Multinational mining giant Glencore has been accused of “stealing” public footpaths from Townsville ratepayers while pocketing $600m in taxpayer funds.
The explosive claim follows the first-ever industrial action at the company’s Townsville copper refinery on Friday.
Australian Workers Union Northern District secretary Jim Wilson said the Swiss-headquartered corporation had erected “trespass” signs on land that council maps showed was public property.
Mr Wilson said it was the ultimate insult from a multi-billion-dollar company that demanded government handouts to keep its Mount Isa and Townsville operations alive.
“Not only have Glencore demanded hundreds of millions of dollars in taxpayer money, they’re now trying to steal the footpath from the ratepayers of Townsville City Council,” Mr Wilson said.
Workers from the AWU, the Electrical Trades Union and the CFMEU walked off the job on Friday after a year of “painful” and “slow” wage negotiations.
Union leaders said the company offered a revised deal on Thursday that effectively amounted to a one per cent pay rise over three years.
Mr Wilson said the offer was “disrespectful” given inflation was sitting at 4.2 per cent.
“Glencore is saying they want our workers to take a pay cut to continue doing the thing that makes the money for them in their boardroom,” he said.
The refinery is a critical piece of sovereign capability, but workers said they were being “starved out” by a company that refused to pay local market rates.
Electrical Trades Union state organiser Liam Sharkey said electricians at the plant were being paid up to 30 per cent below the local going rate.
Mr Sharkey claims the wage gap was so severe that Glencore could not fill six vacant electrical positions.
He said the company was instead paying external contractors four times the amount of full-time staff to plug the gaps.
“People are going through the interview process, finding how much they’re getting paid and not taking the job,” Mr Sharkey said.
“We have four contractors in there right now… getting paid four times the amount that they pay their full-time staff.”
The ETU organiser said the company’s refusal to pay fair wages was a calculated move to justify bringing in overseas labour.
Glencore recently indicated it was looking at flying in immigrant workers for its Mount Isa plants, a move Mr Sharkey said would likely flow into Townsville.
“This is a company that is living on the back of the taxpayer,” Mr Sharkey said.
“How does that pass the pub test?”
Glencore has previously said it has been unable to fill jobs with local workers due to skills shortages across the country.
The unions are seeking a 15 per cent “uplift” to reach parity with the nearby Sun Metals zinc refinery, followed by 5 per cent annual increases over the next three years.
According to the unions, at Sun Metals, starting rates are about $87,500, while Glencore workers start on about $74,000.
Mr Wilson said the $1000-a-month difference was forcing local families to make “heartbreaking” sacrifices.
“We hear stories every day of people… having to make the sacrifice between… a new pair of pants because their old ones have got holes in them, or putting food on the table for their kids,” he said.
The dispute comes despite unions successfully lobbying the state and federal governments for a $600m support package to keep Glencore’s North Queensland operations running.
Mr Sharkey said Glencore told negotiators its wage claims would cost about $12m over the life of the agreement.
He said it was “appalling” that a company receiving $30m a month in government support would refuse to spend $12m on its own workforce over several years.
“If they’re getting $30m a month from the government… but can’t put $12m into their workforce over a life of an agreement, then there’s some serious questions that need to be answered,” he said.
The unions warned the industrial action was just the beginning, with work bans and indefinite strikes on the table if the company did not return with a “fair deal”.
“Our members are out here today to send a message to Glencore and any other multinational that wants to come to Townsville, rip money out of our community and send it overseas, and expect us to put up with the crumbs,” Mr Wilson said.
“These are real men and women. They are not just numbers on a spreadsheet.”
AWU Queensland branch secretary Stacey Schinnerl said workers have had enough of Glencore’s standover tactics after almost a year of negotiations.
“Here we are almost six months on (from the bail out) and they are still refusing to give their workers a fair go,” she said.
“Glencore is happy to put their hand out to boost their bottom line and make their businesses more profitable. It’s an absolute disgrace they are still trying to rip workers off.”
A Glencore spokeswoman previously told the Bulletin it was disappointed with the union political grandstanding and plans for industrial action at the Townsville Copper Refinery after negotiating for more than 12 months on a new Enterprise Agreement.
Despite securing a government funding package, she said the refinery was expected to keep losing money, and its focus was keeping the Mount Isa smelter and Townsville copper refinery open.
“Glencore has tabled a competitive package which includes a salary increase over four years and we will continue to negotiate in good faith to get an agreement,” she said.
“We remain committed to reaching an agreement that supports our workforce and considers the significant challenges this operation is facing.”
Originally published as Glencore workers walk off job over ‘disrespectful’ pay offer from mining giant