The dispute is seen as a beachhead by the Construction Forestry Mining and Energy Union against the growing trend to replace fulltime workers with casual or contractor labour in the coal mining industry.
The workers want clauses inserted in their updated enterprise agreement that limits the creeping number of casual workers at the mine.
The two other coal mines in South32’s Illawarra Coal stable – Appin and White Cliff – will also have to negotiate their enterprise agreements where this issue will figure prominently.
CFMEU spokesman Bob Timbs said: “Around 20% of the workers employed on this mine are now contractors and that number is closer to 60% on other nearby mines. It's going to keep increasing unless we take a stand."
Timbs said the union had always understood the need for temporary labour during the mining boom, but in the past these extra staff would then transition into permanent, secure, full time jobs.
“Now South32 is taking advantage of the labour hire workers brought onsite during the boom. Instead of ensuring they are first in line to pick up permanent positions, they are keeping them in precarious, underpaid work," he said.
“Workers are calling for a security of employment clause in the next enterprise agreement which would require the company to replace a permanent full time employee with another permanent full time employee and in times of redundancy maintain permanent employees over over labour hire.
“We also want protections to be put into place so contract workers who do not have their own enterprise agreement receive fair pay in line with that of permanent workers.
“For the last 150 or 160 years in the Illawarra area, the mining industry has been a source of good, permanent, secure jobs for our local people. We won’t stand by and let big multinational mining companies casualise our workforce and drive our workers and their families into insecure and badly paid labour hire arrangements."
Illawarra Coal asset president Troy McDonald said the company has been working with employees and their representatives to develop a new agreement since late 2013.
“We are extremely disappointed in this action given that since we started negotiating this agreement we have put a number of proposals to employees to address their concerns,” he said.
“In addition, we have commenced the payment of a wage increase as a sign of good faith to our employees while discussions are continuing.
“Industrial action in return is both disingenuous and irresponsible.
“The mining industry, like many other industries in the Illawarra region, is facing a difficult business environment. Disruptive industrial action by the CFMEU would create further uncertainty for the company, its employees and the broader community.”
McDonald said Illawarra Coal remains committed to working with the Dendrobium employees and their representatives to achieve a speedy resolution.
