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COAL MINING IN U.S. & AUSTRALIA.

Types, hazards, unions, management, effects of culture, work ethic, automation.

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Coal is one of the most commonly used fuels both commercially and by the consumer market. A combustible sedimentary rock, coal formed over many millions of years from the accumulation of plant material kept under pressure by the earth's surface. In addition to its direct use, coal by-products include ammonia, light oils and tar; these, in turn, yield benzene, drugs, fertilizer and insecticides.
Approximately one-half of the world's total coal output is consumed by power stations to generate electricity; an additional 25 percent is used in iron and steel manufacturing (Galuszka, 1986, p. 47). During 1986, Australia produced more than 170 million tons of coal, making it the world's ninth-largest producer of black coal. More than half of this amount was exported, primarily to Asia and specifically to Japan. New South

International trade growing fast.Petroleum Economist 59, pp. Galuszka, Peter. 39). When Australians perceive that someone considershimself better than another, and American managers who feel entitled torespect merely because of their title fall into this category, theAustralians will seek to deflate that feeling. Fires within mines alsopose threats to workers. In both cases, increasedautomation in underground mining improves the level of safety for miners.The canaries that formerly were used to detect dangerously high levels ofgases or fumes (the canary's death signalled danger) have been replaced byelectronic sensors that provide increased safety. 4C). 58). This disrespect is intendedto provide equal footing for everyone and, as with confrontation, is notnecessarily personal (Renwick, 1991, p. 4C.----------------------- 7 While open-pit mining is thus an attractivealternative from the workers' point of view, it is not always a viableoption. The methods for extracting coalin both countries are similar, although the United States uses slightlymore automation. The work ethic of Americans can also differ in key areas from thework ethic of Australians. Chironis, Nicholas P. Because the twoindustries are fundamentally similar, there can be a tendency to misjudgethe significance of the differences that underlie the similarities. This comes from the surfaceegalitarianism that pervades Australian culture. In addition to its direct use, coal by-products include ammonia, light oils and tar; these, in turn, yieldbenzene, drugs, fertilizer and insecticides. Renwick, George W. A fair go for all. Open-pit mining requires that the coal be located near the surface,whereas mine tunnels can be built as far as one mile beneath. As aresult, coal mining is heavily unionized in both Australia and the UnitedStates. There are several differences of Australian and American unions whichAmericans relocating to Australia should note. There is a tendency amongAustralians to bring those at higher social levels (including supervisorsin a business environment) down to the subordinate's level, at leastnominally. A combustible sedimentary rock, coal formed over manymillions of years from the accumulation of plant material kept underpressure by the earth's surface. Coal Age 93, pp. (1991). 38-42. (1986, June). This can be surprising toAmerican managers, who expect to be respected by virtue of the positionthey hold. Stove, Vincent. During 1986,Australia produced more than 17 million tons of coal, making it theworld's ninth-largest producer of black coal. The differences in union strategy are only one of several differencesthat American managers need to be aware of when working in Australia. 59). Similarly, open-cut mining is most common in the WesternUnited States, while underground mining is most common in the coal fieldsof West Virginia and Pennsylvania. Also, while American unions may submit toinformal arbitration, such arbitration is formalized within the Australiansystem (Renwick, 1991, p. Open-cut miningrequires less manpower per ton than underground mining, but also requireslarge capital investments in earth moving and extraction equipment.Underground mining enables operators to forgo the capital investmentassociated with open-cut mining, but requires large investments inmanpower. To beprofitable, open-pit mining must extend over a large area, thus severelyaffecting the surrounding environment and habitat. 6 ). Yarmouth, Maine:Intercultural Press, Inc. Underground mining is also dangerous. Coal is one of the most commonly used fuels both commercially and bythe consumer market. Because different geological factors determine which type of miningis used in a given area, it is unusual to find underground and open-pitmining in the same location. Thus while an American manager might approve andencourage overtime to meet production quotas, Australians workers are lessinclined to work the overtime to meet those quotas at the cost of time withtheir families. 12-13. 47-51. This confrontational approach is taken not only with peersand subordinates, but also with supervisors. 4C). There are two primary methods for retrieving coal: open-cut miningtakes place above ground and uses large machinery to cut open large pits inthe earth's surface from which the coal is extracted; underground minesconsist of tunnels running deep below the earth's surface. NewSouth Wales and Queensland together produced 96 percent of Australia'stotal output in 1986 (Stove, 1989, p. Suchmisjudgment can lead to difficulties that severely impair the mine'sability to meet its production and personnel goals. Similarly, where American workers would be well motivatedby the increased wages that overtime brings, Australian workers aremotivated by additional time off and not by the promise of additionalwages. Australian workers considerthemselves inherently equal to their supervisors, while American workersfollow chain of command and avoid confrontation. Coal Age 91, pp. Forexample, American workers are likely to avoid confrontation not only withother workers, but also with their supervisors. In addition to the content of the confrontation itself, Americanmanagers may be surprised at the willingness of Australian subordinates toopenly challenge their supervisors. Because of the cost ofthe equipment required to recover coal from open pit mines, such techniquesmay be out of reach for some mine operators (Bamber, 1992, p. Both industries are heavily unionized, and both usestrikes to gain better bargaining leverage, although the Australian unionsare likely to strike at key production times while American unions strikewhen contracts are up for negotiation. More than half of thisamount was exported, primarily to Asia and specifically to Japan. Journal of Commerce and Commercial, 382, p. Coal mining in the United States and Australia is fundamentallysimilar. Australians, on the otherhand, enjoy confrontation to the extent that they can sound argumentativeto Americans. (1989, December 4). Computers are used todetermine where and how to blast in surface mines, and extraction equipmentreduces the number of workers required (per ton) to remove coal inunderground mines (Chironis, 1988, p. During 1986, 86 percent of Queensland's totalproduction came from open-cut mining; during the same year, 83 percent ofthe coal from New South Wales was produced in underground mines (Stove,1989, p. Cave-ins, even in modern times using modernmining techniques, are still a constant hazard. Approximately one-half of the world's total coal output is consumedby power stations to generate electricity; an additional 25 percent is usedin iron and steel manufacturing (Galuszka, 1986, p. Automation in the mining industry has grown substantially in bothcountries, although for different reasons. Coal miners who work in underground mines are subject to "blacklung," a fatal condition that develops from inhaling coal dust over anextended period of time. Both countries use a combination of open-pit and undergroundmines to produce their coal, but both techniques are used in differentgeographic locations, as geology dictates. 47). The United States is also amongthe world's largest producers of coal, and there has recently been someexchange among American and Australian managers in the coal industry.Understanding the differences in management styles and labor expectationsbetween the two nations is key to understanding how to achieve maximumeffectiveness within coal operations in either country. (1988, January). Surface coal mines turn tocomputer-aided blasting. Also, while American unions hold the threat of strike as abargaining chip as contract negotiations near a close, Australian unionsstrike at times when business conditions are critical, thus giving them astrong negotiating position. However, class lines are very clear cut and few Australiansever truly cross over. The numerous hazards of underground mining (the oldest of the twomethods) and the relatively low skill level required of underground minersmade the coal mining industry a prime target for unionization. Australians consider Americans to be"workaholics," placing too much emphasis on work at the price of home lifeand leisure time. 1911 - 1986: Coal's rise and falland rise. 12). (1992, January). References Bamber, Derek. For example, terms ofdismissal, which are commonly part of the contract between labor andmanagement in the United States, are set forth by government regulation inAustralia. Australians welcome increased automation as a way to reduce thenumber of hours miners are required to work; American management welcomesincreased automation as a way to reduce labor costs (though generally byeliminating jobs, not by reducing hours of existing jobs). American managers should remember that the confrontations arenot personal, but rather, they are part of the Australian culture (Renwick,1991, p. Australia optimistic as itfaces the '9 s.

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