Contractor Carna Civil Mining has announced staff off the jobs as Lanco Infratech, which owns Griffin, failed to make an outstanding payment of multi-million dollars.
The move comes months after the contractor had stopped production at the mine earlier this year.
Lanco Resources general manager David Trench was quoted by Australian Broadcasting Corporation as saying that all mine workers left the site, and there were outstanding accounts to be paid.
Construction Forestry Mining and Energy Union organizer Gary Woods said that the production would be stopped for at least a week; however, Carna would pay the workers during the dispute.
Griffin supplies coal from the Collie mine to the Bluewaters Power Station.
Griffin Coal, which entered into administration in January 2011 with up to $1bn in debts, was acquired by Lanco Infratech in the same year for around $850m.
