Rio Tinto's Indigenous Employment Strategy - Mid West ...

Rio Tinto’s Indigenous
Employment Strategy-
Making a Difference
AMPLA State Conference
Friday 20 March 2009
Maritime Museum, Fremantle

Forward Looking Statement
• This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and comprises the slides for a presentation
concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions.
• Forward looking statements:
• This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included
in this presentation, including, without limitation, those regarding Rio Tinto’s financial position, business strategy, plans and objectives
of management for future operations (including development plans and objectives relating to Rio Tinto’s products, production forecasts
and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results,
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
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• Such forward-looking statements are based on numerous assumptions regarding Rio Tinto’s present and future business strategies
and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto’s actual
results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of
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impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and
economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes
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United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements
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• Nothing in this presentation should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will
necessarily match or exceed its historical published earnings per share.
• Information about BHP Billiton included in this presentation is based on public information which has not been independently verified.
Certain statistical and other information about Rio Tinto included in this presentation is sourced from publicly available third party
sources. As such it presents the views of those third parties, but may not necessarily correspond to the views held by Rio Tinto.
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Presentation outline
1.
Indigenous Employment in the
Pilbara
2. Rio Tinto- iron ore
3.
4.
Rio Tinto’s Indigenous
Employment Strategy
Education, Training & Employment
Programs
5. Conclusion
Questions & Answers
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1. Indigenous Employment in the
Pilbara
• ABS census, 2006:
– Pilbara population: 41,001
– Indigenous population: 5,632 (13.7%)
– The unemployment rate of Australia:
• 5.2%
– The unemployment rate of Western Australia:
• 3.8%
– The unemployment rate of the Pilbara:
• 3.2%
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Pilbara- unemployment rates (ABS census,
2006)
Indigenous Employment Statistics for some Pilbara Shires
Shire
Employed (incl
Unemployed
Total Labour
% of labour
CDEP)
workforce
workforce
unemployed
Roebourne 437 83 520 16.0
East Pilbara 393 92 485 19.0
Ashburton 206 28 234 12.0
Port Hedland 513 106 619 17.1
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• So the question you ask is why
– Educational attainment
– Literacy and numeracy levels
– Location (a majority of Indigenous Australians
live in remote or rural areas where the
opportunities are scarce)
– Employment status of family members
– Exposure to the justice system
– Health issues
– AOD issues
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History- Pilbara
• In order to understand this issue of unemployment among
Indigenous people, we should be reminded of the Pilbara’s
recent history.
– Pastoral days (1860s- early 1900s: removing
Indigenous people off their traditional lands and onto
stations)
– Traditional employment roles (station hand, horsemen,
housemaids etc)
– Equal wages (mid 1960’s: led to unemployment)
– The mining boom (1960’s: exclusion of Aboriginal
people)
– Australian citizenship – drinking rights (1967)
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Renewed focus on Indigenous
employment
• Aboriginal Employment Covenant
– National industry led initiative to create and fill 50,000
jobs for Indigenous people
– Aimed at closing the gap between Indigenous and non-
Indigenous Australians in employment and employment
opportunities.
– Reducing dependency on welfare
• Indigenous employment strategies
– Identify suitable opportunities within the workforce
– Develop pathways from community to the workplace
– Links workforce needs to available candidates
– Reinforce and deliver on commitments to agreements
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Why the heightened interest in
Indigenous employment
– Legal recognition of Indigenous rights (native title)
– Poor socio- economic conditions
– Corporate social responsibility
– Government initiatives
– International standards (Conventions etc)
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2. Rio Tinto- iron ore
• Rio Tinto- iron ore has a proud and successful history of sustained
growth and innovation in the Pilbara region extending over forty
years. Through this time, Rio Tinto has been at the forefront of
driving change in the iron ore industry. Production of iron ore in the
Pilbara began in 1966 at the Mt Tom Price mine.
• With a network of 11 mines, three shipping terminals and the
largest privately owned heavy freight railway in Australia, the
Pilbara operations produce more than 170 million tonnes of iron ore
annually and are growing towards an annual production rate of 220
million tonnes.
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Rio Tinto’s mines, ports and rail system
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Tom Price Mine
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Cape Lambert port
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• Rio Tinto is the largest employer of Indigenous Australians outside
the public sector. This has not occurred by chance but through
carefully thought out strategies intent on raising the engagement of
Indigenous Australians in the workforce.
• Despite 40 years of substantial economic development in the
Pilbara region and commitments to education, training and
employment programs, the labour force status of Indigenous people
has barely altered (Taylor & Scambary Report). This led Rio Tinto
to establish a strategy to address this disadvantage.
• At the heart of Rio’s business activities is a commitment to engage
with local traditional owners and the Company has done so by
achieving significant agreements with the majority of local groups.
Among other things one of the key agreement commitments is
delivering education and training programs with employment
outcomes as one of the measures of success.
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Key Commitments
• To develop its assets in consultation with traditional owner groups.
• Meet its agreement commitments.
• Work with traditional owners on education, training and employment
issues.
• Apply best practice principles in all it does.
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3. Rio Tinto’s Indigenous
Employment Strategy
• Since the establishment of the Aboriginal Training and Liaison unit
by Hamersley Iron in 1992, the business has endeavoured to
increase the number of Aboriginal opportunities available within our
operations.
• The programs available through ATAL helped many local Aboriginal
people into roles within the company, however, it became clear that
a more proactive, deliberate strategy was needed.
• Other programs have also been developed that target education,
training and business development.
• In late 2005, the Indigenous Employment Strategy Team was
established to take primary responsibility for growing the number of
Indigenous people employed with Rio Tinto- iron ore.
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• The Indigenous Employment Strategy is making significant
improvement to the aspirations of Pilbara local Aboriginal people
through:
– Delivery of appropriate programs;
– Improving workplace understanding of Aboriginal Culture and
practices;
– Commitment to offering real jobs; and
– By ensuring employees have access to Mentor support.
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Retention
• Once people are recruited, there is still work to be done to retain
them. The workplace must be made welcome for Indigenous
employees.
• As much work needs to be done in preparing the workplace as
needs to be done in preparing the Indigenous recruits themselves.
• Indigenous employment is achieved through strong leadership- real
jobs in the operation with local managers making it work.
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Indigenous Employment Target
• Target of 20% Indigenous employment by 2015.
• Currently employ 623 Indigenous employees, which equates to ~
8% of the Company’s workforce.
• Target recruitment for 2009 is 185 Indigenous employees.
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Strategic Approach
• Rio Tinto must take a leadership role in supporting the development
of sustainable healthy communities in the Pilbara.
• The improvement of the socio-economic situation of Indigenous
people in the Pilbara needs to be a partnership approach between
Rio Tinto and traditional owners.
• Engagement with communities and form partnerships.
• Establish a knowledge base.
• Collaboratively deliver programmes with measurable outcomes that
everybody has agreed to.
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What has Rio Tinto learnt
• CV’s, and on-line and written applications are barriers to
employment for most people in remote communities.
• Security checks can be barriers to workforce entry.
• Driving licence requirements can be barriers to workforce
entry.
• Cultural awareness needs to be addressed in the
workplace.
• Psychometric tests normalised to non-Aboriginal urban
populations tell us nothing about the potential of Aboriginal
candidates.
• We have to put people into real mainstream jobs; not
confine Aboriginal people to particular jobs.
• Without a real job to go to, there is no point in training
people.
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4. Education, Training &
Employment Programs
Rio Tinto’s programs are about developing improved capacity within
local communities to engage on equitable terms with others within
the broader socio economic environment by:
• Providing appropriate pathways into employment or tertiary studies
• Providing access to secondary and tertiary scholarships
• Enhancing the confidence of secondary students to do well and to
be seen as a ‘good performer’ without being the odd one out
• Through work ready programs ensure that anyone who wants a job
is provided with an opportunity within the program to meet the entry
requirements of available roles
• Developing good role models for Indigenous communities, thereby
leading to improved hope for the future
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Education
Name
Intended Outcome
Partnerships for Success
Roebourne Pathway Project
On My Way- David Wirrpanda
Foundation
Secondary Scholarship- St
Luke’s College
Educational support and assistance to aboriginal
students who have the aspiration to do well in
education. Provides homework centre access,
tutoring and self esteem development.
Students who do not have the academic
interest/motivation provided with opportunities to gain
skills to enable employment.
Targets youth who are at risk within the criminal
justice system, encourages and rewards them for
staying out of trouble.
Provides access to private secondary school for
aboriginal students as an alternative to leaving home
and going to the city. Three scholarships per year
provided in years 8-10 at St Luke's College, Karratha.
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Education
Name
Dance & Drama Program
Cadetship Program
Tertiary Scholarships
Elect Education Literacy
Program
Intended Outcome
Employment of specialist teacher/trainer to work with
young students from Roebourne and Tom Price
Primary Schools. Program uses performing arts
disciplines to develop confidence and self esteem in
young children and older students.
Allows university students to gain work experience
while studying, which assists them to move into
employment on completion of their studies.
Cadetships are offered for a variety of disciplines
(mining and non-mining related).
Provides financial support for Aboriginal students
attending universities. Vacation employment is also
provided on site during summer vacation.
Second chance literacy program pilot using
strategies to provide literacy for many who have
failed in primary school.
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Training & Employment
Name
Aboriginal
Traineeships &
Apprenticeships
Work Ready Program
Intended Outcome
Apprenticeship opportunities:
Metal Fabrication, Mechanical Fitting, Automotive,
Electrical, Communication, Plant Mechanic & panel
Beating
Traineeship opportunities:
Business Administration, Environmental Management,
Human Resources or Information Technology.
Partnership between CDEPs, RTIO, TAFE and others
to create employment access pathways through the
use of literacy skills, general skills development,
induction and safety training, provision of specific
support for addressing FFW & AOD issues and
exposure to site work experiences.
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Training & Employment
Name
Intended Outcome
Rail Maintenance
Traineeships
(Fluor Rail Services
Trainees are employed with Fluor Rail Services and
complete Cert 1 & II Transport and Distribution.
Trainees will be given the option to complete Cert III.
Aboriginal Simulator
Program
This program consists of 12 hours in the simulator, 36
hours driving a haul-truck and one week of corporate
inductions.
DECCA Station Program
Work with Roebourne Regional Prison and DEEWR to
support prisoners develop skills to gain employment
using the DECCA Station as a training venue.
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5. Conclusion
• Indigenous employment is a key target in closing the gap between
Indigenous and non- Indigenous Australians.
• Indigenous employment is not only about creating jobs, its also
about getting people work ready.
• Rio Tinto has a long history of commitment to Indigenous
employment.
• Employment will lead to long term sustainable local communities
with skills that can be applied to other community needs.
• Employment provides economic benefit in Indigenous communities
and removes welfare dependency.
• Rio Tinto’s commitment to Indigenous employment is long term and
fundamental to our business relationships with local people.
• Rio Tinto’s Indigenous Employment Strategy is making a difference.
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QUESTIONS
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