AWU angered by OneSteel slash and burn plant closures

The AWU has blasted OneSteel for refusing to invest in new technologies and using their merger with Smorgons Steel as an excuse to shutdown plants across Australia.

OneSteel this morning announced to the ASX and their workforce that they will be shutting their Bar Mill in Newcastle and the Martin Bright plant in Somerton, Melbourne.

" This is a hugely profitable company with revenue nearing $6 billion and approximately $700 million in profit but unlike comparable companies it has put virtually nothing into plant modernisation and investment. Their profits come purely out of a slash and burn strategy," Paul Howes, AWU National Secretary said.

" OneSteel's announcement today was not unexpected - the industry rumour mill has been furnace hot. But it still comes as a body blow to steelworkers, their families and our Steel Communities. OneSteel boasts of a commitment to its people sounds very hollow to their workforce this morning.

" Australia is paying the price for the decade long failure of the Howard government to roll up their sleeves and work with local entrepreneurs to back quality R&D projects. We are paying for the short-sightedness of the Howard era, facing massive global seismic changes in manufacturing they made plans to secure Australian jobs.

" Job losses in the steel industry are mounting. At the OneSteel Bar Mill Newcastle they are expected to reach 220 and more than 100 jobs will be lost at the OneSteel Martin Bright plant in Somerton, Melbourne."

OneSteel - Smorgons is the AWU's largest private sector, the Union will demand urgent talks with OneSteel and Federal and State governments.

" For the Hunter region in particular the OneSteel announcement will be another body blow, coming on top of hundreds of job losses in that region in the last three months in the local chemical, autoparts and steel industries," Paul Howes, AWU National Secretary said.

The AWU Victorian branch secretary, Cesar Melhem is meeting with OneSteel AWU members this morning in Somerton and said that this announcement coming on top of expected job losses in the Auto Components sector is a heavy blow to the Victorian economy.

"The AWU will be doing all it can over the coming weeks and months to ensure that our heavy industries in Victoria are protected by ensuring that large companies like OneSteel actually invest some of their profits into new skills and technologies" Mr. Melhem said.

The AWU Newcastle branch secretary, Kevin Maher, is meeting today with AWU members at OneSteel's Bar Mill in Newcastle said that the Hunter is still suffering from the long term effects of the Newcastle BHP steel mill closure in 1999.

"Fortunately in the Hunter the Aluminum industry is investing in new technologies and equipment to provide for a long term future for that sector. But major Steel players like OneSteel are refusing to look at the long term future of this region" Mr. Maher said.