To Protect Steelworks, Australian Union Willing To Discuss Concessions
09/02/2015 - The Australian Workers' Union says it will support BlueScope Steel's effort to cut costs in order to preserve the remaining blast furnace at the company's Port Kembla steelworks, reports The Sydney Morning Herald.
BlueScope CEO Paul O'Malley last week said the company needs to reduce spending by $200 million; otherwise, BlueScope will have to shut down the No. 5 blast furnace and begin importing raw steel. O'Malley is proposing to achieve the reduction in part by laying off 500 people.
According to the newspaper, the union accepts that drastic changes have to be made if Australia’s largest steelworks is to be kept intact. The steelworks is in New South Wales.
"The interests of BlueScope and the interests of workers in the Port Kembla steel industry are, for the most part, aligned," AWU national secretary Scott McDine said in a statement.
"Given the global environment, we acknowledge that a level of cost cutting is necessary and we are completely open to engaging openly and constructively about how best we can achieve this together."
BlueScope is heading into mediation with its unions next week. BlueScope told the Morning Herald that the unions have become more conciliatory.
"BlueScope confirms that constructive discussions are underway with the combined unions as we enter the mediation process next week," the company said in a statement.
In the meantime, the Workers' Union has renewed a call for the Australian government to mandate the use of Australian-made steel in public construction projects.
"Our governments should mandate the use of quality local steel in local infrastructure projects," McDine said.
According to the newspaper, the union accepts that drastic changes have to be made if Australia’s largest steelworks is to be kept intact. The steelworks is in New South Wales.
"The interests of BlueScope and the interests of workers in the Port Kembla steel industry are, for the most part, aligned," AWU national secretary Scott McDine said in a statement.
"Given the global environment, we acknowledge that a level of cost cutting is necessary and we are completely open to engaging openly and constructively about how best we can achieve this together."
BlueScope is heading into mediation with its unions next week. BlueScope told the Morning Herald that the unions have become more conciliatory.
"BlueScope confirms that constructive discussions are underway with the combined unions as we enter the mediation process next week," the company said in a statement.
In the meantime, the Workers' Union has renewed a call for the Australian government to mandate the use of Australian-made steel in public construction projects.
"Our governments should mandate the use of quality local steel in local infrastructure projects," McDine said.
