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According to the Illawarra Mercury, the Construction Forestry Mining and Energy Union said workers would strike at the terminal for about seven days if a satisfactory enterprise agreement between the terminal and workers was not reached.
The shutdown could begin on Wednesday.
Workers are reportedly demanding a 4.5% pay increase and stronger job security.
CFMEU district vice-president Bob Timbs told the news service the union had rejected the PKCT’s original offer on an EA.
“At this stage if we can’t come up with an agreement by 7am next Wednesday, we’ll be shutting down the Port Kembla Coal Terminal for seven days,” he said.
Timbs said about 100 union members at PKCT had voted in favour of industrial action.
PKCT declined to comment on the dispute but acknowledged the ongoing negotiations were taking place in “good faith.”
The proposed industrial action could cause havoc for the coal terminal, which ships coal from operation in the Southern and Western coalfields of New South Wales.
Meanwhile, Timbs told the news service negotiations between BHP Billiton and workers at its West Cliff coal mine had failed, promoting possible strike action.