Changes in labour and safety regulation offshore: the productivity implications

Abstract

In recent years there have been ongoing tussles regarding the regulation of employment in the offshore oil and gas industry. Much of this conflict relates to the extent of union involvement in the industry, and the impact increased union activity may have on cost and productivity. This conflict has played out in the courts, legislature and the media. It is evidenced in the debate over the application of Australian migration laws to foreign workers offshore. This has involved lobbying by a number of organisations and Federal and High Court challenges to parliamentary intervention. Whether these laws apply has important implications for industry, as they include the practicalities and cost of engaging adequately skilled contractors for specialist tasks on major projects. Another recent example is the Australian Council of Trade Unions (ACTU) advocating for the application of the harmonised workplace health and safety regulations to the offshore industry. The application of these regulations would likely affect the extent of union involvement in the workplace, and have consequent cost and efficiency implications. In this extended abstract the author examines the impacts on industry of: recent and upcoming changes in employment regulation; uncertainties around the application of employment laws offshore; proposed changes to safety regulation; and, areas where industry is seeing advocacy for change.