17 December 2009

Our challenge to Rio in the Pilbara – Let workers decide in secret ballot

This week our Union has sought a majority support determination for workers in Rio Tinto's rail operations, in a bid to bring the company back to the bargaining table in the Pilbara for the first time in more than a decade.

Our Union is seeking a secret ballot of the 300-odd eligible employees in the company's rail operations division, which, if successful, would open the door for negotiations to begin under the Fair Work Act's good faith bargaining framework.

The rail operations majority support bid – and Federal Court litigation where our Union will challenge Rio Tinto’s non-union agreement – loom as early tests of the Fair Work Act.

Our WA District Secretary Gary Wood says growing rank and file dissatisfaction among rail workers with the company's conduct is the impetus for seeking the determination.

"We have been trying to get Rio Tinto to the table now for 18 months. They have used every tactic or delay they can think of to refuse to bargain, so the only option left is through Fair Work Australia to make a majority support determination to require them to come to the table and genuinely negotiate", he says.

Gary Wood challenged Rio Tinto to let the workers decide for themselves – “A secret postal ballot is the fairest way to test if there is majority support, so what’s Rio afraid of”, he said.

Coal booming into 2010

Higher spot prices for coking and thermal coal suggest a good 2010 for the Australian coal industry.

China is driving the demand with reports of a 12.5% increase in domestic hard coking coal prices from late October to $US182/ a tonne.

“A US coking coal supplier has reportedly concluded a deal for 3.7 million tonnes of hard coking coal into China on a quarterly pricing basis, with the first quarter of 2010 set at $190 per tonne free on board”, Macquarie said in a commodities report. “This compares with recent deals at just above $180 per tonne FOB”.

While annual coal contract prices fell from sky-high record levels by up to 63% this year, industry analysts believe the unprecedented spike in Chinese demand since March is likely to force higher benchmarks for the next Japanese financial year, starting in April.

The reported US deal at $190 a tonne is 47% higher than the $129 a tonne premium coking coal benchmark set this year.


As this is the last Bulletin for 2009, the Executive and Staff of our Union wish all our members and their families a very Merry Christmas and a Happy New Year.