The fight to save the Port Kembla steelworks will be taken to Treasurer Joe Hockey, who unions say has the power to impose ‘‘emergency safeguards’’ to protect the steel industry.
A mass meeting of BlueScope Steel workers on Wednesday was told the Australian Workers’ Union would work with the company to stem the impact of flagged job losses at the Port Kembla steelworks.
More than 500 workers met at Fairy Meadow’s Fraternity Club at 7am on Wednesday – the first union gathering since BlueScope confirmed last week it must find $200 million in annual cost savings or the Port Kembla steelworks could close.
On August 24, BlueScope chief executive Paul O’Malley revealed 500 jobs would go as part of the company’s preferred cost-saving plan. The other option on the table would see the Port Kembla steelworks mothballed and the loss of about 5000 direct and indirect jobs.
Wednesday’s meeting resolved to ‘‘do whatever is reasonable’’ to keep the Port Kembla steelworks open and viable. The AWU will enter a mediation process with BlueScope, in a bid to identify productivity improvements and cost-saving measures across the business.
The union has also moved to ensure cuts aren’t targeted at shop floor workers, despite Mr O’Malley telling the Mercury last week management wouldn’t be immune.
AWU Port Kembla branch secretary Wayne Phillips said a reduction in costs was necessary, but it came down to how those costs were reduced.
‘‘We acknowledge that this will be a painful process – our determination is that this pain is distributed fairly between management and workers,’’ he said.
South Coast Labour Council secretary Arthur Rorris said the steel industry was in an ‘‘emergency’’ situation and the clock was ticking, not just for workers and BlueScope but state and federal governments.
‘‘The Treasurer of Australia has the executive power to impose emergency safeguard tariffs to protect the steel industry,’’ Mr Rorris said.
‘‘These are temporary in nature, designed for crises such as this where you have evidence of illegal dumping, in this case illegal dumping of steel.
‘‘The government has the power to act now and we demand that it acts now ... it doesn’t get any more serious than this.’’ A spokeswoman for Industry and Science Minister Ian Macfarlane said successive governments had found restoring high tariffs wasn’t a sustainable option for Australian industry development.
‘‘High tariffs impose additional costs upon both producers and end consumers, slowing productivity growth.
‘‘Raising barriers to trade could result in retaliation from our trading partners and jeopardise our export industries, as well as undermine Australia’s treaty obligations to trading partners,’’ the spokeswoman said.
Mr Macfarlane will meet steel industry stakeholders for crisis talks in Wollongong on Monday.
Originally published as Treasurer urged to save BlueScope by Illawarra Mercury.