By Peter Milne
Mineral Resources chief executive Chris Ellison has told white-collar staff there will be job losses and no pay rises for senior employees as he seeks to shrink numbers at the miner’s showpiece office.
Ellison told employees on Monday “global economic headwinds and softening commodity prices” had hit the sector.
Mining billionaire Chris Ellison. Credit: Trevor Collens
The company founder said the miner would soon have far fewer workers: its Yilgarn iron ore operation in the Goldfields will close this year affecting about 1000 people; construction of its Onslow iron ore project, employing about 2500, is coming to a close; and a sustained low lithium price will mean that workforce must be trimmed.
“With the natural reduction in our blue-collar workforce, we will also have a necessary reduction in head office staff,” he said in an email to employees obtained by this masthead.
“[These changes will ensure] our corporate overheads are sustainable while still maintaining an industry-leading workplace standard.”
Workers will learn their fate over the next two weeks.
Ellison told the company its annual review of remuneration would focus on frontline workers, and employees at manager level and above would have no pay rise this year.
MinRes was asked how many jobs would be lost in the office and on the company’s operating sites but did not provide a response. A company spokesman said it constantly reviews its organisational structure for efficiency.
On Tuesday employees at the Osborne Park office MinRes tags as “the future of workplace wellness” were told of cuts to many of the perks MinRes had heavily promoted to attract and retain staff.
But despite the price of a MinRes coffee rising to $3 and smoothies to $5, they remain cheaper than external cafe prices.
There was bad news for unhealthy snackers: “the biscuit offering will cease, however healthy fruit and vegetable options will remain,” another email seen by this masthead said.
Just two years ago MinRes promoted the building with a flashy camp video tour hosted by former foreign affairs minister Julie Bishop, who called in-house restaurant Benny’s “the best place to eat in town” and “a food mecca.”
Now the offering will be less high-end, with cheaper options including rolls added to the menu.
The building also has a gym, mental health support and a medical suite.
Shares in Mineral Resources have dropped by more than a third since a peak in May.
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