Union, Rio Tinto to meet on Tas smelter

 

 

The Australian Workers Union (AWU) representatives will sit down with company executives in Launceston on Tuesday to discuss the Bell Bay smelter after management reportedly told employees it was losing $200,000 a day.

 

 

The employees were told savings could be made by partially or fully closing the facility, a report in the Australian Financial Review said.

 

 

Tasmanian AWU representatives did not wish to comment until after the meeting, but national secretary Paul Howes told ABC Radio that reports of a possible closure were wide of the mark.

 

 

"No one has said that," he said.

 

 

Rio Tinto and the union appear to agree that the high Australian dollar and falling prices for aluminium are causing difficulties.

 

 

"The issue is that you've had a 30 per cent appreciation in the Australian dollar and a 20 per cent depreciation in the global price of aluminium at the same time, which creates a perfect storm for the sector," Mr Howes said.

 

 

The AWU has been trying to finalise a new agreement for workers at the smelter, and Mr Howes had previously accused the company of using "scare tactics" by threatening employees would be worse off under a collective agreement.

 

 

Mr Howes has claimed workers at Bell Bay are the lowest-paid aluminium employees in Australia.

 

 

Market conditions have also caused the review of operations at aluminium smelters near Geelong and in the NSW Hunter Valley.

 

 

Rio Tinto Aluminium did not return AAP's call.