The Role of Stakeholders in the Indigenous Employment Program of Rio Tinto - Case Study Example

 Assessment 2: Case Study Essay Stakeholders Involved In This Case And Their Role In The Indigenous Employment Program Of Rio Tinto The stakeholders in this case are Rio Tinto and its subsidiaries, the indigenous people of Australia, and the Australian government. I will explain how each of these entities plays a role in the promotion of growth and development of indigenous people in Australia. Rio Tinto and its Subsidiaries The company has been steadfast in creating employment opportunities for the indigenous people in Australia. A majority of these people are of aboriginal origins, but some of them belong to other tribes or sub tribes. Since most of its major operations and plants are located in rural or remote areas, Rio Tinto feels obligated to return the favor by promoting the development of those areas1. The only way it is capable of doing this is by creating space for those people in their company. This gives indigenous people the opportunity to secure the futures of current and future generations, and move away from the mainly subsistence form of life they are used. In this day and age, it is worrying to know that there are people who are so close, yet so far, to civilization. What Rio Tinto is doing is bringing civilization to the indigenous people of Australia, and there is nothing better than what they are doing at the moment. It is worth noting that the company is not solely focused on just employing indigenous people. It supports (through educational grants and other forms of support) individuals from indigenous communities who have the potential to make positive changes in the society. This makes a lot of sense because if its only intention was to employ people it would be unable to find enough people to employ. For example, if the company wanted indigenous people to form ten percent of its total workforce and only managed to realize a five percent figure, where would the other five percent come from? Rio Tinto’s strategy is based on spotting, supporting, training and then employing individuals from indigenous communities. This ensures that its conveyor belt does not run dry, and keeps churning out skilled and qualified personnel. Indigenous People For many years, the indigenous peoples of Australia were maligned, ridiculed, scorned and mistreated2. This however changed with the passing and signing into law of several legislations that made it mandatory for indigenous people to be accorded their full rights as lawful citizens of Australia. Nowadays, indigenous people have access to most services and products as well as greater participation in social, economic, and political activities. The most important thing to note, however, is the determination they have shown to be regarded as normal people, people who can bring positive change in society. In this regard, they have adopted a positive attitude towards change, and have demonstrated a willingness to move forward rather than stick to their traditional way of life3. This has made it possible (and easy) for companies like Rio Tinto to employ them. Although some of them (the older ones mostly) have been slow to grasp the opportunities that are available to them, a large percentage of indigenous people are now going to school up to university level and securing gainful employment. It would have been unlikely for any change to occur if indigenous people continued building walls around them and holding onto their cautious approach to civilization, and so we must give them credit for making it possible for private companies and the Australian government to help them4. Indigenous people have also demonstrated a tolerance towards white people who are often viewed as their oppressors for many years. It is not easy to put past differences (especially those bordering on racial prejudice) aside in order to build a better future. In summary, indigenous people have played a crucial role in facilitating initiatives like the indigenous employment program at Rio Tinto. Without their willingness and readiness to embrace civilization and reconcile with communities around them, private companies and the government would be hard-pressed to sustain initiates like the individual employment program. The Australian Government The current Australian government has adopted a very friendly policy towards its indigenous peoples; it has cultivated a sort of good neighbor relationship with aborigines and other indigenous communities5. Compared to previous (especially colonial and early post-colonial) governments, this marks a major shift and change from the poor policies which were used to alienate and “hide” aborigines because they were seen as stains on Australia’s image. Subsequent governments crafted more conciliatory and development-oriented policies that managed to bring indigenous communities back to the fold, even if it was at a slow pace. Legislations like Australia’s Native Title Law, Indigenous Recognition Bill (2013), Aboriginal Cultural Heritage Act (2003), Aborigines Protection Act (1909), Aborigines Act (1910), and Aborigines Protection (Amendment) Act (1940) have played a vital role in creating cordial relations between indigenous people and the Australian government6. In addition to this, previous Australian governments have passed several land protection acts and legislations that have ensured that indigenous people are not robbed of their ancestral lands. These efforts may appear trivial at face value but their impacts have been monumental. Programs like those initiated by Rio Tinto would not have been possible. The fact that the government has taken steps protect and advance the interests of indigenous peoples have opened the door for private companies like Rio Tinto to cooperate with them by training and employing them7. To put the situation into context, we need to ask a very important question. If the Australian government had maintained the sour relations that existed during the colonial and pre-colonial times, would indigenous people be willing to work for private companies or the government as is the case today? The answer is a firm no. How Addressing Employment and Educational Opportunities and Outcomes of the Indigenous Community Impact on the Company’s Strategic Objectives? The company’s objective is to help develop strong regional economies which are supported by equally strong partnerships between Rio Tinto’s enterprises and local communities in order to benefit from the opportunities created through its mining activities. Addressing employment and educational opportunities and outcomes of the indigenous community have a huge impact on this objective. As previously mentioned, in order for the company to maintain or improve on the percentage of indigenous employees in its total workforce it must work towards sustainability8. This sustainability is only possible if it can create a pool from which it draws its indigenous workers. This pool can only be created if new indigenous people are available every time recruitment is being carried out. To make this possible, training and educational opportunities must be available at all times or the program will fail. The company cannot afford to rest on its laurels because that would compromise its strategic objectives. The company states that indigenous people currently form seven percent (about 850 workers) of its workforce. One of its businesses (Argyle Diamonds) intends to achieve a figure of forty percent by 20109. If the company wants to increase the figure to, say 10 percent, and it does not invest in creating educational opportunities for indigenous people, where will the additional 3 percent come from? This illustrates the need for a sustainable effort to sponsor indigenous people’s pursuit of education, all this in the knowledge that the beneficiaries will be of service to the company in future10. Once this has been achieved the company can always remain confident that it has a pool of learned indigenous people from which it can recruit new workers. Another benefit is that the sponsored individuals develop an appreciation and knowledge of the company from an early age, and therefore retain a sense of loyalty that is priceless for any business. In the end, Rio Tinto will have managed to create a workforce consisting of indigenous people who are not only qualified, but also loyal and informed about the company. Good examples of Rio Tinto’s efforts to facilitate education among indigenous include the Rio Tinto Aboriginal Fund and the Gumala Mirnuwarni Education Enrichment Programme. These two initiatives support indigenous education, cultural, health and sporting preservation programmes11. Another example is the company’s decision to adopt and engage in the Corporate Leaders for Indigenous Employment Programme. How the HR functions contribute to the Implementation of the Indigenous Employment Program and the Company’s overall Success After recognizing that traditional hiring practices like official panel interviews, questionnaires and psychometric testing put potential indigenous employees at risk of alienation, one of companies businesses (Argyle Diamonds) decided to adopt a hands-on (practical) approach to hiring. Indigenous candidates are required to attend 4-day workshops held at the company’s mine site, in which they participate in a battery of practical and theoretical problem-solving and training operations in the company of supervisors and other important employees. Likely employees are provided with one-on-one response concerning their skills and are also trained so as to improve their likelihood of securing employment in the future. The company then takes them through the necessary pre-employment training employees require to become ready for work12. This program has brought numerous benefits to the company. For instance, the percentage of indigenous employees went up from 4.5% to around 25% in the first 3 years of the programme. In addition to this, more than 50% of indigenous people who attend workshops are hired by the company in a wide range of positions, including traineeships and apprenticeships. Those who are not recruited are inducted into other programmes that enable them to attain competitiveness in the job market. The company has also implemented a couple of retention strategies involving life skills, individual training schedules, family and training supports, and assignment of company mentors. When it comes to Rio Tinto, coaching and training support is provided in areas like safety, technology, life skills, communication skills, industry standards, first aid and fatigue, and fit for work and shift work rules. This is done in order to make mining operations less overwhelming and alien for new workers. Rio Tinto also creates platforms for development of future skills through homework assistance schemes and high school mentoring. The reason for this is that in regional and remote Australia few people can access employment and therefore need to be prepared for the workplace13. The Rio Tinto Aboriginal Fund mentioned earlier helped create an early childhood education initiative called PaL (Parents and Learning). This programme sensitizes parents to teach their preschool children literacy skills that help them develop confidence in learning how to read and taking part in school activities when they start attending school. The HR functions and efforts employed by Argyle and Rio Tinto are therefore key facilitators of the indigenous employment program as well as major drivers of the company’s overall success14. Key HR and other Strategic Challenges involved in the Case The main challenges in this case are retention of indigenous employees and maintaining a cultural balance that makes indigenous employees feel comfortable in the workplace. When it comes to retention, the challenge does not lie in the company’s ability to retain its indigenous workers but maintaining the high retention it has managed to achieve. It is a challenge that both the HR and top management are focused on surmounting, but one which is so great that it is still likely to be faced in the future. It can therefore only be managed but not completely conquered. The challenge of maintaining cultural balance in the workplace has and continues to be combated by educating contractors and employees on the importance of cultural tolerance and balance. Rio Tinto and its subsidiaries have created two-way cultural and learning competencies initiatives that are facilitated by local aboriginal elders who educate people on local indigenous traditions and culture15. This allows the company to create and advance an image and reputation that is guarded by an open-door policy not just towards indigenous people but also other cultures. In summary, Rio Tinto has done an amazing job of recognizing, managing and overcoming the obstacles it faces in its quest to empower indigenous people. Notes 1. Avery, Not on Queen Victoria's birthday:the story of the Rio Tinto mines, 22. 2. Baker & Galloway, Rio Tinto (Rio), 13. 3. Tiplady & Maryanne, Indigenous employment in the Australian minerals industry, 109. 4. Dept. of Industry, Science and Resources, Working in partnership: the mining industry and indigenous communities, 19. 5. Harvey, The Rio Tinto Company: an economic history of a leading international mining concern, 1873-1954, 25. 6. Gray & Boyd, Increasing Indigenous employment rates, 32. 7. McIntosh, Rio Tinto, 41. 8. Robert, Rio Tinto Business with Communities Program, 63. 9. Elizabeth, Rio Tinto: more than a decade of social investment : the Rio Tinto Aboriginal Fund, 59. 10. Doohan, Making things come good: relations between Aborigines and miners at Argyle, 46. 11. Michael, Aboriginal policy and programmes in Australia, 10. 12. Johansen, Indigenous peoples and environmental issues: an encyclopedia, 95. 13. Locklear, New directions: Aboriginal Australia & business, 33. 14. Kluwer, International corporate legal responsibility, 18. 15. Rio Tinto, Breaking new ground: stories of mining and the Aboriginal people of the Pilbara, 28. Bibliography Avery, D. Not on Queen Victoria's birthday; the story of the Rio Tinto mines. London: Collins, 1974. Baker, C, & Paul G. Rio Tinto (Rio). Melbourne: SBC Warburg Dillon Read, 1998. Dept. of Industry, Science and Resources. Working in partnership: the mining industry and indigenous communities. Canberra: Dept. of Industry, Science and Resources, 2002. Doohan, K. Making things come good: relations between Aborigines and miners at Argyle. Broome, WA: Backroom Press, 2008. Elizabeth, S. Rio Tinto: more than a decade of social investment : the Rio Tinto Aboriginal Fund. Melbourne: Rio Tinto, 2008. Gray, M, & Boyd H. Increasing Indigenous employment rates. Canberra, A.C.T.: Closing the Gap Clearinghouse, 2012. Harvey, C. The Rio Tinto Company: an economic history of a leading international mining concern, 1873-1954. Penzance, Cornwall: A. Hodge, 1981. Johansen, B. Indigenous peoples and environmental issues: an encyclopedia. Westport, Conn.: Greenwood Press, 2003. Kluwer, Wolters. International corporate legal responsibility. Alphen aan den Rijn: Wolters Kluwer Law & Business, 2012. Locklear, B. New directions: Aboriginal Australia & business. Melbourne: Rio Tinto, 1998. McIntosh, M. Rio Tinto. London: Routledge, 2001. Michael, B. Aboriginal policy and programmes in Australia. Melbourne: Rio Tinto Ltd, 2007. Rio Tinto. Breaking new ground: stories of mining and the Aboriginal people of the Pilbara. Perth, WA: Rio Tinto Iron Ore, 2008. Robert, W. Rio Tinto Business with Communities Program. Melbourne: Rio Tinto, 2000. Tiplady, T, & Maryanne B. Indigenous employment in the Australian minerals industry. Brisbane, Qld.: Centre for Social Responsibility in Mining, University of Queensland, 2007. Read More