Caltex axes up to 630 jobs with refinery closure
Date
July 26, 2012
Caltex axes 630 jobs
Petroleum company Caltex will close its Kurnell refinery in Sydney in a move that will cost up to 630 jobs, with unions claiming the announcement is a "kick in the guts" to Australian motorists.
Caltex said the refinery would be closed in the second half of 2014 and would be converted to a "major import terminal" to supply imported fuel for Australian customers. The closure would eliminate about 330 direct positions, and as many as 300 contracting jobs.
Caltex has announced it will close the refinery in Kurnell, cutting 330 jobs and several hundred contract positions.
The company's year-long review determined that less profitable Australian refining had a smaller role to play in its future, said Caltex managing director and CEO Julian Segal. Mr Segal will hold a press briefing at 11.30am at the company's Sydney head office.
Mr Segal said the closure would "involve a reduction in employee positions from around 430 to less than 100 at Kurnell".
"Our employees at Kurnell are being informed of the proposal and we have entered a period of consultation with them and their representatives," he said.
Caltex confirmed that another 300 contracting jobs could also be hit, taking the total number of positions affected to up to 630. Sam Collyer, a spokesman for Caltex, said the final impact on the contractors would "depend on the types of work they did at the Kurnell site".
"We're talking to our contractors today to talk through what effect this conversion process will have on their operations. We're obviously mindful of the impact this has on our employees and more broadly," said Mr Collyer.
No consultation: union
Kurnell, NSW, Australia
The decision has been heavily criticised by national secretary of the Australian Workers' Union, Paul Howes, who said on Twitter: "Caltex's announcement of closure of Kurnell is a kick in the guts to every motorist, we will respond at noon at the refinery".
A spokesman for the Australian Workers Union's national office said the union was trying to contact Caltex to confirm this morning's news reports.
"It's the first we heard of the announcement," the spokesman said.
"We knew [shutting the refinery] was an option and that the company was holding a review, but until today we were hopeful."
The spokesman said the AWU would be pressing Caltex for answers, and would hold a noon press conference at the Kurnell refinery. He believed the consultation had been "very limited" and said the figure of about 800 jobs at risk was accurate.
"Certainly we haven't spoken to them at the national office," he said.
But Caltex this morning stressed that it had kept employees, including union representatives, informed about the progress of the review over the past year.
"We made an announcement in May that highlighted that Kurnell represented the majority of our recent losses in the refining business," said Mr Collyer.
"Leading up to this point, we've been very keen to ensure that we've kept employees informed of the focus of our review," he said.
The closure of the Kurnell facility ends months of speculation about the fate of the refineries that have hung over employees at both facilities. Caltex has been squeezed by the strength of the Australian dollar and the competition from cheaper and more efficient refining in Asia.
PM offers hope for workers
Prime Minister Julia Gillard said the federal government would work with Caltex to find new jobs for more than 300 employees affected by the company's plans to close the refinery.
"We as a federal government will be working with Caltex to provide appropriate employment services to people who will be looking for a new job," she told ABC Radio.
There was a variety of factors at play in Caltex's decision, she said.
"This is a refinery with ageing capital," the prime minister told reporters in Canberra. "By the standards of the world it's really quite a small refinery so not at an efficient scale. Obviously the higher dollar has paid a role as well."
Energy security 'not in jeopardy'
The Resources Minister, Martin Ferguson, this morning said the refinery's closure would not jeopardise Australia's energy security.
"The closure will not jeopardise Australia’s energy security as Australia already imports large amounts of crude oil and finished petroleum products," Mr Ferguson said in a statement.
Caltex's decision will result in imported supplies of crude oil being replaced by imported refined product.
Additionally, the closure will not affect fuel prices, which are already determined by imported refined product and domestic competition.
Mr Ferguson said Caltex will not be seeking government assistance, as no realistic amount of government assistance would allow Kurnell to overcome its competitive disadvantage.
"Caltex has clearly stated that the introduction of the carbon price was not a factor in the decision to close the refinery," he said.
Read more: http://www.theage.com.au/business/caltex-axes-up-to-630-jobs-with-refinery-closure-20120726-22sd6.html#ixzz21gs0KeUm
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