Mount Kembla’s Dendrobium mine is set to come to a halt on Friday morning as almost 200 miners down tools for a week-long strike after a breakdown in industrial negotiations.
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The miners union announced workers at the Illawarra Coal mine, owned by BHP’s spin-off company South32, would strike from 6am on Friday after they reached a deadlock over their new workplace agreement.
More than 90 per cent of the Dendrobium coal workers voted in favour of industrial action late last week, authorising a strike provided they give the company at least 72 hours notice.
Construction, Forestry, Mining and Energy Union (CFMEU) south west district vice president Bob Timbs said the company had refused to ‘‘come to fair terms’’ at a meeting on Wednesday, prompting the action.
The main sticking point is South32’s refusal to include a job security clause in the new agreement, which the union says is resulting in the ‘‘slow casualisation of the workforce’’.
“The company’s strategy is to replace permanent full time employees with contractors when workers retire, resign or are promoted, meaning the 100 year old permanent workforce is slowly but surely being casualised,’’ he said.
“Around 20 per cent of the workers employed on this mine are now contractors and that number is closer to 60 per cent on other nearby mines. It’s going to keep increasing unless we take a stand.’’
‘‘We have contractors who have been here for years, so they’re not filling gaps, they’re just being ripped off.’’
He said these workers - who are mostly casual - could be paid around $500 a week less than full time employees and did not get the same annual and sick leave entitlements.
The seven-day strike will halt production and development at the mine, practically shutting it down for a week.
Mr Timbs said the only thing that would stop the action from going ahead would be for the company to come back to the negotiating table and change its stance.
The dispute at Dendrobium has been simmering for nearly 18 months, since the workplace agreement expired in April last year
The agreement for South32’s two other Illawarra coal mines at Appin and West Cliff expired last month. There is speculation that workers at those mines could eventually follow their colleagues at Dendrobium.
“For the last 150 or 160 years in the Illawarra area, the mining industry has been a source of good, permanent, secure jobs for our local people,’’ Mr Timbs said.
‘‘We won’t stand by and let big multinational mining companies casualise our workforce and drive our workers and their families into insecure and badly paid labour hire arrangments.”
In a statement released late on Wednesday, Illawarra Coal expressed its disappointment at the news.
The miner's asset president Troy McDonald said the company has been working with employees and their representatives to develop a new agreement since late 2013.
“We are extremely disappointed in this action, given that since we started negotiating this agreement we have put a number of proposals to employees to address their concerns,” he said.
“In addition, we have commenced the payment of a wage increase as a sign of good faith to our employees while discussions are continuing.
“Industrial action in return is both disingenuous and irresponsible.
“The mining industry, like many other industries in the Illawarra region, is facing a difficult business environment.
"Disruptive industrial action by the CFMEU would create further uncertainty for the company, its employees and the broader community.
Mr McDonald said the company remained committed to working with the employees and their representatives to achieve a speedy resolution.