16 April, 2012Indian trade unions' express concern about Rio Tinto's announced investment in India, given the company's reputation as a bad corporate citizen in Canada and Australia.
GLOBAL: Despite attempts by trade unions to warn Rio Tinto's senior management about the dangers of its contempt for workers' rights, the company has failed to respond. Rio Tinto now faces the challenge of developing its business in India in the face of stiff opposition from unions.
Rio Tinto announced a planned investment of $2bn in Orissa (India) iron ore mining project. Investments into India can be challenging and face a myriad of regulatory delays. Recently South Korean steel group Posco suffered another set-back in its plans for a $12bn investment first announced in 2005 after local protests in India. The latest setback follows a verdict from India's National Green Tribunal.
The state of Orissa is the 9th largest state in India with 30 districts and its main strength is its mineral resources. About 34 per cent of the country's iron ore deposits are there but it also has one of India's poorest populations. Trade unions have been playing a vitally important role between Governments and local communities to assist displaced land workers.
Mr. Rajendra Pasad Singha, President, Orissa State Hind Mazdoor Sabha (HMS) and Vice President Steel, Metal and Engineering Workers' Federation of India (SMEFI) and Mr Sudharshan Rao Director International Metalworkers' Federation South Asia Office held a meeting with Mr Raghunath Mohanty, Minister for Industries, Mining and Parliamentary Affairs, Government of Orissa. The unions presented the Minister with a letter on behalf of the IMF and its affiliate SMEFI detailing concerns such as the illegal lockout of workers in Alma, Canada. Local unions also plan to build support to their objections in local community groups and will meet shortly with the Chief Minister of Orissa.
In principle the local unions welcome foreign investments into India but in this case Rio Tinto has such a poor reputation they see no alternative but to draw attention to the company's activities. The Indian unions refer to Rio Tinto's failure to respect workers' rights in the Bell Bay organizing campaign in Australia and the illegal lockout in Alma, Quebec, Canada.
Sudharshan Rao IMF Director South Asia commented, "We stand side by side with the workers in Alma. We will continue to raise concerns with the highest levels of Government and seek assurances that some of our most vulnerable citizens will not be exploited by this poor corporate citizen."