Rio Tinto freezes staff pay

Rio Tinto-pay-2016Anglo-Australian metals and mining firm Rio Tinto is freezing staff pay across the business.

The freeze forms part of the organisation’s bid to control costs in the face of challenging conditions for the mining sector.

There will be no salary increase this year for any members of staff, including Rio Tinto’s chief executive Sam Walsh. Travel budgets will also be limited.

The salary freeze was outlined in an internal memo sent to all Rio Tinto employees last week.

A spokesperson from Rio Tinto said: “In tough times, generating and conserving cash is the business imperative. When prices are low and margins are thin, cash is hard to come by, but it’s the only way to guarantee continued strength and give us options for the future.

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“We will continue our pursuit of greater productivity, and we will seek to do things differently wherever there’s a possibility of generating incremental cash. As we have over the past three years, we need to continue to drive down our costs in order to preserve cash. As part of the focus on cash, from the chief executive down, we are implementing a salary freeze for 2016.

“Of all the actions we are taking, this decision was one of the most difficult, as it doesn’t reflect the hard work or effort put in by our employees. But it is necessary given the market context.”