The current agreement, which expires on 26 October 2015, would be renegotiated to focus on delivering cost efficiencies and safe productivity improvements, BMA Asset President Rag Udd said.

“It’s a very challenging time in the coal sector as prices have deteriorated significantly in recent years. This year alone prices have declined by 25-30% and we expect low prices to continue in the medium term,” Udd said.

“The current agreement was finalised in a market environment with considerably higher prices and margins. It involved a lengthy and costly process that must not be repeated.”

The mining union is stepping up pressure on the BMA to rule out contracting out its entire permanent workforce at its Bowen Basin mines, including Peak Downs, Saraji and Goonyella Riverside in Queensland.

As the company seeks to lower unit costs in the low coal price environment, it is increasingly turning to casual and contract labour to circumvent paying full time wage levels struck with the unions during a protracted enterprise bargaining dispute when the coking coal price was higher four years ago.

“While we have made progress over the past three years in increasing productivity at BMA, we must do considerably more to ensure our operations are globally competitive,” Udd said.

“It is important that our employment arrangements support our continued efforts to boost the productive capacity of our mines to compete globally and, as a result can continue to provide employment for the 9000 people who work for BMA in Queensland.

“We will be engaging with our employees throughout this process to ensure they understand the industry’s wider market context and receive accurate and timely information about the negotiations.”