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12 August, 2005ICEM News release No. 45/1998
"We challenge Rio Tinto to enter constructive dialogue with its critics. We issued that challenge publicly inside Rio Tinto's Annual General Meeting today and we will continue to do so. Given the arrogance of Rio Tinto's responses today, and the breadth of the opposition to the company's present behaviour, we do not feel that discussions behind closed doors would resolve the issues at this stage. The dialogue will have to be in the open."
That was the reaction from angry trade union and community leaders following acrimonious exchanges inside Rio Tinto's Annual General Meeting in London today.
Rio Tinto is the world's biggest private mining company. It has come in for massive criticism from a coalition of trade unions, environmentalists, human rights organisations, indigenous people’s representatives and other campaigners worldwide. They cite the company’s breaches of UN resolutions, its environmental pollution and its abuse of human rights - notably trade union rights and the rights of indigenous peoples.
In campaigning for major reform of Rio Tinto's business ethics and practices, the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) and the whole of the world trade union movement are allying themselves with organisations such as Oxfam, Greenpeace and the World Development Movement.
Earlier, the ICEM and others had distributed a detailed, balanced but critical Stakeholders' Report to shareholders attending the meeting.
ANNUAL GENERAL MEETING: CHAIRMAN'S ARROGANCE
ICEM Australian Vice-President John Maitland was one of the international union leaders who acquired Rio Tinto shares in order to take part in AGM today. Maitland is National Secretary of the ICEM-affiliated Australian mining and allied workers' union CFMEU, which is involved in bitter disputes over Rio Tinto's attempts to deunionise its Australian mines and to end collective bargaining.
In fact, Rio Tinto Chairman Robert Wilson invited Maitland to speak towards the beginning of the AGM.
"I made what I and others considered to be a moderate and responsible statement," Maitland commented afterwards. "I emphasised that our stakeholders' report is part of our attempt to engage in proper, constructive negotiations with the company. I also pointed out that Rio Tinto's new statement of business principles, The Way We Work, will be relevant only if it is actually put into practice.
"Frankly," Maitland said, "I was amazed by Wilson's reponse. Instead of answering my points, he launched into a series of arrogant character assassinations against officers of the ICEM and the CFMEU. He also accused us of engaging in misinformation. But in fact, his own comments were full of half-truths and distortions. For example, he said that Rio Tinto has no direct involvement and no personnel in the troubled Norwegian smelter Norzink. That is incorrect. He also told the meeting that a miners' strike in Indonesia ended within three days. That is correct - but he omitted to mention that the strike ended because it was broken up at gunpoint by the army.
"Then Wilson told the meeting that The Way We Work had been 'widely discussed' before being launched. But it was never discussed with unions at Rio Tinto or with environmental and civic campaigners. In fact, Rio Tinto did send a copy for comment to the International Confederation of Free Trade Unions, whose General Secretary Bill Jordan sent back a closely argued eight-page critique. Not one of Jordan's comments was ever mentioned by Rio Tinto, and not a single change was made to the document on the basis of Jordan's letter."
From the AGM chair today, Wilson also launched into an attack on an ICEM conference in Johannesburg this February, where unions organising in Rio Tinto worldwide agreed to set up a network. In particular, Wilson strongly criticised former Australian Prime Minister Bob Hawke for taking part in the Johannesburg conference.
"Wilson's performance today showed him to be a very insecure man, obviously under a lot of pressure," Maitland commented. "It seems he thought his only way out of a corner was to come out snarling."
ICEM British Vice-President Fred Higgs agrees. "Although Rio Tinto has very little in the way of operations inside the UK, it is a British-based company, " said Higgs, who is National Officer at ICEM British affiliate the TGWU. "Having been at the meeting and seen the disgusting way the chair distorted the views not just of the trade unionists, but of anyone who dared to criticise the company from the floor, I have to say I'm a little ashamed to be British today. This reinforces my view that international solidarity is vital in dealing with companies of this kind."
Today's AGM was "a classic case of the corporate PR machine versus real people," commented ICEM General Secretary Vic Thorpe, who also spoke during the AGM. "Wilson, obviously, was arrogant and ill-mannered. But some of the shareholders weren't much better. It's a long way from British middle-class drawing rooms to the killing fields of Kalimantan."
Thorpe saw one positive point in the meeting: "Rio Tinto implicitly agreed that industrial relations are a matter of global corporate policy. Previously, they had always hidden behind local management's alleged right to manage. If Rio Tinto are now treating industrial relations globally, they should take the next logical step and start talking to the ICEM."
John Maitland was impressed by another item on the AGM agenda. Rio Tinto's Board, already high up the world chart of corporate "fat cats", decided to pay themselves an extra 33 per cent in bonuses if the company gets up to the midway point in the international industrial league tables. The bonus rise would go up to 100 per cent if the company makes it into the top four.
"On behalf of Rio Tinto's organised workforce in Australia, I would be happy to accept the same bet for the people who actually produce Rio Tinto's wealth," Maitland said.
FACTUAL GENERAL MEETING: TALES OF TERROR
Naturally enough, Rio Tinto's critics got a rather better hearing at their own counter-event this afternoon - the Factual General Meeting. It was held in London's Central Methodist Hall, which is very near the AGM venue.
The Central Methodist Hall also, back in 1945, hosted the founding session of the United Nations. Three years later, the UN adopted the Universal Declaration of Human Rights, whose fiftieth anniversary is being celebrated this year. In "The Way We Work", Rio Tinto pays considerable lip-service to the Universal Declaration.
In addition to trade unionists and environmentalists, speakers at the Factual General Meeting included representatives of indigenous peoples in Indonesia, Colombia and Nevada, USA. They told tales of exploitation and in some cases of outright terror as Rio Tinto connived with local authorities to take over their ancestral lands.
A speaker from Colombia's Guajira people said Rio Tinto had "despoiled" their land. In particular, he pointed the finger at activities in the area of El Cerrejon. "The name of El Cerrejon is a familiar one to us," commented ICEM General Secretary Vic Thorpe. "It has been the scene of many a miners' strike - in some cases put down by military force. This is a good example of the community of interest between Rio Tinto's workers and the other people who suffer from Rio Tinto's operations."
Also addressing the Factual General Meeting was British parliamentarian Michael Clapham. He and other legislators tabled a highly critical motion about Rio Tinto in the House of Commons last month. To applause, Clapham announced that he is preparing another Commons motion. This one, to which some fifty Members of Parliament have already signed up, will praise the responsible action of the ICEM and its allies in publishing the stakeholders' report and will call for continuing pressure on Rio Tinto to mend its ways.
Despite Rio Tinto's provocations today, the unions and others are determined to maintain a calm, responsible approach.
"The idea is not to break the company but to turn it into a good corporate citizen, conscious of its responsibilities to its stakeholders," emphasised the ICEM's Vic Thorpe. "We will continue to seek dialogue, but at the same time Rio Tinto must realise that its attitude has further cemented the broad alliance of those who insist on real change in the company's practices. More than ever, the company will be under scrutiny everywhere.
"Truly," Thorpe said, "Rio Tinto has No Place To Hide."
That was the reaction from angry trade union and community leaders following acrimonious exchanges inside Rio Tinto's Annual General Meeting in London today.
Rio Tinto is the world's biggest private mining company. It has come in for massive criticism from a coalition of trade unions, environmentalists, human rights organisations, indigenous people’s representatives and other campaigners worldwide. They cite the company’s breaches of UN resolutions, its environmental pollution and its abuse of human rights - notably trade union rights and the rights of indigenous peoples.
In campaigning for major reform of Rio Tinto's business ethics and practices, the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) and the whole of the world trade union movement are allying themselves with organisations such as Oxfam, Greenpeace and the World Development Movement.
Earlier, the ICEM and others had distributed a detailed, balanced but critical Stakeholders' Report to shareholders attending the meeting.
ANNUAL GENERAL MEETING: CHAIRMAN'S ARROGANCE
ICEM Australian Vice-President John Maitland was one of the international union leaders who acquired Rio Tinto shares in order to take part in AGM today. Maitland is National Secretary of the ICEM-affiliated Australian mining and allied workers' union CFMEU, which is involved in bitter disputes over Rio Tinto's attempts to deunionise its Australian mines and to end collective bargaining.
In fact, Rio Tinto Chairman Robert Wilson invited Maitland to speak towards the beginning of the AGM.
"I made what I and others considered to be a moderate and responsible statement," Maitland commented afterwards. "I emphasised that our stakeholders' report is part of our attempt to engage in proper, constructive negotiations with the company. I also pointed out that Rio Tinto's new statement of business principles, The Way We Work, will be relevant only if it is actually put into practice.
"Frankly," Maitland said, "I was amazed by Wilson's reponse. Instead of answering my points, he launched into a series of arrogant character assassinations against officers of the ICEM and the CFMEU. He also accused us of engaging in misinformation. But in fact, his own comments were full of half-truths and distortions. For example, he said that Rio Tinto has no direct involvement and no personnel in the troubled Norwegian smelter Norzink. That is incorrect. He also told the meeting that a miners' strike in Indonesia ended within three days. That is correct - but he omitted to mention that the strike ended because it was broken up at gunpoint by the army.
"Then Wilson told the meeting that The Way We Work had been 'widely discussed' before being launched. But it was never discussed with unions at Rio Tinto or with environmental and civic campaigners. In fact, Rio Tinto did send a copy for comment to the International Confederation of Free Trade Unions, whose General Secretary Bill Jordan sent back a closely argued eight-page critique. Not one of Jordan's comments was ever mentioned by Rio Tinto, and not a single change was made to the document on the basis of Jordan's letter."
From the AGM chair today, Wilson also launched into an attack on an ICEM conference in Johannesburg this February, where unions organising in Rio Tinto worldwide agreed to set up a network. In particular, Wilson strongly criticised former Australian Prime Minister Bob Hawke for taking part in the Johannesburg conference.
"Wilson's performance today showed him to be a very insecure man, obviously under a lot of pressure," Maitland commented. "It seems he thought his only way out of a corner was to come out snarling."
ICEM British Vice-President Fred Higgs agrees. "Although Rio Tinto has very little in the way of operations inside the UK, it is a British-based company, " said Higgs, who is National Officer at ICEM British affiliate the TGWU. "Having been at the meeting and seen the disgusting way the chair distorted the views not just of the trade unionists, but of anyone who dared to criticise the company from the floor, I have to say I'm a little ashamed to be British today. This reinforces my view that international solidarity is vital in dealing with companies of this kind."
Today's AGM was "a classic case of the corporate PR machine versus real people," commented ICEM General Secretary Vic Thorpe, who also spoke during the AGM. "Wilson, obviously, was arrogant and ill-mannered. But some of the shareholders weren't much better. It's a long way from British middle-class drawing rooms to the killing fields of Kalimantan."
Thorpe saw one positive point in the meeting: "Rio Tinto implicitly agreed that industrial relations are a matter of global corporate policy. Previously, they had always hidden behind local management's alleged right to manage. If Rio Tinto are now treating industrial relations globally, they should take the next logical step and start talking to the ICEM."
John Maitland was impressed by another item on the AGM agenda. Rio Tinto's Board, already high up the world chart of corporate "fat cats", decided to pay themselves an extra 33 per cent in bonuses if the company gets up to the midway point in the international industrial league tables. The bonus rise would go up to 100 per cent if the company makes it into the top four.
"On behalf of Rio Tinto's organised workforce in Australia, I would be happy to accept the same bet for the people who actually produce Rio Tinto's wealth," Maitland said.
FACTUAL GENERAL MEETING: TALES OF TERROR
Naturally enough, Rio Tinto's critics got a rather better hearing at their own counter-event this afternoon - the Factual General Meeting. It was held in London's Central Methodist Hall, which is very near the AGM venue.
The Central Methodist Hall also, back in 1945, hosted the founding session of the United Nations. Three years later, the UN adopted the Universal Declaration of Human Rights, whose fiftieth anniversary is being celebrated this year. In "The Way We Work", Rio Tinto pays considerable lip-service to the Universal Declaration.
In addition to trade unionists and environmentalists, speakers at the Factual General Meeting included representatives of indigenous peoples in Indonesia, Colombia and Nevada, USA. They told tales of exploitation and in some cases of outright terror as Rio Tinto connived with local authorities to take over their ancestral lands.
A speaker from Colombia's Guajira people said Rio Tinto had "despoiled" their land. In particular, he pointed the finger at activities in the area of El Cerrejon. "The name of El Cerrejon is a familiar one to us," commented ICEM General Secretary Vic Thorpe. "It has been the scene of many a miners' strike - in some cases put down by military force. This is a good example of the community of interest between Rio Tinto's workers and the other people who suffer from Rio Tinto's operations."
Also addressing the Factual General Meeting was British parliamentarian Michael Clapham. He and other legislators tabled a highly critical motion about Rio Tinto in the House of Commons last month. To applause, Clapham announced that he is preparing another Commons motion. This one, to which some fifty Members of Parliament have already signed up, will praise the responsible action of the ICEM and its allies in publishing the stakeholders' report and will call for continuing pressure on Rio Tinto to mend its ways.
Despite Rio Tinto's provocations today, the unions and others are determined to maintain a calm, responsible approach.
"The idea is not to break the company but to turn it into a good corporate citizen, conscious of its responsibilities to its stakeholders," emphasised the ICEM's Vic Thorpe. "We will continue to seek dialogue, but at the same time Rio Tinto must realise that its attitude has further cemented the broad alliance of those who insist on real change in the company's practices. More than ever, the company will be under scrutiny everywhere.
"Truly," Thorpe said, "Rio Tinto has No Place To Hide."