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Investor collaboration following heritage destruction at Juukan Gorge gets agreement from Rio Tinto

INTERNATIONAL investors involved in engagement with Rio Tinto on how it will address failings that led to heritage destruction at Juukan Gorge have welcomed the company’s announcement today on new disclosure and governance oversight measures aimed at rebuilding trust with Traditional Owners.

HESTA led an engagement supported by a group of Australian, UK and European investors that sought key transparency commitments aimed at giving investors confidence the company was making progress on managing cultural heritage and fostering respectful partnerships with Indigenous communities.

“Investors put forward very clear requests around what disclosure and governance arrangements we needed to see to ensure that the tragic heritage destruction at Juukan Gorge never happens again,” HESTA CEO Debby Blakey said.

“It’s pleasing that we’ve had constructive discussions with Rio Tinto that can support progress towards managing this clear financial risk for investors. The steps the company has agreed to will support broader improvements in practices, disclosure and oversight urgently needed across the mining sector.

“Rio is at the start of a very long process of rebuilding trust. It will require long-term commitment to deep-seated cultural change and strong frameworks and processes in place to support genuine, open and ongoing partnership with Indigenous communities, no matter who is in management or Board roles.”

Ms Blakey said the investor group welcomed Rio’s commitment to continue dialogue with investors on disclosure and governance improvements.

“It’s vital that we see ongoing public reporting so investors can monitor progress over time and all stakeholders can have confidence that what Rio commits to is implemented and is effective,” Ms Blakey said.  

The investor group consisted of: ACSI, AustralianSuper, Aviva Investors, Aware Super, Brunel Pension Partnership, CareSuper, Catholic Superannuation Fund, Cbus, Council of Ethics of the Swedish National Pension Funds,  EOS at Federated Hermes, Equipsuper, HESTA, IFM Investors, Local Government Super, LUCRF Super, M&G Investments, Telstra Super, UniSuper, USS Investment Management, Victorian Funds Management Corporation and Vision Super.

Andy Jones, mining lead for EOS at Federated Hermes, said, “We welcome the commitment by Rio Tinto to provide enhanced disclosure on communities and cultural heritage performance.

“Importantly, the disclosure will better include the voice of affected communities. It is vital for stakeholders to have trust in the company’s approach and actions. This is a great opportunity for the company to use hard lessons learned over the past year to set a higher benchmark for company reporting on social impact and community relations.”

Rio announced it would support increased transparency around its approach to cultural heritage with additional regular disclosure on:

  1. Ongoing progress against Rio’s own commitments and internal work-streams, external obligations and recommendations.
  2. How Traditional Owners’ views are being sought and considered in shaping these commitments and Traditional Owners perspectives on how successfully these commitments are being met.
  3. The enhanced governance arrangements in place to oversee the company’s progress against these actions.
  4. How the company is working to advocate for enhanced sector-wide cultural heritage management and how this is consistent with our internal standards.

Ms Blakey said HESTA had regularly sought the views of a range of stakeholders including representatives of Traditional Owners and Indigenous organisations. This ongoing consultation will inform what disclosure and other arrangements are needed to provide greater certainty around cultural heritage protection and respectful partnerships with local communities.

“We will continue to consult with Indigenous communities and organisations to understand how investors can support the mining sector to build long-term, sustainable community partnerships grounded in recognition and respect,” Ms Blakey said.

About HESTA

HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has over 880,000 members (more than 80% are women) and manages more than $58 billion in assets invested around the world. As a responsible steward of their members’ retirement savings, HESTA focuses on achieving strong, sustainable, long-term returns while making a positive difference to the world members will retire into. HESTA is the acronym for Health Employees Superannuation Trust Australia and should appear in capitals.www.hesta.com.au

About Federated Hermes, Inc

Federated Hermes, Inc. is a leading global investment manager with $619.4 billion in assets under management as of December 31, 2020. Guided by the conviction that responsible investing is the best way to create wealth over the long term, its investment solutions span 162 equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Providing active investment management and engagement services to more than 11,000 institutions and intermediaries, clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes’ more than 1,900 employees include those in London, New York, Boston and several other offices worldwide. www.FederatedHermes.co

 

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Maritime union slams proposal to expand skilled migration to include seafarers

THE Maritime Union of Australia has slammed a proposal by the Federal Government to include seafarers as a priority occupation for skilled migration, saying hundreds of Australian seafarers are currently unemployed due to the COVID crisis and the loss of Australian-flagged commercial vessels.

The interim report of the Inquiry into Australia's Skilled Migration Program, released last week, recommends that seafarers be urgently added to the priority occupation list for skilled migration, opening the door to the recruitment of seafarers from overseas rather than employing or training local workers.

The report also proposes slashing existing labour market testing requirements, which require companies to look for Australian workers before recruiting overseas, along with scrapping a requirement that employers contribute to the Skilling Australia Fund to train local workers when bringing in foreign labour.

MUA national secretary Paddy Crumlin said it was outrageous that the Federal Government was looking to undermine the job security of Australian seafarers still struggling with the impacts of the COVID crisis.

“Right now, hundreds of Australian seafarers are struggling to find work,” Mr Crumlin said.

“The proposal to add seafarers to the priority occupation list for skilled migration, along with the weakening of labour market testing requirements, would be a devastating blow to those highly-skilled local seafarers.

“Based on nothing more than a suggestion by an industry group that skills shortages may occur in a very limited number of specific roles in future years, the Coalition members of the Joint Standing Committee on Migration have decided that all seafaring jobs should be opened up to overseas applicants.

“If the Morrison Government presses ahead with this proposal, it will be devastating for Australian seafarers, taking away employment opportunities at a time when many are struggling to find work.”

Mr Crumlin said Australia’s maritime industry had already been decimated by the Federal Government.

“Under the Abbott, Turnbull, and Morrison Governments, Australia’s merchant shipping fleet has drastically shrunk, with Australian-crewed commercial vessels replaced by flag-of-convenience ships registered in notorious tax havens,” he said.

“Australian seafarers have been losing their jobs as a direct result of the Morrison Government continuing to rubber-stamp thousands of temporary licences allowing foreign ships crewed by exploited workers paid as little as $2-an-hour to work on the Australian coast.

“If the Morrison Government presses ahead with this plan to allow companies to recruit seafarers from overseas, rather than employ skilled Australian workers, it will have a devastating impact on our industry.

“A smart island nation needs a self-sufficient maritime industry, which is why the Federal Government should be investing in the development of a strategic fleet of local vessels, rather than further weakening our critically-important maritime supply chains.”

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Foreign donations examined

DETERMINING if changes to electoral legislation have kept foreign donations out of Australian elections will be the focus of a public hearing by Federal Parliament’s Electoral Matters Committee.

Committee Chair Senator James McGrath said, "The public hearing is an opportunity to examine whether changes to the Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018, have improved transparency and accountability of foreign political donations and whether the Act’s objectives have been achieved."

The committee is also interested in the impacts of amendments to the original bill that are relevant to charitable issue-based advocacy.

The committee will hear from the Australian Electoral Commission, charities and not-for profits.

Date: Monday, 29 March 2021
Time: 12pm to 4.15pm AEDT
Place: Committee Room 1R1 and via teleconference

Information on the inquiry, including the terms of reference, may be found on the inquiry webpage. The hearing will be broadcast live on the Parliament of Australia website.

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Indigenous participation inquiry to hear from Minerals Council and First Nations Media

THE Indigenous Affairs Committee will hear from the Minerals Council of Australia and First Nations Media Australia this Thursday as part of its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business.

Committee chair Julian Leeser MP said both organisations would provide valuable insights to the inquiry. The minerals sector has played an important role in Indigenous employment and procurement, and the media sector also provides job and training opportunities for First Nations people across Australia.

"Mining companies are key employers of First Nations peoples, we look forward to hearing more about programs they have developed to create economic opportunities in remote areas," Mr Leeser said.

"Indigenous broadcasting employs roughly 500 people nationally, opening up job opportunities for First Nations peoples in other related areas. The committee looks forward to discussing further ways to promote Indigenous participation in these sectors."

Witnesses will be attending the hearing via conference call.

Public hearing details

Date: Thursday, 25 March 2021
Time: 11.40am to 12.55pm AEDT

A live audio stream of the hearing will be accessible at https://www.aph.gov.au/Watch_Read_Listen.

A full program will be available at the inquiry website.

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My Business Health connects stressed small business owners with new support service

STRESSED small business owners can now connect to a new, tailored mental health support service by visiting My Business Health.

The New Access for Small Business Owners program, delivered by leading mental health organisation Beyond Blue, is now operational and fully integrated into the redeveloped My Business Health web portal.

Australian Small Business and Family Enterprise Ombudsman Bruce Billson said it was important for small business owners to consider their mental health and to reach out if they are not coping.

“Small business owners have endured a lot over the past 12 months, particularly those hardest hit by the COVID crisis,” Mr Billson said.

“Help is available to small business owners who need it. My Business Health is an excellent support tool for small business owners and it now links to Beyond Blue’s New Access for Small Business Owners program.

“New Access for Small Business Owners offers free one-on-one telehealth sessions with specially trained mental health coaches providing evidence-based advice on strategies for managing stress.

“Crucially, the New Access for Small Business Owners program is provided by coaches that have experience in small business. Being able to talk to someone who understands the mental load of running a small business will make a real difference," Mr Billson said.

“We know the small business community bore the brunt of the pandemic and that has understandably taken a toll. Small business owners who look after their mental health, can also help their business.

“A recent Federal Government survey of 1000 small business owners revealed one in three were diagnosed with either stress, anxiety or depression.

“Financial concerns were understandably the biggest contributor to their stress, according to the research," he said.

“Small business loans are often secured against the family home, so if they lose their business they could lose their home. The stakes are incredibly high."

Beyond Blue’s New Access for Small Business Owners program is now taking registrations here.  

Milestone for Oaky Creek coal mine rehabilitation

THE Queensland Resources Council (QRC) has joined Resources Minister, Scott Stewart, in congratulating Glencore coal on its transformation of previous open-cut mining areas at Oaky Creek coal mine to native vegetation with the potential for grazing. 

QRC chief executive Ian Macfarlane said the e certification of 133 hectares of rehabilitated land at the mine is proof positive that the resources sector is committed to fulfilling its environmental obligations. 

“This is not a one-off. It is the fifth successful certification application in the past three years by a Glencore site in Queensland and the seventh across Glencore’s Australian coal business” Mr Macfarlane said.

“Achieving government signoff to return mined land to the agreed post-mining purposes is no mean feat, requiring a deep commitment by the company and its employees. 

“The resources sector, which is responsible for one in every six jobs and one in five dollars of our economy, has kept us afloat through covid and continues to provide the raw materials the world needs while delivering sustainable rehabilitation outcomes for future use."

Located 90km north-west of Emerald in the heart of Queensland's Bowen Basin, Oaky Creek coal mine produces high quality steel-making metallurgical coal for export, with six million tonnes produced in 2020.

Click here for more information about the resources sector’s rehabilitation efforts.

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Streamlining skilled migration

THE Joint Standing Committee on Migration today presented an interim report for its inquiry into Australia’s skilled migration program.

Committee chair Julian Leeser MP said, “The committee has heard repeatedly that skilled migrants create Australian jobs. With over 500,000 temporary visa holders leaving Australia during the COVID pandemic, we need to bring back skilled migration, to fill essential gaps and to help create more jobs for Australians.

“Skilled migrants provide much needed skills to fill skills gaps, offering businesses the opportunity to better meet demand and expand, and to pass on their skills to Australians,” Mr Leeser said.

“Australia has always been an attractive destination for migrants. Our excellent response to the health and economic challenges of the COVID-19 pandemic has made Australia an even more attractive destination. Now is the time to attract highly talented individuals and businesses to Australia.

“The report recommends a number of measures to streamline the system to ensure we can capitalise on the opportunity in front of us."

The interim report makes recommendations focused on assisting in recovery from the economic effects of the COVID-19 pandemic. The inquiry will continue with a wider focus on long term reform of the skilled migration program. Submissions responding to the terms of reference will be accepted until March 31, 2021.

A copy of the interim report and more details about the inquiry are available on the committee website.

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Committee to hear from higher education sector on security risks

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) will hold a public hearing this week for its Inquiry into national security risks affecting the Australian higher education and research sector.

Committee chair Senator James Paterson said, “This second hearing will focus on the university and research sector. This inquiry will seek to identify best practice from leading  universities to encourage the rest of the sector to follow and also scrutinise ongoing poor practices at some institutions.”

Due to COVID-19 restrictions, teleconference and video conference facilities may be used to connect witnesses to committee members. The hearings will be broadcast live at aph.gov.au/live.

Public Hearing Details

Friday, March 19 2021
​8am – 4.30pm (AEDT)
​Committee Room 2R1, Parliament House, Canberra

A program for the hearing can be found here.

Further information on the inquiry can be obtained from the Committee’s website.

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Builders want the IR Omnibus Bill passed this week

MASTER BUILDERS Australia is calling on the Senate to pass the IR Omnibus Bill this week. 

Denita Wawn, CEO of Master Builders Australia said, “Senators need to back this Bill to support economic recovery, it’s that simple.

“Business investment remains low while other indicators of recovery are rebounding. Passing this Bill will send a strong signal to businesses that pragmatic measures to grow the economy are being put in place, boosting confidence that they can hire more people and invest in generating more business activity,” she said. 

“Productivity boosting measures in the Bill include reducing the unnecessary technicalities and complexities that currently beset the IR system. It will encourage enterprise bargaining in our industry which has fallen by over 33 percent in recent years,” Ms Wawn said. 

“With every $1 dollar spent on construction generating $3 in wider economic activity, governments around the country are investing billions to harness the industry’s multiplier effect and build the bridge to recovery. Passing the Omnibus Bill will unlock even more productivity and jobs in the sector. 

“Master Builders does not agree with everything in this Bill, but we have determined not to let ‘the pursuit of the perfect be the enemy of the good’ as it includes positive measures that will boost business confidence and unlock investment to drive economic growth to the benefit of the whole community. 

“The Senate should the pass Omnibus Bill this to improve the operation of the IR system to support the nation’s economic recovery,” Ms Wawn said.

www.masterbuilders.com.au

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Better gender balance in ASX leadership vital for improving performance

IFASX COMPANIES want to increase their long-term market value they need to act now and increase the number of women in CEO and executive leadership positions.

This was one of the many views expressed during a panel discussion at a virtual event recently for the 40:40 Vision initiative launched last year by industry super fund HESTA with industry partners Chief Executive Women, Australian Council of Superannuation Investors (ACSI), 30% Club and the Workplace Gender Equality Agency (WGEA).

The panel comprised Sam Mostyn, president Chief Executive Women, Louise Davidson, CEO, ACSI, Colleen Harris, group chief people officer, Ramsay Health Care, and moderated by HESTA CEO Debby Blakey agreed that there had been too little progress on seeing women advance to senior roles.

Panellists said,while it was good the number of ASX200 women chairs had grown from 11 in 2015 to 24 in 2021, it was disconcerting only 10 ASX200 CEOs are women and only one of the 25 CEOs appointed to ASX200 CEO roles last year was a woman.

In 2020, the WGEA and the Bankwest Curtin Economics Centre released research showing an increase in the share of female ‘top-tier’ managers by 10 percentage points or more led to an average 6.6 percent increase in the market value of Australian ASX-listed companies.

The 40:40 Vision chair and HESTA CEO Debby Blakey said, “As investors, we share a common goal with companies to improve their long-term performance – it’s good for our members and its good for their shareholders. We know from local and global research that addressing gender diversity in leadership is essential to creating stronger decision making and this long-term improvement in a company’s value.”

“With only 25 percent of ASX200 executive leadership positions held by women, it’s not surprising there are such a small number of women CEOs. Boosting the number of women in leadership will provide an important pipeline of diverse talent for boards.

“Those companies not looking closely enough at 50 percent of the population when identifying top talent risk missing out not only on the best people but also the long-term performance edge a more diverse and inclusive culture provides.”

Global company Ramsay Health Care was the first ASX listed companies to join the initiative. Ramsay’s Group chief people officer Colleen Harris said, “Ramsay Health Care has a strong record of embracing diversity and promoting women into leadership roles. By supporting the 40:40 Vision initiative, we hope to encourage other ASX200 companies to achieve gender equality.

“Globally, we are a significant employer of women, and we have long been committed to having strong female representation at all levels of the organisation. In Australia, 59 percent of our hospital and facility CEOs are women and 60 per cent of our regional executives are women.”

ACSI CEO Louise Davidson said investors have long recognised the value of gender diversity in governance and leadership roles.

“We’re very encouraged to see the number of women directors continuing to increase. But it’s disappointing that the number of female chairs and CEOs continues to languish. Through 40:40 Vision, investors are driving companies to capitalise on the long-term value of diversity by setting gender targets in leadership teams. Women’s progression to executive leadership positions and CEO roles still has a long way to go, and it will take sustained effort for this to change.”

President of Chief Executive Women, Sam Mostyn, said, “ASX200 companies can lead the way and achieve better results for all their stakeholders by ensuring their leadership teams are balanced. More diverse teams lead to stronger financial performance and safer company cultures. Risk is reduced and outcomes improved – a 40:40 vision of gender equality is a corporate responsibility right now.”

Ms Blakey said HESTA launched the 40:40 Vision initiative last year with industry partners out of concern that the number of women in leadership positions had stalled.

“The 40:40 Vision initiative was necessary because a lack of gender diversity in leadership is ultimately a financial risk. We have set ambitious targets; the time for waiting is over because we can’t wait decades to see equal numbers of men and women in senior leadership.”

Ms Blakey encouraged all ASX200 companies to pledge support for a 40 percent gender balance by 2030, and said 40:40 Vision recognises the complexity and differences in organisational structure among ASX200 companies, giving flexibility for companies to set and develop their own plans and targets.

“We want to see real, genuine change – not just additional layers of needless reporting and governance resulting in a tick-the-box exercise,” Ms Blakey said.

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More than 1000 job opportunities for resourceful and energetic Queenslanders

THE Queensland resources and energy sector is currently looking to fill more than 1000 jobs across the State, Queensland Resources Council (QRC) chief executive Ian Macfarlane said today.

Mr Macfarlane said Queensland’s resources sector supported more than 420,000 jobs across the State, and despite COVID-19, international market conditions and commodity price fluctuations the sector was continuing to hire staff.

“The resources sector already supports one in six jobs across the state and is playing a central role in helping Queensland work, earn and employ its way through COVID,” Mr Macfarlane said.

“Right now the resources sector is offering more than 1000 opportunities for Queensland jobseekers, both in Brisbane and in the regions.”

According to online job portal Seek, there are currently more than 1000 vacancies in Queensland mining, resources and energy including:

  • 318 Brisbane
  • 297 Mackay and Coalfields
  • 82 Townsville
  • 63 Cairns and Far North
  • 59 Mount Isa
  • 57 Rockhampton and Capricorn Coast
  • 27 Gladstone
  • 27 Toowoomba and Darling Downs
  • 11 Bundaberg, Wide Bay-Burnett

Mr Macfarlane said the tireless work of the industry, in partnership with the Queensland Government and local councils, to ensure staff, their families and their communities remained safe during COVID-19 had ensured the industry could continue to operate and earn for Queensland.

“As an industry, we are working very hard and having increasing success in attracting more women, more Aboriginal and Torres Strait Islanders and more young Queenslanders to join our industry,” Mr Macfarlane said.

“The resources and energy sector uses cutting edge technology and is at the forefront of delivering the full energy mix, advanced manufacturing and renewable energy and battery storage technologies, so there is a lot to offer potential employees looking for new opportunities,” he said.

“I strongly encourage people who want to be part of an industry that is all about finding energy solutions to consider a career in resources.”

www.qrc.org.au

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