Another 250 jobs axed at Whyalla steelworks   :(

    The Australian
    November 17, 2015


The future of Whyalla steelworks is at a “critical juncture”, with ­Arrium axing a further 250 jobs. 

The latest round of job losses, in addition to 55 lost last month, was announced before an annual general meeting today, with Arrium still about $40 million short of its savings target.   :(

This comes as workers at the nation’s other blast furnace, at Port Kembla, on the NSW south coast, yesterday began voting in a secret ballot on the future of BlueScope’s steel plant before the company’s annual general meeting on Thursday.

The ballot, ordered by the Fair Work Commission, will continue until tonight and is expected to see workers ratify an enterprise agreement paving the way for 500 job losses, a three-year pay freeze and the loss of various conditions in order to keep the plant open.

Arrium said about 200 workers employed directly and up to 50 contractors would lose their jobs at Whyalla, 380km north of Adelaide, over the next six to eight months.

Chief executive of steel Steve Hamer said the steelworks “continues to be put under pressure by the impact of the oversupply of steel globally”.

“Arrium is now looking to work with both South Australian and federal governments on measures to achieve the remaining cost reductions,” he said. With the steelworks at a “critical juncture”, the company was looking to work on trade measures and procurement.

South Australian Premier Jay Weatherill yesterday said it was a difficult time as jobs were lost in the “old economy”.

He said the future was in high-end information and technology jobs.

“Arrium is faced with big ­global pressures, with the dramatic reduction in the iron ore price. They need to drive the cost of production down beneath the price they get for their iron ore — that’s a challenging equation for them,” Mr Weatherill said.

Alinta Energy also yesterday closed its doors at open-cut coalmine Leigh Creek, 330km north of Whyalla, putting hundreds out of work. Port Augusta’s power stations, which run on Leigh Creek coal, will shut in March.   :(

“Once again, global pressures and the shift to low-carbon ­production ... coal-fired power stations and coalmines, ­especially at the least productive end, are unlikely to be part of the future for this country,” the Premier said.

Federal Industry Minister Christopher Pyne said a glut of Chinese steel in the world market was a key factor in Arrium’s ­dilemma, but remained upbeat about the future of the Whyalla plant, that will still employ about 1400 people.

South Australia’s jobless rate was at 7.5 per cent last month, the highest in the country. 

It's all Abbott's fault!

Armchair_Politician wrote on Nov 17^th, 2015 at 6:43am:

It's all Abbott's fault!

Not Abbott specifically, no.

But the LNP? Definitely.

LNP - destroying jobs and conditions since 1975.

Libs are really destroying the economy and that IS a fact!

Armchair_Politician wrote on Nov 17^th, 2015 at 6:43am:

It's all Abbott's fault!

Do try to keep up AP: it's now Turnbull's fault...

Jovial Monk wrote on Nov 17^th, 2015 at 6:53am:

Libs are really destroying the economy and that IS a fact!

all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>..

but lets all forget that bit. ::) ::) ::)

The Heartless Felon wrote on Nov 17^th, 2015 at 6:57am:

Armchair_Politician wrote on Nov 17th, 2015 at 6:43am: It's all Abbott's fault! Do try to keep up AP: it's now Turnbull's fault...

its anybodies bar theirs... >:( >:( >:( >:(..what a sad sack joke they are....

so unbelievably childish they cannot take any blame even when its in their faces... >:( >:(

cods wrote on Nov 17^th, 2015 at 6:57am:

Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::)

No, they've been destroying everything they touch since 1975.

cods wrote on Nov 17^th, 2015 at 6:57am:

Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::)

Was it, cods? Did alright under Labor, it is now they are failing, like Bluescope.

We could be building productive infrastructure, improving interstate rail, ports etc, not this lousy mob.

So yes, it is the Lib govt’s fault.

So market conditions are at fault.

There is too much steel on the market, so they can't sell enough at this point.

Why people are are trying to say this has to do with politicians, I'm not sure.

cods wrote on Nov 17^th, 2015 at 6:57am:

Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::)

Carbon Tax never bit......

http://www.apec.org.au/docs/daley.pdf

We need to spend big on infrastructure. That would need steel. Stupid Libs cut Labor’s program of infrastructure building.

Jovial Monk wrote on Nov 17^th, 2015 at 7:03am:

cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) Was it, cods? Did alright under Labor, it is now they are failing, like Bluescope. We could be building productive infrastructure, improving interstate rail, ports etc, not this lousy mob. So yes, it is the Lib govt’s fault.

I really cant be b othered with you anymore... if you think there is no ripple effect you are crazy....but tis ok bury your head mate.. I am over it.

Kytro wrote on Nov 17^th, 2015 at 9:23am:

So market conditions are at fault. There is too much steel on the market, so they can't sell enough at this point. Why people are are trying to say this has to do with politicians, I'm not sure.

Haven't noticed the price going down in this glut supply market..........

Just saying.... must be some for of tariff barrier in place.. privately installed ones that say the supplier simply cannot provide at a lower price..... funny how that works....

A government tariff is vilified, but a private one is just fine, it seems...

Just opening your eyes a little, people.......

Jovial Monk wrote on Nov 17^th, 2015 at 9:31am:

We need to spend big on infrastructure. That would need steel. Stupid Libs cut Labor’s program of infrastructure building.

no dear... our steel making days are all but over.. DONT YOU GET THAT... we are now IMPORTING STEEL....

sheeeeeeeeeeeeeeeeeez..

We have coal, we have iron ore, we have steelmakers. No need to import steel except for some specialised stuff etc.

Jovial Monk wrote on Nov 17^th, 2015 at 9:35am:

We have coal, we have iron ore, we have steelmakers. No need to import steel except for some specialised stuff etc.

tell that to the BLOODY greens and the CLIMATE CHANGE MOB


the mines have been closed.. ITS WHAT THE POLLS WANT...get you head out of your pudding basin monk... and get up to date...everyone is allowed to MINE

JUST NOT  Australia....


it makes sense to some.

Grappler Truth Teller Feller wrote on Nov 17^th, 2015 at 9:32am:

Kytro wrote on Nov 17th, 2015 at 9:23am: So market conditions are at fault. There is too much steel on the market, so they can't sell enough at this point. Why people are are trying to say this has to do with politicians, I'm not sure. Haven't noticed the price going down in this glut supply market.......... Just saying.... must be some for of tariff barrier in place.. privately installed ones that say the supplier simply cannot provide at a lower price..... funny how that works.... A government tariff is vilified, but a private one is just fine, it seems... Just opening your eyes a little, people.......

Their words not mine. Perhaps they just suck at business.

cods wrote on Nov 17^th, 2015 at 6:57am:

Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::)

It's not the carbon tax. It's falling commodity prices. It's the market.

Armchair_Politician wrote on Nov 17^th, 2015 at 10:24am:

cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market.

It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping.

It is Lib incompetence destroying industries, destroying the economy.

AXE THE TAX.

Jovial Monk wrote on Nov 17^th, 2015 at 10:50am:

Armchair_Politician wrote on Nov 17th, 2015 at 10:24am: cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market. It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping. It is Lib incompetence destroying industries, destroying the economy.

Nonsense.   

It's the consequence of half a century of anti-competitive labour practices that have driven justabout all Australian manufacturing businesses to the verge of extinction.

The price of being lazy.  :(

Despite this, you Leftoids still argue for penalty rates, collective work agreements and against a deregulated labour market?

Trashing Workchoices basically killed off any chance of Australian manufacturing businesses being competitive.  The Unions, Labor and the Greens are directly responsible.  :(

Find another tune to play.

It all was going OK until the Libs stuffed the bloody economy and are applying austerity.

Swagman wrote on Nov 17^th, 2015 at 12:44pm:

Jovial Monk wrote on Nov 17th, 2015 at 10:50am: Armchair_Politician wrote on Nov 17th, 2015 at 10:24am: cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market. It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping. It is Lib incompetence destroying industries, destroying the economy. Nonsense.    It's the consequence of half a century of anti-competitive labour practices that have driven justabout all Australian manufacturing businesses to the verge of extinction. The price of being lazy.  :( Despite this, you Leftoids still argue for penalty rates, collective work agreements and against a deregulated labour market? Trashing Workchoices basically killed off any chance of Australian manufacturing businesses being competitive.  The Unions, Labor and the Greens are directly responsible.  :(

And the TRUTH is actually diametrically-opposed to that which you claim.

Why are the Right so keen on projecting their failings and failures onto their betters?

Kytro wrote on Nov 17^th, 2015 at 10:04am:

Grappler Truth Teller Feller wrote on Nov 17th, 2015 at 9:32am: Kytro wrote on Nov 17th, 2015 at 9:23am: So market conditions are at fault. There is too much steel on the market, so they can't sell enough at this point. Why people are are trying to say this has to do with politicians, I'm not sure. Haven't noticed the price going down in this glut supply market.......... Just saying.... must be some for of tariff barrier in place.. privately installed ones that say the supplier simply cannot provide at a lower price..... funny how that works.... A government tariff is vilified, but a private one is just fine, it seems... Just opening your eyes a little, people....... Their words not mine. Perhaps they just suck at business.

I know - I wasn't hacking at you.... just saying something in a different light...

Jovial Monk wrote on Nov 17^th, 2015 at 10:50am:

Armchair_Politician wrote on Nov 17th, 2015 at 10:24am: cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market. It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping. It is Lib incompetence destroying industries, destroying the economy.

I prefer to view it as a deliberate policy to ally themselves with the 'global economy' and thus reap benefits huge therefrom, and at any cost to anyone else.

As I said - there is a private tariff barrier in place, meaning that suppliers will not sell here at less than a price they want - yet the moment a government puts a tariff barrier in place to protect its own industry, the move is vilified.

In all of this is the real truth - you are being robbed every day in every way - and the robbery is taking place via suppliers setting their price without restraint in a market where the competition - and the employment of those within the targeted country - has been destroyed, thus creating as near a monopoly as you could find.

Yet none dare call it treason...

Swagman wrote on Nov 17^th, 2015 at 12:44pm:

Jovial Monk wrote on Nov 17th, 2015 at 10:50am: Armchair_Politician wrote on Nov 17th, 2015 at 10:24am: cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market. It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping. It is Lib incompetence destroying industries, destroying the economy. Nonsense.    It's the consequence of half a century of anti-competitive labour practices that have driven justabout all Australian manufacturing businesses to the verge of extinction. The price of being lazy.  :( Despite this, you Leftoids still argue for penalty rates, collective work agreements and against a deregulated labour market? Trashing Workchoices basically killed off any chance of Australian manufacturing businesses being competitive.  The Unions, Labor and the Greens are directly responsible.  :(

The only way for labour intensive business to compete is to have much cheaper labour than competitors. This means (much) lower wages or automation. For this reason manufacturing has been declining in Australia for more than 4 decades. We don't want to compete with cheap labour because it will lower everyone's living standards.

This is why the services economy has grown as the manufacturing declined. Services is more than 80% of gross value added.

This is the nature of increased living standards, it's not about any government policy.

Then why do Germany and Holland have such strong manufacturing sectors?

Not the unions, not China. Neoconservatism at work IMHO, everything for the CEOs and top execs and stuff the bloody country.

CEOs move to China—get big bonuses. That is much more like it. Howard was a neocon, start and cause of much of our Budgetary and economic woes.

Jovial Monk wrote on Nov 18^th, 2015 at 11:26am:

Then why do Germany and Holland have such strong manufacturing sectors? Not the unions, not China. Neoconservatism at work IMHO, everything for the CEOs and top execs and stuff the bloody country. CEOs move to China—get big bonuses. That is much more like it. Howard was a neocon, start and cause of much of our Budgetary and economic woes.

Germany relies on services like most first world nations. Almost 70% of the GDP and employment are in services. Though manufacturing is still a major part of the economy, it is mostly niche SME manufacturers.

The Netherlands has a similar reliance on services, at about 72% GDP.

Jovial Monk wrote on Nov 18^th, 2015 at 11:26am:

Then why do Germany and Holland have such strong manufacturing sectors? .

Very large domestic and bordering markets and a quality product with inelastic demand........ :-?

The WA Government asked for tenders for several hundred light poles and told competitors Australian Steel would be favoured....The Government chose the only company that was importing poles from China....Now most companies supply two tenders with one using Australia products and the other imported....The imported product is usually favoured by the Government because it is cheaper....Manufacturing in Australia is doomed because our politicians are lying bastards!!!

[smiley=thumbdown.gif] [smiley=thumbdown.gif] [smiley=thumbdown.gif]

Kytro wrote on Nov 18^th, 2015 at 9:56am:

Swagman wrote on Nov 17th, 2015 at 12:44pm: Jovial Monk wrote on Nov 17th, 2015 at 10:50am: Armchair_Politician wrote on Nov 17th, 2015 at 10:24am: cods wrote on Nov 17th, 2015 at 6:57am: Jovial Monk wrote on Nov 17th, 2015 at 6:53am: Libs are really destroying the economy and that IS a fact! all in two year    not bad... get real you guys... get real...blame blame blame... our steel industry was given a MASSIVE blow with CARBON TAX>.. but lets all forget that bit. ::) ::) ::) It's not the carbon tax. It's falling commodity prices. It's the market. It is an economy in recession. A strong stimulus program of building productive infrastructure would employ people and create a demand for steel. Car makers winding down due to Libs chasing them away would not be helping. It is Lib incompetence destroying industries, destroying the economy. Nonsense.    It's the consequence of half a century of anti-competitive labour practices that have driven justabout all Australian manufacturing businesses to the verge of extinction. The price of being lazy.  :( Despite this, you Leftoids still argue for penalty rates, collective work agreements and against a deregulated labour market? Trashing Workchoices basically killed off any chance of Australian manufacturing businesses being competitive.  The Unions, Labor and the Greens are directly responsible.  :( The only way for labour intensive business to compete is to have much cheaper labour than competitors. This means (much) lower wages or automation. For this reason manufacturing has been declining in Australia for more than 4 decades. We don't want to compete with cheap labour because it will lower everyone's living standards. This is why the services economy has grown as the manufacturing declined. Services is more than 80% of gross value added. This is the nature of increased living standards, it's not about any government policy.

this is true.
we have many services we can sell into increasingly middle class asia...

financial
insurance
medical
educational
training

its going to be a bonanza for people who are creative.

thats why, if youve been a steel worker for 20 years at whyalla, you had time to do an accounting degree online, you had time to learn mandarin and cantonese, you had time to host dozens of chinese exchange students and develop ties
.....but if you just sat on the couch in your undies
playing Call of Duty
eating maccas
drinking beer

You have....

Messed Up.

and all you have to do is look at this little area you let go and this little bad habit and this little missed opportunity and see how they all feed into each other to see how you have messed up and the answer is

"thats true"