Rio Tinto Cuts Pilbara Worker Sick Leave from 45 to 12 Days

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Rio Tinto is making a big change. The mining company is reducing sick leave for its Pilbara employees from 45 days annually to only 12 days. That’s a 73% drop. The news comes as the company looks to “align policies” across its iron ore sites in Western Australia. But it’s a move that’s raising eyebrows. Why would a company with $18 billion in iron ore profits last year cut back on something so basic?

We’re talking about a workforce of 16,000 people working across 17 mines and four ports. These jobs are tough. Long shifts. Remote locations. Harsh weather. And now, less paid time off when you’re sick.

We will break down why Rio Tinto is making this decision. We’ll look at the new policy, how it compares to others in the industry, and what it might mean going forward. Let’s dive in.

Background and Context

Rio Tinto previously provided around 45 days of sick leave each year to its workers in the Pilbara region. This high allowance largely came from roster systems like “8 & 6” shifts, which equate to about three months of leave. The generous terms aimed to address the stress and isolation of FIFO (fly‑in, fly‑out) work.

Now, the proposed 12-day sick leave aligns more closely with Australia’s National Employment Standards, which mandate a minimum of 10 days for full‑time employees.

The New Policy Explained

Here’s how the updated policy plays out:

  • Workers get 10 days of sick leave, plus 2 extra days that do not carry over to the next year.
  • Employees facing serious illness or injury may be granted up to 12 months of paid sick and carer’s leave, subject to Rio Tinto’s approval.
  • The company will also increase the annual wellness payment to $1,000.

Rio says the changes come from a staff survey showing the former policy was unfair. They’re now consulting with their team and plan to implement the changes by year-end.

Corporate Rationale and Strategic Context

Rio Tinto frames this as a fairness issue. They argue their old three‑month model was no longer consistent across sites. The new approach aims to standardise leave policy.

While aligning policies can make sense for operations, cutting a core benefit raises big questions about worker morale and trust, especially in remote mining roles.

Under the Fair Work Act in Australia, full-time workers are guaranteed at least 10 days of sick leave annually. The updated policy offers a bit more than the legal minimum but is still a reduction from the previous entitlement.

What remains unclear: Can Rio Tinto unilaterally change leave for those with pre‑approved future leave? And how will current enterprise agreements handle this shift?

Compared to other big miners, like BHP and Fortescue, the previous 45‑day policy was unusually generous. Now, Rio Tinto aligns with the national norm. Overall, industries are tightening leave policies post‑pandemic to control costs. FIFO roles, which already strain well-being, are expected to adapt further.

Long‑Term Implications for the Sector

This move may spark wider change across Australia’s resources sector. Other companies may follow, reinforcing the 10‑to‑12‑day norm. But cutting sick leave so steeply could hurt retention and recruitment, especially in high‑stress, remote jobs.

Conclusion

Rio Tinto’s decision to reduce sick leave from 45 days to 12 marks a significant and bold adjustment. While it may create uniformity, it risks alienating a workforce used to broader protections. As we watch, one thing’s clear: how companies balance fairness, cost, and frontline well‑being will shape the future of mining in Australia.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.