WorkPac
Australian blue-collar and mining labour-hire firm, now owned by ASX-listed Tasmea.
On the record
Checkpoint: NSW labour-hire licensing scheme commences, adding new compliance costs
The call
WorkPac still runs a large, sticky labour-hire book, but same job same pay rulings and client concentration are already reshaping its headcount and margins under new ownership.
WorkPac hires temporary workers for big mining and construction companies across Australia. It's hard to replace because it has long-term contracts with major clients, real licenses from each state, and deep relationships, but Australian courts are now ordering that temp workers get paid the same as permanent workers doing the same job. This new rule is already cutting WorkPac's profits and headcount in half since 2020. The key question is whether more courts will expand this 'same pay' rule to other big clients, which could shrink WorkPac's margins even further or force it to reinvent its whole business model.
Why
01
AI pressure: AI-driven gig-matching apps like Sidekicker or Instawork. AI shift-matching apps could cut casual blue-collar placement fees, but licensed mine-site labour-hire still needs on-ground compliance and safety sign-off. Could AI do the core job? Only partly.
02
Bigger players: BHP and other major miners insourcing labour under same job same pay rules. BHP's Bowen Basin sites already moved under Fair Work's same job same pay ruling, and WorkPac's field headcount has halved since FY20. Could a giant copy it? Yes, easily.
03
What protects it. Long-standing state licensing, 15+ blue-chip MSAs, 96% repeat revenue, and Tasmea's balance sheet back the labour-hire book.
What would change this call
Fair Work extends a 'same job, same pay' order to a WorkPac client beyond BHP Bowen Basin. Would show margin-compressing regulation spreading into the 70%-of-revenue top-10 client base.
Tasmea's FY26 results show WorkPac EBIT at or above the A$18M guide. Would show the acquired business is stabilizing under new ownership despite regulatory headwinds.
WorkPac's field headcount reported below 5,000 in a future Tasmea filing. Would show the FY20-FY25 workforce decline is continuing rather than leveling off.
Tasmea's FY26 results show WorkPac EBIT at or above the A$18M guide. Would show the acquired business is stabilizing under new ownership despite regulatory headwinds.
WorkPac's field headcount reported below 5,000 in a future Tasmea filing. Would show the FY20-FY25 workforce decline is continuing rather than leveling off.
Key numbers
- Tasmea paid up to A$60.7M for WorkPac
- Field headcount fell from 11,000 to ~6,000
- Top 10 clients are 70% of group revenue
Named risks
- Same job, same pay rulings cascading beyond BHP Bowen Basin sites to top-10 clients representing 70% of revenue.
- Field headcount continuing to shrink from FY2020 peak of 11,000 to just over 6,000 by late 2025.
- NSW labour-hire licensing amendments effective June 2026 raising compliance costs.
- Tasmea missing FY26/FY27 earn-out earnings thresholds, signaling integration difficulty.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Chandler Macleod | contesting | Co-defendant with WorkPac in 2018 casual-entitlement class actions and same BHP labour-hire disputes in 2025 |
| Programmed | contesting | Named alongside WorkPac in 2018 mining sector casual employment class actions |
| HAYS | contesting | Named alongside WorkPac in 2018 mining sector casual employment class actions |
| One Key Resources | contesting | Named alongside WorkPac in 2018 mining sector casual employment class actions |
Questions people ask
- Is WorkPac profitable?
- Tasmea, which bought WorkPac, guided WorkPac to deliver about A$18 million EBIT on a pro forma basis for FY26 as of November 2025, and WorkPac contributed A$77.3 million in statutory revenue for just the one-month stub period ending 31 December 2025.
- Who owns WorkPac now?
- ASX-listed Tasmea Limited (ASX: TEA) acquired 100% of WorkPac Group Pty Ltd for up to A$60.7 million, comprising A$20.2m cash, A$27.5m shares, and A$10.5m in earn-outs, with the deal completing on 1 December 2025.
- Could AI replace WorkPac?
- AI already handles front-end screening at WorkPac, which deployed AI-voice vendor Curious Thing around 2021 to triage roughly 10,000 monthly applicants, but WorkPac's role as the legal employer bearing workers-comp and OHS liability, plus state licensing and physical presence at remote mining sites, is not replaceable by AI as of 2026.
- Is WorkPac laying off workers or shrinking?
- Yes. WorkPac's field workforce fell from about 11,000 in FY2020 to more than 6,000 by November 2025, a decline Tasmea attributed to industrial relations changes constraining earnings growth, per its 1 December 2025 market update.
- Who is WorkPac's biggest competitor?
- Chandler Macleod, Programmed, HAYS, and One Key Resources are WorkPac's closest peers in Australian mining and blue-collar labour hire; all four were named together as co-defendants alongside WorkPac in 2018 class actions over casual employment entitlements.
- How did the same job, same pay ruling affect WorkPac?
- A July 2025 Fair Work Full Bench decision ([2025] FWCFB 134) applied same job, same pay orders to WorkPac workers at three BHP Bowen Basin coal mines, prompting the Minerals Council to warn of adverse impacts and possible retrenchments across the sector on 7 July 2025.
Timeline
- 2026-06-01NSW labour-hire licensing amendments tighten fit and proper person and financial viability tests
- 2026-02-24Tasmea 1H FY26 results show 36% EBIT growth amid WorkPac integration; shares fell about 4.3%
- 2025-12-31WorkPac contributes A$77.3M revenue to Tasmea for one-month stub period
- 2025-12-01Tasmea completes acquisition of WorkPac; earnings called constrained by industrial relations changes
- 2025-11-19Tasmea announces agreement to acquire WorkPac for up to A$60.7 million
- 2025-07-01FWC Full Bench applies same job, same pay ruling to WorkPac workers at three BHP Bowen Basin mines
- 2023-10-31FY2023 Modern Slavery Statement shows WorkPac field workforce down to about 7,000-7,500
- 2021-01-01WorkPac integrates Curious Thing AI voice screening to triage about 10,000 monthly applicants
- 1997-01-01WorkPac founded by Phil Smart in Perth
Revision history
24 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- WorkPac Acquisition ASX Announcement (2025-11-19)
- Modern Slavery Statement FY2023
- Acquisition Presentation (2025-11)
- Tasmea 1H FY26 Results Announcement (2026-02-24)
- Tasmea H1 FY26 slides: 36% EBIT growth amid WorkPac integration (2026-02-23)
- Market Update Completion of acquisition (2025-12-01)
- Stitching up the Labour Hire Loophole (2025-07-08)
- Minerals Council Member Note
- Closing the front door: labour hire reform in NSW (2026-05-31)
- WorkPac Expand Their Tech Stack With Curious Thing
- Miners to launch new class actions against labour hire firms (2018-09-21)
- FWC Full Bench decision