Rio Tinto backgrounder 5

The RIO TINTO Campaign site

RIO TINTO - BACKGROUNDER No. 5

March 1998

RIO TINTO - AUSTRALIAN WORKERS - COAL MINES

Coal mining is out-of-sight, and out of mind for most Australians. However, it is an important industry - Australia's largest export industry - and makes a significant contribution to the national economy. Over the years coal miners have negotiated with companies to ensure their contribution to the national economy, as well the unsafe conditions they endure, are reflected in their pay and working conditions. However, Rio Tinto now wants to turn back the clock to Victorian days, with miners, the 'human capital' of the company, being viewed as just another company asset like machinery or buildings.

Rio Tinto has already de-unionised most of its mining and smelting operations in Australia. Its chief tactic has been to frustrate the process of collective bargaining over a period of years, and to then offer individual contracts to workers who are desperate for a pay rise, particularly to keep pace with the cost of living. In subsequent years, once workers have given up their collective bargaining power, the company has taken back the wage rises through increases in working hours and other changes to working conditions.

The coal mining sector, which is organised by the CFMEU, has vigorously resisted Rio Tinto's efforts to stall wage negotiations and pressure workers to accept individual contracts. This is what led to the crisis at the New South Wales coal mine, Hunter Valley No. 1 in 1997.

A process of compulsory arbitration, involving the Industrial Relations Commission, had been used in the dispute process and it was hoped this would help resolve the dispute. But that process was halted when the company took legal action which resulted in the arbitration process been abandoned. The company is now routinely altering working conditions of work at the mine with little or no negotiations - collectively - with the workforce. Rio Tinto is also seeking to make 192 workers redundant - the union believes trade unionists are being unfairly targetted through this redundancy process.

It has been claimed that by removing the right to belong to a union, and thus removing the collective bargaining power which maintains wages and conditions, costs can be cut and profits increased. However, this approach poses a threat to the pay and conditions of all workers, whether they are in the union or not, as the the removal of the right to be a union member reduces the ability of unions to bargain for their members - bargaining which often benefits non-union members as well. If the current trend continues the only 'right' a worker will have is the right to resign if they can no longer bear the conditions they are working under.

The union movement has a long history of working cooperatively with those companies which operate on a basis of negotiation and mutual respect. For example, at the Blackwater Mine in Queensland, owned by the Australian company BHP, negotiated changes have led to increased productivity but have also seen workers' conditions maintained as part of the deal. This deal reflects the fact that workers are important stakeholders in the operation; stakeholders who give much energy and commitment to making ventures successful. Rio Tinto prefers to ignore the very real contribution its workers make.