07/02/2013 - 15:34

No salary rise for Rio's energy staff

07/02/2013 - 15:34

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No salary rise for Rio's energy staff

The majority of employees across Rio Tinto’s energy business in Australia will not receive salary increases this year as the miner aims to “secure the long-term strategy” of the division.

A Rio Tinto spokesperson confirmed to WA Business News the pause on salary increases, saying it was across the board at the miner’s coal division and uranium business, which includes subsidiary Energy Resources of Australia.  

“Salaries will not be increased for the majority of Rio Tinto’s employees in the Australian Energy businesses this year,” the spokesperson said.

“The Australian-based Energy business units have particular challenges in relation to high costs and low commodity prices.

“This decision is part of our strategy to help secure the long term resilience of our energy businesses.”

The news comes nearly a month after Rio Tinto surprised the market with the appointment of Perth-based Sam Walsh as its chief executive, and terminating, through “mutual agreement”, Tom Albanese.

Mr Walsh has previously told all Rio Tinto staff via email they needed to start acting like the owners of the company’s money.

A spokesperson for Rio Tinto’s iron ore division said “no comment” as to whether the pause on salary increases had extended to the miner’s most profitable division.

Rio Tinto will release its full year results next week.

Shares in Rio Tinto closed up 60c to $68.68 today. 

 

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