'800 Rio jobs on the line'
UPDATE 2pm: Rio Tinto could be seeking to shed as many as 800 WA iron ore workers, according to unions, who have called on the mining giant to clarify its intentions.
Management at Rio’s Pilbara operations have been reviewing their portfolio over the past few months.
Small contracts for non-essential work have already been cut, but Rio is understood to be on the verge of announcing more significant cuts to both its contract workforce and its own staff.
The Western Mineworkers Alliance – an alliance between the Australian Workers Union and the CFMEU’s mining divisions – said yesterday Rio had sent a “vague” letter to employee representatives, warning significant layoffs were imminent.
Rio is still to confirm the extent of its plans, but WMWA’s Stephen Price said yesterday unions believed the company was planning to sack as many as 800 WA workers.
It is understood the job losses will come from across the company’s WA operations, both in the Pilbara and in the company’s Perth office.
Early this month, Rio's iron ore boss Andrew Harding ordered a freeze on hiring and launched a “review of organisational structures”.
It is understood the review is seeking to flatten the iron ore division’s management structure, and identify ways to cut both capital costs and operating expenditure.
It is understood the company has no plans to back away from its 360-million-tonne-a-year export target.
The speculation comes as the miner this morning announced plans to merge its copper and coal divisions into one new business and part ways with its long-serving energy chief executive Harry Kenyon-Slaney, who has been with the company for 25 years.
Under the new arrangements, Rio Tinto’s portfolio of assets will be condensed into four product groups: aluminium, copper and coal, diamonds and minerals, and iron ore.
Copper chief executive Jean-Sebastien Jacques will lead the combined product group.
The company has not commented on how many jobs will be cut.
Rio described the moves as a streamlining of its product groups and corporate functions as part of a continued focus on efficiency and costs.
Uranium will be added to the Diamonds and Minerals product group.
A number of unspecified changes to corporate functions would also be made to cut costs, Rio said.
Rio shares were up 71 cents, or 1.12 per cent, to $64.41 at the close.
