By Rhiannon Hoyle


Rio Tinto is finding it difficult to stamp out sexual harassment, racism and bullying as it faces resistance and backlash from some workers to its efforts to overhaul the culture of one of the world's biggest miners.

That is a key finding of a report published on Wednesday that assessed Rio Tinto's response to an external review in 2021 that unearthed reports of frequent bullying by managers, racist comments and sexual assault.

Rio Tinto asked former Australian Sex Discrimination Commissioner Elizabeth Broderick to conduct the 2021 review of its workplace culture a year after it destroyed two ancient rock shelters in Australia, sparking global condemnation and soul-searching within Rio Tinto's refreshed senior ranks.

At the same time, the state government of Western Australia, where most of Rio Tinto's Australian assets are located, was also holding an inquiry into sexual harassment of women in fly-in-fly-out, or FIFO, mining workforces.

Wednesday's report on Rio Tinto's efforts to clean up its culture said that while there are signs that things are improving, resistance is evident and might be contributing to a rise in harmful behaviors in some areas.

"What we are seeing is there's been many people who have enjoyed their workplace, and their workmates, and they do not want to change," the head of Rio Tinto's Australia business, Kellie Parker, said in an interview. "There's backlash. People are reacting to the change."

Global miners have responded to labor shortages, entrenched before the Covid-19 pandemic, by trying to attract more female workers to one of the world's most male-dominated industries. Companies such as Rio Tinto fear failure to tackle harassment and bullying could make it harder to compete for top talent.

"People are still experiencing behaviors and attitudes in our company that are unacceptable and harmful," said Jakob Stausholm, Rio Tinto's chief executive. Some bonuses for Stausholm and Chief Financial Officer Peter Cunningham are tied to progress in implementing recommendations made in the original report.

The latest survey of workers found 7% said they had experienced sexual harassment in the past 12 months, the same as in 2021.

Eight people reported experiencing actual or attempted sexual assault or rape, up from five over the same period. There were 32 people who reported experiencing pressure or requests for sex or sexual acts, versus 37 in 2021. In both instances, women were disproportionately affected.

Roughly 7% of staff surveyed reported experiencing racism, also unchanged from 2021, while 39% said they experienced bullying, up from 31%.

The latest report followed surveys filled out by more than 10,000 employees online--a response rate of 17%--as well as listening sessions involving more than 1,300 employees and 342 detailed written submissions.

While workers said they felt more empowered to speak up about harmful behaviors, that hasn't translated into greater reporting of incidents to Rio Tinto, the report said.

"I am not surprised to see some areas where results haven't improved, this is a normal part of the cultural change process," said Broderick, who also conducted the latest progress report. "With sustained focus from Rio Tinto, we should expect to see the positive change spread over time."

Many employees said they continue not to report abusive behavior because they didn't expect it to make a difference or in case it harmed their careers, among other reasons. Many said harmful behaviors are not recognized as a key safety concern to the same degree as physical safety, according to the report.

"We have such a journey ahead of us," one worker, who wasn't named, was quoted in the report as saying. "I think a lot of people thought we would be further than where we are."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

11-19-24 2023ET