Unions back job cuts provided pain shared all around

BlueScope Steel has won the AWU’s backing for its decision to cut 500 jobs as long as the losses are spread.

BlueScope Steel has won the Australian Workers Union’s backing for its decision to cut 500 jobs as part of a bid to save the company $200 million — on the condition that losses are spread across the business.

In a crucial concession agreed to ahead of today’s mass meeting of up to 1400 workers, the company told the AWU that cuts would not be confined to local blue-collar workers and could include off-site staff, such as “professional” and even management jobs.

Port Kembla-based BlueScope will decide by November which jobs will go, or whether it will close the business.

The job cuts could save the company up to $60m in costs.

The union, which last week said the numbers “didn’t add up”, yesterday backed the restructure if the company could prove that the cuts would mean the business survived in the long term.

It also conceded that any proposed changes to government procurement policy to promote the use of local steel would not replace the need for redundancies.

AWU national secretary Scott McDine said the union was going into mediation with the company with “clear heads” and a “co-operative spirit”.

“Given the global environment, we acknowledge that a level of cost-cutting is necessary, and we are completely open to engaging openly and constructively about how best we can achieve this together.

“The interests of BlueScope and the interests of workers in the Port Kembla steel industry are, for the most part, aligned,” McDine said.

The union said it was “relieved” to have the company’s commitment that every area of the business was under the review.

BlueScope has secured a $30m payroll deduction from the NSW government.

The rest of the savings are expected to come from a mix of cost-cutting measures.