Reports that BlueScope is looking to cut costs at its Port Kembla steel-making plant has sent a shockwave through the Illawarra.
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Throsby MP Stephen Jones said he had spoken to senior BlueScope executives this morning.
"They assured me there were no plans to be exiting steel-making [in the Illawarra], and I would be very concerned if this was the case," he said.
"They confirmed cost pressures. It is my belief we need a profitable, productive steelworks that employs people. BlueScope remains a vital business in the Illawarra. I expect the company to negotiate [with workers] in good faith."
Cunningham MP Sharon Bird said she did not want to speculate on the "game-changing approach" BlueScope touted in a press release.
"I've seen their statement and it's good they put something out. Across the community, people would appreciate that they've clarified the situation," she said.
"The important thing is, given the concerns this morning, they've made their position clear. That's the appropriate thing to do."
A BlueScope worker told the Mercury that employees had recognised the need to change operations to keep the company profitable after past changes had affected revenues.
"They've made some bad decisions in the past, and now they're trying to fight the economy. It's tough all round for the last few years," the man said.
"We've been used to doing things one way, now we’ve got to compete with emerging countries. Any business has to try to make a profit."
He said workers had not been briefed on what the "game-changing approach" may include.
Online, hundreds of comments were posted on Facebook about the news. Comments included:
- "I'm so sick of watching BlueScope hold Wollongong to ransom. Either close or don't so workers and their families can plan their working future. It is totally unfair to keep your workers in the dark when they could be searching elsewhere for a job. This uncertainty is bullshit and you know it."
- "The writing has been on the wall for a very long time. Traditional manufacturing and mining are not the future for Wollongong or Australia. Just like manufacturing cars was not the future for Detroit. The faster we transition, the better."
- "The Illawarra has known this is inevitable for years so we should be doing all we can to retrain & employ workers in other booming local industries such as construction & trades."
- "If it closes it has flow on effect in Illawarra economy, like in retail when people get payed. Just hope your jobs are not affected in the non manufactured sector."
- "It's not JUST the steelworks workforce whose jobs are at stake, what about the flow on effect to smaller manufacturers in the area and so on..."
BlueScope shares are up two per cent after reports about the ceasing of Illawarra steel-making operations.
BlueScope Steel Limited shares started the day at $3.00 on the Australian Stock Exchange (ASX), jumping to $3.11 by 11.25am. As of 1.25pm, shares sit at $3.08.
Shares have dropped sharply in value in recent months, more than halving in value since July 2014. BSL shares went for $6.28 on July 31, and have dropped steadily since.
BSL shares closed 2014 at $5.67.
