Rio Tinto has announced plans to significantly reduce sick leave for its iron ore workers in Western Australia’s Pilbara region, proposing a cut from 45 sick days a year to just 12. This change, which aligns closely with the national minimum of 10 days, has been driven by feedback from a recent employee survey that highlighted fairness concerns regarding the existing policy. Notably, out of the 12 sick days, two would not carry over to the next year.
In response to employees dealing with serious illnesses or injuries, the company will offer up to 12 months of paid sick and carer’s leave, with specific definitions still to be finalised. A spokesperson for Rio Tinto stated that these modifications aim to promote fairness among all staff, asserting that the new sick leave policy, inclusive of serious health conditions, would be a leading practice in the industry.
Additionally, the annual wellness payment for employees is set to rise to $1000 under the proposed changes. The company has initiated a six-week consultation period regarding these alterations, which are expected to take effect later this year.
However, the Australian Manufacturing Workers’ Union (AMWU) has responded critically, with State Secretary Steve McCartney deeming the announcement shocking and lacking clarity for workers, particularly those with pre-approved leave. He emphasised the importance of union agreements to protect workers’ rights during such policy shifts.
Currently, approximately 16,000 individuals are employed at Rio Tinto’s Pilbara operations, which span 17 mines and four port terminals. In the previous year, the company reported an operating profit of $11.7 billion from its Iron Ore division, a decline from $21.5 billion the year before.