[miningmx.com] — BHP Billiton faces more work stoppages at its coal mines in Australia after negotiations with a union had reached an impasse and the company planned to ask employees to vote on a contract at the end of the month.
“We are looking at an escalation of industrial action across all operations,” Construction Forestry Mining and Energy Union (CFMEU) spokesperson Stephen Smyth said on Monday, adding that 12-hour work stoppages would take place at BHP Billiton-Mistubishi Alliance’s (BMA) Crinum and Gregory coal mines this week.
Mines operated by BMA have a combined output capacity of more than 58 million tonnes per year of mostly metallurgical coal, representing about a fifth of annual global trade.
BHP said earlier on Monday that after nine months of negotiation with the union, they would ask employees to vote on a proposed agreement.
“We believe we have reached an impasse in negotiations based on feedback from the single bargaining unit that they were not prepared to compromise further on matters yet to be agreed,” BHP spokesoerson Fiona Martin said.
“We are keen for employees to take the time in the coming weeks to review and understand the agreement in detail, before the end of September ballot.”
The agreement proposed by BHP would include a A$15,000($15,702) signing bonus paid over the course of a year as well as a 5% pay increase per year for three years, and some job security provisions, according to BHP’s Martin. Union workers had previously rejected a signing bonus offer of A$5,000.
Smyth said the union would reject BHP’s offer, which the union considers to have fewer conditions and entitlements in favor of workers, and “up the ante” with additional industrial actions at BHP Billiton-Mistubishi Alliance (BMA) mines.
“We oppose the agreement going out for a vote… we will be instructing our members to vote it down,” Smyth said.
The CFMEU has been pushing for greater job security and more pay for its members as rising commodity prices boost mining sector profits.
Last month, BHP Billiton posted record profits of $10.98bn for the second half of the fiscal year.
The CFMEU approved industrial action at mines operated by the BHP Billiton-Mistubishi Alliance (BMA) in June and miners have staged a series of work stoppages, targeting mines with a combined production capacity of more than 58 million tonnes per year of metallurgical coal, which is used to make steel.
About 3,500 workers belong to unions at the BMA mines out of a total workforce of around 10,000 and analysts have estimated that a full week of 12-hour stoppages could cut production by up to 1 million tonnes.
