According to the 2008 AusIMM remuneration and employment survey, the skills shortage has resulted in escalating salaries and more flexible work practices, but also longer work hours.

With $A70.5 billion worth of mining projects committed to or under construction, mining professionals are feeling the heat in the industry.

The latest AusIMM survey stayed in line with the two previous surveys in 2005 and 2007, finding two-thirds of respondents were under more pressure at work because of the lack of skills and that their employer now paid more for less experienced staff.

Respondents said their salaries had increased by 6.3% since 2007 to an average of $A159,000.

The highest increase in salary was seen at the graduate level, with an increase of 9.2%.

AusIMM chief executive Michael Catchpole said the survey showed the different effects the skills shortage had on companies and their employees, including an increasing gender gap in pay.

“Addressing the gender gap in pay is a key priority for the AusIMM,” Catchpole said.

“The 2008 survey included additional questions to try and uncover the reasons behind the current inequity in pay.

“We are also seeking to identify underlying causes for the static low participation of women in mining.”

Of about 1800 people surveyed, 73% said they were working more than 50 hours a week, compared with only 53% in the 2007 survey.

The number of people who work at least one hour of overtime a week has jumped from 53% to 64% and respondents were working on average an extra six hours a week.

As there were not enough people to do an increasing amount of work, the survey found companies had less time for mentoring and professional development in the industry.

Only 27% of respondents agreed their workplace had an effective mentoring system.

Retention of employees increased from the previous surveys, which was put down to higher salaries and flexible work conditions.

The number of respondents who said it was likely they would change employers in the next two years decreased from 38% in 2005 to 28% in 2008.

The survey also looked at the role of skilled migration in combating the skills shortage, and AusIMM urged the Federal Government to invest in long-term planning for the skills needs of the sector.

Off the back of the survey AusIMM wants urgent action on government policy to relieve the strain on the industry, such as:

More support for minerals related higher education;

A government-funded parental leave scheme; and

Making sure increases to the Temporary Skilled Migration Scheme intake occur for the sector.