
Rio Tinto Group, the world’s third biggest mining company, is fighting to continue using non unionized workers to dig for iron ore in Western Australia after challenges to the two decade old practice.
The miner is seeking a hearing before Australia’s highest court in a bid to overturn a ruling last year that invalidated its agreements with railway workers and which could give unions more leverage to represent other employees.
Mr Tom Albanese CEO of Rio Tinto said that “Five years ago Australia was one of the cheapest places in the world for us to do business, today it’s one of the most expensive.”
He said that he’s concerned about the declining levels of productivity in Australia.
Rio Tinto’s effort to stem the influence of unions at its mines is part of a bigger battle in Australia between labor, pressing to entrench workers’ bargaining rights, and business, which claims current laws stifle productivity. The government, which re introduced worker safeguards in 2009, is reviewing legislation, with a three member panel scheduled to issue a report by the end of May.
Lawyers for London based Rio Tinto are scheduled to appear before a High Court of Australia judge and try to persuade the court that the dispute over workers in Western Australia’s Pilbara region deserves to be heard by a full panel of judges.
(Sourced from Bloomberg)










