Anxious wait for unpaid Gujarat NRE miners ABC Rural Melinda James
Updated 3 minutes ago Map: Wollongong 2500
Hundreds of coal miners in the Illawarra who haven't been paid for three weeks are facing an uncertain future as their cash-strapped employer Gujarat NRE tries to finalise a takeover bid.
About five hundred Gujarat NRE employees are waiting on the outcome of a crucial shareholder vote next week on a possible takeover by Jindal Steel and Power to find out if their jobs are secure.
About half the workforce has chosen to take unpaid leave but the rest are still working without pay in the hope they'll receive back pay if the takeover goes ahead.
But the number of employees showing up each day is dwindling.
The Vice-President of the CFMEU Wayne McAndrew says it's an unusual situation but workers want the mines to stay open.
"Strange, very concerning, very frustrating really because it's difficult to do a great deal other than try to work with the company as I said to get through the difficulties so that we have two viable mines operating in the Illawarra", said Mr McAndrew.
Local union delegate Wilf O'Donnell says many workers are struggling to make ends meet.
"I spent two hours this morning negotiating with a local supermarket chain and our credit union to try and provide food vouchers for these men. I know a lot of people think coal miners are overpaid and underworked but I'm literally out there looking for food vouchers," he said.
There was some relief today at a mass meeting of workers in Wollongong, with the union announcing it had secured an emergency payment of about $1200 for each worker that would be distributed from today.
The money has come from funds owed to the company by the Industry Long Service Leave Fund.
Workers were also offered free counselling services and financial advice.
Labor MP Ryan Park, whose electorate includes the No. 1 Colliery at Russell Vale, says he's also asked the Premier and Treasurer to meet with him to discuss offering unpaid workers some flexibililty when it comes to paying bills.
"Payments to state government utilities, things like water bills, electricity bills, local government rates, if people are falling behind in fine payments, issues to do with telecommunications. They need to come and see me. We will make sure that those workers, their concerns and we don't see bureaucracies and red tape get in the way in what's a very difficult time for workers and their families," said Mr Park.
A statement from Gujarat NRE Chairman Arun Jagatramka was read out to workers at the meeting.
It says falling coal prices, a strong Australian dollar and liquidity constraints have affected day-to-day cash flow.
Mr Jagatramka says all possible avenues of obtaining more finance between now and the shareholders meeting next week are now closed, leaving the takeover bid by Jindal the company's only hope.
He also claimed to be "baffled" by Jindal's recent and "sudden withdrawal and absolute refusal ... to remit even the critical amount needed for timely payment of weekly wages."
"This was never expected by me and I am at a loss for words in this regard," said Mr Jagatramka.
The CFMEU's Wayne McAndrew says he's concerned about Jindal's decision to recently withdraw funding and he hopes their intention to take a controlling stake in Gujarat NRE on Wednesday the 16th October hasn't wavered.
"It makes me worry about the deal on the 16th but bearing in mind until that letter was read out, the company was of the view that things would turn around and things would get better after the 16th," said Mr McAndrew.
Doubts are mounting over whether a deal to save Gujarat NRE Coking Coal’s two Illawarra mines will go ahead next week.
Chairman Arun Jagatramka on Tuesday told more than 300 miners he was ‘‘baffled’’ by the recent behaviour of his company’s potential new owners, Jindal Steel and Power.
Mr Jagatramka is overseas and his statement was read out by NRE mines general manager Rhys Brett at a union meeting held at the Fraternity Club.
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Staff at the mines haven’t been paid for three weeks, and were told last week the company had no money to pay them until at least October 16, when shareholders will vote whether to allow Jindal to become Gujarat NRE’s majority shareholder. Mines manager for Gujarat Rhys Brett reads a statement.
Mr Jagatramka’s words caused a stir among the miners, some of whom broke out in laughter as the statement began: ‘‘Dear friends we have before us some very challenging times.’’
He went on to blame falling coal prices, the external global financial environment, the strong Australian dollar, along with ‘‘liquidity restraints’’ for Gujarat NRE’s ability to pay its workers.
He said his parent company in India – Gujarat NRE Coke – had provided as much support as possible to keep the mines running in recent months, but said those funding arrangements were no longer available with Jindal projected to take over the company.
‘‘We did try and raise whatever cash we could from all potential sources by selling our non-core assets... which were our properties in Bank Street, Cliff Road and shares in REY Resources to sustain our mining operations in this period,’’ Mr Jagatramka’s statement said.
‘‘I’m thankful to Jindal for providing partial funding over the last three months to sustain operations, but I am baffled by their sudden withdrawal and absolute refusal, suddenly to remit even the critical amount needed for timely payment of weekly wages.
‘‘This was never expected by me and I am at a loss for words in this regard. My hands are tied.’’
Mr Brett was met with stony silence as he finished reading out the letter, before several workers put up their hands to ask questions of the company.
They wanted to know about rumours the power in the mines would soon be switched off, whether they could access sick leave payments while wages were on hold and demanded to know when they would hear from a Jindal representative about the company’s future.
‘‘Can anybody in this room tell us whether, on [October 16] next week, we’re going to be told ‘it’s all over and there’s no funds coming to you’, or [if] we’re going to be told ‘yes Jindal is going to take over and they’re going to back-pay you and sort everything out and financially you’re going to be all right’,’’ one man said.
‘‘Is that going to happen, or are we going to be told ‘you’ll just have to wait for another couple of weeks’?’’
However, Mr Brett was only able to ask for patience, repeatedly saying his company was in ‘‘uncharted waters’’ and would remain flexible until there was ‘‘further clarity’’.
‘‘No-one here can answer that question about what will happen on the 16th,’’ Mr Brett said.
This uncertainty alarmed the CFMEU’s general vice-president Wayne McAndrew, who said he and the union’s national officials had never experienced anything like the Gujarat NRE situation.
‘‘[Hearing what Mr Jagatramka said] makes me worried about the deal on the 16th, but until that letter was read out today the company was of the opinion it would turn around,’’ he said, See your ad here
‘‘At the end of the day, we’re hopeful the company can trade their way out of it because that’s the aim of all this. The last possible outcome we want is the closure of the two mines.’’
The union meeting was also attended by several Illawarra Labor politicians – Sharon Bird, Stephen Jones and Ryan Park, as well as Gino Mandarino on behalf of Anna Watson – who expressed concerns and offered their support to workers.
Representatives from AusHelp – a Canberra-based organisation which deals with mental health issues for miners and other blue-collar workers – and financial institutions also attended.
Hundreds of Gujarat NRE workers gathered at the Fraternity Club this morning for a union meeting, hoping for advice on their current financial plight.
The workforce has not been paid for nearly three weeks and do not expect to be paid before October 16. See your ad here
This morning's meeting was attended by several local MPs including Ryan Park, Sharon Bird, Stephen Jones and Gino Mandarino, on behalf of Anna Watson, who all expressed their concern for the situation and offered their support.
Representatives from AusHelp, which is designed to help miners deal with stress, along with financial advisers from several credit unions and banks were also on hand.
The mining union told workers it was doing everything it could for the workers.
The CFMEU has managed to secure long service leave funds to distribute to staff. See your ad here
Rhys Brett, general manager of mines at Gujarat NRE, appeared on behalf of the company.
He read out a letter, written by chairman Arun Jagatramka, expressing his sympathy.
Mr Jagatramka noted he had worked hard to try and avoid the company's current financial situation
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Gujarat NRE have again failed to pay workers their weekly wages and cannot confirm when the money will be available.
Workers were yesterday informed by the company that their wages had been delayed and “apologised for any inconvenience this may cause”.
The company, which run two mines in the Illawarra region, said that operations and cash flow was expected to stabilise after a general meeting scheduled for October 16.
“We hope to make the payments as soon as possible and to keep the delay to an absolute minimum,” the company’s executive chairman Arun Jagatramka said.
However when pushed today, a spokeswomen for the company could not confirm when the workers should expect their wages to be paid.
The Association of Professional Engineers, Scientists and Managers Australia (APESMA), which looks after around 100 workers at Gujarat, said employees should have been paid on Wednesday afternoon and had not been given any guarantee their wages would be paid next week.
APESMA collieries staff division director Catherine Bolger said the situation is completely unsatisfactory.
“They have told us they will not be able to pay wages this week. Maybe next week. Maybe not,” Bolger said.
“Getting paid is a fundamental part of working.
“Workers have the right to be paid on time. Gujurat is not living up to their responsibility to pay workers: they are being unfair in the extreme.”
This is not the first time the company has issued late wages to its workers.
Earlier this month dozens of workers withdrew their labour over the late payment of wages, with claims the company had continually failed to pay its workers on time.
A source close to the company told Australian Mining Gujarat had continually failed to pay its employees on time.
“People have mortgages to pay and kids to feed, it’s just not on,” he said at the time.
The man said workers had a meeting with the CMFEU to vote on any action that would be taken if the issue arose again, suggesting further strike action could take place at the mine.
“The general consensus is that they're not going to put up with it,” he said.
In further financial issues, workers at the coal mines have lodged complaints with the Australian Taxation Office over unpaid superannuation.
Reports have emerged that the coal mining company has failed to make any superannuation payments to its employees since March.
The company yesterday asked the union and the workers "to be understanding and work with the company to help them overcome these hard times".
“As we hear daily Australia is experiencing a mining downturn, the drop in the coal price and a hgh Australian dollar are all major contributors,” Jagatramka said.
"Gujarat is also experiencing these difficult times but is working to maintain its workforce."
Workers from both the Russell Vale and Wongawilli mines are attending meetings today to discuss the situation.
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