Rio Tinto says a move to slash annual sick leave by 73 per cent for tens of thousands of workers in Western Australia’s Pilbara mines has been driven by a staff survey.
The mining giant, which has a market capitalisation of $158 billion, has proposed changing the number of sick days a year from 45 to 12, a little over the national minimum standard of 10 days, for its iron ore employees.
Two out of those 12 days, however, would not accrue to the following year.
Employees with serious illness or injury, the definition of which 9News.com.au understands is still to be determined, will instead be allowed up to 12 months of paid sick and carer’s leave and allowances at the company’s discretion.
A Rio Tinto spokesperson said changes were brought on from a staff survey that found a fairness issue with the former sick leave policy.
“Prompted by feedback from our people survey, we are conducting a review of the sick and carers’ leave policy for Rio Tinto Iron Ore,” the spokesperson said.
“The proposed changes are designed to ensure fairness for all employees.
“This includes up to 12 months of sick and carer’s leave at full pay, including allowances, in the event of serious illness or injury, which we believe would be industry-leading.
“We are currently consulting with our people about these proposed changes.”
Under the proposed changes, the annual wellness payments will also be increased to $1000.
A Rio Tinto spokesperson said staff safety and well-being were their “top priority”.
The changes are expected to come into effect later this year, pending the six-week consultation period.
The Australian Manufacturing Workers’ Union State Secretary, Steve McCartney, said it was a shocking announcement that provided no clarity or reassurance to workers.
“This announcement from Rio Tinto highlights exactly why being on a union agreement is so important, it protects workers from having their wages and conditions changed on a whim,” he said.
“It also raises serious concerns for workers who have already had future leave approved.
“I call on Rio Tinto to immediately provide clarity and reassurance.”
There are about 16,000 people employed across 17 mines and four port terminals in Pilbara under the Rio Tinto Iron Ore banner.
There are about 16,000 people employed across 17 mines and four port terminals in Pilbara under the Rio Tinto Iron Ore banner.
Rio Tinto made $11.7 billion ($AUD18 billion) from operating activities at its Iron Ore division last year, down from $21.5 billion the previous year.
