Griffin Coal recently experienced an unplanned failure with one of its main excavators, causing 20 labour hire workers to lose their jobs.
A Griffin Coal spokesperson said the company was experiencing some significant short-term and long-term changes.
"The company acknowledges the contributions of the employees towards both cost reductions and productivity gains," they said.
"The challenge remains with the current revenue model, which is impacting the sustainability of the business.
"Discussions will continue with Griffin's clients in order to address this issue and ensure the business is viable.
"This will provide the company with funding to invest in machinery and the mine, consequently leading to reinstatement of jobs for the community."
CFMEU Mining and Energy Western Australia Secretary Greg Busson said the situation had affected the Collie community.
He said Griffin's "lack of transparency around staffing changes" had raised serious concerns.
"Information about the job cuts has been woefully inadequate. The company has not met its requirement to consult with the workforce and the result is fear, uncertainty, and rumour," he said.
"With genuine concerns over the financial future of the company, the workforce deserves transparency around the current job losses and any further plans to cut jobs.
"Our members are very concerned. We are calling on Griffin Coal to come clean with workers about what they should expect in the months ahead."
CFMEU Mining and Energy Western Australia has since written to Griffin Coal, calling for a meeting to discuss the company's plans for the near future.
Collie-Preston MLA Mick Murray also expressed concern for those involved.
"This is a very unfortunate situation for those workers at Griffin Coal," he said.
"It is my understanding that the workers were contracted through a labour hire company and were not permanent staff.
"However, any job loss in the Collie region is something that is deeply concerning to me."
Shire of Collie president Sarah Stanley added that: "Griffin needs to think hard about its impact on the community in which it operates. If jobs need to be shed, then it should be looking to reduce the number of out-of-town workers travelling up and down the hill every day."
