Rio Tinto Shareholders Launch Unprecedented Global Action

The Rio Tinto Shareholder Coalition, backed by worker-owners and trade unions in Australia, Europe and the United States, today launched an unprecedented global shareholder proxy contest with one of the world's largest mining companies, Rio Tinto. This is the first ever joint shareholder initiative sponsored by unions in several countries, and, in recognition of the growing globalization of the capital markets, represents the broadest international proxy contest to date by any shareholder proponent.

The shareholder coalition today submitted two resolutions for consideration by the shareholders at both London-based Rio Tinto plc and Melbourne-based Rio Tinto Ltd. for consideration at the company's two Annual General Meetings in the United Kingdom and Australia in May. The resolutions demand that the Rio Tinto board of directors becomes more accountable to its shareholders through the appointment of an independent, non-executive Deputy Chairman after May 2000, and that the company implements a workplace code of labor practice at its operations worldwide.

The coalition is asking institutional investors to support these two resolutions in order to make Rio Tinto more accountable to its shareholders and increase shareholder value. The coalition also launched today a special web site dedicated to the proxy contest, with the complete text of the resolutions and supporting statements, which can be found at www.rio-tinto-shareholders.com

The Construction, Forestry, Mining and Energy Union (CFMEU) -- the principal union representing Rio Tinto's unionized workforce in Australia -- has joined with the Australian Council of Trade Unions (ACTU), the Trades Union Congress (TUC) of Great Britain, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), and the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) in a world wide public launch of the shareholder initiative today in Sydney, Brussels, London and Washington, D.C. Combined, these organizations represent 41 million workers.

The proponents represent workers who are both direct Rio Tinto shareholders and who are beneficiaries of pension funds, which are company shareholders. The coalition estimates that pension funds with worker beneficiaries account for approximately 19 per cent of Rio Tinto's shares-worth approximately $ 3.2 billion-mainly held through nominee accounts.

"Our members have both capital equity and sweat equity invested in Rio Tinto," said John Maitland, who is both National Secretary of the Construction, Forestry, Mining and Energy Union of Australia and President of the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions, whose affiliates also represent Rio Tinto employees in the United States, Canada, South Africa, Namibia, Zimbabwe, Austria, Norway, France, the United Kingdom, and Chile. "They have a long-term interest in the success of the company and know that Rio Tinto's success is impossible without respect for their rights in the workplace."

"These resolutions are about good corporate governance, and we hope that as such they will receive the full support of the Rio Tinto shareholders," commented ICEM General Secretary Fred Higgs. "The world wide code of labor practice is urgently needed within Rio Tinto, but it must be credible and verifiable. The only way to ensure that such a code is properly implemented is to make it part of a global agreement between Rio Tinto and the ICEM. We are ready and willing to reach an agreement with Rio Tinto."

"We are challenging Rio Tinto management to become more accountable as well as to minimize its risk exposure to serious human rights violations," said John Sweeney, President of the AFL-CIO. "We will be actively encouraging pension fund trustees, money managers and other institutional investors to support these resolutions," he said.

"These resolutions make sound economic and business sense," said John Monks, General Secretary of the 7-million-member British Trades Union Congress. "Companies with high standards of corporate governance who value their workforce are the companies that succeed and give shareholders and pension fund members a better return on their investments. These are the companies that succeed in the long term."

Speaking at the Australian launch in Sydney today, Greg Combet, Secretary of Australian Council of Trade Unions, stated that the shareholder action was the first of its kind for trade unions in Australia, and the first ever joint shareholder action by worker-owners from a number of countries at a multinational company. "Worker-owners and other shareholders need to join together in common cause to ensure that corporate management is accountable and that the long-term interests of shareholders and workers are protected," said Combet.

Joining Combet at the Sydney press conference was Susan Ryan, former Australian federal government minister and current adviser to the Australian Institute of Superannuation Trustees. Ryan will be conducting the shareholder solicitation in Australia in support of these resolutions. "Good corporate governance and respect for workers' rights in the workplace are good for shareholders, workers and communities," she said. "It's a win-win situation for all concerned and it's the high road way to compete in the 21st Century."

For further information:

Claire Curran (ACTU, Melbourne) +61-417-101-370

Peter Colley (CFMEU, Sydney) +61-2-9267 1035 and +61-417-992-995

Ian Graham (ICEM, Brussels) +32-2-626-2020

Joanne Segars (TUC, London) +44-171-467-1327

Bill Patterson (AFL-CIO, Washington, D.C.) +1-202-637-3900

Kenneth Zinn (ICEM, Washington, D.C.) +1-202-842-7892

Further information on the ICEM's activities in North America can be found on the World Wide Web at www.icemna.org

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