POLL: An internal BlueScope document accidentally sent to workers has outlined the company’s plan to shut down its Port Kembla steelmaking operations unless significant savings are made.
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The Mercury reported last week that BlueScope had outlined plans to reduce its steelmaking costs by at least $50 per tonne, as part of a large-scale cost-cutting exercise.
BlueScope corporate affairs manager Michael Reay said no decision had been made on where proposed savings were to be found, but admitted the company was looking at options including importing steel rather than manufacturing at Port Kembla.
The Australian Workers Union told the Mercury on Friday a private document outlining a more concrete plan of cost-cutting had been accidentally sent to workers, which included the nightmare scenario of closing off frontline operations including the blast furnace, sinter plant and coke ovens.
“It was a document they sent to managers, with speaking notes and slides to show to employees. It says if they can’t achieve the savings they want, those departments will all shut down,” said AWU branch secretary Wayne Phillips.
“It’s their plan to reduce numbers, how to cull people from their departments. They sent the wrong document out, and workers got hold of it.”
Mr Phillips said around 20 redundancies in select departments had already been announced, and that the AWU would soon enter consultation with the company in an attempt to save jobs.
“They’ve already said they want to lose five from the blast furnace, four or five from the coilers, and between seven and ten from the Illawarra Distribution Centre, which is the stores for the steelworks,” he said.
“They’re looking for anywhere they can start to pick off bodies. It’s not a mass redundancy notice, but they are stepping up campaigns to pick off bits and pieces where they can.”
Mr Phillips said in order to survive, the company needed to assess cost-cutting from its entire staff, not just frontline workers on shop floors.
“If they’re fair dinkum about being efficient, then nobody’s job should be guaranteed, including the boss,” he said.
“They have to review the whole company, not just the shop floor. It’s bizarre. The company is top heavy, and that’s the problem, because they are moving from catastrophe to catastrophe with this bulky, oversized management.”
BlueScope declined to comment, directing the Mercury to its ASX statement last week.
"Our costs of manufacturing steel are too high and we are seeking a game-changing approach that will significantly reduce costs,’’ the statement read.
