'They thought they had a lifeline': workers left disappointed
THE UNION has said workers at Centennial Coal's Mandalong mine are "incredibly disappointed" with the announcement a restructure would leave 200 of them without jobs.
The news has hit workers hard after welcoming a six-month extension when Centennial Coal and Origin Energy struck a deal to keep supplying coal to Eraring Power Station, Mining and Energy Union Northern Mining and NSW Energy District president Robin Williams said.
"Workers thought they had a lifeline through the six-month extension which would allow more time to plan and see where the jobs of the future could be," he said.
"Today they feel like the rug has been pulled out from under them."
Mr Williams said workers were disappointed a longer-term arrangement could not be reached considering Origin Energy now have the security to operate for the next three years.
"Because of provisions our union negotiated, Centennial Coal has an obligation to work with us through this process," he said.
"This will involve extensive consultation with the workforce and looking at options such as redeployment opportunities to nearby mines or internal transfers.
"We have confirmed that workers will receive their full entitlements and access to support during these changes."
An Origin Energy spokesman said the company remained in negotiations with Centennial.
"We're hopeful of reaching an agreement on future coal supply from Myuna at a fair and competitive price that can flow through to consumer power bills," he said.
Mr Williams said the union will work with its members "every step of the way" and provide ongoing support to those affected.
Collieries' Staff and Officials Association (CSOA) lead organiser Belinda Giblin said it's an "extremely difficult day" for 200 coal mining workers, their families and the community.
"For many months, the CSOA and other mining unions have worked hard with Centennial, Origin, and the NSW and federal governments to avoid this outcome for our members," she said.
"We had hoped that a recent deal struck between Centennial and Origin Energy would provide workers with at least six more months of certainty until at least Christmas, but unfortunately that has not come to pass.
"On the basis that it believed it no longer had a reliable domestic market for its coal, due to decisions by Origin Energy, Centennial has decided to restructure its operations to serve the export market."
Ms Giblin said the CSOA is working with its members to help mitigate the impact of the job losses on their livelihoods.
"However, let us be clear," she said.
"If Centennial, Origin Energy and the NSW Government do not come together to forge a deal to resolve this matter, the potential for further job losses at the Myuna coal mine is significant, and more workers will be affected.
"Now, more than ever, it is crucial that Centennial, Origin Energy and the NSW Government come together to resolve this situation, to ensure that further job losses are not incurred at the Myuna coal mine, in the best interests of workers, their families and the community."
Company says job cuts will secure mine's future
CENTENNIAL Coal has confirmed 200 jobs will be slashed at its Mandalong mine in the Hunter as the company undertakes a "significant restructure".
In a statement to the Newcastle Herald, Centennial said the restructure will secure the mine's long-term future as it transitions to focus on export markets.
"We are disappointed that this operational restructuring has led us to this very difficult decision regarding the workforce, however we are confident that this action will save the majority of jobs currently under pressure at the mine," it said.
"There have been a range of factors that have impacted our operations at Mandalong including higher production costs, which have been compounded by the ongoing uncertainty and changes in the domestic market landscape brought about by the introduction of coal price cap legislation.
"These factors have made it difficult to secure ongoing domestic coal supply contracts."
Centennial Coal warned of mass job cuts for months when it was locked in fruitless negotiations with Origin to renew its contract to supply coal from the Myuna and Mandalong mines.
The company warned any failure to renew its supply contract with Eraring Power Station would be a social and economic disaster.
In May, the state government announced that it would pay Origin up to $450 million to keep Eraring open for two years beyond its planned August 2025 closure.
The Mandalong mine usually contributes about half its coal to Eraring. There are about 600 jobs at Mandalong mine and 350 at Myuna.
Centennial Coal said a range of factors had impacted its operations at Mandalong, including higher production costs which had been compounded by ongoing uncertainty and changes in the domestic market brought about by the introduction of coal price cap legislation.
"These factors have made it difficult to secure ongoing domestic coal supply contracts," it said.
"These issues coupled with higher royalties, increased labour expenses and costs associated with the introduction of the federal government's Safeguard Mechanism, that mandates emission caps, has forced Centennial to make this difficult decision to secure the future of the mine."
Centennial said it has been actively working with the state and federal governments to overcome the challenges, particularly during the negotiation period before the NSW Government decided to underwrite the extension of Eraring Power Station.
"Centennial is disappointed that despite our best efforts there has been a failure to achieve a domestic coal supply contract for Mandalong that would secure NSW energy security," it said.
"Therefore, this restructuring is a business decision aimed at ensuring the long-term sustainability of the mine."
The restructure will reduce "unsustainable costs", affecting 200 workers which Centennial assures will receive their full entitlements and access to support.
The company said it is working to facilitate internal transfers across its operations, including opportunities at Myuna and its Western District mines to try to minimise the number of redundancies.
"This difficult decision follows careful consideration and consultation with employees on the Mandalong mine's future," Centennial said.
"Centennial understands that this news will be difficult for its dedicated and hardworking workforce and their families, and we regret that we have had to take this action but we are committed to providing essential support to those impacted by this decision."
The Newcastle Herald has reached out to the Australian Manufacturing Workers Union and the Electrical Trades Union for comment.
