Mathias Cormann fails to act and more jobs go at Osborne shipyards

26 March 2019

The Australian Shipbuilding Federation of Unions (ASFU) is demanding Finance Minister Mathias Cormann step in and stop further job losses at the Osborne shipyards in Adelaide.

A total of 46 workers including electricians, sheet metal workers and pipe fitters are at risk at ASC Ships, a corporation now owned by BAE Systems, while the Federal Government’s ‘shareholder minister’ Mathias Cormann does nothing to secure these highly skilled jobs through opportunities on the sustainment of the Collins class subs at ASC Submarines, ensuring important skills for future projects.

ASFU Convenor Glenn Thompson said Mathias Cormann must step in and take action to stop further job losses because large numbers of shipbuilding workers will be needed once the Hunter Class frigates program moves into the building phase.

“Mathias Cormann is the minister in charge of Australia’s most important Government owned enterprise ACS Pty Ltd (former Australian Submarine Corporation) at Osborne which can ensure skills and jobs are maintained as we transitions towards a massive program of construction with new frigates and submarines soon to begin construction.”

“It is an outrageous act of negligence on the Federal Government’s part to see more skilled shipbuilders forced into redundancy as the industry gears up for expected major expansion,” Mr Thompson said.

“Christopher Pyne is Defence Minister in name only having failed to fix job security at ASC before he leaves politics, so we are demanding that the man who holds the purse strings, Mathias Cormann, takes responsibility for securing these jobs.”

Mr Thompson said the Australian Federation of Shipbuilding Unions was seeking an urgent meeting with Senator Cormann to avert the loss of more jobs.

“Four hundred jobs have been lost since Christopher Pyne announced the shipbuilding ‘valley of death’ was over in 2017,” he said.

“Australian shipbuilding can’t afford to see more skilled workers forced onto the unemployment queues or lost to the industry as they go interstate to seek work.”

AMWU Assistant SA Secretary Peter Bauer said the union was taking action in the Fair Work Commission (FWC) over employment practices at the Osborne shipyards and had secured a date to launch its case on 3 April 2019 at the FWC in Adelaide.

“It is outrageous that the BAE-owned ASC Ships is making full-time workers redundant at the same time that ASC Submarines next door is employing shipbuilders under labour hire conditions,” Mr Bauer said.

“The upcoming continuous-build program for naval vessels will be a major employment generator in South Australia and it makes no sense to put future projects at risk by reducing the workforce,” he said.

Mr Bauer said instead of job losses, the Osborne shipyards needed new work to keep them operational prior to the commencement of the frigates’ build.

/Public Release.