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The move is a response to a CFMEU decision to start a series of rolling stoppages from today, with Xstrata saying they will “significantly interrupt operations, making it impractical to continue production during the allocated period”
“Xstrata Coal has instructed all Bulga Coal employees covered by the proposed enterprise agreement not to attend work for the 24-hour period, commencing from 7am on Tuesday,” the company said.
Up to 250 workers went on strike over the weekend after rejecting a new enterprise agreement offered by Xstrata. The union had already received protected action status to start rolling stoppages this week.
“The CFMEU’s decision to disrupt production is not in the interests of our employees or the future of the Bulga operation,” Xstrata general manager of eastern operations Greg Pawley said.
“We have made a very generous offer to our employees which continues to respect their existing rights, working conditions and the right to representation.
“The CFMEU is demanding changes to the proposed EA which would ultimately impose restrictive practices on the business to the long-term detriment of the Bulga complex and the working conditions and benefits of our employees.”
Xstrata’s new EA offer includes a 15% pay rise to the base salary. Along with other changes, the average salary package would increase by 19%, from $117,000 per annum to $140,000 by 2012.
The company said the new agreement contained only two additions to the 2006 EA, which related to consultation and flexibility to meet requirements of the new Fair Work legislation, with terms taken directly from the new Black Coal Mining Industry Award 2010.
CFMEU northern district vice-president Greg Sharpe told ILN on Friday the industrial action was not about the money but was about several unresolved issues.
The union would like arbitration included in the disputes procedure of the agreement.
The union also wants the removal of a clause which states that workers must follow corporate policies and procedures, with Sharpe saying these could be changed at any time independent of the EA.
The CFMEU also wants the right to hold onsite union meetings written into the new EA.
Sharpe said Xstrata had recently put its new EA document out to a vote without CFMEU support, but it was rejected by 75% of workers in a secret ballot, despite the wage increases.
The Bulga complex will host the upcoming Blakefield South longwall mine, which will replace the Beltana longwall operation.
Blakefield South is targeting 4 million tonnes per annum of thermal coal production, according to a December presentation made in London by Xstrata chief executive Peter Freyberg.
The mine was expected to kick off in the current half-year period.
Xstrata’s Tahmoor operation in the Southern coalfield of New South Wales has been affected by rolling stoppages since October.
In September, more than 100 miners at Xstrata’s United mine went on strike. The operation is set to close down at the end of February.