The Guardian 2 April, 2008
BHP’s "Club" for trucking profits
The worldwide shortage of earthmover tyres is starting to bite into the huge profits made by mining giants like Rio Tinto and BHP-Billiton especially in the Hunter Valley of NSW where it is reported that there are quite a few big dump trucks sitting idle because there are no new tyres available for them. Because of the apparent world wide resource boom tyre manufacturers cannot produce replacement tyres fast enough to keep the big rigs on the road so the mining companies have no choice but to park the trucks up until replacement tyres become available.
Workers at BHP-Billiton’s Mt Arthur coal mine were recently told by a mining superintendent that if the tyre shortage continued their truck fleet numbers would be shortened, especially the 240 tonne Caterpillar and their 350 tonne Leibherr dump trucks which underpins the overburden removal at the mine. During the past few months there have been a lot of tyre problems at Mt Arthur because of the wet conditions in the mine and tyre cuts from sharp rocks are taking their toll on the company’s tyre stocks.
Mt Arthur coal insists in working these big trucks in bad weather despite the continual damage done to the tyres. Some company drivers have spoken to their supervisors about the tyre problem only to be told there isn’t much that they can do except that the drivers take more care and "drive to conditions".
Some 18 months ago at Mt Arthur management asked for some volunteers from each of the four production crews to form a committee to work out ways to improve the way the mine operated. This committee was made up of "rank and file" union members and company representatives who called themselves the "100,000 club" because the company claimed that the mine needs to move 100,000 bank metres of mine dirt for the mine to remain profitable. Since then another large excavator has been bought and now the figure is 115,000 metres per shift. Prior to the committee being formed the mine trucks were backing up to the bench where the excavator was working at 90 degrees to the digging area and apparently this was no good according to the "Club" as the loading time could be shortened if the trucks backed in at around 30 degrees. After some six months or more the "Club" made its recommendations and implemented its changes, including one where a "clean up" machine was to be at all the digging units to tidy up the loose rocks that were lying on the ground that would damage tyres if they were run over.
Since then there has been a lot of side wall cuts to the tyres on the rear outside back wheels of the dump trucks.
The company is trying to blame the truck drivers for the excessive numbers of damaged tyres but that isn’t true because the cleanup machines are either away doing other work or broken down . Mt Arthur coal has a lot of casual drivers who will unfortunately be the ones targeted if they decide to park some of their trucks. Casual drivers at Mt Arthur are employed on an "on call" basis and have few rights for job protection. They are paid around $5 per hour less than permanent mine employees and have no annual or sick leave entitlements as well as being on the lowest bonus arrangements.
Permanent mine employees at Mt Arthur mine have recently signed a new enterprise agreement which gave increases in hourly rates, bonus increases and added job security by maintaining job seniority. So despite the tyre situation being as bad as it is permanent mine workers at Mt Arthur have a secure future thanks to the dogged effort of the EA bargaining team.
The "100,000 club" has come under fire from some rank and file union members who have had a motion passed at a monthly union meeting that never again would union members work with the company to help make plans to improve the profitability of the mine. Hopefully it’s farewell to the "Club".