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Jake Andrews, president of mining giant Bluemines International stands at the end of the highly polished oak boardroom table. Tall, distinguished looking and blunt, Andrew

Jake Andrews, president of mining giant Bluemines International stands at the end of the highly polished oak boardroom table. Tall, distinguished looking and blunt, Andrew is recognised as a tough no-nonsense manager. 'As you are aware, the prices of our two core products, iron ore and coal are at rock bottom. China, our major customer is not buying, and the price of our high-grade thermal coal is at a 10-year low. The pressure is on. We must curt costs or we will go under. It is that simple. I am open to suggestions.'

Bluemines Australia CFO Michelle Vella is the first to speak. 'The obvious choice is to close the Kookaburra Mine. It is the highest cost mine in our portfolio. It is a constant source of industrial problems and takes up far too much management time.'

'I agree.' Says Mike Lee, general manager of operations - Australia. 'The union runs that mine. It is impossible to implement any changes that will increase productivity. We have been stuck in negotiations with the Fair Work Commission for almost two years trying to reduce headcount and introduce more flexible work arrangements. To become viable in today's market, we need to cut 500 jobs and reduce our wages bill by at least 25 per cent. But our hands are tied. We can't manage the mine according to best practice because we are at the mercy of the unions and the FWC.'

'Mike is right, but there are some potentially serious social and political problems,' Sasha Mena, CHRO for Bluemines Australia adds. 'If we shut down the mine and put all 2000 employees out of work, the effects on the local community and its people will be horrendous. Green Valley is a mining town, we are the major employer - the economic and social consequences of a mine closure will be disastrous. Local house prices have already dropped by ten per cent based on rumors of cutbacks in the mine workforce.' 'If the workers and the unions don't want to face reality, what else can se do"' asks Mike. 'Our cost per tonne at the Kookaburra mine is $50 compared with $25 at our other operations.'

'Why don't we give them an option? Agree to our suggested changes or face a complete shutdown - 500 jobs versus 2000. Surely the union and the FWC would have to give it serious considerations,' says Sasha.

What about the government?' asks Brad Tyndall, chief mining engineer. 'Green Valley is in a marginal electorate. The government may come up with some tax breaks or some other form of financial assistance. You know what politicians in marginal electorates are like - they will bend over backwards to protect their seats.'

'That may be true, Brad,' says Michelle, 'but what is going to save this company is not government handouts but becoming internationally competitive. It's not just Kookaburra Mine jobs. If we don't reduce costs and improve our productivity, there will be a massive job cuts across the whole company.'

'The mining boom is over', snaps Jake. 'Don't people in this country realise that we have the highest minimum weekly wages in the world - our productivity is declining. We're dogged by high taxes, government red tape, rigid workplace rules, excessive labor cost, militant unions - why would any international resources company invest here?'

Jake's outburst is interrupted by Adrian Bertram, vice-president of Bluemines International. 'What about robotics? We have slashed costs at the Mirrabooka and Mandalay mines by introducing driverless trucks and trains. I think technology is the key to our survival. One worker at a computer screen can now monitor as many as 50 driverless trucks. Let's get rid of the truck drivers at the Kookaburra Mine for starters - no more meals break, top work meetings, no penalty rates - the trucks work 24/7, 365 days a year and have a great work ethics. Each truck can save more than 500 works hours a year. Staying ahead of the technology curve is the only way to go. Why have people work in an unpleasant and dangerous environment? Robots can cut costs and save lives.'

'You are correct, Adrian, but what it means is that in mining and other industries, many people are going to be economically valueless - what can our displaced workers do? Many of them will be incapable or earning a living. They simple don't have the skills,' says Sacha.

'Who knows,' Mike responds, I read that robot performing routine tasks cost about US$ 5-6 an hour over their lifetime maintenance and energy cost.'

'The question is where does that leave highly paid, unskilled Australian workers?' asks Jake.

'Labour no matter how inexpensive will decrease in importance - human replacement by robots is the game in town, says Adrian.

Surely this must involve serious economic, political, and social issues, says a worried Sasha.

"Only time will tell" says Adrian, 'if robots will make lives better by making a small group of winners and a vast number of losers.'

QUESTION - What economic, political and social issues are raised? Justify with evidence from the case.

QUESTION - What are the relevant change concepts, theories, and frameworks that can be applied to this case? Mention at least two and justify the relevance of each theory.

QUESTION - Outline a change plan demonstrating how your preferred strategy or strategies could be put forward to address the issues and problems in this case. Provide a brief outline of each strategy and a timeline for the execution of your proposed implementation plan.

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