The company is also in the process of restructuring the coke-making division, which will mean about 30 workers will be made redundant from there next year.

Letters to staff obtained by the Mercury show BlueScope plans to reduce the number of crews and staff in coke making, effective from January 3, 2010.

This would lead to "a reduction of 30 positions across the identified areas through a combination of workplace efficiency improvements and the introduction of a four-crew, 12-hour shift pattern," the letter said.

Australian Workers Union Port Kembla branch assistant secretary Wayne Phillips confirmed discussions were underway over the plans to reduce the number of coke-making teams from five to four.

He indicated most redundancies would be voluntary but said discussions over the number of surplus positions and other conditions continued.

Mr Phillips also said more than 40 mainly senior staff, including engineers and supervisors, most not aligned with the AWU, had been made redundant from the steelworks in recent months, including about 20 who were notified on Melbourne Cup day.

"A number of staff have been given notice ... and I expect it will end up being more," he said.

A spokesman for BlueScope said there were structural changes being considered and discussed with employees in several departments "that may result in jobs becoming surplus during the next 12 months".

"Recent retirements following the No 5 blast furnace reline and sinter plant project have created some internal vacancies and we have been in discussions with engineering consultants BECA about seconding a number of our engineers to work on projects, including a $3.5 billion landmark Victorian water project," he said.

"This will result in positive outcomes for our people, BECA and BlueScope Steel."

The spokesman said BlueScope needed to seek opportunities to improve efficiency to remain competitive globally.

"The $504 million worth of capital investment projects we completed earlier this year were also aimed at maintaining our international competitiveness," he said.

"Gains in efficiency will often result in structural changes and less roles.

"Where employees are affected we use a framework that treats people fairly and sensitively, and provides support as they transition to retirement, or suitable alternative employment within or external to BlueScope Steel. "