THE jobs of the 450 people working at Boggabri Coal mine will be up in the air when the mine’s operation contract changes hands in December.
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The mine is currently owned by Idemitsu, but operated by Downer Group.
However, The NVI can reveal Downer was notified last week its contract would not be renewed once it expired at the end of November, with Idemitsu finalising negotiations with multi-billion dollar company BGC Group.
The union, CFMEU, representatives say workers have been left wondering if their job will exist under the Western Australian-based company, and if it does, if they’ll have to face the uncertainty of reapplying for their position.
CFMEU met with Idemitsu last week, but said the company didn’t give the union any certainty about the future employment situation.
CFMEU NSW president Peter Jordan said Downer, who has operated the mine since 2006, employed locally and gave people the opportunity to live in the area, but workers were concerned they would be replaced by a fly-in fly-out workforce.
“What if a lot of mining workers leave the Gunnedah Basin along with Downer?” Mr Jordan asked.
“We’ve questioned where BGC is going to get employees from, because we’ve got real concern – and Idemitsu have not denied this – that BGC could fly in and fly out workers from Queensland to Boggabri.
“If that’s the case, we would be extremely disappointed and something both the union and the community need to be up in arms about.
“The union expects that mine workers, regardless of who they are employed by, be employed permanently and have the opportunity to live in the local communities in and around the mine.”
While the new operation contract is being finalised, The NVI understands that Idemitsu will employ all workers engaged in coal activities, such as mining and hauling, while BGC will employ all those involved in overburden activities, which includes most tradies.
Idemitsu is also transitioning to an owner-operator model, which means it will take over all the mine’s management positions. The company expects at least some of the current Downer employees will apply for the Idemitsu management positions.
Idemitsu said there was “no planned or expected changes to the mines current level of production”.
Downer said it would stay focussed over the next six months, and prepare its workforce for transition at the end of the contract.
Mr Jordan said there were questions about why Idemitsu and BGC plan to split the workforce.
“It’s the strangest set up we’ve come across,” Mr Jordan said.
“BGC have no coal work in Australia, they’re involved in hard rock mining in Western Australia and South Australia.
“To date, we’re yet to have any discussion with BGC. So we’re very keen to talk to BGC about what its intentions are and what type of arrangements they’ll have [with employees].
“If they still have a job come December, what will the nature of the job be? Will it be a permanent job like it is today, or a causal role?
“No one is able to answer those concerns, hence all our members, over 300 at the mine at the moment, are concerned for their future and if they’ll still have a job come December 1.”
Idemitsu said it would “continue to directly communicate with all of its employees and key stakeholders” during the course of the negotiates and transition.
BGC was contacted for a comment.