Struggling steel producer Arrium announced that it has “achieved support” from the majority of employees for temporary pay reductions.
The business had asked employees to take a temporary 10% pay reduction and wage freeze in support of its efforts to survive the current challenging environment.
Arrium Mining Executive General Manager, Matt Reed, thanked employees for recognising the importance of the action which is being implemented for all staff salaried employees.
“I recognise that this would not have been an easy decision, so the business values and appreciates the personal sacrifice that each of these employees has agreed to make,” he said.
In the meantime, Victorian Treasurer Tim Pallas and Minister for Industry Lily D’Ambrosio have called on the Turnbull Government to step up and secure the future of the steel producer.
Mr Pallas urged the federal government to sit down with the states and the company “as soon as possible” to support the thousands of jobs that are at risk.
“We urge the federal government to act immediately and get behind the local steel industry,” Mr Pallas said.
“There are thousands of jobs at stake here and we cannot let the federal government sit idly by as it did with the automotive industry.”
Ms D’Ambrosio reiterated her stance for introducing a more effective “buy Australian” policy to expand local industry and support local jobs, which the COAG Industry Council is investigating at Victoria’s request.
“We call on the federal government to adopt the local content proposal that we have put forward, which will support local industry and local jobs,” Minister D’Ambrosio stated.
Arrium employs approximately 5,000 staff nationally, including 900 staff in Victoria, in Laverton North, Scoresby, Lyndhurst, Port Melbourne and Geelong.