BlueScope says an agreement with unions and workers is a vital step towards keeping the Port Kembla steelworks open.
The new three-year enterprise agreement includes a wage freeze and new streamlined provisions for workplace restructures.
The company says about 300 manufacturing jobs will go as a result, while 200 support and service positions will be cut. Staff will also forgo their bonuses for the 2015-16 financial year and there will be no salary reviews for the next three years.
“This is a major step towards achieving the $200 million cost saving target,” BlueScope chief executive Paul O’Malley said.
“But we still have a lot of work to do in the coming weeks, as steel prices remain under pressure from the global steel glut.”
A cost-saving update is expected prior to the company’s AGM on November 19.