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WA wage rises halted

SALARIES are largely frozen in the Western Australian resources sector as demand falls off sharpl...

Justin Niessner
WA wage rises halted

With the release of its August salary and contract guide, the resources sector recruiting specialist said that a slower, steadier market was likely to be “the new normal” in the state, at least for the short term.

“This year, WA passed the peak of what was our largest ever resources construction boom,” Ambit chief executive Peter Acheson said.

“Industry had always anticipated that the investment in huge projects would slow as capacity grew to meet demand, and it seems that tipping point has been reached.

“The current trend among companies is for lower capital expenditure, alongside moves to consolidate operations, boost productivity and rein in costs.

“In addition, there are fewer new projects coming online, for reasons including that several companies are deferring planned projects until after the federal election.”

The report on pay rates in more than 130 job areas within WA’s resource sector found salaries were static across mining project control, administration and engineering positions compared to similar index released in June last year.

Contractor rates, however, charted some upward momentum, with engineering managers claiming an average $A166 per hour in August, versus $160/h in March 2012, and construction managers earning an average $135/h last month against $130/h in March last year.

Overall, the report was interpreted to reflect a market of constrained demand arising from general uncertainty, combined with the reducing demand for works as projects matured.

“Employers are showing some interest in the numbers of skilled personnel who are now available for new roles – so there may be a slight lift in hiring following the September election,” Acheson said.

“In the meantime though, the lack of new roles has meant that contractors, in particular, are heading back to east Australia and other markets for their next project.”

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