Gujarat NRE needs 13 more redundancies

Gujarat NRE Coking Coal says it needs to shed another 13 jobs from its Russell Vale colliery to make the workforce at its two Illawarra coalmines sustainable.

Gujarat’s voluntary redundancy program, which last week saw 47 workers from the mines at Russell Vale and Wongawilli leave the company, has been extended until February 6.

Chairman Jasbir Singh said the company had extended the cut-off date ‘‘in the hope of offsetting the number of forced redundancies required’’.

Dozens of Gujarat workers sign off

A company spokeswoman said forced redundancies would be necessary if not enough people put up their hands voluntarily.

Mr Singh said the job cuts were part of the company’s efforts to ensure its long-term survival and financial security.

‘‘In this respect, we need to restructure the workforce so that costs are minimised in line with reduced coal prices on the international market,’’ he said.

The company originally planned to shed about 90 jobs – or 20per cent of its workforce – blaming high production costs, unstable global markets and delayed expansion approvals.

Mr Singh said the company would consult with all affected employees and would talk to industry contractors and mine operators to assist them in finding alternative employment.

Construction, Forestry, Mining and Energy Union district vice-president Bob Timbs previously told the Mercury workers  received three weeks’ wages for every year served and pay-outs for accrued annual leave and carer’s leave.

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