Mining maintenance firm sheds 90 jobs as downturn bites

ANOTHER Rockhampton company has fallen victim to the mining downturn, with 90 jobs axed at Mining Equipment Maintenance on Friday.

ANOTHER Rockhampton company has fallen victim to the mining downturn, with 90 jobs axed at Mining Equipment Maintenance on Friday.

But receiver John Greig, of Deloitte, said the business was continuing to operate with a number of workers remaining to complete existing orders.

Ten jobs also were cut at MEM's brother company in Mackay, MEM Engineering. Although 18 people are still employed at the Mackay company, Mr Greig said they would lose their jobs as the business was wound down.

Mining Equipment Maintenance general manager David Henderson chose not to comment, but Mr Greig said the job losses were the result of lessening workflow.

The two branches are part of the Brisbane-based DPSA Group, a services and supply group catering to the Australasian mineral resources sector, which was put into receivership.

Mr Greig said they would do everything they could to ensure the proceeds from all of the assets of the company were maximised.

"Should any of the companies ultimately be placed into liquidation, there is also support available from the Federal Government's Fair Entitlements Guarantee scheme," he said.

"We appreciate this is a difficult time for all affected employees and we will do everything we can to ensure they are kept informed of developments."

Only last month, manufacturer Hastings Deering axed 200 workers, with 45 of those from Rockhampton. In June, 1000 mining sector jobs were culled, including cuts from Peabody Energy and Glencore-Xstrata.

Workers call for government help

THE AMWU is calling on the State and Federal governments to intervene as more mining and manufacturing companies in regional Queensland close down. 

Australian Manufacturing Workers' Union assistant state secretary Terry Bradley said the decline in the mining boom was costing the community jobs.

"The government must recognise the importance of maintaining the manufacturing industry in central Queensland and step in to protect it from being taken offshore," Mr Bradley said.

"Manufacturing was snubbed by the Newman government's four pillars which included; tourism, agriculture, construction and resources.

"It is time the government stood up and saw that manufacturing is the backbone of regional Queensland communities, economy and employment rate."

Originally published as Mining maintenance firm sheds 90 jobs as downturn bites