BHP says a three-day strike in New South Wales, which ended on September 28, has cost it $2.5 million.
The industrial action continued even after BHP Illawarra Coal offered union representatives a new enterprise bargaining agreement that would increase employees' wages by up to 30% over three years (up to 10% each year), subject to production, safety and productivity targets being achieved.
Wayne Isaacs, president of BHP Illawarra Coal, said the offer includes a fixed base increase of about 12% over three years plus a further 18% (up to 6% each year) dependant on operational and profit results. The fixed component builds on a 1.8% rise in July, with a further 2% for this year and 4% in each of years two and three.
"If performance targets are met, this would result in wages increases of 9.8% in the first year, with follow-on increases of 10% in both years two and three - nearly 30% over the three year period.
"This offer clearly exceeds the union request for a 15% pay rise, over two years. It offers a more secure future for employees, and an opportunity to earn more as they contribute to the success of their operations.
"There are a number of other benefits attached to the offer, including increased transfer of unused sick leave entitlements into the CoalSuper superannuation scheme.
"This is a good offer for employees. We urge unions to match our willingness to settle negotiations with a bona fide offer by returning to work at Appin, Tower and Cordeaux mines," Isaacs said.
Workers at BHP’s Hay Point coal terminal and the Gregory joint venture mine were due to end their three-day walkouts on September 29 and September 30 respectively.
