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AGL seeks to terminate Loy Yang workforce agreement

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World Coal,

AGL Loy Yang has applied to Australia’s Fair Work Commission to terminate its current enterprise agreement (EA) following a year of negotiations with unions over the terms of a new agreement.

“Despite AGL Loy Yang’s commitment to moving forward, after a year of negotiations and over 30 bargaining meetings, negotiations have not progressed as needed and we remain apart on a number of key issues,” said AGL Loy Yang General Manager, Steve Rieniets.

“AGL Loy Yang has sought to work with unions and workforce representatives to redress the restrictive practices that hamper competitiveness and viability of the business,” Rieniets continued, noting that the company had offered a 21.5% wage increase over four years, which was rejected by the unions.

“Not only did unions reject the offer, they tabled unreasonable claims that would result in increased employee numbers, insourcing of a number of non-core activities, reduced productivity and higher overall costs to the business in the order of AUS$16 million per annum.”

AGL Loy Yang comprises the Loy Yang A lignite-fired power plant and neighbouring Loy Yang coal mine. The mine has an annual production of about 30 million tpy, which it supplies to the power plant. The Loy Yang site is located in the Latrobe Valley of Victoria.

The current EA has been in place since 2012 and officially expired at the end of 2015. However, under the Fair Work Act, an EA remains in place until another agreement is in place or until terminated by the Fair Work Commission.

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