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Rio Tinto workers fear more job cuts

Rio Tinto is merging its copper and coal divisions as part of new moves to cut costs, and workers are worried about further job cuts.

A shifter moves coal
(AAP) Source: AAP

Workers fear more jobs are to be cut by mining giant Rio Tinto as it begins a new round of cost cutting by merging its copper and coal divisions.

Under the new arrangements, Rio Tinto's operations will be condensed into four groups - iron ore, aluminium, copper and coal, and diamonds and minerals.

But workers in the Pilbara are worried the axe will soon fall on hundreds of iron ore jobs, and are calling for the company to release details of any layoffs.

There was fresh speculation on Friday that several hundred jobs will go from its iron ore division in Western Australia, as plunging commodity prices increase the urgency of cuts cutting.

The Western Mineworkers Alliance (WMWA) said Rio employees were hearing conflicting reports of proposed job cuts at sites across the Pilbara, involving between 100 and 800 employees.

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"The multinational mining giant has sent a vague letter to employee representatives announcing mass lay offs were imminent," WMWA said in a statement.

Alliance representative Stephen Price said Rio was treating Pilbara workers with disrespect, and has called on the company to specify whether voluntary redundancies will be offered.

"Workers in the Pilbara have played an instrumental role in generating multi-billion dollar profits for Rio Tinto," Mr Price said.

"To be rewarded with mass sackings is a slap in the face."

Rio has not commented on job cuts.

It described its merger of copper and coal as a streamlining of its product groups and corporate functions, as part of a continued focus on efficiency and costs.

Rio's long serving coal chief executive Harry Kenyon-Slaney is leaving as a result of the merger, ending almost 25 years with the business.

Copper chief executive Jean-Sebastien Jacques will lead the newly combined group.

A number of unspecified changes to corporate functions will also be made to cut costs, Rio said.


2 min read

Published

Updated

Source: AAP


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