Unions are concerned the company – which has an ambitious aim of tripling metallurgical coal production by 2020 – will rely more on contractor labour to reach short-term profit targets at the expense of long-term investment in skills.
Construction, Forestry, Mining and Energy Union district president Stephen Smyth said the company failed to outline how many contractors would also be out of work from planned cost cutting.
“We’re not aware of Anglo losing any supply contracts with its customers and the company has made it clear they wish to maintain similar production levels at this operation,” Smyth said.
“What’s clear … is that Anglo aims to slash and burn its labour force to maintain profit margins seen at the height of the boom.
“The union is also concerned that Anglo will now demand more from already hardworking employees remaining at these operations to maintain similar production levels.”
Earlier this year at Moranbah North mine, which had recruited Glenn Britton as general manager from Xstrata’s Oaky North mine to help ramp up production, employees reportedly had their hours reduced.
Anglo’s Foxleigh mine in Queensland also reportedly laid off 20 contracted workers.
A spokesperson for Anglo told ILN: “Anglo American engages contractors in line with business needs and will ramp up and down accordingly.”
According to the latest longwall statistics released by Coal Services, Moranbah North produced 3.3 million tonnes of coal in 2011.
The mine, which suffered from a roof fall in November last year, is now focused on returning to full productivity of more than 5 million tonnes per annum.
The November 7 roof collapse is believed to have cost Anglo at least 40,000t in lost production.
Speaking about the incident, an Anglo American spokesperson told ILN the operations at Moranbah had halted at the time “due to a slump of ground in a conveyor drift”
Anglo recently decided to reduce the number of operating longwalls at its Moranbah North mine from two to one next year.
Smyth said Anglo American lacked long-term planning to ride out dips in the coal prices without the need for putting off workers and creating skills shortages.
“Farmers plan for bad seasons amid the good, yet mining companies simply sack people at the slightest whiff of a lower coal price without a thought for workers’ families,” he said.
“Corporate responsibility should not be industry leaders demanding workers be ‘flexible’ to move where the work is before sacking them when the coal price dips and bugger the mining communities.”
