A union has accused the operator of a mine at Cobar of breaching its agreement with workers by failing to consult before it moved to shed more than 100 jobs.
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The Australian Workers Union (AWU) says it wants CBH Resources to "come back to the table" and make decisions about the future of the Endeavor mine in a "fair and decent way".
AWU greater NSW secretary Russ Collison warned if the company did not consult, he would notify the Industrial Relations Commission, but CBH Resources chief Visko Sulicich rejected the claim of a breach, saying the company had continuously consulted with its workforce ahead of its announcement on Monday.
Employees of CBH Resources' Endeavor mine were told on Monday that 116 positions would go and production would be reduced from 64,000 tonnes of zinc and lead in 2015 to 10,900 tonnes.
The downsizing comes at a time of historically low commodity prices and the company has said the remaining life of the mine is two to three years if current production levels are maintained.
On Tuesday the AWU notified CBH Resources of its position that the way the company had acted was "inappropriate" and the union should be involved in consultation.
"I do understand the metal prices have been knocked and I'm not suggesting the company has not got the right to run their business," Mr Collision said.
"But what I am saying is they can't just make the announcement without adhering to the conditions of the agreement and the provisions under Fair Work - they have to consult."
He called the company's actions "totally inappropriate and unfair and unjust".
"So we're asking them to come back to the table and to go about it in a fair and decent way," he said.
"(If they don't) then they leave me with no alternative but to notify the Industrial Relations Commission that there has been a breach of the agreement by the company."
On Tuesday as meetings with Endeavor employees continued, Mr Sulicich rejected the union's claims and stayed the course already begun.
"We don't believe we've breached any of the agreement conditions and we have continuously consulted with our workforce," he said.
The chief operating officer said the company had started consultation with its workforce back in December, holding a number of meetings with employees about the budget it had proposed to its owners.
He said they had explained at those meetings there was a depressed commodity price environment and the budget had not yet been approved.
They had also explained that if there was not an improvement in prices, they would "start to look at restructuring the operation".
In relation to the comment the actions had been "inappropriate, unfair and unjust" Mr Sulicich said they were "trying to stay in business".
"We are trying to preserve the reserve and keep some operation going in these difficult times," he said.