“The future of East mine is in the hands of 120 striking coal miners and maintenance staff,” Solid chief executive Barry Bragg said.

“It’s up to them whether they reconsider and accept our offer or whether they stay on strike indefinitely.”

At a meeting in Huntly yesterday morning, the underground miners rejected the offer, which included the introduction of a new seven-day roster at East mine and an 8.5% total annual pay increase.

The offer was negotiated between Solid Energy and delegates of the Engineering, Printing and Manufacturing Union at talks earlier this week.

Delegates did endorse a revised offer made to 180 miners working for contractor HWE Mining at the nearby Rotowaro open cast mine which was accepted at another meeting this morning, but those miners have remained on strike in support of East mine.

In addition to site-specific arrangements, Solid Energy said it had offered its unionised employees a 2% increase in base remuneration in year one and a 3% increase in year two. A 3% lump sum payment (about $NZ2000) was also offered in recognition of the company’s record profit in the 2009 financial year.

On top of that, Solid Energy has offered Huntly East miners a 6.5% increase for moving to a four days on, 10 hours a day, four days off roster (with an optional fifth shift every two weeks).

However, the Huntley East employees have asked for a further 5%, taking the total increase to 13.5%.

“We’ve been talking to our staff and the union for months about why East mine must move to a seven-day roster, already in place at our other mines, to improve the mine’s productivity and viability,” Bragg said.

“Maintenance staff at the mine already work 12-hour shifts. The workforce is already the highest paid in the country. The mine is marginal and has not achieved its production targets in any of the past five years. In rejecting our offer and holding out for a 13.5 per cent increase, the miners have taken this operation to the brink.

“Since record export prices collapsed in November 2008, the company has struggled to break even. Without major capital investment and the seven-day rosters, East mine has no future.

“We have today frozen all previously approved capital expenditure at any mine not in normal operation.

“We’re fast losing credibility with the mine’s main customer, New Zealand Steel, which is importing coal from Indonesia and, if we are unable to guarantee secure, competitive supply to New Zealand Steel, the mine has no future.

“No one is winning here, but a lot of people are hurting.”