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Details of BlueScope's redundancy agreement

01 Oct, 2011 04:00 AM
The first detailed breakdown of job losses at BlueScope Steel has finally been revealed, ending weeks of speculation about where the axe will fall at the Port Kembla steelworks.

The NSW Industrial Relations Commission yesterday released the results of negotiations between union leaders and BlueScope over the company's plans to shed 800 Port Kembla jobs.

The 27-page agreement, which identifies 395 surplus wage employee positions across the steelworks, outlines how many and which jobs will be slashed in most departments.

It also confirms a one-off payment of up to $12,500 will be included in the final pay-outs to long-serving employees.

Union officials said the deal was a reasonable outcome after difficult negotiations.

Sixty-four jobs have been marked to go at the No 6 blast furnace, which will shut down as BlueScope exits the export market.

Slabmaking has also been hit hard, with more than 150 surplus positions identified.

The remainder of the losses are spread across departments, while the final number in refractories and logistics will be the subject of further negotiations.

The majority of the redundant workers will leave the steelworks before October 31 and the agreement will also be subject to a six-month trial period, with a review in April 2012.

Steelworkers will vote on the outcome of the negotiations at a mass meeting next Thursday at WIN Entertainment Centre.

Under the final arrangement, redundant workers will receive 14 weeks' pay plus 2? weeks' pay for each year of service and a one-off payment based on their tenure.

A payment of between $7500 and $12,500 will go to workers who have been at the steelworks for between 15 and 35 years, as long as their total package does not exceed two years' pay.

Union leaders are confident enough workers will apply for voluntary redundancy to meet the job losses, and even raised the possibility some workers could miss out.

"We didn't agree with their first lot of figures for the job cuts but obviously through the negotiations ... we've come to a fairly honest outcome," Electrical Trades Union's John Thornton said.

Unions expect the final number of job losses to be closer to 720 than the original 800.

Staff jobs are expected to make up the losses not identified in yesterday's agreement.

Yesterday, a BlueScope spokeswoman said the company would now move to the "implementation stage with the objective to complete this phase by the end of October".

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Date: Newest first | Oldest first
Why say the " AXE" word in your news reports to much , you seem to enjoy it using it to much.
Posted by RPB, 1/10/2011 6:32:32 AM, on Illawarra Mercury
Unions are so...on about the numbers of job cuts they have avoided through tough negotiations that now they have just extended the suspense by making the company add the 6 months trial period until April which is the expiry date of the company agreement at which time they will sack who ever they want.....how ever they want and maybe even with out a good pay out, all the company has to do is wait it out for 6 months

.

Posted by whats the difference, 1/10/2011 8:00:43 AM, on Illawarra Mercury
Actually RPB I thought they liked using the number 2? too much. Still don't know what that number means.
Posted by Chuck, 1/10/2011 8:47:30 AM, on Illawarra Mercury
The union pushed for, and got, seniority based retrenchment.not performance. This means that BlueScope has agreed to keep slack workers because they have been there longer. The unions role in the modern world is to protect the slack worker at the cost of the jobs of good workers which will drive the business further into the ground. Smart Gillespie, really smart. Wollongong, the city stopping innovation dead in its tracks.
Posted by FairRepresentation, 1/10/2011 10:49:48 AM, on Illawarra Mercury
Those who are offered the redundancy should run with what they can get now and beat the rush to get new jobs.

It is very clear that the whole place will be locking it's gates shortly after the Carbon Tax starts. No generous redundancies will be offered then since a strike is no threat to a facility which has completely shutdown.

Exports have already ceased, with the CT no local industry will be buying. Do the maths.

Even if the steelworks is exempt from paying the tax themselves which industry is going to buy their steel?

Posted by JoelM, 1/10/2011 12:00:36 PM, on Illawarra Mercury
FairRepresentation you have no idea what you are talking about.if you had any idea,you'd have known that, no one was forced to take VR.employees chose to leave. majority of workers were close to retirement age,therefore they ended up with a nice retirement package.

i'll also correct on the seniority retrenchments. if it came down to forced redundancies, if the employees have exactly the same qualifications seniority will apply. how is that protecting slack workers? my question to you is, how is mr Gillespie stopping innovation? the only thing he's trying to do is minimizing job losses.

Posted by bezerkeley, 1/10/2011 6:13:22 PM, on Illawarra Mercury
The union could have stopped job losses years ago by not protecting slack or dishonest workers across Illawarra businesses.

Yes, older workers will get a bigger redundancy package at close to retirement and still sucking cash out of a dying company. Let's wait and see if we don't get to forced redundancies.

Qualifications are not performance and contribution to a business. You can have all the qualifications and not come to work or not perform.

Posted by Serios, 1/10/2011 9:36:32 PM, on Illawarra Mercury
Serious,here you are making baseless statements,why aren't you more specific and provide details about all those years ago!The AWU role is to protect the workers rights,conditions and try to save jobs.When you talk about unions,you are obviously very uninformed.If you done your research,you'd have known that over the years BSL had record profits and production. However through strong aussie dollar, inflated raw materials prices and incompetent management,that didn't have the vision to buy coal and iron ore mines,when BSL was making big profits.is it AWU's fault that BSL is in this predicament?
Posted by bezerkeley, 2/10/2011 8:25:08 AM, on Illawarra Mercury
BHP done this to Wollongong not unionists or even the steelworks.

BHP done us without lube and all you guys talk about is superfluous rubbish.

Wake up.

Posted by rubbish loads of, 2/10/2011 10:51:12 AM, on Illawarra Mercury

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