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High wages in Australia push major energy projects overseas

High wages are jeopardizing the future of major energy projects, pushing companies to choose lower-wage economies, such as Canada and a few African nations, gas explorer and producer QGC warned Monday.

In a submission to the government’s energy white paper, the BG Group subsidiary warned that while Aussie miners are lucky to be among the world’s best paid, this apparent advantage is backfiring the industry.

The document, reports The Australian, was submitted in response to the government’s proposed changes to the Fair Work Act, aimed to limit unions’ powers to delay greenfield resources projects worth billions of dollars.

Companies advocate for bringing more foreign workers as a way to mitigate the ongoing decline in the country’s mining industry productivity. However, Australia’s unemployment rate hit a record high of 6% last month.

Australian Bureau of Statistics latest data shows the country’s mining labour productivity index has been steadily declining for the past 11 years.

Source: Mining.com

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