The Federal Court has ruled that a non-union collective agreement at a Rio Tinto Limited (ASX:RIO) iron ore mine in the Pilbara was invalid, according to the Australian Financial Review.
The AFR describes the ruling as a “landmark legal victory” for mining unions as it will enable them to bargain on pay and conditions.
Global miners Rio Tinto and BHP Billiton Limited (ASX:BHP) have a collective iron ore workforce of more than 20,000 that form largely non-unionised operations.
According to the report, the latest ruling has opened up the possibility for bargaining under the Fair Work Act to establish a formal role for unions in representing the workers.
Rio has told the AFR it is “disappointed” by the ruling and has not ruled out a further appeal.
Rio Tinto reported a net profit of $14.9 billion in the 2010 calendar year.
