Western Australia (WA) is in the middle of a mining construction renaissance. From major iron ore expansions in the Pilbara, gold mining project developments around the region and critical minerals projects attracting international attention, the pipeline of activity is strong. But behind this surge lies a critical constraint: a deepening shortage of skilled workers.
This is not a new issue, but it is a more urgent one. Despite government initiatives and strong industry advocacy, the workforce gap has widened post-pandemic. Projects are delayed, costs are climbing, contractors are competing fiercely for talent and worker safety could be put at risk where there is a temptation to employ less qualified workers to fill shortages. With experience advising project developers and contractors, we discuss the tools that we think can help bridge the workforce gap.
Key takeaways
Skills shortage is critical – labour gaps in WA’s resources sector are delaying projects, raising costs, while creating safety and legal risks.
Contracts and compliance must adapt – labour scarcity should be treated as a systemic risk, requiring updated contract terms, migration strategies and clear responsibilities in joint ventures.
Collaborative solutions are essential – smarter migration settings, enforceable local/indigenous employment obligations and legally underpinned training initiatives will help build a sustainable workforce.
What’s driving the workforce crunch?
The causes of the workforce shortfall are complex. The post-COVID hangover has left lingering effects on migration and interstate labour mobility. Apprenticeship numbers have not kept pace with industry demand. In some trades, particularly civil and mechanical roles, the talent simply isn’t there.
Employers in WA’s mining construction sector, many of them operating in remote and harsh environments, are now contending with a much more competitive labour market. And that has significant implications, not just for workforce planning, but for legal risk and contract performance.
What we’re seeing on the ground
From an employment law perspective, the shortage is pushing companies to pursue aggressive recruitment strategies, often through enterprise bargaining or expanded use of labour hire. But these options come with regulatory complexity. Enterprise agreements may offer more flexibility and appeal to workers, but they take time to negotiate and approve, often clashing with tight project delivery windows.
At the same time, companies are turning to skilled migration to fill gaps. While the Temporary Skill Shortage (TSS) visa offers a pathway, the system is slow and rigid. Sponsors must comply with onerous obligations, and in practice, many employers are caught in red tape or inadvertently exposed to penalties.
Meanwhile, from the construction law side, we’re seeing labour shortages emerge as a key risk in project contracts. In earlier market conditions, delay due to lack of labour might have been considered a contractor problem. But today, it’s increasingly clear that labour scarcity is a systemic risk, and one that contracts must accommodate. We are advising clients to revisit force majeure clauses, relief event provisions and workforce mobilisation schedules to reflect this new normal.
Another development is the rise of joint ventures and alliances, not only for risk-sharing, but also as a strategy to pool skilled labour across projects. This makes good operational sense, but the legal implications must be carefully managed. Employment responsibilities, safety obligations and liabilities and even insurance arrangements can become murky unless clearly spelled out.
What can be done?
There is no single fix, but there are actions that can be taken, and the legal framework has a role to play in each of them.
First, we need smarter migration settings. Government reform is underway, but we encourage more targeted advocacy from industry and legal leaders. One idea is to create a dedicated visa stream for mining and construction workers tied to regional project needs. We also support expanding WA’s Designated Area Migration Agreements (DAMAs) to include more roles and faster processing.
Second, project proponents need to plan workforce needs earlier and structure contracts accordingly. Legal advisors can help develop staggered work packages that reflect actual workforce availability, rather than assuming ideal timelines. Procurement strategies should be about more than lowest price – they should also test bidders’ labour access and retention strategies.
Third, there is an opportunity and a responsibility, to build sustainable pipelines of local and Indigenous workers. That means going beyond aspirational local content clauses to contractual obligations that are enforceable, practical, and embedded into project performance. Lawyers can help draft these provisions in a way that aligns with regulatory requirements while also driving meaningful outcomes.
And finally, innovation in training delivery. Whether it’s the use of group training organisations, regional skills hubs, or project-specific apprenticeships, structuring these initiatives with clear legal underpinnings will be critical to their success.
A shared challenge needs a shared approach
Workforce shortages aren’t just a problem for HR teams, they’re becoming a frontline legal issue. And they demand collaboration across functions, disciplines and sectors. We have seen the best outcomes where project managers, lawyers, HR specialists and government stakeholders work together from the outset.
For Australia to ensure it retains a thriving mining sector and has sufficient resources to support the delivery of critical infrastructure projects, we need to ensure we are taking all possible steps to attract the best talent, expand the existing skilled workforce and provide an equitable and balanced framework for workforce growth. That means being flexible, innovative and, above all, aligned with the real-world challenges our clients face. Collaborative and flexible work practices, combined with a legal framework that facilitates safety, learning and development will be key to ensuring our development desires are not constrained by a limited labour force.