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7 May 2019

USA: Los Angeles port truck drivers allege wage & labour violations in Rio Tinto supply chain; Includes company responses

Port truck drivers in California are alleging wage and labour violations due to unlawful misclassification by NFI Industries and its subsidiary, Cal Cartage Express, as independent contractors rather than employees. NFI is a logistics provider for global mining company Rio Tinto, hauling borates from the Rio Tinto mine in Boron to the Port of Los Angeles.

According to labour groups, misclassification of drivers as independent contractors leaves them earning as little as $3 an hour, despite working 50+ hours per week. Many of the drivers end their work week in debt after fuel, insurance, new tires, and lease payments are deducted, leaving many unable to quit their jobs - particularly as they risk losing the equity they have in their trucks.

The drivers have staged several strikes, filed complaints with California's Department of Labour Standards Enforcement and have met with Rio Tinto to demand an end to wage theft due to their misclassification as independent contractors and enforcement of the Rio Tinto’s Supplier Code of Conduct in its USA supply chain.

In April 2019, Business & Human Rights Resource Centre invited Rio Tinto and NFI Industries to respond to labour allegations made by port truck and warehouse workers. Rio Tinto responded that it takes the allegations against NFI Industries and its subsidiary Cal Cartage Express seriously and has asked NFI Industries to demonstrate that they are meeting its Supplier Code of Conduct. NFI Industries responded that the allegations are "unfounded". Both responses are included below. 

UPDATE [February 2020]: We received a rejoinder from Justice for Port Drivers Campaign, who say port truck drivers are 'disappointed' at the lack of action by Rio Tinto over ongoing wage and labour concerns. The full rejoinder is below. We invited Rio Tinto and NFI Industries to provide an update on the situation; they did not. 

UPDATE [January 2021]: A December 2020 article reported that Rio Tinto declined to renew NFI subsidiary Cal Cartage Express' haulage contract after at least 30 years. The decision came after months of drivers' appeals to Rio Tinto to enforce its Supplier Code of Conduct following the drivers' misclassification as independent contractors. In response to that article, Rio Tinto said that it had investigated allegations relating to port drayage services provided by Cal Cartage Express and NFI Industries and that it did not identify any issues that warranted canceling the contract. Instead, as part of its regular contract renewal process, Rio Tinto selected a new provider for its Boron-related drayage services. Rio Tinto's full response is below.

Company Responses

Rio Tinto View Response
NFI Industries, Inc. View Response
Rio Tinto View Response

Timeline