CFMEU representatives met managers yesterday morning to discuss the mine's enterprise agreement, which expired at the end of June.

The meeting was the latest in ongoing negotiations between the union and the colliery over the new agreement, which the union claims would put workers' wages behind most other mines in the region.

If accepted, workers could face a freeze on pay increases over the term of the agreement, the union claims.

CFMEU mining and energy division district vice-president Bob Timbs said the union had been negotiating with the company for about six months and was keen to continue its discussions.

A spokesman for the colliery, which is owned by US-based company Peabody Energy, said the mine had been trying to negotiate an agreement that provided a "fair and sustainable outcome for all employees and the company".

"Peabody is committed to working with our employees and the union to deliver an agreement which mirrors current market conditions, enables the company to manage current industry challenges and provides job security for all employees," the spokesman said.

Meantime, management met the workforce yesterday morning to discuss the state of the company.

Mr Timbs said similar gatherings were held every six to 12 months and were designed to outline the company's financial position.

The colliery announced it would cut 42 jobs in June as the global downturn in coal prices hit the Illawarra.

Workers at the mine, one of Australia's oldest continually operating collieries, were told at the time that the job losses were to "fast-track cost improvement initiatives".

The cuts came as Peabody announced Australian earnings in the June quarter were $119.5 million, compared with $255 million of earnings in the same quarter last year.

Global earnings were $269.8 million compared with $477.6 million for the June quarter last year.