AWU scathing about Rio u-turn

Date: 05 June 2009

Rio Tinto's decision to walk away from the deal with Chinalco shows finally that the incompetent board and managers of Rio Tinto have decided , finally, on a reality check, AWU National Secretary, Paul Howes, said.

" One result of this u-turn should be the resignations of key decision makers at Rio Tinto. They should do the honourable thing and fall on their swords," Paul Howes said.

BHP partnership delay should end

" Sources from within the company are saying that the resources giant is turning to its rival BHP Billiton to look at a partnership.

"  This is good. It is the preferable option.

" But it is a decision they could have made way back in 2007 when BHP Billiton came looking for merger talks and Rio Tinto then refused to answer the calls.

Focus on the long-term

" A lot of pain could have been avoided if  Rio had had a management team focusing on the long -term, rather than short term profits and big pay checks for CEOs," Paul Howes said.

" The AWU wants to see successful resource companies in this country, not poorly led corporations who are on  bended knees begging for money from inappropriate financial sources.

Past poor performance of board and management team

" In February this year I said that the AWU's  initial skepticism about the deal comes simply from the fact that the Rio Tinto board endorsed it so quickly.

" The past performance of that board and management team makes it clear why so many others were also as skeptical about the Chinalco gambit."

For further information

Contact:	Paul Howes, National Secretary
Union:	AWU
WWW:	http://www.awu.net.au/

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