The Port Kembla steelworks will bear the brunt of a planned 500 job reduction in its Australian operations.
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The losses are part of Option A - a ‘‘game changing cost reduction’’ that is the company’s ‘‘preferred route’’ to keep the Port Kembla steelworks running.
More frightening is ‘‘Option B’’ - the mothballing of the Port Kembla steelworks with the loss of about 5000 direct and indirect jobs.
At Monday’s announcement of its 2015 financial year results - which was a profit of $136.3 million - it also outlined its plans to cut more than $200 million a year from its Australian operations over the next two years.
The 500 jobs form part of this ‘‘game changing’’ approach - and it’s not just employees who will feel the change.
Monday’s BlueScope presentation from CEO Paul O’Malley also looked towards reductions in payroll tax and WorkCover costs.
The presentation highlights the company spent $117 million in payroll tax from 2010-2014 when the steelmaking business was also at a loss.
It also estimates it could save more than $3 million in WorkCover compliance costs.
‘‘BlueScope has an industry-leading safety record and is self-insured,’’ the presentation states.
‘‘Nonetheless we are subject to three-yearly administrative audits not faced by most other businesses within the WorkCover system - external review indicates the cost of the OHS effort to ensure self-insurance compliance in NSW is up to $3.2 million per annum.’’
