The Chinese mining company, operates the Ashton coal mine just outside of Singleton, as well as Austar near Cessnock and Abel between Newcastle and Cessnock.

In November, Yancoal established a company known as Yancoal Mining Services.

And, after two months, in January, they told 180 workers they must sign contracts with the new company or be sacked.

The new contracts strip them of much of their existing redundancy entitlements and accrued future sick leave.

Director of the Collieries’ Staff and Officials Association Catherine Bolger said workers were being hung out to dry by the company.

“Workers who have dedicated almost a decade of service to the company are being forced to sign away their redundancy entitlements, which they have earned through years of hard work,” Ms Bolger.

“They are literally being hung out to dry. They are being asked to do exactly the same job, for exactly the same company, but to give up many of their workplace entitlements, or else.”

Employees affected include those at Ashton Coal Mine (NW of Singleton), Donaldson Abel (between Newcastle and Cessnock) and Austar (Cessnock).

Ms Bolger said she was concerned about what the decision means for the future of these 180 workers and their families.

“You have to wonder what Yancoal is planning to do with these workers, after they’ve stripped them of their redundancy entitlements.

“Clearly this is part of a long term strategy by the company to get around its obligation to pay future redundancies to some staff who have done 10 year of service or more.

“It tells the local community a lot about the commitment of the company to Hunter workers and families that they would so brazenly hang their long-serving staff out to dry.

“This is a betrayal of the most loyal miners at these sites.

“It has us concerned about the company’s future intentions and the job security of workers at these mines – why else would a company suddenly move to water down its workforce redundancy entitlements?”

A spokesperson for Yancoal says the Collier’s Staff and Officials Association is continuing to misrepresent the situation.

"The continued misrepresentation of the available facts by the Collier’s Staff and Officials Association is little more than scare-mongering and demonstrates its continued struggle for relevancy in a modern workplace environment," the spokesperson says.

"As has been explained during the recent Fair Work hearing, balances of accrued personal leave at the end of January will be preserved and paid out in the event of future resignation or termination."

"For example, if a staff member has accrued $150,000.00 of paid sick leave to date, as some people have, they remain entitled to this amount on exit."

"This accrued amount will be paid further to any other accrued leave, bonuses and redundancy amounts they would also receive under existing legislation."

"However, outdated and excessive conditions such as the paying out of accrued sick leave, remains unsustainable for our operations."

"As a result, personal leave accrued beyond February will no longer be paid out on resignation or termination. This change is in accordance with standard modern workplace agreements across the country."

"It is important for the Collier’s Staff and Officials Association to start acknowledging that in the current poor economic environment, unsustainable costs close mines."

"The future of our business will be determined by our ability to operate under a fair, modern and equitable workplace agreement for all staff, while taking appropriate action to reduce excessive costs."

"We continue to consult with our people openly and transparently in accordance with all Fair Work requirements."