FED: Coal mining to grind to a halt in 48 hr strike

AAP General News (Australia)
12-13-1998
FED: Coal mining to grind to a halt in 48 hr strike

By Rosalind Mathieson and Pascal Adolphe

CANBERRA, Dec 13 AAP - Coal mining in Australia will grind to a halt from midnight tonight
in a massive 48-hour strike which the federal government warns will throw jobs into jeopardy.

The strike by 20,000 miners was called by the Construction, Forestry, Mining and Energy
Union (CFMEU) to protest a deal which would cut the price of coking coal.

Coal producers were locked in talks tonight to decide their response but it is likely they
will make a submission to the Australian Industrial Relations Commission (AIRC) early tomorrow
in a bid to stop the strike.

The coal mining sector traditionally has one of the highest number of days lots to
industrial disputes in Australia, mostly in New South Wales.

That has largely centred on the protracted and bitter work practices dispute at Rio Tintos
controversial Hunter Valley No 1 mine.

But CFMEU mining division general president Tony Maher said the government had failed to
address a general coal crisis which had sparked major job losses and threatening more.

He said the government had refused to protect Australias national interest after companies
Mt Isa Mines (MIM), Shell and the North Goonyella Mine offered a major cut in coking coal
prices to overseas buyers.

They had agreed to a $US9 ($A14.60) a tonne, or 18 per cent, price cut in coking coal,
which is used to make steel while steaming coal is used for electricity production.

Mr Maher said workplace restructuring had been used by Australian producers to subsidise
lower coal export prices.

"Coal mining communities are reeling from the impact of the coal crisis and this government
is to blame," he said.

"In the past two years alone, around 4,000 jobs have been lost out of a workforce of
26,000. Yet another 1,000 are on the chopping block."

Workplace Relations Minister Peter Reith condemned the strike.

"Taking industrial action due to international market pressures which have forced the price
of coal down is ludicrous," his spokesman said.

"The actions of the CFMEU will do nothing to secure the future of Australias coal industry
and will only threaten their members livelihood."

Opposition industrial relations spokesman Arch Bevis was unavailable for comment.

But Australian Coal Association spokesman Denis Porter said the association was still
waiting for confirmation of the deal on a price cut for coking coal.

"Weve had a tough time with negotiations for coking coal and weve got the steaming coal
(negotiations) to follow," he said.

"The strike doesnt help."

Mr Porter said the world market for coal remained tough and recent job losses were a sad
but necessary part of the industry adapting and surviving in a very competitive world market.

"In recent years the cost of producing coal has been falling and weve just got to move
with it," he said.

AAP rmm/was

KEYWORD: COAL NIGHTLEAD

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