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Category: Unions / Government and Politics / Regional Development / Iron Ore / Steel / Industry

Union fears 'forced' pay cuts for Arrium workers amid crisis meeting

Wednesday, 2 Mar 2016 16:42:19 | Angelique Donnellan

The OneSteel iron ore mine at Whyalla in South Australia, June 26, 2006. (OneSteel: AFP)

A lengthy crisis meeting has been held at the Whyalla steelworks, amid union anger that pay cuts are being unfairly forced on iron ore mine workers.

Key points:

  • Arrium mine workers may forego pay rise of three per cent
  • 400 miners are already facing a temporary pay cut
  • Talks continue on taxpayer assistance for Whyalla steelworks

Arrium has asked 400 miners to take a temporary pay cut of 10 per cent, until it can afford to pay them at their normal salaries.

The company has mines near Whyalla, but also operates the steelworks, which have been struggling to stay afloat.

Scott Martin from the Australian Workers Union (AWU) said Arrium did not want to pay a 3 per cent pay rise, negotiated in 2014, in addition to the 10 per cent pay cut.

"They're wedging the unions and the workforce, which are our members, into making a decision because they think they have to make it, rather than putting all the facts on the table," Mr Martin said.

"It would have been nice for them to come to see the union first, sit down with our delegates, explain what they're looking for.

"The vast majority of these workers have already lost thousands and thousands of dollars through roster changes, shift patterns, the elimination of rostered days off, and not working on public holidays."

Arrium is trying to find another $60 million by mid-year to keep the Whyalla steelworks open, and said it needed the support of all stakeholders, including workers, to break even.

The AWU said it called today's meeting with Arrium out of frustration over a lack of communication.

"There is no guarantee of job security, so you have to wonder why you'd keep cutting your wages back and back, and at the end of the day, lose your job anyway," Mr Martin said.

In 2013 Holden workers agreed to a wage freeze and cuts to conditions in the hope of securing the future of the Elizabeth plant, but it was ultimately a wasted exercise.

It is an outcome the union fears could happen in Whyalla.

Government closer to steelworks rescue package

The State Government said progress was being made on a rescue package, likely to involve taxpayer backing if Arrium invested in upgrading the steelworks.

"There are a lot of pieces to this jigsaw puzzle, one is the Commonwealth Government, two is Arrium and three is I'm not interested in a sugar hit," Treasurer Tom Koutsantonis said.

"I want a long term structure fix, like we did to the Port Pirie [smelter], and we need to ensure the steelworks ... are there for the next 20 to 40 years."

The AWU said steelworkers have not yet been asked to take a pay cut.

Arrium's mining employees are expected to vote whether to accept the reduction by mid-March.

AustraliaPlus


 

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