Rio Tinto Iron Ore Drivers Plan More Work Stoppages

A small group of unionised train drivers at Rio Tinto Ltd/Plc iron ore mines in western Australia are planning a second round of strike action next week, a union official said on Friday.

The Construction, Forestry, Mining and Energy Union has served notice that about 30 of its rail drivers will conduct two days of 12-hour work stoppages starting on 22 October.

The union wants to replace individual work contracts with collective bargaining at the world's No.2 iron ore producer, CFMEU mining division secretary Gary Wood said.

"The action was taken because the company has refused to meet with the union to even discuss a collective agreement," Wood told Reuters.

"There will be further industrial action to come as it is the only option the workers have while Rio Tinto refuses to bargain with us," Wood said.

A similar stoppage last week, aimed at replacing individual wage contracts with collective bargaining, did not disrupt the company's operations and failed to bring Rio Tinto to the negotiating table.

Only 44 of the 315 rail drivers at Rio Tinto's Pilbara operations can take strike action under Australian work laws. The drivers are pushing Rio Tinto for higher pay and collective work agreements similar to ones negotiated with rival BHP Billiton Ltd/Plc to replace individual employee contracts that are expiring.

Rio Tinto has been seeking to engage with individual workers directly in an effort to avert any stoppages.

A Rio spokesman said the company had no immediate comment on the planned action.

Rio Tinto has said it expects to ship around 190 million tons of ore this year. Over the next four years it plans to spend $667m to boost annual Australian iron ore output to 320 million tons.

By James Regan; editing by James Thornhill.