Today, Rio Tinto Kennecott was able to offer alternative roles to employees covered by the Kennecott Collective Bargaining Agreement (CBA) that would otherwise be impacted by cost reduction efforts.Â
The impact was minimized due to the favorable responses to the one-time $20,000 resignation incentive for retirement-eligible employees covered by the CBA. Approximately 130 eligible employees accepted this incentive.
Â â€śWhile difficult, Iâ€™m proud of the work that our people have done to create sustainable cost reductions while reducing impacts to our employees,â€ť said Kelly Sanders, president and CEO, Rio Tinto Kennecott. â€śI recognize that employees across our organization are working hard to help the business succeed in this challenging time.â€ť
As part of cost reduction measures announced in early May, sustainable cost reductions have been achieved to date through the following actions:
- Reduced salaried staff (announced May 23)
- Significantly reduced overtime
- Offered voluntary retirements
- Eliminated unfilled roles
- Reduced contract services
Initial decisions and support by employees across Kennecott have resulted in sustainable cost reductions moving forward. Further changes to reduce operating costs will be required in the coming months as operating plans are finalized.