‘Highest-paid blue collar jobs’: Rio Tinto questions Pilbara union push as vote to ditch London fails to land

Rio Tinto has questioned a mounting union push in the Pilbara, claiming its blue collar workers are some of the highest paid in the country, as a campaign to ditch the miner’s London home narrowly misses out. London-based hedge fund Palliser Capital’s plan failed to get the crucial 20 per cent vote it needed to force Rio’s board to formally review its dual-listing structure. But it did managed to gain some momentum, with 19.35 per cent of votes cast in favour of the motion Palliser founder James Smith had beamed into Rio’s annual general meeting in Perth from overseas on Thursday to make his case on the unification review, claiming London investors were missing out on lucrative franking credits. Mr Smith also argued the current structure was wasting billions of dolllars. Rio’s board had always disputed the activist investor’s claims. Mr Smith said it was “deeply disappointing” and claimed the board had launched a “fierce campaign” against scrutinising the current structure. Rio said it would consider the feedback provided. Closer to home, Rio is facing a stirring union movement at its iron ore operations in the Pilbara, with more than 400 workers at the Paraburdoo mine voting in favour of a collective bargaining agreement in March. Speaking after the AGM, chief executive Jakob Stausholm said he did not think the union’s incursion would escalate to industrial action in the Pilbara in the foreseeable future, but warned about the region’s return as a union stronghold. “The fact that we have got a different regime in place that has worked really well for the last three decades serves Australia well, and has served Rio Tinto well, and has served the employees very well,” Mr Stausholm said. “Because we are offering — I’m very proud of that — we are offering some of the highest-paid blue collar jobs in your country. “So I think we have a really good system, and I hope we are not going to go back to the situation we were in in the 80s, because it could damage a very, very successful industry for Australia.” Earlier in the day, Rio chair Dominic Barton told shareholders gathered at the Perth Convention and Exhibition Centre that the miner’s project pipeline in WA’s north extended well into the next decade, flagging a spend of $US13.3 billion ($20.7b) in new mines plant and equipment in the Pilbara over the next three years. That included studies to develop the mammoth Rhodes Ridge project, which Mr Barton said could become the biggest iron ore mine in Australia, eventually producing 100 million tonnes a year. Western Range, West Angelas, Hope Downs 1, Greater Nammuldi and Brockman 4 expansions are the next cabs off the rank. “This is very much the heartland of Rio Tinto,” Mr Barton said. The WA heirs of Pilbara iron ore pioneer Peter Wright shared in a multibillion-dollar payday after selling out stakes in the Rhodes Ridge mine to Japanese corporate giant Mitsui in February. Mitsui agreed to pay $US5.3b for 40 per cent of the huge, undeveloped Pilbara iron ore deposit while Rio — the developer of the mine — retained its 50 per cent share. The plans come amid huge geopolitical upheaval. Speaking broadly Mr Barton said US President Donald Trump’s tariffs had created short-term disruption for the business, but was confident it was not enough to derail industrial growth among major customers in China. He noted it was “uncomfortable” to see somewhere like Shanghai Port not as busy as usual. “We’ll get to a new equilibrium,” he said. Rio Tinto shares closed 1.02 per cent lower at $115.90.