The opposition mental health spokeswoman - in Wollongong to chair a mental health forum on Monday - said looming job cuts at BlueScope Steel would already be affecting workers' wellbeing.

"The fear of loss of employment, or the loss of employment itself, does contribute to increased levels of anxiety and stress and potentially for increased levels of depression," Ms McLucas said.

"I would encourage the community, local government, businesses and BlueScope to realise that the economic reality we are facing in this region will have an impact on the community's resilience, and we need to prepare the community for what might be ahead."

Throsby MP Stephen Jones said he would be putting the mental health of steelworkers on the agenda at next week's crisis talks into BlueScope's future.

Federal Industry Minister Ian Macfarlane will visit Wollongong on September 7 to meet company and community representatives after BlueScope's announcement that it intended to cut 500 jobs to save $200 million a year. If that target is not reached, Port Kembla steelworks could close and take 5000 direct and indirect jobs with it.

"If you have worked in one place all your life - for 30 or 40 years - and then you wake up one morning without a job or even the prospect of that, then that has an enormous impact on your emotional outlook and that spills over into every aspect of your life," Mr Jones said.

"We know that from other towns that have gone through similar economic shocks and that's why this issue has to be put firmly on the agenda."

Mental Health Australia CEO Frank Quinlan said organisations like BlueScope needed to take some responsibility for their employees' mental health.

"It's really incumbent on companies to manage these sorts of restructures in their labour forces sympathetically and appropriately," he said.

"Sometimes economic circumstances are beyond their control, but what is in their control is to make sure they are putting in place the kinds of support structures people might need when workforces are downsized."

Cunningham MP Sharon Bird urged people to look out for each other and not be afraid to ask for help.

"Not everyone who is faced with redundancy will have an acute episode of mental illness but they may struggle to get back on their feet as quickly because they're dealing with anxiety or depression," she said.

The forum heard from mental health workers, many of whom addressed gaps in services due to lack of funding. Indigenous and youth mental health issues were other areas of concern.

"There are some great programs and services in the Illawarra and workers who are doing a great job - let's give them all the strength and power they need to work with the community during the difficult times ahead," Ms McLucas said. "The stories I've heard at this forum are not dissimilar to what I've heard around the country and what was reflected in the National Mental Health Commission's review of programs and services earlier this year.

"The sector is now calling on the federal government to respond to that review - they want to see action and so far there's been very little."

The Australian Workers Union will hold a mass meeting of workers at BlueScope Steel’s Port Kembla steelworks on Wednesday to demand  a ‘‘plan C’’ to keep the doors open at the iconic plant.

Last week BlueScope boss Paul O’Malley said he would give stakeholders, including workers, eight weeks to back plans to deliver $200 million in cost savings or he would shut the remaining No.5 blast furnace.

The AWU, which covers more than 95 per cent of the shop-floor workers at Port Kembla, will call an on-site meeting for 7am on Wednesday to try to save the nation’s biggest steelworks.

‘‘We have six to eight weeks to do something otherwise the company will make an announcement [closure] we are not happy with,’’ AWU branch secretary Wayne Phillips said.

Mr Phillips said the AWU would run grassroots campaigns at all regional elections and he was ‘‘putting our Labor Party colleagues on notice’’.

‘‘If they don’t support us, we won’t support them. Labor, Liberal, independent, if they support us, we will support them,’’ he said.

The $200 million savings plan, dubbed ‘‘Option A’’, includes 500 job cuts at Port Kembla as well as relief from NSW payroll tax among other measures.

Under ‘‘Option B’’, blast furnace No.5 and associated assets will be mothballed, BlueScope will import its raw steel, and the 5000 direct and indirect jobs that depend on the plant will be lost.