BMA, which company produces one-fifth of the world's coking coal, has been stuck in a deadlock with the Construction, Forestry, Mining and Energy Union and other unions, as the 15-month enterprise bargaining dispute shows no sign of being resolved.
It continued to break down over key issues of housing, safety representatives and equal pay for equal work, according to CFMEU district president Steve Smyth.
“Membership has overwhelmingly endorsed a position that's been put to them today [Friday] through our democratic processes to look at re-engaging in sector industrial action, including stoppage of all seven mines for up to seven days as a start,” Smyth reportedly told the ABC.
“Under the agreement we have … always covered open cut examiners and what we call ERZ controllers. They're the safety people. Their primary role is a health and safety responsibilities under the relevant mining legislation.
“So those people are in the direct frontline of ensuring safety on the job. What BHP wants to do is take those people out of those roles or keep them in that role but give them another title, under staff as supervisors.”
A spokesperson for BHP told ILN the company was disappointed by recent union statements using safety to justify their actions to call more industrial action.
“We are extremely disappointed by the unions’ actions to call for more aggressive strike action,” the spokesperson said.
“The company has consistently demonstrated its commitment to negotiating constructively with the unions. We have had numerous meetings with the unions over a period of more than a year and have resolved the overwhelming majority of issues during this time.
“Most of the remaining issues that separate BMA and the unions relate to areas where the unions want to extend union arrangements, the so-called ‘union benefits’
“We have not proposed the removal of any existing union arrangements.
“The company has made a compelling offer of a 5% per year increase every year for the next three years plus a guaranteed $15,000 per year bonus, which would further improve BMA's already industry-leading remuneration package.
“There are few offers in Australia that would match the BMA offer presently on the table.
“It would appear to us that the unions are putting their own interests ahead of the interests of their members – our employees – by calling for further strike action to pursue matters that may be important to the unions, but which we believe are of little consequence, value, or benefit to our employees.”
The company would not diminish its rights and obligations to manage the business, nor would it accept productivity-destroying arrangements, BHP said.
“Strike action will not change our position, as has been the case for the past eight months,” the spokesperson said.
“In an increasingly challenging economic environment, this more aggressive action by the unions will put at risk the continuous operation of the higher cost BMA mines.”
With BHP’s full-year production data now revealed, investors would move towards two key issues – realised commodity prices and rising input costs, according to tip sheet Fat Prophets.
“All mining companies are facing similar issues so it will come down to how each company is managing its way through them,” Fat Prophets said.
“Labour stoppages [affected] the Queensland metallurgical coal mines.
“The mines are still ‘drying out’ from last year’s floods, but are quickly recovering.”