BlueScope gets nod to 500 job cuts , wage freeze at Illawarra steelworks

Australian steel producer BlueScope has reached a fresh three year “game-changing” enterprise agreement with unions and employees at Port Kembla that includes 500 job cuts, a pay freeze and suspension of wages bonus scheme for the period of the agreement.

BlueScope Managing Director and CEO Paul O’Malley said the agreement is a significant and essential
step to achieving the Company’s $200 million cost reduction target.

The new agreement, including a three-year wage freeze and new streamlined
provisions for the introduction of workplace restructures, has been settled without any industrial action.

Unions have also agreed to suspend the Port Kembla wages bonus scheme.

Approximately 300 manufacturing jobs will be removed in wide-ranging restructuring and productivity
reforms agreed under the mediation guidance of the Fair Work Commission’s Vice President Hatcher.
A further 200 support and service positions will also be eliminated.

Mr O’Malley congratulated Port Kembla employees, the management team, union leaders and the FWC
on the agreement.

“The constructive engagement by all parties has been outstanding.

“This is a major step towards achieving the $200 million cost saving target. But we still have a lot of work
to do in the coming weeks, as steel prices remain under pressure from the global steel glut.

“I feel that the positive vote from employees today is a significant step change improvement in our
workplace – one that will result in a more cost efficient and flexible steelworks.

“We will provide a more detailed update on progress on delivering the $200 million savings by the time of
our AGM in November,” Mr O’Malley said.