Boggabri coal mine switches operators from Downer Group to BGC Contracting
SOME of the 450 workers at Boggabri coal mine will have to re-apply for their jobs after the Idemitsu-owned operation awarded a new $700 million contract to BGC Contracting.
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The mine is currently operated by Downer Group, but the company was notified in May that its contract would not be renewed once it expired at the end of November.
The news sent shock waves through the community, as the mining union lamented whether current jobs would exist under the Western Australian-based company contract change and if so, whether they’d face the uncertainty of reapplying for that position.
This week, BGC Contracting was awarded the $700m, five-year contract to deliver mining and equipment maintenance services at the Boggabri open-cut coal mine, which will come into effect on December 1.
While Idemitsu confirmed to the NVI that some of the current staff will be forced to re-apply for their position, BGC CEO Greg Heylen said it made sense for them to recruit locally.
“In addition to being a good corporate citizen, local recruitment will ensure we retain valuable skills and achieve a smooth transition of services, in addition to maintaining the safety of people on the project,” Mr Heylen said.
“We are hopeful that most of the workforce currently employed at Boggabri by Downer will continue to work at the mine with BGC if they wish to apply and are successful in their application.”
Idemitsu Australia Resources chief operating officer Steve Kovac confirmed Idemitsu’s commitment to sourcing the required personnel from the current workforce and from the local Boggabri and surrounding communities.
“The current workforce will have the opportunity to continue working with us at Boggabri Mine into the future, if they choose to be part of the process,” he said.
Boggabri Coal Operations and BGC Contracting will provide details of specific employment opportunities as soon as possible.
Downer was contacted for comment, but did not respond by time of publication.
FIFO is not an option: mining union
THE mining union is calling on the incoming operators of the Boggabri coal mine to reinstate current staff under a $700 million contract changeover.
Construction, Forestry, Mining and Energy Union president Peter Jordan fears for the future of the 450 current Downer workers when the Idemitsu-owned mine changes operators to BGC on December 1.
Workers have been told they will need to re-apply for their jobs, sparking uncertainty for staff and their families who may now consider leaving Boggabri and Gunnedah to follow work with Downer elsewhere.
The union’s position is that Idemitsu and and BGC should offer all current employees a guarantee offer of employment.
- CFMEU president Peter Jordan
While Mr Jordan fears workers could be fly-in fly-out (FIFO) when the Western Australian-owned company BGC Company takes over operations, BGC CEO Greg Heylen said “that most of the workforce currently employed at Boggabri by Downer will continue to work at the mine with BGC if they wish to apply and are successful in their application”.
Mr Jordan said Idemitsu has provided “no certainty to Downer employees that they’ll still have a job”.
“The union’s position is that Idemitsu and and BGC should offer all current employees a guarantee offer of employment and if that employee doesn’t want to stay, then that’s up to them,” he said.
Mr Jordan said fly-in fly-out work arrangements were not an option.
“The union has made it very clear that under no circumstances, there is fly-in fly-out arrangements with Idemitsu or BGC.
“The current workforce at Downer are local residents and employees. That’s what we expect.”
Mr Jordan feared the changeover could leave a hole in the local economy if current Downer employees moved away.
“That’s a real worry,” Mr Jordan said.
“The sooner they get out there and reassure (workers) they have a job, the better.
“The bottom line is, if they want a job, they should be given one.”
Gunnedah Shire Council mayor Jamie Chaffey responds
GUNNEDAH mayor Jamie Chaffey wants to see current staff retained at the Boggabri coal mine as mining giant Idemitsu undertakes an operations overhaul.
It comes on the back of the Idemitsu-owned mine switching operators from Downer Group to BGC Contracting under a $700 million contract change.
“There’s no question that the extractive industry in and around the Gunnedah LGA plays a strong part in our economy,” Cr Chaffey said.
“If looking at the viability of (this mine) means changing contracts, it can only be a positive thing for the Gunnedah region. It would be our wish that anyone who works at the mine that their job is stable, their employment is stable.”
Cr Chaffey said the mining industry is one of two major ones to contribute to the shire’s economy.
“As far as council goes, it’s important for our economy that people who reside in the area are gainfully employed and their wages are re-invested into the local economy.
“Agriculture and the extractive industry are the backbones of our economy.”
Economy ‘at risk’ under mine change
BUSINESS leaders fear operational changes at Boggabri coal mine could leave a hole in the local economy.
Up to 450 people currently working at the Idemitsu-owned mine will have to reapply for their jobs when it switches operators from Downer to BGC Contracting on December 1 under a $700 million contract change.
The mining union fears families could leave the area, while BGC insists it will do all it can to re-employ current Downer staff.
Boggabri Progress Association president John Shaw hoped the changeover would have minimum disruption on the community.
“While I haven’t spoken directly to either the mine or the contractors, we as a business and progress association would not like to see any of our community lose their jobs,” Mr Shaw said.
Gunnedah Business Chamber president Mike Broekman said it could have a significant impact on the residential and retails sectors should staff move away.
“We hope there’s minimal impacts on the communities of Boggabri, Gunnedah and Narrabri,” he said.