UP to 40 workers at Cobar's CSA Mine will be out of a job right before Christmas after the company announced plans on Tuesday to make about 10 per cent of its workforce redundant.
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In what was a shocking day for the GlencoreXstrata-owned copper and silver mine, general manager Geoff Hender has stood down from his role at CSA, which will be overseen by acting general manager Deon van der Mescht until a replacement is found.
The acting general manager yesterday claimed the latest redundancies were a result of "ongoing pressures currently facing the resources sector" and that a review of the business had been first and foremost to ensure the mine "remains competitive in the global market".
"We've already implemented a number of initiatives to reduce costs and improve productivity. Regrettably, we still need to do more," Mr van der Mescht said.
"As a result, we have made a small reduction in positions across our business.
"Supporting our people during this difficult time is our priority. We have already spoken with affected employees to discuss what these changes mean, if any redeployment opportunities are available and how we can assist them during this process," he said.
The Daily Liberal understands a support fund has been established to assist those impacted by the redundancies.
Many of those workers were yesterday offered severance packages and walked off site.
Cobar Shire Council Mayor Lilliane Brady is in talks with CSA officials to help those affected across the community.
Cr Brady said she understood a portion of the redundancies affected workers who were not based out of Cobar.
"We are hoping for the best and that as few as possible local families are affected by the announcement," Cr Brady said.
But Australian Workers Union (AWU) NSW state secretary Russ Collison said the timing of the announcement stinks.
"We knew the mine was in the process of reviewing its operations, and it comes as no surprise that jobs would have been lost. But seriously? Right before Christmas?
"It stinks to say the least and our hearts go out to all the workers, and their families impacted by CSA's announcement," Mr Collison said.
The AWU yesterday deployed union delegates to help 50 or more members employed at the mine.
The latest round of redundancies follows an earlier decision by CSA Mine this year to scrap a $100 million expansion project and in turn burn a multimillion-dollar earth works contract with West Australian-based company McMahons.
The news coming out of CSA also doesn't bode well for the rest of Cobar's mining community, following a string of axings made at CBH's Endeavor Mine and 40 voluntary redundancies announced weeks ago at Peak Gold Mines.
Mr Collison said his delegates would be out to ensure those made redundant got what they were owed in entitlements and that the mine did not make further axings in the weeks remaining in 2013.
"Mining companies are notorious for being difficult to work with," Mr Collison said.
"They are a law unto themselves, so we will be keeping a very watchful eye over what transpires at CSA over the coming weeks."
CSA acting general manager Mr van der Mescht said the mine remained focused on ensuring its presence well into the future.
"We are focused on improving CSA Mine's international competitiveness and in turn securing our longer term future so we can remain a profitable and productive member of the Cobar community."