More than 1100 shipyard, subs jobs in doubt after AUKUS nuclear submarine deal announcement

More than 1000 jobs have been derailed by the axing of the $90bn France submarines deal, officials have revealed, and there could be a long wait before they reboot.

More than 1100 South Australian jobs, including 600 shipyard construction roles at Osborne, are in doubt as a result of the historic AUKUS announcement.

The full number of affected workers was revealed in a Senate Estimates hearing on Tuesday morning, for the first time since the $90bn contract with French shipbuilders Naval Group was torn up last month.

Australian Naval Infrastructure (ANI) boss Andrew Seaton told the hearing that between 550 and 600 people were working on building a new submarine shipyard at Osborne, which would have been used to construct 12 Attack-class submarines.

But, work on the shipyard abruptly stopped when the federal government announced it would acquire at least eight nuclear-powered submarines, with intentions to build them in Adelaide.

Asked by SA Labor Senator Marielle Smith if the AUKUS announcement placed up to 600 jobs in “uncertainty”, Mr Seaton replied: “That’s correct”.

Finance Minister Simon Birmingham visiting the Naval Group facilities. Picture: Mike Burton

The Defence Department revealed to Labor exactly 546 people were working on the Attack-class project with both Naval Group and Lockheed Martin Australia at the time the contract was shredded.

A total of 286 Naval Group and Lockheed Martin employees have applied to join ASC’s Sovereign Shipbuilding Talent Pool, and the government remains confident the majority of the Attack-class workforce can pivot to other defence projects, including the Collins-class life-of-type extension.

Mr Seaton said the 600 shipyard construction workers included employees with Australian Naval Infrastructure and multinational construction company Laing O’Rourke – the project’s prime contractor – as well as employees with at least 35 subcontractors.

“ (ANI) are committed to redeploying our direct staff on to other projects around the precinct,” he said.

“Laing O’Rourke are in the process of redeploying their staff to other projects around the country.”

Mr Seaton said there was no government support program for the affected shipyard construction workers.

A core Laing O’Rourke team will stay on site to finish construction on a new facility for upgrades to the Hobart-class Air Warfare Destroyers.

Construction at the Osborne Naval Shipyard was suspended after the AUKUS announcement on September 16, putting 600 jobs in doubt. Picture: Morgan Sette

The rest of the work on the shipyard will be suspended until the Nuclear-Powered Submarine Task Force finishes its 18-month consultation period.

Mr Seaton revealed 35 subcontracts – the “majority” of them given to SA companies – with a total value as high as $150m had to be cancelled when AUKUS was announced.

The task force will determine the exact requirements of the new Osborne shipyard, which is expected to need “substantial modifications” to accommodate nuclear-powered submarines.

“It’s likely these nuclear submarines will be longer, larger in diameter and they will be a heavier displacement,” Mr Seaton said.

“We will of course have to engineer nuclear safety and nuclear security requirements, so I think the yard will look quite different.”

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Originally published as More than 1100 shipyard, subs jobs in doubt after AUKUS nuclear submarine deal announcement