Union meets workers over Boral job cuts, Austraila

Union meets workers over Boral job cuts, Austraila
Published: 11 December 2012

Tagged Under: Boral Australia Cost-cutting 

The Australian Workers Union (AWU) is meeting today with workers who are expected to lose their jobs at Boral's Waurn Ponds cement plant in Victoria, Australia, according to reports by ABC News.

Around 90 jobs are likely to be axed, after a restructure of the company's operations. Union spokesman Cesar Melhem says the workers are devastated, adding that the decision will have a flow-on affect to other trades, including subcontractors, in the area.

Last week Boral announced that it would halt clinker production at its Waurn Ponds facility indefinitely. Citing the strong Australian dollar and rising costs as the main reasons behind the decision, Boral CEO and managing director Mike Kane, added:  "A continued low level of demand associated with the downturn in Australian building and construction activity is also adversely impacting the profitably of Boral’s cement business, where high fixed cost manufacturing assets continued to be underutilised,’’ Mr Kane said.

The plant will continue to mill clinker but imported cement will be used from April. In a statement, the company said the change would result in 25-30 per cent of its clinker requirement being imported.