SYDNEY -- Australian mining group BHP is facing a major increase in labor costs after the country's industrial relations arbiter ruled that the company must pay the same wages to both directly and indirectly hired workers at three of its mines, dealing a blow to its internal contracting arrangements.
Commodities
BHP to face wage bill hit following landmark labor ruling
Win for indirectly-hired workers could cost company more than $850 million per year
BHP had argued that workers from Operations Services entities provided a service, not labor. The law excludes contractors for specialized services, giving the example of catering. © Reuters
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