As the region fights to save its steelworks, a political fracas has emerged over Enterprise Bargaining Agreement negotiations underway between BlueScope and the unions.

Illawarra Labor MPs have accused the government of trying to “crab walk” away from saving the Port Kembla steelworks.

Shellharbour MP Anna Watson and Opposition spokesman for the Illawarra Ryan Park have called on Premier Mike Baird to “end the public disarray” about the government’s response to the Illawarra steel crisis.

NSW Industry Minister Anthony Roberts and Parliamentary Secretary for the Illawarra Gareth Ward say the government can’t assist BlueScope until the company and the Combined Steel Unions settle their EBA discussions. The Labor MP’s claim those comments contradict BlueScope’s stance. 

“The fact is that the EBA has been placed on hold by agreement between the company and the unions to focus on the immediate task of negotiating the $200 million cost savings,” Mr Park said. Ms Watson received a letter from Mr Baird this week, which she said made no mention of the EBA. She accused Mr Roberts and Mr Ward of “making stuff up as they go along”.

Mr Ward said structural adjustments already outlined by BlueScope, including $200 million in annual savings, were critical to the future of steelmaking in the region. “Part of those savings need to occur through the negotiating of the Enterprise Bargaining Agreement,” he said. “Unless there is a payroll, there’s no point having payroll tax concessions.

“Don’t take my word for it, [BlueScope boss] Paul O’Malley has said that they are not seeking that sort of government assistance until the EBA has been signed and we can be assured that steel manufacturing is going to continue at BlueScope.” 

Last month, Mr O’Malley told the Mercury the NSW Government could cut about $30 million from the business by helping reduce costs associated with payroll tax, workers’ compensation and Environment Protection Authority “administrative burdens”. About $50 million will be saved by cutting 500 jobs.