Media Release

Solid Energy calls for a return to the bargaining table

4 July 2007

Solid Energy is calling for industrial action at its coal mines to be lifted and for the Engineering Printing and Manufacturing Union (EPMU) to return to the bargaining table.

Solid Energy's Chief Operating Officer, Barry Bragg, says that the ongoing industrial action across its sites is very disappointing. "The industrial action is disruptive to our operations and is costly for the company, its customers and the staff who are taking it. The strike action at Spring Creek Underground Mine is causing particular concern as it is delaying development at the mine."

"We've got a good offer on the table: two-year settlement totalling 5.5% in the first year, 5% in the second year and an additional week's holiday."

"On top of that, Spring Creek workers have already had a site settlement which, together with our current offer, would see them receive pay rate increases totalling 11% and lump sum payments of 4.5% by 1 April 2008. This includes a 2% pay rate increase if we meet our target of starting coal production by hydraulic monitor at the mine on 1 December."

"The current industrial action is putting that payment at risk as the longer this drags on the less likelihood there is that we can start producing coal at the mine on target. We call on the EPMU to lift the industrial action so that we can get back to the bargaining table."

Solid Energy and the EPMU have been in negotiation since April for a new two-year multi-employer collective agreement (MECA) covering the company's mine sites. On Monday 25 June, the union placed a national ban on overtime and began rolling stoppages across Solid Energy sites. Workers at Spring Creek and Terrace Underground Mines walked off the job last Friday (29 June) with no indication of when they might return to work.

In December 2006, Spring Creek and Terrace workers ratified a site settlement which has delivered a 1.5% pay increase on 1 April 2007, 1.5% on 1 April 2008 and, for Spring Creek workers, a 2% increase from 1 December 2007 if coal production starts at the mine. These increases are additional to the national package offered by Solid Energy to all its unionised employees.

Solid Energy's national offer to its 350 unionised workers is a 3% pay rate increase and 2.5% lump sum in year one (5.5% total): a 3% pay rate increase and 2% lump sum in year two (5% total) and an extra week's holiday.

On average Solid Energy pays its employees covered by the MECA (mineworkers and tradespeople) one and a half times the average national wage. In the last two years Solid Energy pay increases have averaged 5% per annum (CPI over the same two-year period totalled 5.8%). The company voluntarily established a superannuation scheme three years ago and is offering to move its 4% contributions to Kiwi Saver.

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