Tuesday, 17 November 2015

Whyalla Steelworks to Axe About 250 Jobs

ADELAIDE, Nov 16 AAP - About 250 jobs will be lost at Arrium's steelworks in Whyalla as the company seeks to cut costs.

The company says the jobs will go over the next six to eight months and will include about 200 workers employed directly by Arrium and up to 50 contractors.

It says all workers affected will receive their full entitlements, including redundancy payments and other services including counselling and help to find new work.

"All employees will be treated fairly and respectfully throughout this process," Arrium said on Monday.

The latest job cuts follow the loss of 55 positions last month and bring the company's identified savings to $60 million, still about $40 million short of its target.

It says the Whyalla operations continue to be put under pressure by a global oversupply of steel.

Chief executive of steel Steve Hamer says Arrium remains focused on reaching its savings target as quickly as possible and certainly by June next year.

But he has not indicated if that could mean more job losses.

"We remain committed to delivering a viable and competitive Whyalla business which benefits our stakeholders, including our local community and state," Mr Hamer said.

South Australian Treasurer Tom Koutsantonis said low world iron ore prices were to blame for the job losses.

"Terrible news for steel workers at Arrium in Whyalla today. If there was something we could do about international iron ore prices we would," Mr Koutsantonis tweeted on Monday.

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Source: Thompson Reuters Alert: Ref: 151117CA-6756

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