Up to 500,000 Australian jobs could be lost if the Federal Government fails to support the ailing steel industry.
That was the warning issued by the Australian Workers' Union as it presented a 10-point survival plan to the Government yesterday.
AWU national secretary Paul Howes predicted a "tsunami effect on jobs, directly and indirectly associated with steel", as the industry faced what he described as its worst crisis yet.
"The impacts of the global crisis has triggered a rapid slowing in forward orders for steel," Mr Howes said.
"The long-term viability of our steel industry is threatened. Now is the time to guide this industry through the choppy waters caused by the global financial crisis."
The sharp downturn in steel requirements, coupled with cheap imports from overseas, has many workers fearing the closure of BlueScope's Port Kembla plant if demand continues to dwindle.
The AWU's New Steel Plan borrows from the Button Steel Plan (drawn up by the late senator John Button to revitalise the industry in 1983) in seeking a middle ground - avoiding a strong focus on the issue of protection or believing market forces alone will solve problems.
A key part of the 10-point plan is the call for the Government to declare steel a strategic industry and ensure Australian steel is used for all economic stimulus infrastructure projects.
Mr Howes said this measure would not breach World Trade Organisation regulations and was "stimulist" rather than "protectionary".
"It is completely reasonable that if we are going to put billions upon billions of our money into these infrastructure projects that Australian-made steel is being used for those taxpayer-funded projects," he said.
AWU Port Kembla branch secretary Andy Gillespie said it was one of the plan's most significant points.
"Australian taxpayers are footing the bill for the stimulus packages and so they should get the most from them," he said. "The Government should be placing orders to kick-start the industry."
The report also calls for a level playing field to be created by establishing a steel price monitor to provide real-time information on prices, production costs, demand conditions and transparency in the assessment of dumping cases.
"One of my great fears is foreign steel companies being subsidised by their governments to have cut-price steel exported," Mr Howes said. "It's a form of dumping and we need strong measures to make sure it doesn't happen (here)."
In exchange for job security and plant modernisation, the union proposes wage restraints be brought in.
Mr Howes also hopes government policies will offer support.
"The reality has been that steel has been performing well since the Button Steel Plan came into place ... so there hasn't been a desperate need for government to be supportive."
Steel would also play an essential role in future "green" energy supplies.
"You can't make windmills without steel, you can't make solar panels without steel, you can't make geothermal plants without steel," Mr Howes said.
"Steel is, as I always say, as green as the wind."
BlueScope Steel chief executive Noel Cornish said the AWU plan was a timely contribution to the economic debate.
"At BlueScope we have taken a range of measures to protect jobs and the long-term future of our business," Mr Cornish said. "Our employees have responded magnificently to these initiatives.
"We are continuing to invest in our long-term future with the No 5 blast furnace reline project and the upgrade to our sinter plant."
The AWU presented the plan to the Government so it can be considered ahead of the May 12 budget in which major infrastructure projects will be announced.
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