It was announced in April that BGC Contracting had won a contract to service Arrium Mining's mine at Southern Middleback Ranges, replacing existing contractor HWE.
In the lead up to BGC assuming the contract, existing HWE employees were asked to reapply for their positions at the site.
However, it is believed that the company did not provide adequate notice to existing employees that they had not received a contract.
Prior to the contract tender change, HWE had employed about 500 workers at the site, while BGC is expected to require 350 to 400 when it assumes the contract in November.
Australian Workers Union (AWU) organiser Scott Martin said he understood that BGC would need to cut the workforce at the site, but believed BGC had not been transparent with the existing employees.
"For a majority of the HWE employees that wanted to get a job through BGC, most of them went for their medicals and interviews six to two months ago," he said.
"And then they weren't hearing any feedback in terms of whether they had the job, not had the job or needed to start looking somewhere else for work.
"They were ringing BGC up and basically getting a similar response, being told that they would get back to them in a couple of weeks."
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