CHINESE-owned Premier Coal is in negotiations with employees to establish a modern enterprise agreement which, if agreed on, will result in a 15 per cent wage cut.
The move comes after the Fair Work Commission agreed to scrap maintenance workers' Enterprise Bargaining Agreements at Griffin Coal, reverting them back to the Black Coal Award and resulting in wage cuts.
Yancoal General Manager Investor Relations and Corporate Affairs James Rickards said the proposed cuts will support the future economic viability of the mine.
“We are currently working to establish a modern Enterprise Agreement in support of our people and the future of the Premier Coal operation,” he said.
“Discussions with union representatives are ongoing and include a proposed reduction of 15 per cent in base salary for all employees.
“This necessary change to existing salary rates will support the economic viability of Premier Coal and minimise the potential need for future significant job cuts.
“The proposed 15 per cent reduction is, unfortunately, reflective of the difficult economic and operating conditions we are continuing to address at this time.”
AMWU WA State Secretary Steve McCartney said he believed Premier Coal was following the actions of Griffin Coal.
“We believe that Premier Coal are running down the same path as Griffin trying to pull down wages and conditions to boost their bottom line,” he said.
“As we said months ago, we knew Griffin’s attacks on workers in the Collie community would start a frenzy of wage reduction across Australia that Premier coal is now following.”
Collie-Preston MLA Mick Murray was ejected from Parliament last Thursday after demanding that the Liberal-National Government take some responsibility for the wage cuts.
“The Barnett Government has an agreement to take control of up to a quarter of the company, and now they turn around and say it has nothing to do with them,” he said.
“They have invested in Premier Coal on behalf of WA people but now they are washing their hands of any responsibility for what this overseas company is doing for our local workers.”
Union representatives will be meeting with Premier Coal representatives this Friday to discuss the proposed changes.
