About 80 workers at Helensburgh’s Metropolitan mine could lose their jobs in the coming weeks, with Peabody Energy confirming it plans to shed up to 25 per cent of its contractors and employees.
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In a statement to the Mercury on Friday, a spokeswoman said the mine would ‘‘transition to a five-day production schedule over the next month, leading to employee and contractor reductions of 20 to 25 per cent’’.
Peabody’s workers were being told about the planned changes, which had been rumoured for some time, on Thursday and Friday.
CFMEU south-western district vice-president Bob Timbs said he did not have details about the company’s plans as he was not due to meet with representatives until Monday.
However, he said he had heard about 80 workers could lose their jobs.
‘‘I won’t have much detail until I meet with the company on Monday morning about its plans to enter into consultation with regards to potential forced redundancies,’’ he said.
Mr Timbs said the 20 to 25 per cent reduction in workers would hit the workforce hard, noting he had not expected so many job cuts.
‘‘I certainly didn’t think they would cut this deep and it has been a bit of a surprise to us,’’ he said.
‘‘This is a substantial reduction in the workforce.’’
He said the Helensburgh changes, which are in line with similar plans at other Peabody mines, looked like an effort from the US miner to drive up coal prices.
There was a glut of coal on the export market, he said, which was continually driving prices down.
‘‘On face value, it appears they’re trying to pull some coal out of the market. This would help to initially stabilise and then drive coal prices back up.’’
The Peabody spokeswoman said the cuts were ‘‘part of a plan to increase productivity, improve cash flows and optimise production at Peabody’s Australia operations given current market conditions’’.
‘‘The company plans to provide additional information in its second quarter earnings release,’’ she said.
In recent weeks, the miner announced it would cut back operations at its North Goonyella mine, west of Mackay in Queensland, with up to 210 jobs to go.
According to Peabody’s website, the Metropolitan mine secures direct and indirect employment for 1900 people, including 400 mine site workers, meaning up to 100 workers could face redundancies if 25 per cent of the workforce goes.
The company last slashed jobs from the Helensburgh mine in July 2013, cutting 42 positions at a time when it cut about 400 workers across its Australian operations.
kmcilwain@fairfaxmedia.com.au