Muswellbrook council has called for the Hunter Workforce Transition Advisory Group to be suspended until appropriate governance has been developed and agreed to by impacted councils.
It follows repeated warnings from the Hunter Joint Organisation and local government authorities about the lack of genuine engagement throughout the region.
In one example, the closure of BHP's Mt Arthur in 2030 will result in the direct loss of about 2400 jobs.
While the mine is supporting its staff as it moves towards closure, supply chain businesses and their workers are not receiving the same level of support.
Muswellbrook mayor Jeff Drayton said the council had argued that for many workers who have spent their entire careers in mining, the socioeconomic consequences of the transition will be profound and long-lasting.
"The government has got no idea," he said.
"The council is at the forefront of these changes, yet at nearly every opportunity council's attempts to engage constructively with the federal government have been stonewalled and ignored."
The Hunter Joint Organisation formally wrote to Employment and Workplace Relations Minister Amanda Rishworth on January 5 outlining serious concerns regarding the consultation framework for the Regional Workforce Transition Plan and Transition Fund.
Despite this, the first engagement with impacted councils occurred on May 29, well after key decisions had been made.
Muswellbrook council is also concerned that it was determined at this meeting that the composition of the Hunter Workforce Transition Advisory Group had been personally determined by the minister, deliberately excluding directly impacted councils.
Cr Drayton said the incident raised serious questions about whether the needs of Hunter communities were being properly represented.
"Council is not a stakeholder in this transition; we are leading it on behalf of our community. This seems to be at odds with how the federal government is dealing with the significant impact these changes will have on our community. The lack of engagement with us is a disgrace.
"Our workforce critically needs support. The federal government has access to the resources and funds that could make a real difference for our community, but they can't even tell us what those projects are."
The council has written to Industry and Innovation Minister Tim Ayers and Minister Rishworth with concerns regarding the operation and composition of the Hunter Workforce Transition Advisory Group and the lack of respect shown to councils.
The primary concerns of Muswellbrook Shire Council are:
initiatives that deliver measurable outcomes for our workers, businesses, and our communities.
A Net Zero Economy Authority (NZEA) spokeswoman said the authority was established to support workers, industries and communities most affected by the economic transformation caused by Australia's changing energy system.
"NZEA is working with the Hunter community, unions, industry, First Nations partners, state governments and local councils to help ensure change is orderly, fair and creates long-term opportunities," she said.
"The NZEA regularly engages directly with the Muswellbrook Shire Council and other Hunter stakeholders. The NZEA is working with all Hunter stakeholders, including local councils, to develop an action plan to guide our ongoing work and supports, and ensure we're being responsive to what Hunter communities need and want.
"To support this effort, the NZEA board is meeting in Muswellbrook later in June, and will meet with a broad range of stakeholders, including local councils, business groups, Traditional Owners, unions and others."
