Glencore sparks fury with ‘appalling’ pay offer after $600m taxpayer bailout

Townsville’s copper refinery workers have slammed Glencore’s “appalling” pay offer despite the mining giant receiving a $600 million taxpayer bailout. Read the latest on the pay dispute.

ETU State Organiser Liam Sharkey is appalled by Glencore's pay offer to Townsville's refinery workers after its taxpayer funded bailout. Picture: Supplied.

Townsville’s copper refinery workers are upset by an “appalling” pay offer from mining giant Glencore, after the Swiss company received a $600m taxpayer funded bailout to keep operating for the next three years.

Following months of uncertainty when their previous Enterprise Agreement (EBA) lapsed, recommenced negotiations at the copper refinery have drawn the ire of workers who accuse Glencore of refusing to come to the table in good faith.

ETU State Organiser Liam Sharkey said “Glencore has offered nothing but a deeply inadequate offer” to workers over the last three meetings since it secured the bailout, leaving workers furious and feeling betrayed.

ETU State Organiser Liam Sharkey says workers are unhappy with Glencore's pay offer. Picture: ETU.

He said the company’s refusal to pay competitive wages had created a recruitment and retention crisis, one that Glencore is now trying to plug with contractors costing up to four times as much.

“Our members helped save this refinery. Now they expect Glencore to step up and deliver a fair deal, not drag its feet while workers struggle with rising costs. Many of our members are paid 25–30 per cent below the going rate for sparkies in the local area,” Mr Sharkey said.

“Instead of lifting wages to a fair and sustainable level for existing and future staff, they are wasting money. How is this a good long term investment delivering returns for taxpayers’ money? It’s bordering on corporate incompetence.”

Mr Sharkey issued an ominous warning, saying workers felt so betrayed and let down by the company that they were seriously contemplating an industrial action campaign.

Townsville Enterprise CEO Claudia Brumme with Copper Refinery and Port Operation Manager Paul Taylor touring Townsville's copper refinery. Picture: Supplied.

He said Glencore refused to guarantee any annual wage increase at all, offering just 6.9-10.4 per cent over four years, based on individual performance at the discretion of the company – well behind CPI which is currently 3.8 per cent per annum.

“This latest offer is appalling. If individual performance management outcomes were used to decide corporate pay packets, those in charge should be paying taxpayers their money back,” he said.

A Glencore spokeswoman said it had been in negotiations with employees in Townsville since the beginning of the year on a new enterprise agreement.

“We are still in negotiations and are yet to put an offer to the workforce. For the ETU – as a member of the bargaining committee – to quote incorrect figures to media while we are still in negotiations is not appropriate,” she said.

“We will continue to bargain in good faith and make a fair offer to our employees.

“Even with the government support package the smelter and refinery are continuing to lose money in a very competitive international market – this must be factored into the EA negotiations with respect to long term job security.”

Originally published as Glencore sparks fury with ‘appalling’ pay offer after $600m taxpayer bailout