AN Australian Workers’ Union resolution demanding a parliamentary inquiry into Rio Tinto and BHP’s iron ore practices is baseless grandstanding, the Minerals Council of Australia says.
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The Australian Workers’ Union’s national meeting on Monday passed a resolution condemning the companies for what it claimed was ‘‘unconscionable market conduct’’.
The AWU accused the mining pair of flooding the iron ore market while demand was falling to drive smaller, higher cost suppliers out of the sector.
A parliamentary inquiry was needed to ensure alleged ‘‘cartel-like market behaviour’’ was stopped, the AWU said.
‘‘The National Conference supports the call ... for an ACCC (Australian Competition and Consumer Commission) inquiry into the illegal market behaviour by Rio and BHP,’’ the resolution read.
But the MCA has slammed the resolution and said allegations of anti-competitive conduct were baseless.
‘‘Condemning companies that have invested tens of billions of dollars developing Australia’s greatest export industry takes empty grandstanding to new heights,’’ MCA chief executive Brendan Pearson said.
Mr Pearson said Australia’s export earnings from iron ore were $75 billion in 2013-14, up from $57 billion in 2012-13.
