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.
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