Australian Workers Union says Nyrstar may cut 12 jobs from Hobart smelter

A UNION says 12 contractors at Nyrstar Zinc Works in Hobart were told last week their jobs were on the line.

The Nyrstar zinc works on the banks of the River Derwent. Picture: JULIA SANTOS

A UNION says 12 contractors at the Nyrstar zinc works in Hobart were told last week their jobs were on the line.

Australian Workers Union state organiser Kevin Midson said if the company proceeded with the cuts there would be about 72 workers left at the 102-year-old smelter.

“We’re concerned as a union that the company is in the situation it is and we’re worried about our members, their jobs, their families, and the safety of those who are left to undertake the task,” Mr Midson said.

“It is highly risky work. You have employees working in and around acid, you have them working with live cells, so there’s risk of electrocution and burns.

“At the moment our members are already working to the full extent they possibly can, they’re under the pump and they’re under pressure, and removing labour from the area will only put further strain and pressure on our members.”

The forecast Tasmanian job losses followed reports Nyrstar would cut 40 full-time positions and 60 contractors from its smelter at Port Pirie in South Australia.

That state’s Mining Minister disputed the 100 jobs would or had been cut.

NYRSTAR TO CUT JOBS FROM PORT PIRIE SMELTER

Nyrstar denied concerns about safety and confirmed it was discussing the reduction of 12 contractor positions.

“The safety of everyone who works on our site, whether they are an employee or a contractor, is always our highest priority,” a spokeswoman said.

“As we implement specific projects or change processes over the next two to three years, gradual reductions in our workforce are occurring.

“This program ... is aimed at ensuring the plant’s long-term sustainability by boosting production efficiency and capability and reducing costs. The program was communicated to employee representatives in December 2017.

“Discussions are currently underway with unions and employee representatives surrounding a reduction of 12 roles currently performed by contractors. Options for redeployment will be provided as we have several vacancies in other areas of the operation.”

The spokeswoman said natural attrition and voluntary redundancies had been used to achieve workforce reductions.

The Tasmanian Government guaranteed Nyrstar a $29 million loan in 2015 but, because the company did not proceed with associated projects, the agreement expired in 2017.

State Growth Minister Peter Gutwein said the company had told the Government it had chosen to redirect resources towards improving the profitability and efficiency of the Hobart smelter.

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“The Government understands that Nyrstar remains committed to Hobart and that the redundancy program currently underway has been planned for some time,” Mr Gutwein said.

Nyrstar opened its Hobart smelter in 1916, and, according to the company’s website, it employs about 4100 people globally.

Nyrstar was contacted for comment.