About 100 Wongawilli Colliery miners are celebrating a “spectacular victory” in their industrial dispute with Wollongong Coal.
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The workers will go from being the lowest paid labour hire casuals in the region to permanent employees on pay and conditions consistent with union members in nearby mines.
About 80 miners went on strike on Monday to demand better pay and job security during the negotiations of a new enterprise agreement. They were planning to take industrial action for two weeks if necessary.
The workers formed a picket line at the West Dapto mine and were joined by federal and state Labor MPs.
The Construction Forestry Mining and Energy Union confirmed an agreement with management had been reached on Thursday.
CFMEU Mining and Energy South Western District Vice President Bob Timbs said union membership rose from 13 to 80 members over nine months and an enterprise agreement was sought.
“This is a massive, well-deserved win for these mineworkers and a crystal clear example of union power," he said.
“I could not be happier for these workers who will finally receive wages and conditions akin to what they deserve. They deserve real credit.
"It takes guts to stand up to your employer and invest trust in your union. But they took the leap and now they've reaped the reward."
Wollongong Coal outsources labour hire to CAS Mining. An Indian resources giant Jindal Steel and Power owns Wollongong Coal.
Workers will now be shifted from casual to permanent employment, will receive a 12 per cent increase in the hourly rate and a 12.5 per cent increase in the bonus rate.
Workers will also receive superannuation, annual leave, carers leave, accident pay, and long service leave.
The new two-year enterprise agreement will be signed with labour hire company CAS Mining and will include a two per cent increase in pay each year.
A miner, who did not want to be identified told the Mercury on Monday that the cost of living had increased and workers needed to provide for their families.
“It is very frustrating to be paid less than workers at other mines considering the work we do at this pit is...dangerous,” he said.
Wollongong Coal chief operating officer Wayne Sly said the company welcomed the amicable resolution.
“We have offered to assist and support CAS Mining in approving the miners’ demands to ensure the dispute comes to an early resolution and our workers are not severely financially impacted as a result of a lengthy strike,” he said.
“We made our decision based on what would be the best outcome to benefit our workers and their families.”
CAS business manager Jesse Yvanoff told the Mercury last week that the union’s demands would exceed funding provided by Wollongong Coal – so if CAS were to meet the claims, it would go out of business.
The Australian Council of Trade Unions’ secretary Sally McManus has congratulated the workers on the “huge win and for standing together”.
“These casual workers decided to join together in their union, stand up and fight for equal rights,” she said.
“Working people across the country can change the rules for all of us if we stick together and demand a fair go.”
CFMEU National President Tony Maher said the win was vitally important, and pointed to a broader issue.
"The conversion of permanent, well-paid jobs into poorly-paid, insecure jobs is a huge issue right across the country," Mr Maher said.
"What this win proves is that the trend is reversible. If labour hire workers join their union, if politicians flag the situation is untenable, then we can turn this around."
Whitlam MP Stephen Jones said he was delighted there had been a "swift and sensible resolution has been agreed with the company”.
He spoke to miners at the strike on Monday and said he wanted to see the dispute resolved industrially.
Labor has committed to changing the law to make it illegal for companies to use labour hire to undercut workers if it wins the next election.
