distribution of the extracted ore.While the level of contractor involvement varies fromsite to site, most operations contract out at least someof their service requirements.

The number of Indigenous employees at the sitesparticipating in this study ranged between two (site F)to 68 (site I) (Figure 1). As a percentage of the totalworkforce, contracted employees accounted forbetween 10 per cent (site H) and 61 per cent (site D) ofthe site workforce.

Figure 1: Indigenous company employees andcontractors at participating sites

*Sites B, C, E, J did not provide contractor data andhave therefore been excluded.

The extent of contractor involvement with participatingsites varies from the provision of services such ascatering and cleaning, through to contracting out theentire mining operation. Evidence from this studysuggests that the best Indigenous employmentoutcomes occurred at sites where:> mining companies had major agreements with

Traditional Owners that included clausesspecifically detailing Indigenous employmentrequirements for contractors

> there were close working partnerships between themining company and the contract service provider.

All the operations in this study require their contractors toprovide Indigenous employment opportunities. However,an important finding from our research is that the costsassociated with providing these opportunities aregenerally carried by the contractor because they arerarely factored into tendering systems. Specificchallenges for contractors include:> mining companies expect contractors to have their

own Indigenous work readiness and recruitmentsystems

> the cost associated with training Indigenous peopleand their limited productivity during training is notfactored into mining company tendering systems

> mining companies often ‘poach’ Indigenousemployees from contracting companies – thiscontributes to the already high turnover rates incontracting companies, and means that they areconstantly training new recruits from scratch

> mining company tendering systems do notnecessarily consider Indigenous employment intheir tender evaluation system weightings

> the weighting allocated to Indigenous employmentin company tendering systems does not reflect theeffort required to build an Indigenous workforcesuccessfully under service contract conditions.

These issues suggest that there is considerable roomfor improvement in terms of developing morecooperative relationships between contractors andmining companies to share the costs associated withproviding employment opportunities for Indigenouspeople. Other improvements that could be made relateto systems and reporting requirements. For example:> clearly articulating the Indigenous employment

requirements in contract tendering systems thatmatch the companies’ own Indigenous employmentrequirements

> consistently applying Indigenous employmentcontract tendering requirements

> monitoring and accurately measuring, recordingand reporting information about Indigenousemployees who work for contractors.

Contracting firms, too, are developing initiatives toimprove Indigenous employment outcomes. RocheMining, for example, focuses on developingrelationships with local communities so that themajority of its Indigenous recruits are gained throughword of mouth, reputation and referral. The company’sIndigenous workforce is made up of many individualswho have joined the company through local recruitmentinitiatives throughout Australia. A key aspect of Roche’sIndigenous employment sustainability strategy is thatIndigenous people are engaged on the understandingthat they have a future with the company followingproject completion. Wherever possible, continuity ofemployment is offered at other projects.

Contractor Company120

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INDIGENOUS COMPANY EMPLOYEESAND CONTRACTORS

CONTRACTOR RELATIONSHIPS

CONTRACTOR RELATIONSHIPS: THE NEWMONT TANAMI / HWE APPROACH

Some companies are already working towards a moreunified approach by working closely with contractors.

Newmont has developed a ‘One Tanami’ policy to createa unified workforce culture by encouraging interactionsbetween company employees and contractors.Newmont funds a nine-week pre-vocational trainingprogram for Indigenous trainees, conducted by the sitecontractors, Henry Walker Eltin (HWE).

During the training period, Indigenous workers are:> paid a training wage by Newmont> rotated through various roles to provide exposure

to different jobs on site> offered full-time positions either with Newmont

or with HWE, on successful completion of thecourse.

Source: Provided by Newmont, 2005

As far as recruitment techniques are concerned, Rocheadopts a number of the good practice recruitmentprocesses we identified at other operations. Forexample, when commencing operations at Newcrest’sCracow Gold Project in central Queensland, Indigenoustrainees were recruited during two one-day selectioncentre workshops. During the workshops, culturallyappropriate recruitment methodologies were appliedfollowing consultation with Traditional Owners. Fivetrainees were employed as a result of this process.

Roche also partners with training providers. Inpartnership with one training provider the companyestablished a short Certificate II course in Boilermaking– Welding. Six Indigenous trainees commenced workwith the company as trades assistants and worked ondifferent projects throughout Western Australia. Thesetrainees subsequently went on to complete furthercertification courses. Roche has found this to be asuccessful model for engaging Indigenous employeesin entry level roles and developing them into a skilledlabour force.

Contract service providers to the minerals industry havea major role to play in increasing employmentopportunities for Indigenous employees. The mostsuccessful programs for Indigenous people are onesthat involve an active collaboration between miningcompanies, service providers and training institutions.While there is much work still to be done in this area,there are examples of good practice that demonstratehow mining companies and contractors can worktogether to provide training, education and workopportunities for Indigenous people.

ROCHE MINING AND SUSTAINABLE INDIGENOUS EMPLOYMENT

Roche Mining is one of Australia's major providers ofmining services, operating mainly in some of the mostremote regions of Australia. The company has beenaddressing direct and indirect employment opportunitiesfor family members of the Traditional Owners in remotecommunities. Three years ago Roche Mining embarkedon an Indigenous Affairs strategy, focusing their effortson employment and training initiatives.

Roche believes that achieving sustained Indigenousemployment outcomes requires the understanding,support and commitment of mining servicescontractors who undertake work on mine sites.Especially in rural and remote areas, miningcompanies and mining contractors need to developtailored approaches to recognise and respond tocommon challenges related to the attraction andretention of Indigenous employees.

Roche has adopted a number of strategies to supportsustainable Indigenous employment in mining.These include:

RAISING CULTURAL AWARENESSIndigenous recruits are often supervised by miningcompany personnel who are not familiar with Indigenouscultures. Successful strategies have a two-wayeducational approach, where Indigenous employeeslearn about non-Indigenous culture, and non-Indigenous employees learn about Indigenous cultures.

WORKING WITH ENGLISH AS A SECONDLANGUAGE AND VARYING LITERACY LEVELS Using face-to-face briefings and drawing on theexpertise and liaison / mentoring role of Indigenousofficers has enabled Roche Mining to respond tovarying literacy levels and issues arising foremployees whose first language is not English.

ACCOMMODATING WORK-LIFE ISSUESIndigenous communities have strong extended familyrelationships and the company needs to find abalance between respecting and recognising these,while still meeting business objectives. Roche adoptsa number of strategies to acculturate Indigenousemployees to life on a mine site. For example, thecompany adopts a graduated approach to on-siteliving, by starting employees on a 5/2 roster beforegraduating them to the standard 14/7 roster pattern.

Similarly, young Indigenous people who have had verylimited work experience are supported through atransition stage in which they become accustomed tomining life. During this time they gradually becomeacclimatised to early morning starts and 12 hour shifts.

Source: Provided by Roche 2006

> Traditional HR systems and processes makeit harder for many Indigenous people toenter the mainstream workforce.

> Good practice recruitment strategies includeusing face-to-face rather than writtencommunication, using selection centreworkshops to more accurately identifyindividual skills and abilities, and adoptingflexible strategies to manage problems withdrug and alcohol use.

> A key issue for companies with land-useagreements that specify Indigenousemployment targets is the lack of suitablyexperienced and qualified Indigenous peopleto employ.

> Leading companies have developed a rangeof work readiness programs that focus onpreparing Indigenous people for thetransition into the mainstream workforce.

> Cultural awareness training for all recruits,Indigenous and non-Indigenous, is animportant component of the induction process.

> Contractors play a major role in servicing themining industry and provide manyopportunities for Indigenous recruits.Cooperative relationships between miningcompanies and contractors improveIndigenous employment outcomes.

RECRUITMENT

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Retention

The issue of staff retention is currently presenting a major challenge for the minerals industry. Although mineralssector employees have the highest wages of all industries, the sector is currently experiencing significant problemswith employee turnover and retention. The extent of the problem is difficult to estimate, but one study(NCVER/NILS, 2005), suggests that more than one in five mining industry employees (22 per cent) had beenemployed for less than one year. In the case of remote operations, turnover rates are even higher. One of theoperations in this study, for example, recorded a turnover rate of 31 per cent in the previous 12 months.

There are a number of factors that influenceemployee turnover. These includeeconomic, job–related, personal and socialfactors. Some of these factors, particularlyeconomic ones, are outside the influence ofindividuals and impact on Indigenous andnon-Indigenous employees alike. Similarly,job-related factors – how much peopleenjoy their work, and what opportunitiesthey have to acquire new skills and gainpromotion – are important to employeesfrom all backgrounds. Other factors, such

as personal confidence and the influenceof family and community ties, arerelevant to all employees but evidence

suggests that they are particularlyimportant determinants of absenteeism andturnover among Indigenous employees.The following paragraphs discuss theeconomic conditions, job characteristics,personal, social and cultural factors thatinfluence retention rates.

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MAINSTREAM RETENTION ISSUES

Economic conditionsExternal factors, such as the state of the economy,labour market conditions and the industrial relationsclimate, have a major impact on employee intentions tostay or leave. When jobs are in short supply, people willtend to stay because they need the financial security ofa regular job. However, when demand outstrips supply,they are much more prepared to change jobs, confidentthat there are more employment opportunities availableto them. This is currently the situation in the mineralsindustry, where the demand for labour, particularlyskilled labour, is very high.

Job characteristicsWhen the economy is booming, factors other thanmoney may become the key drivers for considering ajob change. Job-related factors that are known to leadto employee dissatisfaction with the current workplaceinclude work overload, monotonous or repetitive workand lack of promotional opportunities. There is alreadyevidence to indicate that work overload, in particularlengthy shift rosters and the demands of working on aFIFO basis, is a major reason that people leave theirjobs in the mining industry (Brereton, Beach and Cliff2003; CSRM and UQSRC 2006). It follows, therefore,that employees will be more willing to change jobs ifthey can obtain work in preferred locations, or wherethe roster patterns are more acceptable.

Professional challenges and opportunities for careerdevelopment are also significant factors influencingturnover intentions. Many people look for challenging

and interesting work and the opportunities to developnew skills. There is evidence that young people seekmentors who can teach them not only technical skills,but also how to prepare for new roles andresponsibilities. If people are given encouragement inthe workplace to gain technical, managerial and team-building competencies, they are more likely to stay withtheir employer. Recent survey evidence (CSRM andUQSRC, 2006) indicates that many people currentlyworking in the minerals industry will reconsider their joboptions if career aspirations are not being met. Next tomaintaining the balance between work and home (50per cent), professional challenges and careerdevelopment prospects (33 per cent) were the mostimportant aspects for professional employeesevaluating job options.

Personal factorsPersonal factors also influence the willingness ofemployees to stay or leave. For example, individualsneed a degree of self-confidence to function effectively in the workplace. If people believe they have the capacity to carry out their roles successfully,they are more likely to gain satisfaction from their work. There is some evidence in the minerals industry that young professionals, in particular, are being thrust into senior management and decision-making roles without sufficient training (CSRMand UQSRC, 2006). Some of them feel pressured andinadequately prepared for the sudden increase inresponsibilities. From the individual’s perspective, thiscan be extremely stressful and may lead to ‘burnout’and the decision to leave the job.

Social factorsFinally, social factors such as feeling a sense ofisolation, lack of family support and lack of time toparticipate in community activities are significantpredictors of job dissatisfaction. The difficultiesexperienced by minerals industry personnel living inremote and rural locations are widely recognised.Issues such as loss of traditional support networks,distance from family and friends and demanding work rosters make it difficult to balance work and family commitments. One study of minerals industryprofessionals (CSRM and UQSRC, 2006) found that 50 per cent of respondents considered that maintaining the balance between work and home life was the most important factor that would influencetheir decision to change jobs.

On the basis of this evidence, it is clear that, as long as the current boom continues, mining companies will continue to face skills shortages and will need tolook at more innovative solutions to convince people to stay in their current jobs. The wages differential is notenough to retain employees – people also wantinteresting work, promotion, opportunities to learn new skills and, above all, a way of balancing work andfamily commitments.

The limited statistical data available on Indigenousturnover rates suggests that they may be somewhathigher than non-Indigenous rates in remote areas(Barker and Brereton, 2005). This is a concern for theindustry for two main reasons. First, there is only a verysmall pool of work-ready Indigenous people available foremployment. For those operations that have committedto specific targets for Indigenous employment, it can bedifficult to reach the targets set when there are so fewsuitably skilled and experienced people available.

Another important consideration for mining companiesis the level of investment they have made in Indigenouseducation and training schemes. Many of theoperations in this study have made significantinvestments in a range of education and traininginitiatives to give Indigenous people the skills they needto participate in the workforce. If new recruits spendonly a short time at an operation, the company may notbe getting value for its investment.

The indicators so far suggest that similar factorsinfluence Indigenous and non-Indigenous turnoverrates. As described previously, these factors areeconomic conditions, job characteristics, personalfactors and social and cultural factors. However,personal, social and cultural factors appear to have agreater impact on Indigenous employees thaneconomic factors or job characteristics.

INDIGENOUS RETENTION ISSUES

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Economic conditionsWhen jobs are in short supply, Indigenous employeesface retrenchment and difficulties in finding work like allother employees. When labour is in short supply,however, differences in opportunity for Indigenous andnon-Indigenous employees become more apparent.For example, there is currently a severe shortage ofskilled labour in the mining industry. Skilledtradespersons, supervisors and mining professional arein high demand. As a consequence, workers with theseskills are being paid premium wages and are able tonegotiate more favourable working conditions becausethey are in such demand.

For Indigenous people in operational roles, the impactsof a booming economy are beneficial in the short termin that wages are higher. However, during the course ofthis study, we found several examples of Indigenousemployees who had the ability to train for trades orsupervisory roles, but refused to take theseopportunities because they would earn less. In thelonger term, the decision not to take on trade orsupervisory roles damages the career prospects ofIndigenous employees, especially as the industrybecomes more technologically sophisticated. From thepoint of view of individuals and companies, thedecision to remain in lesser skilled roles for higherwages may ultimately be a poor one. It limits futureemployment opportunities for the individual andultimately increases the likelihood of turnover if theindividual becomes bored in the operational role.

Job characteristicsMuch of the focus of the operations involved in thisstudy has been on getting Indigenous people into theworkforce. Sites have developed a range of approachesto attracting Indigenous trainees and prepare them formainstream employment. There is relatively littleinformation available, however, about currentIndigenous employees, their job perceptions or theircareer ambitions.

An important observation during site visits was that Indigenous employees are aware of the limitations of working in semi-skilled operational roles. For example, some commented that the work was ‘boring’ and they wanted further challenges. Others felt they were overlooked forpromotion. These observations are supported by the work of Barker and Brereton (2005), who found that eight per cent of survey respondents cited ‘boredom with the job’ as the reason for leavingemployment at Century mine, while another six per cent cited inadequate training to enable transition to full-time work.

Personal factorsPersonal, social and cultural factors have a majorimpact on Indigenous turnover rates. The criticaldifference between Indigenous and non-Indigenousemployees is the enormous challenge faced by manyIndigenous people in leaving remote or ruralcommunities to enter the world of mainstreamemployment. It requires a degree of personal courage,self-confidence and determination to enter a world thatoften has very different values, standards andexpectations. It also requires each operation to providea level of support and encouragement for each workerthat is above and beyond that generally required in themainstream workforce. Similarly, for those from welfare-dependent communities with no experience ofthe mainstream workforce and no role models toencourage workforce participation, support is neededto make the transition to mainstream employment.

Social and cultural factorsThe social issues that contribute to high rates ofturnover among Indigenous employees are the sameones that limit their abilities to gain initial employment;lack of formal education, poor health, drug and alcoholproblems, social and geographic isolation andmanaging the demands of large extended families.

Common problems in retaining Indigenous employees are:> conflict with managers and other employees> failure to pass drug and alcohol tests> ‘no shows’, that is failure to return from breaks or

prolonged, unexplained absences from the workplace.

Workplace conflict can be generated by a number offactors. Sometimes, it is due to cultural differences,with some Indigenous people wanting to avoid certaintasks associated with the job. For example, aheightened awareness and belief in spirits may mean

that some Indigenous people from very traditionalcommunities may not wish to mine in certain areas.Similarly, knowing the rules and potential repercussionsof being on another Traditional Owner group’s countrymay make Indigenous employees reluctant to work onland that belongs to another traditional group, unlessthey are formally welcomed. For other Indigenousemployees, there may be conflict over personnelmanagement issues. Disagreements with supervisorsor managers, working in a non-supportive team andperceptions of discrimination are common reasons forleaving the workplace.

Unexplained absenteeism or ‘no shows’ is a problemsites face in managing Indigenous employees. In manysituations, these absences are the result of conflictbetween work and family commitments. Meeting thecomplex obligations and demands of an extendedfamily and fulfiling employer expectations can be adifficult balancing act for some, particularly thoseworking in FIFO operations who may be absent fromhome for extended periods. Anecdotal evidencesuggests that a compounding factor is that Indigenousemployees are often reluctant to discuss personalproblems with their supervisors.

Finally, a less overt, but nevertheless important socialissue that impacts directly on Indigenous retentionrates is racism. This is an enormously complex andemotive issue and the extent of racism in the workforce,its impacts on individuals and how the industry mightrespond to it are matters far beyond the scope of thisreport. However, during site visits and interviews itbecame apparent that many people regard it as havingan important impact on retention rates. We thereforereport on some of the strategies adopted by oneorganisation to address racism in the workforce, as wellas discussing the importance of mentoring and careerdevelopment strategies for improving Indigenousretention rates.

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Community relations practitioners, trainers andmanagers interviewed during the course of this studyidentified action in five critical areas – family support,mentoring, flexible work rosters, career developmentand overcoming racism – as essential to improvingIndigenous retention rates. Work readiness programsand mentoring develop the necessary knowledge, skill,experience, confidence and self esteem in Indigenouspeople to want to participate in the mainstreamworkforce. Flexible rosters enable them to balancework and family commitments. Career developmentopportunities and addressing racism in the workplacecontribute to a more supportive work environment,encouraging more Indigenous employees to stay.

MentoringThere is a widespread belief among practitioners thatturnover among Indigenous employees is highest in thefirst 12 months, regardless of whether they are in trainingor operational roles. This observation is supported by datafrom the Barker and Brereton (2005) survey of formerIndigenous employees of Century mine. Of thosesurveyed, more than a quarter had stayed at the mine forsix months or less (Barker and Brereton, 2005:11).

Mentoring is regarded as the most effective strategy for reducing turnover rates. It is an essential component of all of the work readiness programs run by operations participating in this study and isregarded as a critical factor for enabling transition to the mainstream workforce. There is also a general consensus among practitioners that mentoring should extend beyond the initial trainingperiod to assist Indigenous people in making the transition from a traineeship to an operational role.This is thought to boost retention rates.

Mentoring refers to the process by which an employeereceives support and guidance from an experiencedcolleague. It is a developmental relationship in whichone person (the mentor) provides advice, counsel andguidance to another (the protégé). Mentoring is a one-on-one relationship, where the mentor variously takeson the roles of teacher, friend or parent. The mentoringrelationship is based on developing trust and providingpractical assistance and encouragement. It operates onthree different levels:> pastoral mentoring > cultural mentoring> technical mentoring (King, 2005).

STRATEGIES FOR IMPROVING INDIGENOUS RETENTION RATES

PASTORAL MENTORING refers to the role of acounsellor or tutor in providing help, advice andguidance of a personal nature. The sorts of personalsupport that mentors provide Indigenous peoplecommonly include practical help to balance family and work commitments and emotional support and guidance to manage personal problems. The aim of mentoring programs is to provide a supportiveenvironment where people can develop work and life skills. Pastoral mentoring also includes morepractical assistance, such as arranging for medical or legal assistance, or organising transport to get the employee back to work, if he or she has failed toreturn from a break.

The purpose of CULTURAL MENTORING is to promotean understanding of Indigenous culture in theworkforce. The cultural mentor has two roles. The firstis to work with employers and site personnel to helpthem understand the importance of cultural obligationsto Indigenous employees. The second is to providesupport to Indigenous employees so that they canbalance their cultural obligations with their workcommitments. In this situation, the selection of thementor is very important. The cultural mentor needsparticular liaison skills because he or she must have thesupport of site management, must be respected by theemployee and must be endorsed by the TraditionalOwners as a suitable mentor.

Finally, TECHNICAL MENTORING refers to an educativeprocess. The role of the technical mentor is to assist theprotégé to become technically proficient to the standardrequired by the employer and / or the training course.The mentor must possess both job-specific technicalknowledge, skills and experience and have the capacityand willingness to share this knowledge with theprotégé. In some circumstances, where specialistknowledge is required, the mentor will arrange for a tutorto provide specific assistance to the trainee.

Mentoring in practiceAll sites in this study have established mentoringarrangements but there is no standard approach andpractices vary from site to site. In most cases mentoringis an integral component of a person’s job, not aspecific role. Most mentoring arrangements occur onan informal basis, although one or two operations havedeveloped structured mentoring programs for theirIndigenous employees. Mentors with clearly definedoperational roles are in the minority and their positionsare generally established as part of land-useagreements negotiated with Traditional Owners.

Most mentoring activities focus on developing technicalskills and providing pastoral care. Only two of theoperations in this study employed cultural mentors. Ineach case, the cultural mentor was a respectedmember of the local Indigenous community, who wasalso an employee of the company. Most of theoperations had Indigenous employees who voluntarilytook on a mentoring role as part of their normal job, tosupport trainees.

The role of the mentor is to keep Indigenous traineesinvolved and committed through the training course.Examples of the role of the mentor include providingadvice to the protégé on how to work cooperatively with team members, or interceding on the protégé’s behalf with supervisors to explainabsenteeism or poor performance.

At this stage, the mentoring needs of Indigenousemployees have been largely overlooked. Sinceoperational resources are focused almost entirely onmentoring new recruits, little attention has been paid toIndigenous employees already in the workforce. AsIndigenous workforce participation rates increase, therequirement for mentoring for career development willincrease further.

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Argyle has more than 60 Indigenous trainees andapprentices at its operation. The TrainingSuperintendent, the Trainee Master and the ApprenticeMaster mentor all trainees and apprentices.

The mentoring program is based on good practiceguidelines for training young people in group situations.

The vast majority (90 per cent) of people who requirementoring assistance are young men and womengrappling with the problems that affect most youngpeople – learning how to manage their money,understanding the commitments involved in buying andrunning a car, prioritising social life and workobligations, coping with personal relationships andusing their time off work in a constructive way.

The majority of problems with Indigenous employeesarise during time off, so trainers / mentors are

contactable seven days a week 24 hours a day, totackle problems as soon as they arise.

Each Monday, the trainers / mentors get together to find out if there were any problems over theweekend, who may need help and how theassistance should be prioritised. If there are noincidents that bring new people to the attention of the mentors, they continue with the workload as it was prioritised during the previous week. The trainers / mentors maintain ongoing contactwith each person to help him or her work throughproblems, and then return the trainee to the work routine again.

If appropriate, the trainee’s family is involved in theprocess. Families are involved if they can providesupport to the trainee. They are kept informed bythe trainer about progress being made.

THE MENTORING PROGRAM AT ARGYLE DIAMONDS

Source: Personal Interview with Argyle representative

FAMILY SUPPORTOne of the reasons for voluntary turnover by Indigenouspeople is the need to attend to family problems. In thecase of FIFO operations, if Indigenous employees feelthat inflexible roster structures keep them away fromtheir families for too long, they are likely to leave theirjobs. Especially if drug and alcohol abuse or domesticviolence is a problem in the community, many feelthat they are needed at home to try and deal with thecurrent crisis.

Conversely, some Indigenous employees may be drawnback into dysfunctional family or social networks ontheir leave breaks and fail to return to work. Theybecome involved in drinking, drug taking, or criminalactivities that mean they can’t work because they willfail the standard drug and alcohol checks.

In both these cases, it is problems in the communitiesthat draw the employee away from work. This is wherestrategies that tackle the root causes of Indigenoussocio-economic disadvantage are more important thanany support the site can offer individual employees.Schemes such as the Groote Eylandt liquormanagement strategy and the Western Cape Collegeeducation strategy assist in the development of moreprosperous, self-managing communities.

It is not only in remote communities that Indigenousemployees face difficulties combining familyresponsibilities with work commitments. Living in amining town also creates challenges for Indigenousfamilies who have moved from remote communities tothe town. It is a large cultural shift from the passivesocial environment of a welfare-dependent communityinto a community where the culture of the workplacedominates the social as well as the economic life of thetown. While most of the operations in this study providepastoral support for their Indigenous trainees andapprentices through mentoring programs, few providesupport for their partners and children. Especially atresidential sites, partners face a range of situations thatthey may have never experienced before and that theyare ill-equipped to cope with.

The challenges faced may include:> Developing and maintaining a home environment

that supports the partner at work, in a structuredmanner. This includes:– provision of regular meals– application of budgeting skills – maintenance of home environment and

household goods– dealing with external family requirements.

> Developing and maintaining a home environmentthat supports their children at school. This requiresextra planning to ensure:– regular sleep routines– regular homework routines– a more structured environment to help children

adjust to ‘mainstream’ life more effectively– families that have the skills to manage any

children’s behavioural problems that may be areaction to the changes in lifestyle.

When the partner of an employee does not have thecapability to manage all or some of theseresponsibilities the burden is frequently transferred ontoanother family member in the town. This places anenormous burden on some households, especially ifthere are several members of the extended family whoare not coping.

While most of the operations in this study providepastoral support for their Indigenous trainees andapprentices through mentoring programs, few providesupport for their partners and children. WhenIndigenous employees drop out of employment it is often because they feel that returning to their communities is the only way to cope withdomestic problems.

According to survey evidence, the attrition rate ofIndigenous employees is clearly linked to an unstablehome life (Hall and Driver, 2002). Providing familysupport, therefore, may be as important as providingmentoring for Indigenous employees if companies areto retain their Indigenous employees. This support cantake different forms. For example, a sympatheticsupervisor will take into account personal difficultiesand may be able to arrange rosters or shifts to give theemployee the opportunity to attend to personalproblems. If they are made aware of the problem, theymay be able to offer advice on where support orassistance can be obtained. Supervisors in thissituation need management support for their actionsand to be comfortable in a mentoring role.

For some operations, it may be appropriate to set upsupport services in conjunction with the localIndigenous community, if community members feel thisis appropriate. Agencies or individuals who can provideassistance with planning and household budgeting, orgive advice on where to buy whitegoods and how touse them, or provide home help are examples ofsupport services that may be beneficial.

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FLEXIBLE WORK ROSTERSClosely related to family problems is the issue of work rosters. This is not a problem unique toIndigenous employees. Twelve hour shifts andprolonged absences from home and family are majorissues for many employees in the minerals industry,especially those working in FIFO operations (Beach,Brereton and Cliff, 2003). However, the family problems, kinship ties and sense of traditionalresponsibilities that tie many Indigenous employees to their local communities mean that prolongedabsences create difficulties for many employees.Flexible work rosters that enable Indigenous employees to return home in the event of domesticproblems are a key issue for employers to consider.

There is scope for far more flexibility in the mineralsindustry with regards to shift patterns and rosters thanis generally recognised, especially at residential sites.Shorter working hours, job sharing and part-time work

are options that appeal to many people trying tobalance work and family commitments. For example,there has been considerable publicity recently aboutErnest Henry mine, where the company has introduceda ‘nine to three’ roster for women who drive trucks atthe mine. The purpose of this shift pattern is to enablethe women to be home by the time their children comehome from school.

Even at FIFO operations, there is scope for moreflexible work rosters. Limited ‘tours of duty’ and equaltime rosters are examples of roster patterns that givepeople more time with family. At present, most of theseinitiatives are occurring at the management level andare not geared specifically for Indigenous employees.Given the current skills shortages in the industry,however, these practices may need to becomemore widespread if operations are to retain theiremployees.

CAREER DEVELOPMENTCareer development for Indigenous employees is oneof the most significant issues facing the mineralsindustry over the next decade, particularly in long-termmining operations. As Indigenous participation rates inthe workforce increase, Indigenous people are unlikelyto be content to stay in semi-skilled roles for the life oflong-term mining projects. As indicated by the goodpractice examples in this report, several operationshave made a concerted effort to improve Indigenousrecruitment rates. As these recruits become moreintegrated into the workforce, we can expect thatlonger-term career planning will become a priority forthem. The industry will need to address theseaspirations to retain employees.

As reported in the data analysis section of this report (page 71), Indigenous employees are heavily concentrated in unskilled or semi-skilled roles in the mining industry workforce. There are a number of reasons for this concentration. First, as we have already indicated, those who do have jobs, especially in remote areas, tend to have a lower standard of education. This factor disadvantages Indigenous people who seek careeradvancement. Good career guidance and personaldevelopment training are necessary if they are to gain promotion to supervisory or management roles.

Second, there are no legislative requirements for miningcompanies in Australia to employ, train, educate orprovide career development opportunities forIndigenous people. While the mining companies in thisstudy all have agreements with Indigenous people thatinclude employment and training commitments, onlyone has an agreement that requires the operation toprovide career development opportunities.

There are existing career development structures atsome operations. Work readiness programs,apprenticeships and cadetships are the three entrypoints for Indigenous people to embark on careers inthe minerals industry (Figure 2). Work readinessprograms prepare people for semi-skilled roles inoperations, administration or supply and can leadultimately to positions as supervisors or schedulingroles. Employees who have completed apprenticeshipsenter the workforce as skilled tradespersons, leading tofuture career opportunities as superintendents,supervisors and some middle management positions.Cadetships lead directly to professional roles forgraduates, for example, as engineers, accountants andIT professionals. From these professional careers,graduates can move into management roles rangingfrom middle management positions to executive roles.

Apprenticeships currently offer the greatest careerdevelopment opportunities for Indigenous people.Those who enter the industry via apprenticeshipschemes qualify as skilled tradespersons, who arecurrently in great demand in the minerals industry. Workreadiness or pre-vocational programs and traineeshipscan all be used as entry level programs to feed into theapprenticeship training scheme, if the trainee isprepared to undertake further study. This means thatthose who initially enter the workforce with poor literacyand numeracy skills have the opportunity to improvethese skills on the job and then move into skilled rolesvia apprenticeship programs, if they are keen todevelop their careers further.

To encourage the uptake of apprenticeships byIndigenous students, Century mine now offersapprenticeships to all local Indigenous students who

complete year 12. Indigenous students are givenpriority when positions are made available.

While there are opportunities for Indigenous people tomove into apprenticeships either directly (if they havecompleted their secondary education to the requiredlevel) or via pre-vocational or traineeship schemes, thedata from the sites participating in this survey suggestslimited participation so far. Only two operations haveapprenticeship programs with more than 20apprentices, indicating that, at current levels, there willbe only limited growth in the numbers of skilledIndigenous tradespeople in these regions.

The third pathway to career advancement forIndigenous employees is via cadetships. At present,there are very few Indigenous students eligible for

these cadetships because most do not achieve theacademic standard required for university entrance.However, some operations are now making attempts toget more Indigenous people into professional roles byoffering cadetships to Indigenous students. While someoperations offer cadetships to Indigenous employeeson an occasional basis, only one company hasestablished a successful National Cadetship Project.

Professional career development for Indigenousemployees is clearly in its infancy. However, as the casestudy on Rio Tinto’s Cadetship Project illustrates,the investment in career development opportunitiesfor Indigenous people can lead to excellent outcomesand ultimately lead to improved retention rates.Figure 2 illustrates possible career development paths.

Figure 2: Career development paths for Indigenous employees

ENTRY POINT ENTRY LEVEL CAREER OPPORTUNITY

Work readiness programs• pre-vocational• all Indigenous work

groups• Traineeships

• Supervisor• Scheduling / dispatch

• Entry level roles• Operators• Administration• Supply

WORK-READY PEOPLE SEMI-SKILLED ROLES SUPERVISORY ROLES

FURTHER STUDY

FURTHER EXPERIENCE

• Supervisor• Superintendent• Maintenance planning• Project roles

• Electrician• Welders• Mechanics• Fitters

APPRENTICESHIPS SKILLEDTRADESPERSONS

SUPERVISORY / MIDDLE MANAGEMENT ROLES

FURTHER STUDY FURTHER STUDY

• Technical specialists• Technical project roles• Supervisor• Superintendent• Managers• Executive management

• Engineers• Geologists• Environmental scientists• Accountants• IT professionals

CADETSHIPS PROFESSIONAL ROLES MIDDLE / SENIORMANAGEMENT ROLES

RIO TINTO’S AUSTRALIAN INDIGENOUS CADETSHIP PROJECT

A partnership approachSince 1999 Rio Tinto has been engaged in theNational Indigenous Cadetship Project (NICP),working in conjunction with the CommonwealthGovernment. The project is administered by theIndigenous Employment Branch of the Department ofEmployment and Workplace Relations (DEWR).

Aim of the projectThe aim of the project is to develop Indigenousprofessionals with diverse skills and experience. To achieve this aim, NICP provides financial supportto Indigenous students to study for tertiary degrees.Rio targets Indigenous tertiary students wishing tostudy in the following areas:> Engineering degrees (Mining, Chemical, Civil,

Electrical, Minerals Processing / Metallurgy)> Science degrees (Metallurgy, Chemistry, Geology /

Earth Sciences, Environmental Science)> Other degrees (Archaeology and Anthropology,

Information Technology, and Business degrees inCommunications, Accounting and HR Management).

Preference is given, but not restricted to, applicantsfrom Indigenous communities located near Rio Tintooperations.

Generous support Cadets enjoy a range of benefits:> annual study allowance of $12,000> annual textbook allowance of $1,000> 12 weeks paid vacation employment> career development> mentoring> technical skills development> experience in a global company.

A particularly valuable part of the scheme is the offerof vacation employment over the summer break. Thisprovides cadets with practical industry experience intheir chosen field of study, and the opportunity tofamiliarise themselves with the work environment inwhich they are likely to gain employment.

Outcomes> eleven graduates (five males, six females)> all have gained employment in their area of study> six (three males, three females) have taken up

graduate roles with Rio Tinto> seven cadets (three females, four males) are

currently undertaking cadetships.

Source: http://www.riotinto.com/aboutus/careers/cadetship.aspx

PILBARA IRON’S APPRENTICESHIP PROGRAM

The Structured Training and Employment Program(STEP) is a joint partnership between Pilbara Iron and theDepartment of Employment and Workplace Relations(DEWR). The apprenticeship program at Pilbara Iron wasestablished in 1999 to provide apprenticeshipopportunities to Indigenous youths who graduated fromhigh school through a Hamersley Iron ATAL initiative – theGumula Mirnuwarni education project.

Partners in the apprenticeship program included PilbaraIron, Department of Employment and Workplace Relations,ATSIC, Apprenticeships Western Australia, Pilbara TAFE,Pilbara Iron employees, native title groups, Indigenouspeople, contractors and the Department of Education.

The program was established in a disused workshopand requires all apprentices irrespective of trade tospend up to six months in the apprentice workshopsgaining hands-on experience and safety awareness. Atthe end of this period, the mechanical tradeapprentices continue their training in the apprenticeworkshops and other trades are placed in the businessfor their ongoing on-the-job training requirements.

In 2000, 12 young Indigenous people were selected tocommence in the workshop. After a three-month trialperiod, nine of those were offered traineeships whichprogressed on to apprenticeships at the end of theirfirst year of training. Eight of these nine original STEPapprentices graduated. The Apprentice Masters roleinvolves the regular mentoring and coaching of all ofthese young people through their full apprenticeshipperiod. This mentoring work was a key to the successof these apprentices.

A small team of Indigenous employees continues toprovide mentoring support to the apprentice trainingsupervisors as well as providing a coaching andmentoring service to other parts of the business, to workskills employees and mainstream Indigenous employees.

The mainstream apprenticeship program wasoutsourced to an external provider in 1997. By 2001 thecompany’s Apprentice board found that thesemainstream apprentices were not being well trained andhad poor safety performance. The board became awareof the success of the STEP apprentice training programand, as a result of the high regard in which the businessheld the Indigenous apprentices (anecdotally they weretheir apprentice of choice), the Board widened thescope of the STEP apprentice workshop in 2002 tobecome the training ground for all first year mechanicalapprentices, including Indigenous apprentices.

As a result of the success of this approach, the modelwas replicated in 2003 at Tom Price and in 2004 with twoworkshops, mechanical and electrical, in Cape Lambert.

Of the 129 trade apprenticeship positions in Pilbara Iron,22 per cent (29 people) are filled by Indigenous people. In2006 the apprentices achieved five years free from lost-time injuries, a significant safety achievement.

Source: Provided by Pilbara Iron 2006

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The final factor influencing Indigenous retention rates inthe workforce is the issue of racism. As we havepreviously acknowledged, the relationship betweenIndigenous and non-Indigenous Australians is acomplex one, and overcoming racism is an unresolvedissue in the broader community. However, the mineralsindustry is a part of that broader community and,because so many of its operations are located in closeproximity to Indigenous communities, it cannot affordto ignore the problem.

We raise the subject of racism in this report for tworeasons. First, during site visits and interviews it becameapparent that many people regard it as having animportant impact on Indigenous retention rates. Severalpeople cited racist comments and discrimination asreasons for Indigenous employees leaving theworkplace. Second, some leaders in the mineralsindustry recognise racism as an issue for Australiansociety and have been prepared to comment publicly tothat effect. Christine Charles, Newmont RegionalDirector, Environment and Social Responsibility, Australiaand NZ said:

We must be constantly aware that our localperspectives reflect the often racist experience thathas been Australia’s past. We must accept that wehave a country, which still bears the hallmarks ofsystemic racism. Systemic racism occurs whenpowerful institutions discriminate against a particulargroup of people by virtue of the philosophies whichunderpin their policies and practices.

Leading companies are prepared to acknowledge thatracism in the workforce is a problem. We have identified atleast one good practice example of what operations cando to counter racism in the workplace and developstrategies for addressing it. The case in question concernsan executive at one operation who commissioned aproject to determine whether there was evidence of racismin the workforce and, if so, how pervasive it was. Theproject identified a level of entrenched racism that cameas a surprise to the operation’s leadership team. To theircredit, the team acknowledged the extent of the problemand developed a comprehensive plan, complete withperformance measures, with the aim of eliminating suchbehaviour in the workplace.

THE RACISM ASSESSMENT PROJECT

The project brief The aim of the project was to determine if there wasevidence of racism in the workforce.

An independent researcher was appointed to:> observe and conduct selective interviews with

company employees and local stakeholders> evaluate the extent to which existing systems,

symbols and behaviours promoted or facilitated aharmonious and productive workplace

> gauge the acceptance of cultural diversityamongst employees, with particular attention tothe recruitment, retention and development ofIndigenous persons

> prepare a written report outlining findings> provide a prioritised set of practical

recommendations to enhance management’sefforts to sustain a productive workplace.

The researcher conducted a series of interviews withindividuals at all levels of management fromdepartments across the site. Additionally, individualoperators and operator focus groups were interviewed.A number of external stakeholders were also consultedto provide a view from outside the company.

Outcomes and recommendationsThe assessment identified that racism was an issue atthe operation and recommendations included:> revision of employment systems to officially

accommodate cultural diversity> development of Indigenous employment and

career development metrics> inclusion of those metrics in the performance

measures of all managers> introduction of diversity management into the

training programs provided for front line managers– training in the cultural and social aspects of the

operation for all staff recruited from outside thelocal community; this is particularly important forsenior managers

– a requirement for all managers to exhibitappropriate behaviour in the broader community

– working with local Indigenous leaders tosignificantly increase the symbols of Indigenousconnection and history in the broader community.

Source: Provided by company

OVERCOMING RACISM

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> Family, social and cultural factors are themain reasons for turnover among Indigenousemployees.

> High rates of absenteeism can often be dueto difficulties in adapting to mainstreamworking hours and conditions, or a responseto family needs back in the communities.

> The most effective strategies for improvingIndigenous retention rates are:– ongoing mentoring– the provision of family support– flexible work rosters– addressing racism in the workforce.

> The provision of career developmentopportunities for Indigenous employees is alargely neglected area. As more Indigenouspeople enter the workforce, greater effortswill need to be made to create careerprogression opportunities. Otherwise, it willbe difficult for these people to return overthe longer term.

RETENTION

Resources for practitionersMANAGEMENT SYSTEMS

To improve Indigenous employment outcomes, thereare four factors that are required:> the right people to drive organisational commitment

to providing opportunities for Indigenous people> innovative recruitment and retention strategies to

engage Indigenous people in the mainstreamworkforce

> the provision of opportunities for careerdevelopment

> management systems to track performance.

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This final section of the report focuses on the importantrole of management systems in tracking a company’sIndigenous employment performance. Effectivemanagement systems enable companies to see howwell new policies and processes are being implementedand which strategies are working. They also assist inthe identification of problem areas so that interventionscan be designed before a company has invested toomuch time and effort on a strategy that may not beproviding the desired outcomes. Effective managementsystems also enable operations to collect data thattracks performance outcomes over time, allowing themto set meaningful performance targets. Finally, effectivemanagement systems are an indicator of a company’scommitment to improving performance in a particulararea. They send a clear message that management iscommitted to implementing its commitments.

An early finding from this study was that few operationskeep comprehensive records about their Indigenousemployees and even fewer have implementedmanagement systems that enable them to recordIndigenous employment data systematically, findinformation easily or report on performance against keyindicators. Only a few operations kept comprehensive HRdata on their Indigenous employees, for example, roles,skill levels, records of training programs attended andcompletion rates. None of the sites conducted exitinterviews for Indigenous people on a consistent basis, soreliable turnover data were unavailable. Finally, the datacollected by different companies varies enormously fromsite to site, even in the case of operations that belong tothe same parent company. There were no standardisedoperational data that would enable comparisons betweencompanies, sites or business units.

THE INDIGENOUS EMPLOYMENT EVALUATION TOOLWe have developed an Indigenous employmentperformance management framework to assist operationsto set up their own management systems. The IndigenousEmployment Evaluation Tool has been designed for useby practitioners, assessors / auditors and others to assessa company’s operational commitment and capability todeliver consistent Indigenous employment outcomes. Thetool can be used for:> assessing the Indigenous employment aspects of

external or site-managed community assessmentprograms

> comparing operations within the same company> identifying and prioritising performance gaps> developing an Indigenous employment strategy> assisting stakeholders to evaluate the effectiveness

of Indigenous employment practices in differentcompanies.

The tool is broadly modelled on the InternationalStandards Organisation (ISO) framework, and followsthe Plan, Do, Check Act cycle that is used in manymanagement systems (Figure 3).

Company policy International policy

Figure 3: Indigenous Employment Evaluation framework

PLAN LEADERSHIP

Site-level policy

Aspects and ImpactsLegal & otherrequirements

Objectives & targets

PLANNING

Managementprograms

Structure andresponsibility

Training, awareness & competence

Communication

IMPLEMENTATION PROCESS

Document controlsystems

Monitoring &measurement

Non-conformance &corrective &

preventive actionsRecords

PERFORMANCE MONITORING

Management review

PROGRESS

INDIGENOUS EMPLOYMENT POLICY

DO

CHECK

ACT

1 LEADERSHIP

Consistent with our findings on the importance ofexecutive leadership in promoting and supportinginitiatives that will increase Indigenous workforceparticipation rates, the first component of theevaluation checklist is leadership.

2 POLICY

A formal Indigenous employment policy enables acompany to plan and implement effective Indigenousemployment strategies that are consistent with itscommitment to improving Indigenous participationrates in the workforce. Depending on the size of theorganisation, a company may have in place a companypolicy, an international policy (in the case of multi-national corporations) and a site-based policy.

3 PLANNING

The first stage of the planning process is thedevelopment of an aspects and impacts register. Thepurpose of the register is to record the specificobjectives and performance outcomes designed tomeet the company’s Indigenous employment policyand agreement commitments. An aspects register:> documents the key elements influencing

Indigenous employment opportunities andoutcomes that are within the company’s sphere ofinfluence, both internally and externally

> refers to specific accountabilities for each aspect> includes a risk rating for each aspect.

The second phase of planning involves creating a documentary record of laws and regulations relevantto Indigenous employment. These include:> legislation (state, federal, local)> agreements, such as land-use agreements > community standards.

Finally, the planning stage involves the development ofperformance objectives and targets for Indigenousemployment. Objectives set the overall aims thecompany wishes to achieve from its Indigenousemployment initiatives and targets define theperformance measures required to meet those aims.

4 IMPLEMENTATION PROCESS

The implementation phase involves the establishmentof roles, responsibilities and authorities to ensurecorporate objectives are met. This entails:> defining specific roles, authorities and reporting

requirements for people involved in the training andsupport of Indigenous employees

> ensuring that these people are appropriately trainedand competent to teach and mentor Indigenousemployees

> establishing and maintaining clear lines of communicationbetween a company’s internal stakeholders –trainees and trainers, managers and supervisors

> developing and maintaining appropriate formalcommunication channels with external stakeholderssuch as government agencies, Traditional Ownergroups and contractors

> a document control system to ensure easy access toreliable (and current) Indigenous employment records.

5 PERFORMANCE MONITORING

Once the appropriate systems are established, effective performance measurement systems arerequired to ensure they are functioning effectively andthat progress is being made towards improvingIndigenous employment outcomes. This involves thedevelopment of:> an effective assessment or audit system> a process for identifying non-conformance or

non-compliance with established policies andperformance targets

> a process for implementing corrective actions> appropriate records maintenance.

6 PROGRESS

The final component of the Indigenous Employment Assessment Checklist is the managementreview process. The purpose of the managementreview is to:> assess performance against current targets> assess the effectiveness of existing objectives

and targets> assess opportunities for improvement> update systems, objectives and targets, where

appropriate> ensure adequate resources are available.

The elements of this framework are summarised inTable 8 and full details can be found in the IndigenousEmployment Assessment Checklist booklet thataccompanies this report.

While our research indicated that none of theoperations in this study had a separate managementsystem to track the Indigenous employment programs,one operation includes Indigenous employment as acomponent of its External Relations ManagementSystem, placing it on an equal footing with all theirother Health, Safety, Environment and Community(HSEC) initiatives. This particular system establishes abenchmark for the industry.

In this system, Indigenous employment is integratedinto the community relations area. Companyexpectations and accountabilities are clearly defined,data management is streamlined and this creates asense of confidence that the operation can meet itsIndigenous employment commitments and minimisevariations in performance over time. This system is anexample of a relatively new initiative in the mineralsindustry and has required the development of newcompetencies and capabilities. It is a rigorousapproach that means the systems, procedures andpractices are documented so that critical informationno longer resides solely in the heads of the experiencedpersonnel who work in the area.

The strengths of this system are discussed in theNewmont Five Star Management System case study.

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PROGRESS A formal review process to assess performance

Management review • to assess performance against current targets• to assess the effectiveness of existing objectives and targets• to assess opportunities for improvements • to update systems objectives and targets

ACT

Table 8: The Indigenous Employment Assessment framework

LEADERSHIP Demonstrated leadership by the top management team

POLICY Provision of an operational framework that documents a company’scommitment to the Indigenous people whose land is being mined

PLAN

International policy Development of an overarching policy on Indigenous relationsglobally

Aspects and impacts Factors within the control of the company that impact on Indigenousemployment

Legal requirements Records of statutory obligations, land-use agreements, industry andcommunity standards

Objectives and targets Setting targets for Indigenous employment, retention and trainingprograms

PLANNING Planning to establish, implement and maintain Indigenousemployment procedures

Site policy Specific contractor policy

Company policy Development of an Australian Indigenous relations policy

Management programs A documented site system that records all management programs orplans that are relevant to Indigenous employment outcomes

Putting policy commitment into action

Structure and responsibility Definition of roles, responsibilities and authorities

DO

Document control system Implementing a formalised document control process

Non-conformance and corrective andpreventive actions

Development of a corrective planning register

Records Maintenance of adequate records

Monitoring and measurement Measuring performance against Indigenous employment targets

PERFORMANCEMONITORING

Documented process at the site level for formal assessments oraudits of the Indigenous employment system

Communication Documented procedures for regular formal communication withinternal and external stakeholders

IMPLEMENTATION PROCESS

CHECK

STAGE ASPECT DESCRIPTION

In 2003, Newmont introduced its Five Star IntegratedManagement System to ensure effective managementprocesses are in place at all operations to manage itshealth and safety, community and environmentalresponsibilities. The management system has thefollowing major strengths:

PolicyThis policy sets a clear benchmark for the industry.It contains:> an overall policy and a secondary policy, the

Australian Indigenous Peoples Policy’ that applyto all of their Australian operations

> guidelines to explain and clarify the Indigenousemployment intent of the overall policy

> unambiguous objectives in the secondary policythat address key operational leadership and HRissues for Indigenous employment, such as:– cultural diversity within work environments – racism in the workplace– sustainable business enterprise – employment and career development

opportunities in local Indigenous communities– increasing the number of Indigenous people

employed in the company.

Indigenous employment standardThe standard and guidelines are comprehensive and support the company’s Indigenous employment policies.

PlanningThe Indigenous employment plans were an integralcomponent of the site planning process and containedthe following key elements.> the tasks to be completed> who is accountable for completing the tasks> an estimated time for completion of tasks> tasks were risk ranked and prioritised using an

Australian standard risk ranking method> a corrective action planning register was an

integral component of the planning process.

DataData collection, recording and reporting wasconducted to a documented procedure and is auditable.

Work readiness and recruitmentThe pre-vocational and recruitment systems weredesigned specifically for local circumstances and allsystems and procedures were documented.

Cultural awarenessCultural awareness training was provided for allemployees and contractors.

Operational leadershipThe policy, standard and guidelines provided excellentclarity of expectations and accountability foroperational leadership.

Document controlAll Indigenous employment systems, procedures and practices were documented and subject todocument control.

Corrective and preventive actionsThe corrective action planning register provides aclear auditable register of the hazard / issue, thesource document, follow up action required, personaccountable, required finish date and current status.

External assessmentsThese assessments are conducted annually againstthe Indigenous employment standard and are welldocumented. The issues and improvements noted inthe assessments are followed up and actioned. Thissystem sets a clear benchmark for the industry.

Source: The evaluation of this system was undertaken as part of the research forthis project

NEWMONT’S FIVE STAR INTEGRATED MANAGEMENT SYSTEM

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Industry associationsAustralasian Institute of Mining and Metallurgy http://www.ausimm.com.au/Minerals Council of Australia http://www.minerals.org.au/New South Wales Minerals Council http://www.nswmin.com.auChamber of Minerals and Energy Western Australia Inc http://www.cmewa.com.au/Queensland Resources Council http://www.qrc.org.au/Tasmanian Minerals Council http://www.tasminerals.com.au/

Government agenciesWorking with CommunitiesCommunity Development Employment Projects (CDEP)http://www.workplace.gov.au/workplace/Category/SchemesInitiatives/IndigenousProgs/CommunityDevelopmentEmploymentProjectsCDEPProgramme

Indigenous Employment Centres (IEC)www.workplace.gov.au/workplace/Individual/IndigenousAustralians/IndigenousEmploymentCentres.htm

Working with employersStructured Training and Employment Projects (STEP)www.workplace.gov.au/workplace/Individual/IndigenousAustralians/StructuredTrainingandEmploymentProjectsSTEPforEmployees.htm

Corporate Leaders for Indigenous Employment Project (CLIEP)www.workplace.gov.au/workplace/Category/SchemesInitiatives/IndigenousProgs/CorporateLeadersforIndigenousEmploymentProject.htm

Wage Assistancewww.wageassistance.gov.au

National Indigenous Cadetship Project (NICP)www.workplace.gov.au/workplace/Individual/IndigenousAustralians/NationalIndigenousCadetshipProjectNICPforStudents.htmIndigenous business services and programs

Indigenous Business Development Programme (IBDP)www.workplace.gov.au/workplace/Organisation/Businessassistance/IndigenousBusinessDevelopmentProgrammeIBDP.htm

USEFUL LINKS

ORGANISATIONAL MATURITY CHARTThe purpose of the chart is to:> evaluate the maturity of a company/site’s

Indigenous employment policies and practicesrelative to the good practice standards establishedby this study

> enable comparison between companies, sites andoperations by establishing a consistent frame ofreference for evaluating performance

> provide a tool that allows for easy identification oforganisational strengths and weaknesses inparticular areas.

The Organisational Maturity Chart describes five stagesof maturity in Indigenous employment initiatives,ranging from ‘no interest’ through to ‘committed,capable and consistent’ performance. The chart followsloosely the structure of the evaluation tool, evaluatingmaturity in the following areas: > leadership> policy> standards> agreements> targets> planning> competent people> readiness, recruitment and retention systems> cultural awareness> recognition and reward> measurement> document control> corrective and preventive action> assessment> partnerships> Indigenous employment levels.

The chart, which is intended for use either inconjunction with the Indigenous EmploymentAssessment Checklist, or as a stand-alone tool, isillustrated in Table 9.

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Table 9: Organisational Maturity Chart

1. NO INTEREST 2. TOKEN

LEADERSHIP Senior management believe it is “notnecessary in our business”

Senior management believe it is “too hard” or “wedon’t know how to do it”

POLICY No policy Vague policy

STANDARDS No Indigenous employment standards No Indigenous employment standards

AGREEMENT No agreement Vague agreement commitments

TARGETS No targets No targets and Indigenous employees poorlydefined

PLANNING No Indigenous employment plan No Indigenous employment in planLittle resourcingResourcing applied to external initiatives

COMPETENT PEOPLE No Community Relations people withIndigenous competencies

Few, if any, personnel with Indigenouscompetencies

READINESS, RECRUITMENT &RETENTION SYSTEMS

Mainstream recruitment systems,procedures and practices are used

Same as 1. Statements made about commitmentbut mainstream practices used

CULTURAL AWARENESS None Cultural awareness acknowledged but trainingperceived as unnecessary

RECOGNITION & REWARD Not in role descriptions or recognition /reward systems

Indigenous employment is not in role descriptionsor in recognition / reward systems

MEASUREMENT None Indigenous employment is not measured orreported

DOCUMENT CONTROL None Indigenous employment and training policy andplanning documents not subject to documentcontrol

CORRECTIVE & PREVENTIVEACTION

No system in place A corrective and preventive action systemincorporated in HSE

ASSESSMENT None Internal and external assessments are established for HSE

PARTNERSHIPS No partnership Partnerships are established with governmentdepartments and NGOs for purposes other thanIndigenous employment

INDIGENOUS EMPLOYMENT No Indigenous employees Few Indigenous employees and they may not beofficially identified as such

3. COMMITTED 4. COMMITTED, CAPABLE 5. COMMITTED, CAPABLE,CONSISTENT

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Senior management has signed off on thebusiness case for IE & articulated commitment tooperations & Competent Community Relationspeople in corporate roles

Same as 3 Same as 3 & 4

Indigenous employment policy developed &communicated

Same as 3 Same as 3

Indigenous employment standards beingdeveloped

Indigenous employment standardimplemented

Same as 4

Agreement with Indigenous employment &training clauses

Agreement has specific performancestandards and local demographicidentified

Same as 4

Specific targets perceived as not necessary forIndigenous employment

Yearly targets are being set and achieved inoperator, trade & supervisory roles

Same as 4

Indigenous employment is in the yearly planAdequate budget has been allocatedSTEP or corporate leaders contract is in place

Yearly Indigenous employment plans aredocumented, prioritised by risk ranking,who, what, when and review is identified.Same as 3

Same as 4

Competent Indigenous diversity personnelCommunity & Training roles in the operation

Same as 3Competent Indigenous diversitypersonnel in HR

Diversity embeddedthroughout the operation

Diverse readiness, recruitment and retentionsystems are in operationTraineeship and apprenticeship programs areoperatingSystems are owned by Community or Training

Diverse readiness, recruitment, retentionsystems, traineeship and apprenticeshipprograms are embedded and successfulSystems are owned by HR

Same as 4

Cultural awareness training is conducted for allnew employees

Cultural awareness training iscompulsory and conducted for allemployees and contractorsCultural awareness training is part ofIndigenous employment Inductions

Same as 4 Regular ‘refresher ‘ training iscompulsory for all employeesand contractors

Indigenous employment is in some role descriptionsand some roles are recognised / rewarded forIndigenous employment performance

Same as 3 and line leadership is alsoincludedOperational leadership is committed

Same as 4

Indigenous employment targets are measuredand reported to site requirements

Indigenous employment targets havedefined lead & lag measures arerecorded & reported in the same manneras other site KPIs

Same as 4

Some Indigenous employment and trainingrelated procedures and practices aredocumented

All Indigenous employment and trainingrelated procedures and practices aredocumented

Same as 4

Corrective and preventive actions occur in anad hoc unrecorded manner and incidents aresubject to re-occurrence

A corrective and preventiveAction system is in place

A corrective and preventiveaction system is embedded

Internal and external audits are established forAQF traineeships and apprenticeships

Internal and external assessments /audits are established and includeIndigenous employment.Plus, same as 3

A corrective and preventiveactions system operates forHSE

Relationships are being developed withIndigenous peopleAd hoc partnerships are established withgovernment departments and NGOs

There are robust relationships withIndigenous people – regionalpartnerships are being developed toimprove education, training, health andemployment outcomes

Robust regional partnershipsare delivering sustainableIndigenous education,training, health andemployment outcomes

Indigenous employees are in semi skilled roles,traineeships and apprenticeships

Many Indigenous employees in semi-skilled, trade and supervisory levels, afew superintendents and managers

Sustained Indigenousemployment levels at, or abovethe regional demographic andat all / most levels

> Management systems play an important rolein tracking a company’s Indigenousemployment performance.

> Few operations in this study keepcomprehensive records about theirIndigenous employees.

> Only one company in the study hadimplemented a management system toenable it to record Indigenous employmentdata systematically, find information easilyand report on performance against keyindicators.

> The Indigenous Employment AssessmentChecklist provides a model that can enablecompanies to develop their own Indigenousemployment management systems.

> The Organisational Maturity Chart enablespractitioners and company personnel toevaluate the level of maturity of theirIndigenous employment policies andpractices and identify what steps can betaken to improve performance.

RESOURCES FOR PRACTITIONERS

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Key findings from this study are that:> The advent of native title legislation has

created a powerful business driver forchanging attitudes within the mineralsindustry.

> The partnership model is the best way toachieve outcomes that are regarded assuccessful by all parties. Communityengagement and cooperation areessential to achieving improvedrecruitment and retention rates forIndigenous employees.

> Robust relationships with Indigenouspeople based on recognition, respect,trust and honouring commitments arefundamental to success.

> Regional partnerships with governmentand non-government organisations arecrucial to the development of initiatives toimprove the education, health and socialcapacities of Indigenous people to createsustainable Indigenous employmentoutcomes.

> There is a viable business case embeddedin the sustainable development agenda ofthe minerals industry.

> When operations give the samecommitment to Indigenous employmentinitiatives as other business activities,good outcomes can be achieved inrelatively short time frames.

The companies in this study that have thebest Indigenous employment outcomesunderstand the value of ‘the people factor’: > Executive leadership and dedicated

commitment from people at the top iscritical to a company’s success inimproving outcomes for Indigenouspeople. Unless corporate leaders ‘walkthe talk’, tokenism is the likely outcome.

There are many examples of good practicerecruitment strategies that improveIndigenous employment outcomes. In thearea of recruitment they include:> recruitment centre workshops to assess

the potential of new recruits> the development of specific work

readiness programs to aid in the transitionfrom community life to mainstream work

> mentoring support and cultural awarenesstraining to support new recruits.

Strategies to improve retention rates include:> ongoing mentoring programs> family support> flexible work rosters> career development> addressing racism in the workforce.

Good management systems to track progresson Indigenous employment initiatives also areimportant to companies wishing to improveIndigenous workforce participation rates.

In conclusion, it is important to acknowledgeboth the challenges involved in increasingworkforce participation rates for Indigenousemployees and the efforts of the operationsinvolved in this study in trying to overcome someof the obstacles that limit Indigenousparticipation in the mainstream workforce. Theleading companies recognise that tackling theroot cases of unemployment – economichardship and social disadvantage, loweducation levels, poor health and lack of rolemodels – is the best way to help thoseIndigenous people locked into a cycle of povertyand welfare dependency. Partnering with localcommunities, companies and governments,and taking a longer-term view, can help addressthe causes, not just the manifestations ofeconomic and social disadvantage.

Conclusion

References

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ABS (Australian Bureau of Statistics), (2005a).National Indigenous and Torres Strait Islander healthsurvey 2004-05, 4715.0. Canberra: Australian Bureauof Statistics. Accessed 5 July 2006 fromhttp://www.abs.gov.au/

ABS (Australian Bureau of Statistics), (2005b).Schools Australia, 4221.0. Canberra: Australian Bureauof Statistics. Accessed 5 July 2006 fromhttp://www.abs.gov.au/

ABS (Australian Bureau of Statistics), (2006).Measures of Australia, 1370.0. Canberra: AustralianBureau of Statistics. Accessed 5 July 2006 fromhttp://www.abs.gov.au/

ABS ((Australian Bureau of Statistics), (2006b).Labour force 6291.0.55.003. Canberra: AustralianBureau of Statistics. Accessed 15 November 2006from http://www.abs.gov.au/

Australian Government Department of IndustryTourism and Resources, (2006). Communityengagement and development: Leading practicesustainable development program for the miningindustry. Canberra: Commonwealth of Australia

Altman, Jon (2001). Exploring sustainable developmentoptions on Indigenous land: The hybrid economy inthe 21st Century. CAEPR discussion paper No 226.Canberra: Centre for Indigenous Economic PolicyResearch. Accessed 20 June 2006 fromhttp://www.anu.edu.au/caepr/Publications/DP/2001_DP226.pdf

Archer, D., (2005). Indigenous employment and labourshortages in mining. Proceedings from the 2005Sustainable development conference, people, place,prosperity. Alice Springs 31 October-4 November.Accessed 27 November 2006 fromhttp://www.minerals.org.au/__data/assets/pdf_file/10937/Archer_Daniel_9B2.pdf

Archer, D & Widdeson, B., (2002). Recognising culturaldifference – enabling cultural change: Constructing aframework for sustainability through local employment.Proceedings from the 2002 sustainable developmentconference, Putting principles into practice. Newcastle10-15 November pp 202-205.

Federal government and MCA (Minerals Council ofAustralia) (2005). Memorandum of Understandingbetween the Commonwealth of Australia and theMinerals Council of Australia. Accessed 10 May 2006from http://www.csrm.uq.edu.au/docs/MOU_final.pdf

Barker, T. and Brereton, D., (2005). Survey of localIndigenous people formerly employed at Century Mine.Centre for Social Responsibility in Mining ResearchPaper No. 4. Accessed 10 July 2006 fromhttp://www.csrm.uq.edu.au//docs/CSRM%20Research%20Paper%204.pdf

Beach, Brereton and Cliff, D., (2003) Workforceturnover in FIFO mining operations in Australia: An exploratory study.http://www.csrm.uq.edu.au/docs/TURN_FINAL.pdf

BHP Billiton (2005). A sustainable perspective: BHPBilliton sustainability report 2005. Accessed 5November 2006 fromhttp://hsecreport.bhpbilliton.com/2005/repository/socioEconomic/ourPerformance/employeeRelations.asp#IndigEmp

BHP Billiton, (2006). Indigenous students gain skills onpathway to employment, Oresome. Vol 5: August, p 26.

Brereton, D., Beach R., and Cliff, D., (2003). Employeeturnover as a sustainability issue. Minerals Council ofAustralia Sustainable development conference, Brisbane.CSRM (Centre for Social Responsibility in Mining) andUQSRC (University of Queensland Social ResearchCentre, (2006). 2005 AusImm/Macquarie SecuritiesSurvey of Minerals Industry Professionals: KeyFindings. Accessed 10 July 2006 fromhttp://www.csrm.uq.edu.au/docs/MacBank%20Report_FINAL.pdf

DEET, (2006). Workforce NT Indigenous employmentprofile. Accessed 17 July 2006 fromhttp://www.deet.nt.gov.au/employment/workforce_nt/docs/workforce_nt_2005/workforce_nt_report_chapter5.pdf

Hall, J. and Driver, M., (2002). Queensland support fortraining and employment through the GulfCommunities Agreement and Century mine.Townsville: Queensland Department of Employmentand Training.

Hooke, M., (2006). Speaking notes to the 2006 GarmaFestival. Gove, Nhulunbuy, Northern Territory.Accessed 11 November fromhttp://www.cdu.edu.au/garma/documents/hookes-m.pdf

Hunter, B. and Gray, M., (2005). Indigenous job searchsuccess. Discussion paper No 274/2005 Canberra:Centre for Indigenous Economic Policy Research.http://www.anu.edu.au/caepr/Publications/DP/2005_DP274.pdf

Hunter, D., (2005). Western Cape College: Achievingsustainable education success for remote Indigenousstudents on Cape York. Unpublished paper.

Hunter Valley Research Foundation, (2005). Newcastleand the Hunter Region 2005-2006. Accessed July 6from http://www.hvrf.com.au/hunter_facts.htm

ICMM (International Council on Mining and Metals),(2003). Principles for sustainable developmentperformance. Accessed 20 May 2006http://www.icmm.com/icmm_principles.php

Kearney, G. E. and Davidson, P., (2006). Optimisingassessment and selection with Indigenous people inremote communities. Paper presented to the AusIMMConference on International Mine Management.Melbourne, 16-18 October.

Kearney, G. E., and McElwain, D. W., (eds.), (1976).Aboriginal cognition: Retrospect and prospect.Proceedings of the Australian Institute of AboriginalStudies conference on Cognition. Australian Instituteof Aboriginal Studies: Canberra.

King, B., (2005). NT pastoral company employment andtraining strategy: Discussion paper. Northern Land Council.

MCA (Minerals Council of Australia), (2004). Enduringvalue: The Australian minerals industry framework forsustainable development. Guidance forimplementation. Accessed 20 May 2006 fromhttp://www.minerals.org.au/__data/assets/pdf_file/5514/19187_MCA_ev_booklet.pdf

McElwain, D. W. and Kearney, G. E., (1970). TheQueensland Test manual: A manual for use withassessment of general cognitive capacity underconditions of reduced communication. AustralianCouncil for Educational Research: Melbourne

NCVER and NILS (2005). Prospecting for Skills: The current and future skill needs in the mineralssector. Adelaide: National Centre for VocationalEducation Research and the Chamber of Minerals andEnergy Western Australia.

Newmont, (2005). Now and beyond 2005:sustainability report. Tanami, Australia. Accessed 2Nov 2006 fromhttp://www.newmont.com/en/pdf/nowandbeyond/NB2005-Tanami.pdf

Perkins, C., (1982). Economic imperatives as far asAborigines are concerned. In Ronald M. Berndt (Ed),Indigenous sites, rights and resource development (pp153-176). Perth: University of Western Australia Press.

Pollack, D.P., (2001). Indigenous land in Australia: A quantitative assessment of Indigenous landholdingsin 2000. CAEPR Discussion paper No 221, ANU EPress, Canberra. Accessed 17 July 2006 fromhttp://www.anu.edu.au/caepr/Publications/DP/2001_DP221.pdf

Queensland Criminal Justice Commission, (1996).Indigenous witnesses in Queensland's criminal courts.Accessed 31 July 2006 fromhttp://www.austlii.edu.au/au/journals/AILR/1996/76.html

QDLGP (Queensland Department of Local governmentand Planning), (2005). Comparative profile: BowenBasin localities 2001. Accessed 8 May 2006 fromhttp://www.bowenbasin.cqu.edu.au/pdfs/bblocal.pdf

Taylor, J. and Scambary, B., (2005). The relativesocioeconomic status of Indigenous people in thePilbara: A baseline for regional participation. CAEPRResearch Monograph No.25, ANU E Press, Canberra.Accessed 17 July 2006 fromhttp://epress.anu.edu.au/caepr_series/no_25/frames.php

Tedesco, L., Fainstein, M., and Hogan, L., (2003).Indigenous people in mining, ABARE eReport. 03.19.Canberra: Commonwealth of Australia. Accessed 13 May 2006 fromhttp://www.abareconomics.com/publications_html/minerals/minerals_03/er03_Indigenous.pdf

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Research methodPARTICIPATING COMPANIES AND OPERATIONS

A total of six companies agreed to participate in thisproject. They included four mainstream miningcompanies (Rio Tinto, BHP Billiton, Newmont andZinifex) and two companies supplying contract labour(Ngarda Construction and Roche Mining). Ngarda isbased in the Pilbara and Roche Mining has a presenceat numerous sites across Australia. With the exceptionof Ngarda, all the companies that participated in thestudy are members of the MCA.

The most extensive involvement was with Rio Tinto,which had five operations participate: Rio Tinto CoalAustralia (RTCA), Comalco Gladstone, Pilbara Iron,Comalco Weipa and Argyle Diamonds. Three of theseoperations encompassed multiple sites (nine each inthe case of RTCA and Pilbara Iron and two at ComalcoGladstone). Three BHP Billiton operations – GrooteEylandt in Arnhem Land and two iron ore mines in thePilbara – were involved. There was one operation eachfrom Newmont (Tanami in the Northern Territory) andZinifex (Century in north-west Queensland).

Literature reviewThe first stage of the project involved a review of theliterature on Indigenous employment, drawing on:> government and industry reports> academic literature and research reports> Australian Bureau of Statistics (ABS) data> internal company documents and public reports

from the participating companies.

This material helped us to identify key themes andtrends in Indigenous employment and to developinterview questions.

Statistical dataStatistical data about Indigenous employment trendsand patterns were obtained from three main sources:> broad-based social and economic data from the

Australian Bureau of Statistics (ABS)> a 2002 survey of the minerals industry conducted

by the Australian Bureau of Agricultural andResource Economics (ABARE)

> data provided by the operations that participated inthis study.

These data were analysed to highlight overall trendsand patterns in Indigenous employment in the mineralsindustry and to identify significant differences – andsimilarities – between the participating operations.

Site visits Twelve sites were visited as part of the study. These sites were selected primarily on the basis that theoperation and / or parent company had shown acommitment to increasing Indigenous employment andwould, therefore, be more likely to provide examples ofgood practice. The largest number of case study siteswere in Western Australia (seven) followed byQueensland (three) and the Northern Territory (two). Mostwere located to the north of the tropic of Capricorn, inregions where there are substantial Indigenouspopulations. The locations of these sites are shown inFigure 4 and site-specific details are provided in Table 10.

Figure 4: Site locations

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In the case of RTCA, key company personnel wereinterviewed, but no site visits were undertaken. This wasbecause RTCA was in the process of developing andimplementing an Indigenous Employment Strategy for allits operations in Queensland and New South Wales. It wasdecided that there was little to be gained by assessing aprogram that was undergoing major changes.

In the case of the two contract labour companies,interviews were conducted with company personneland four site visits undertaken. The same evaluationframework for assessing Indigenous Employmentinitiatives that was used in evaluating site operationswas used for the labour hire companies.

SITE DATA COLLECTION PROCEDURES

Each operation was contacted through its Community /Indigenous Affairs Manager, who arranged a site visit ofthree to four days’ duration. During the site visitsinterviews were conducted and notes were taken. Theseinterviews typically lasted around one and a half hoursand mainly involved key personnel from the Community,

Human Resources, Training and OperationsDepartments. A total of 113 face-to-face interviews wereconducted across all the sites and participatingcompanies. Supporting company documentation, suchas internal reports and workforce statistics, was alsocollected during the visits. These sources were used forverification and reporting purposes and were gatheredeither in hard copy or electronic format.

The data collection framework developed for the projectwas broadly modelled on the International Organisationfor Standardisation (ISO) Management System. The ISOframework is based on the Plan, Do, Check, Act cycleand covers the key processes of:> policy development> planning> implementation> performance measurement> reporting progress.

This model then became the guiding framework forassessing each site’s management systems and for thedevelopment of the Indigenous EmploymentAssessment Tool that accompanies this report.

WorkshopThe final stage of the data gathering was a one-dayfacilitated workshop, which was held in May 2006,several months after the initial interviews.The objectives of the workshop were to:> gain feedback on the first drafts of the Indigenous

Employment Assessment Checklist and thematurity chart, which were the first outputs fromthe project

> provide practitioners with a forum to discuss thechallenges they face to reach good Indigenousemployment outcomes.

There were 28 participants at the workshop, comprisingcommunity relations practitioners, experts in trainingand HR professionals. The participants variouslyrepresented nine operations, three service providersand two corporate managers.

Table 10: Sites / operations visited for the study

Parent Site/ Location Major company operation commodityBHP Billiton Groote Arnhem Manganese

Eylandt Land, NTBHP Billiton Newman Pilbara Iron Ore

region, WANewmont Tanami Tanami Gold

Desert, NTRio Tinto Comalco Western Bauxite

Weipa Cape York,Qld

Rio Tinto Comalco Gladstone, Alumina &BSL & CAR Qld aluminium

Rio Tinto Pilbara Iron Pilbara Iron oreDampier region, WA

Rio Tinto Argyle East DiamondsDiamonds Kimberley

region, WAZinifex Century NW Qld Zinc

THE 2002 ABARE SURVEY

Statistical data on Indigenousemployment in mining

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There is no up-to-date and comprehensive source ofinformation about Indigenous employment in theAustralian minerals industry. Not all companies collectdata about Indigenous employment, not all companiesthat collect data report it, and there are no consistentstandards for reporting. The only industry-wide datacurrently available comes from the 2001 NationalCensus and the ABARE survey, both of which are nowseveral years out of date.

The 2001 National Census identified 1390 Indigenousworkers as employed in the mining industry,representing only 1.9 per cent of the total miningworkforce. The 2001-2002 survey of the industryconducted by ABARE (Tedesco et. al 2003) suggests that this may have been an underestimate.This is consistent with other research that has found evidence of significant under-counting ofIndigenous people in the census.

The ABARE study involved a survey of 244 onshoreAustralian mine sites and petroleum operations. Thesurvey was distributed by email and completed by site-level representatives, using their own definitions ofwhat constituted an Indigenous employee. Onehundred and twelve completed surveys were received,giving a response rate of 46 per cent.

Of the sites that responded to ABARE, 60 per centreported employing one or more full-time Indigenousworkers. Taking into account the response rates for thevarious questions and applying weightings, ABAREestimated that there were 2460 persons Indigenouspeople employed in the industry, accounting for 4.6 per cent of the workforce. This was around one-and-a-half-times larger than the ABS estimate. Giventhe recent resources boom, it is likely that the numberof Indigenous people currently employed in the industryis now well above the ABARE estimate.

Figure 5, which is based on unpublished data provided by ABARE, presents Indigenous employmentestimates for the three main mining states of WesternAustralia, Queensland and New South Wales (ABAREdeclined to provide a breakdown for the remainingStates and the Northern Territory, due to the possibility that individual mine sites could be identified). This figure also shows the proportion of thepopulation in each of the three states that self-identified as Indigenous in the 2001 census.

The figure indicates that in each state the proportion of Indigenous employees in the mining workforce was less than their overall representation in thepopulation. The New South Wales mining industry,which is predominantly coal-based, had by far thelowest rate of Indigenous representation, both inabsolute terms and relative to the overall population ofIndigenous people.

Figure 5: Indigenous representation in the miningworkforce compared to representation in the generalpopulation: NSW, Queensland and Western Australia

Indigenousemployees as % of totalworkforce

Indigenouspeople as % oftotal population

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Figure 6 uses ABARE data to compare Indigenousemployment rates across three commodity sectors:coal, gold and ‘other’ (which principally comprises themetalliferous sector). These data show that the coalsector had by far the lowest Indigenous employmentrate, at only 0.3 per cent. The rate for the gold sector(2.9 per cent) was also below the industry average. By contrast, the ‘other’ (i.e. metalliferous) category wasabove the industry average.

Figure 6: Indigenous workforce representation byminerals sector

Source: unpublished data provided by ABARE and analysed by CSRM

The very low level of Indigenous employment in the coal sector is partly due to most coal mines beinglocated in regions in Queensland and New South Wales where there are relatively small Indigenouspopulations. However, even allowing for this, Indigenousemployment in the sector was still well below whatmight have been expected. In the Hunter Valley forexample, which is the centre of the New South Walescoal industry, Indigenous people made up 2.2 per centof the total population, according to the 2001 census

(Hunter Valley Research Foundation, 2005). InQueensland’s Bowen Basin region, Indigenous peopleaccounted for 4.4 per cent of the total population,based on census data (QDLGP, 2005). However,Indigenous employees represent just 0.3 per cent of thecoal industry workforce (Tedesco et al, 2003).

Mines located within close proximity to Indigenouscommunities typically had a significantly higher rate ofIndigenous employment (6.1 per cent) than mines inother areas (0.5 per cent). However, as Figure 7 shows,an exception to this was the Western Australian goldsector, where the average level of Indigenousrepresentation in the workforce remained low even forthose mines located near to Indigenous communities.This was in marked contrast to the pattern for ‘other’minerals, where proximity was a key factor.

Figure 7: Indigenous employment by minerals sector and proximity to Indigenous communities:Western Australia

Source: unpublished data provided by ABARE and analysed by CSRM

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THE 2002 ABARE SURVEY

> According to ABARE’s estimate, Indigenouspeople made up 4.6 per cent of the miningindustry workforce in Australia.

> In Western Australia, Queensland and NewSouth Wales – the three main mining states –Indigenous people were under-represented inthe mining workforce relative to theirrepresentation in the general population.

> The coal sector had by far the lowest rate ofIndigenous representation in the workforce.

> For the most part, Indigenous workforcerepresentation was higher where a mine waslocated close to an Indigenous community.

> An exception to this was the WesternAustralian gold sector, where Indigenousworkforce representation was low even forthose operations located near Indigenouscommunities.

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Workforce representationIn March 2006 participating operations reportedemploying a total of 1179 Indigenous people, out of acombined workforce of 14,320 people. This equated toeight per cent Indigenous workforce representation,compared to the ABARE estimate of 4.6 per cent.However, the two estimates are not comparable, forvarious reasons:> Most of the operations in the study were located in

northern and remote areas of Australia, whereIndigenous people represent a larger proportion ofthe local population; by contrast, the ABARE studywas Australia-wide.

> Our study focused on operations that had shownsome commitment to improving Indigenousemployment outcomes, rather than aiming for arepresentative sample, as was the case with theABARE study.

> The results of our study may also have beeninfluenced by the inclusion of some large, multi-site, operations.

Of more interest than the overall level of Indigenousworkforce representation is the variation betweenoperations. This ranged from under one per cent of theworkforce (a coal operation) through to two operationsthat recorded an Indigenous representation of around22 per cent (Table 11).

Table 11: Indigenous representation in the workforcesof participating operations

* denotes a multi-site operation

The operations with Indigenous workforcerepresentation rates above 15 per cent were all locatedin regions with relatively large Indigenous populationsand were covered by comprehensive land-useagreements that made explicit reference to Indigenousemployment and training.

We were not able to access time series data for alloperations. However, based on publicly reported dataand information provided by interviewees, Indigenousrepresentation at some of operations which currentlyhave quite high rates of Indigenous employmentappears to have been quite low until relatively recently.

As indicated, the study also included two contracting companies. One of these, which was a labour hire company owned and operated byIndigenous people, employed 72 Indigenous workers (49 per cent) out of a workforce of 147. Theother company, which was a contract mining company,employed 146 Indigenous people, representing around 10 per cent of its workforce.

Operation # Indigenous % Indigenousemployees

A 46 21.7E 175 21.6J 154 17.8D 83 16.6H 116 15.7C 68 7.4B 54 6.6I* 176 5.4G* 71 4.0F* 18 0.7

STATISTICAL DATA FROM PARTICIPATING OPERATIONS

Local v non-local employeesMany land-use agreements stipulate that the work andtraining opportunities provided as part of the agreementshould be restricted to Traditional Owners of theparticular site. Indigenous people who meet the definedcriteria of Traditional Owners, as set out in individualland-use agreements, vary from site to site. This can bea source of some conflict between different communitiesand is an important consideration for some operations.

Figure 8 breaks down the data for participatingoperations to show the number of local and non-localIndigenous employees, according to the classificationsused by the operations that provided these data. Fouroperations reported that they had a majority of localemployees while two sites appeared to employ onlylocal Indigenous people. At three operations, themajority of Indigenous employees were non-local.However, as operations may not use consistentdefinitions of ‘local’ and ‘non-local’, care should beexercised in comparing data across operations.

Figure 8: Local v. non-local Indigenous employees

Note. Operations B and C did not distinguish between local and non-localIndigenous employees and were therefore excluded. This graph also includesdata from two contract companies.

Job roles The concentration of Indigenous employees in unskilledor semi-skilled roles is well-documented. According tothe ABARE report, for example, around 80 per cent ofIndigenous employees are classified as intermediateproduction and transport workers (57.6 per cent) orlabourers or related workers (20.3 per cent) (Table 12).

Table12: Occupations of Indigenous employees June 2002

Source: Tedesco et. al, 2003:19

An analysis of site level data collected for our studyconfirms that Indigenous employees remainconcentrated in unskilled or semi-skilled roles. Of the1179 Indigenous people employed at the case studysites, more than 92 per cent were in semi-skilled ortraining roles (traineeships, apprenticeships). There wereonly 14 (1.2 per cent) of Indigenous people employed inprofessional roles and five in management positions (0.4 per cent). A further 85 Indigenous employees werequalified tradespersons and 21 worked in technical roles.No Indigenous people were employed in an executivemanagement role (Table 13).

Table 13: Occupations of Indigenous employees at themine sites at 30 June 2002

Note: includes data from the two contractor companies

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Local Non-local160140120100806040200

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Occupation Full-time %Intermediate production 57.6and transport workersTradespersons and related workers 12.9Professionals 1.3Associate professionals 1.5Labourers and related workers 20.3Clerical, sales and service workers 5.2Managers and administrators 1.3Total 100.0

Male Female Total % of total Indigenous workforce

Semi skilled 578 89 667 56.6Traineeship 100 60 160 13.6Apprentice 96 4 100 8.5Trade 82 3 85 7.2Admin 4 73 77 6.5Supervisor 31 2 33 2.8Technical 19 2 21 1.8Graduate 1 1 2 0.2Professional 7 7 14 1.2Specialist 5 2 7 0.6Superintendent 8 0 8 0.7Manager 5 0 5 0.4Executive manager 0 0 0 0Total 936 243 1179

The proportion of the Indigenous workforce comprisingapprentices and trainees arguably provides a goodindication of the extent to which an operation is makingprogress in developing the skills of Indigenous people.This is subject, of course, to the proviso that those whocomplete these programs are able to secureemployment at the end of them, either at the mine or inanother workplace.

As Figure 9 shows, the proportion of Indigenousemployees who were in apprenticeships ranged from4.2 per cent to 16.5 per cent. For trainees, the rangewas from 2.7 per cent to 24.6 per cent. The ten sitesthat provided this Indigenous training data employed atotal of 100 apprentices and 160 trainees.

Figure 9: Percentage of Indigenous employees who arein traineeship or apprenticeship programs

Note: excludes two operations who did not provide data, and one service provider.

Gender Of the 1179 Indigenous employees, 243 were women,representing 20 per cent of the total Indigenousworkforce for participating operations. This comparesfavourably with the overall mining industry average of13 per cent (ABS 2006b) (Figure 10).

Figure 10: Indigenous females as a percentage of theIndigenous workforce

Note: Includes data for two contractor companies

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page 1page 6page 12page 20page 24page 40page 54page 66page 68page 71

About CSRMBackground to the projectThe workforce diversity challengeThe people factorRecruitmentRetentionResources for practitionersReferencesResearch methodStatistical data on Indigenous employment in mining

CONTENTS

STATISTICAL DATA FROM PARTICIPATING OPERATIONS

> Indigenous representation in the workforcesvaried from 0.7 per cent to 22 per cent.Representation was highest at those opera-tions located in regions with relatively largeIndigenous populations.

> Most Indigenous employees were working insemi-skilled jobs, rather than trade areas orprofessional roles.

> The proportion of Indigenous employees inapprenticeships and traineeships varied sig-nificantly across operations.

> At several operations, a substantial propor-tion of Indigenous employees were not fromthe local area.

> Across all operations females accounted for 20 per cent of the Indigenous workforce,which is above the overall level of femalerepresentation in the industry.

> Ten sites employed a total of 100 Indigenousapprentices and 160 trainees.

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csrmIn the AustralianMinerals Industry

Indigenous Employment

The Centre for SocialResponsibility in Mining

THE CENTRE FOR SOCIAL RESPONSIBILITY IN MINING Postal Address: The Centre for Social Responsibility in MiningThe University of Queensland, Brisbane QLD 4072 AUSTRALIA

Director: Professor David BreretonOffice: 4th floor, Sir James Foots Building (Bldg 47A)Phone: 61 (7) 3346 4043 Fax: 61 (7) 3346 4045Email: d.brereton@smi.uq.edu.au

General EnquiriesPhone: 61 (7) 3346 4003 Email: csrm@uq.edu.au

CSRM is a Member of the Sustainable Minerals Institute

www.csrm.uq.edu.au

Printed on environmentallyresponsible stock

CS

RM

The Centre for S

ocial Resp

onsibility in M

iningIndigenous E

mploym

ent In the Australian M

inerals Industry