News

Article by Mark Beyer courtesy of Business News

Roy Hill Holdings has outlined a profit share scheme and the recruitment of airline pilots and defence force workers as steps it is taking to deal with labour shortages.

New chief executive Gerhard Veldsman told the Diggers and Dealers forum today that the iron ore miner was employing a wide range of measures to upskill and train staff.

He also highlighted a profit share scheme put in place by company chairman Gina Rinehart.

“To put it in perspective, this year if you are a truck driver or process plant operator in Roy Hill your bonus over the year will be 50 per cent of your base salary,” Mr Veldsman said.

“I don’t think any other mining companies share that amount of profit with employees.

“That is directly attributable to our chairman.”

The continuation of unexpectedly high iron ore prices has bolstered profits at all the big iron ore miners, including listed companies Rio Tinto, BHP and Fortescue Metals Group.

For the year to June 2020, Roy Hill announced a 60 per cent increase in profit to $2.2 billion on revenue of $6.4 billion.

Its profit in the year to June 2021 will have been much higher.

Mr Veldsman said Roy Hill is working with Qantas, which this week said it was standing down 2,500 workers.

It is also looking to recruit former members of the defence force.

Mr Veldsman said COVID restrictions meant the mining industry in Australia no longer had access to international workers.

He called for the federal government to take more decisive action to open up Australia to overseas workers.

Numerous miners and contractors – along with businesses in many other industry sectors – have disclosed this year they have been adversely affected by labour shortages.