Industrial action seems likely as a battle brews at one of Queensland's largest coal mines.

The CFMEU is refusing to back offers from Dawson mine owners Anglo American, which has laid out two deals to workers, both of which reportedly do not include any sort of pay rise.

The offerings from the mining company have been reported in the Gladstone Observer, the paper also claims Anglo American has been trying to implement the new agreements for several months.

The firm recently announced it was looking to sack 200 contractors, pointing to sliding coal prices as the cause.

The CFMEU's Stephen Smyth has unleashed on the general state of negotiations in Queensland, saying; “If they think they can get away with it, you are going back to the contract days where you turn up and they decide whether you work.”

Anglo American has not made comment on the recent reports, but said in a statement late last year that it would; “be implementing some necessary changes to address the current financial state of the [Dawson] operation and improve productivity.”