Mr Gillespie, Port Kembla branch secretary of the Australian Workers' Union, believes the Federal Government's plans to introduce an emissions trading scheme will threaten jobs in areas such as steel and aluminium manufacturing at a time when companies are already looking to cost-saving measures as the financial climate worsens.

He has recently met with major employers, including BlueScope Steel, and believes while the financial situation can be overcome with minimal impact on workers, the effect of a national trading scheme is less clear.

"It's a worry, to say the least - workers are concerned," he said. "I think the Government is going to have to listen to what we are saying - this is a vital issue for the industry.

"We are not saying companies should be able to pollute carte blanche - they must take action - but there needs to be a level playing field."

BlueScope Steel, which employs 5500 in the region directly with a further flow-on effect of several thousand jobs, has been outspoken on the possible negative impact of an ill-thought-out emissions trading scheme.

BlueScope chief executive Paul O'Malley has warned that Australian companies will struggle to compete against those from countries with less stringent environmental laws.

"The detail behind the policy is very important," Mr O'Malley said. "When the detail behind the policy is right I'll stop worrying."

Trade-exposed industries are so concerned about the flow-on employment effects that AWU national secretary Paul Howes has flown to Japan to meet with nine other international steel unions.

Mr Howes said he wanted a global carbon price so jobs and industry weren't simply shifted to the countries where environmental standards were weakest.

India and China would be the most likely beneficiaries of tougher laws in Australia.

Just under a year ago, Mr Howes visited Wollongong to launch a national plan to save jobs in the manufacturing, steel and aluminium sectors.

Mr Gillespie said that plan was ongoing.

"We are always looking to shore up jobs," he said.

He believes a new national carbon tax on imports could help Australian manufacturers compete locally, but there was no similar leg-up for those that also traded overseas.

"I don't think people realise what BlueScope contributes to the national GDP and what that means to Wollongong and the Illawarra," he said.

"Because of the global situation the next six to 12 months is going to be a difficult period."