Mining workers are in revolt after multi-billion dollar firm Rio Tinto raises the price of their beer by an incredible 45 per cent - despite raking in $6b in profits last year
- Beer prices have been increased at remote Rio Tinto Pilbara mining sites in WA
- Food services on the sites are run by multi-national French company Sodexo
- The price of beer was increased in February by as much as 45 per cent
Workers at remote Rio Tinto mining sites are in revolt after the multi-billion dollar company implemented a price hike of up to 45 per cent on beer.
The company, which recorded a profit of $6billion in the first half of 2019, along with its catering contractor Sodexo introduced the new beer prices on February 1 for their Pilbara operations in Western Australia.
Workers have banded together and have sent a message to Rio Tinto management to dispute the price hike.
Workers at remote Rio Tinto mining sites are in revolt after the multi-billion dollar company implemented a price hike of up to 45 per cent on beer (stock image)
Workers have banded together and have sent a message to Rio Tinto management to dispute the price hike (file image)
'The wet mess is a social outlet for many in a harsh environment,' the workers said in the message to Rio, reports The West Australian.
'Additional rules and financial pressure will ultimately drive attendees away, minimising social interaction and perhaps increasing mental anguish and isolation.'
Rio Tinto does not make a profit from alcohol sales at its mine sites.
Share this article
One worker told the publication since Sodexo took over the catering contract just over a year ago from ESS, prices have sharply risen throughout the camp.
Rio Tinto and Sodexo informed workers on January 10 the new pricing policy was aligned with local Pilbara retail outlets.
'This normalisation of alcohol retail prices aligns with industry standards, Rio Tinto's support of the Pilbara Liquor Accord, and Rio Tinto and Sodexo's policies to promote the responsible consumption of alcohol,' the company said in a memo to staff.
Workers argue, however, that they spend the majority of the time on-site where there are no other retail outlets and therefore no competitive pricing.
The company along with its catering contractor Sodexo introduced the new beer prices on February 1 in their Pilbara operations in Western Australia (file image)
Sodexo is a multi-national food services and facilities management company based in France.
In addition to Rio Tinto's Pilbara mine sites the company also has a contract for Rio's Argyle diamond mine in the East Kimberley area of Western Australia.
Rio Tinto's Pilbara operations are the most profitable in its portfolio - accounting for 70 per cent of underlying earnings in 2018.
The mining giant has also recently been criticised for a now abandoned 'dynamic discounting' scheme in which suppliers were encouraged to discount their bills to be paid earlier.
