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Rail workers to extend strike

THE stakes have been raised in the damaging dispute between Pacific National and rail workers, wi...

Lou Caruana
Rail workers to extend strike

The proposed protected industrial action by Rail, Tram and Bus Union members had the potential to cause “significant harm” to Whitehaven, managing director Tony Haggarty told ILN.

“Accordingly, Whitehaven has requested in writing that that RTBU withdraw the notice of protected industrial action for 8 February 2013 and provide an undertaking that it will not give any further notice of protected industrial action or engage in protected industrial action in respect of the bargaining with Pacific National,” he said.

“Whitehaven has advised the RTBU that it considers that the potential impact that this, or future, industrial action may have on its operations is extremely serious.

“WHC reserves all of its rights, including making any necessary application to the Fair Work Commission.”

The RTBU originally notified Pacific National of a stoppage beginning at midday on Friday and running for 24 hours but it has been extended to 48 hours.

The action will prevent at least 300,000 tonnes of coal from reaching the Port of Newcastle, with the loss of $25 million of exports a day to the New South Wales economy, according to Pacific National parent group Asciano.

It comes at a bad time for Whitehaven Coal, which only just started railing coal from its Narrabri mine to Newcastle after a derailment damaged the rail link near Boggabri late last year.

With the delay to Narrabri’s ramp-up last year and the lengthy delay to its Maules Creek approval, Whitehaven has surplus port and rail track capacity in the 2013 financial year and FY2014.

It is a significant cost, expected to add approximately $4 per tonne to cash free-on-board costs in FY2013.

Pacific National Coal said despite its last-minute attempts to finalise negotiations for a new enterprise agreement for its 840 NSW employees, the RTBU refused what Asciano believed was a “very generous” wage offer of an annual wage increase of 4% each year for the three years of the deal.

Pacific National coal director David Irwin said as a result of the union’s action, the company’s previous offer expired and was reduced to an annual increase of 3% per year for the three years of the proposed agreement.

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