11:35 AM EDT, 07/08/2025 (MT Newswires) -- BHP Group ( BHP ) is facing higher labor costs after Australia's workplace regulator ruled that it must pay the same wages to both its directly employed workers and those hired through contractors at three of its Queensland coal mines, multiple media outlets reported Tuesday.

The Fair Work Commission determined that a BHP internal contractor was supplying labor, not services, meaning those workers are entitled to equal pay under Australia's "same job, same pay" law. Therefore, the mining giant must pay about 2,200 coal miners in Central Queensland an average of 30,000 Australian dollars ($19,570) more each, the reports said.

The Minerals Council of Australia's Chief Executive Tania Constable said the Fair Work Commission's decision is "incredibly disappointing." Constable also said that "these businesses now face the risk of being drawn into complex and costly legal proceedings, creating instability in employment arrangements that have long supported operational flexibility, efficiency, and mining productivity."

BHP Group ( BHP ) would "comply with any orders made," the company was quoted as saying by Nikkei Asia.

The mining company didn't immediately reply to MT Newswires' request for comment.

Price: 50.04, Change: +0.64, Percent Change: +1.31