70 Jobs, Smorgon Tube Mills Lost

Date: 29 November 2004

More than 70 steelworkers will lose their jobs as a result of the closure announced today of Smorgon Steel's Tube Mill plant at Sunshine in Melbourne's west. The job losses over the next two months come on top of 55 job cuts at the plant in August.

Smorgon Steel today told workers that the Sunshine Tube Mills Operation would cease production by the end of next January as a result of price import conditions.

The Australian Workers' Union said that workers at the site had improved productivity but could not compete with cheap Asian steel products being dumped on the Australian market at below-cost price.

AWU Victorian Branch Assistant Secretary Cesar Melhem said that union negotiations had ensured that all affected workers would receive above-Award redundancy payments as well as job placement assistance to find new work.

"We are extremely disappointed by the closure of the Sunshine Tube Mills because the workers have done everything possible to keep the operation viable, including cooperating in the cost-cutting program three months ago," Mr Melhem said.

AWU National Secretary Bill Shorten questioned the Federal Government's steel import controls for failing to detect and stop "dumping" of steel tube products in Australia at below cost prices.

"The Federal Government including the Customs Service should review the recent massive increase in tube steel imports from Asia, particularly South Korea, Thailand and Malaysia, which are now costing jobs in Australia." Mr Shorten said.

The AWU cited statistics showing that annual imports of tube steel products to Australia tripled in the last three years to 160,000 tonnes, much of it selling for around $950 tonne. Yet the cost on international markets of the basic raw material for tube steel, hot rolled coil, is about $800 per tonne.

"We cannot see how it is economically viable to manufacture, transport and market tube steel for $950 a tonne if you are paying the world price for hot rolled coil of $800 a tonne," Mr Shorten said. "No legitimate producer can compete with below cost imports that appear to be by-passing the rules of international trade."

Workers made redundant as a result of today's announcement will be paid their outstanding entitlements in full, including all Long Service Leave, uncapped Redundancy Entitlements of four weeks pay for each year of service, plus a $5,000 closure payment.

For further information

Contact:	Jeremy Vermeesch
Union:	The Australian Workers' Union
Phone:	03 8327 0888
Contact Mobile:	0431 942 977
Fax:	03 8327 0899
Email:	jeremy.vermeesch@awu.net.au
WWW:	http//:www.awu.net.au

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