Illawarra coal miners are preparing for more news of mass job losses at South32, which has announced a major restructure just months after it was created as a spinoff from BHP Billiton.
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It seems likely more than 300 jobs will go from the Illawarra division.
It is expected that the Appin and West Cliff mines will cease to be separate operations, with staff to go as jobs from each mine are merged.
Up to 300 contractors who have been working on the drivage and setting up Appin’s Area 9 for longwall mining will be out of work as the construction phase ends.
West Cliff reserves are being mined but before long the Appin longwalls – Area 7 and Area 9 – will be the only areas in action there.
It is not clear whether the announced job losses will be exceed the contractors, who
More details are expected to be announced later this month as South32 prepares to release its half-year financial report on February 25.
These initiatives are expected to result in a substantial reduction in employee numbers during the remainder of FY16
- South32 spokeswoman
CFMEU district vice-president Bob Timbs said the union was contacted by South32 this week and told there had been an announcement to the stock exchange.
“It’s early days,” he said. “We haven’t sat down with the company yet.”
“If there are adverse effects with regard to Illawarra coal, then the company has undertaken to start a consultation process with us.”
South32 was created in August 2015 in a move allowing BHP Billiton to spin off some of its smaller assets, based mostly in the Southern Hemisphere.
A statement from the company said jobs cuts would be “substantial”.
“Our teams are currently finalising plans that will deliver a meaningful reduction in costs at Illawarra Metallurgical Coal, Cerro Matoso, Worsley Alumina and Australia Manganese,” it said. “These initiatives are expected to result in a substantial reduction in employee numbers during the remainder of FY16 and will be detailed in our December 2015 half year financial results.”