500 workers from Griffin Coal at Collie in Western Australia remain in limbo six months after the company was put in administration with debts totalling over $700 million.
Despite speculation the administrators would cut the 500-strong unionised workforce, the workers have managed to keep the coal mine running.
But their jobs are still far from secure and they’re owed a staggering $45million in unpaid entitlements.
Griffin Coal was Australia’s biggest privately owned company run by one of Australia's most reclusive businessmen, Ric Stowe.
Mr Stowe was last year estimated to have a personal worth in excess of $700m.
“His company had just built two new power stations in Collie but they used the mine to finance them,” explains AMWU Lead Organiser Shane O’Reilly.
“Griffin Coal didn’t go broke; it was all the other companies sucking the money out of it. We were in the midst of negotiating a new collective agreement for the site, so when I got the call to say it was in administration it was a huge shock.”
The administrators are now deciding on whether to restructure the business or sell it as a going concern.
AMWU Senior Delegate Brett King hopes a buyer can be found who is willing to take on the skilled workforce, which includes 120 members of the AMWU and 380 members of the CFMEU.
“We’re still exporting coal and producing coal for power stations, but whether we get a buyer who takes the business lock, stock and barrel or just takes it to pieces and sells it as spare parts, we don’t know. Some companies just want the mining leases, not the workers that come with it.”
Griffin Coal is Western Australia’s second largest coal supplier and mines more than five million tonnes of black coal a year, including about 1 million tonnes for use in the nearby Muja and Collie power stations.
The administrators, KordaMentha, expect to have a shortlist of potential buyers by early August and are using the company's export potential through the West Australian port of Kwinana as a key selling point.
Meanwhile a huge sell down of Mr Stowe’s assets has begun, including his country estate at Bullsbrook, complete with helipads, polo fields and a horse stud.
“This company has been running since 1923. But the owner just appointed the administrators and, as far as we know, he’s walked away. Last I heard he was on his boat the Capella C on the French Riviera,” said Brett King.
If he is made redundant, Brett thinks there’s little chance he will get his full entitlements.
“If you include redundancy pay I’m owed about $200,000 so there’s big dollars at stake if we lose our jobs. It’s hard for people. After 27 years of service I just want what’s due to me.”
Shane O’Reilly is working to ensure that any potential buyers recognise not just the value of the mine, but the workers who have kept it running.
“We’re hoping it gets sold and no-one loses their jobs because this is a small community and employment is important down here. Collie is a union town and we don’t want to see any redundancies here.”