BAE Systems has axed 125 jobs at its Williamstown shipyard in the strongest sign yet the ship-building industry will exit the state.
Australia’s biggest defence contractor confirmed on Wednesday the loss of 100 blue-collar workers and 25 white-collar workers as work dries up without new government contracts.
The announcement brings the total number of job losses in Williamstown to about 600 since October last year.
Fears are also held for the future of the remaining workers in the 900-strong workforce beyond early next year.
Star Weekly this week reported the job losses were expected in the wake of the federal government’s announcement of a $40 billion continuous shipbuilding program based in South Australia.
A meeting between management and the Australian Manufacturing Workers Union confirmed the redundancies would be effective by October.
BAE Systems maritime director Bill Saltzer said the 125 job losses are the result of a continuing decline in work as existing projects near completion.
“Today’s announcement is necessary because we are a project-based business and our employee numbers must match the needs and status of our ongoing and upcoming projects.”
Union organiser Colin Muir laid the blame firmly at the feet of the Federal government, suggesting the company had done everything it could to try to secure more work.
“Not only have they not done anything to create work but they have actually taken away from some of what the previous government had committed.”
Mr Muir said the previous Labor government had been slow to act but finally began creating opportunities by bringing forward work including an order for two new supply ships, only to have the Abbott government award the contracts to Spain and South Korea.
Defence Minister Kevin Andrews said he was disappointed at BAE’s job cuts, arguing Wednesday’s job cuts were not linked to the government’s South Australian shipbuilding announcement.
But Mr Muir said the claim was disingenuous and that the government could have assisted BAE bridge the “valley of death” between major contracts.
He said a further round of redundancies is expected within months and the remainder of the workforce is unlikely to survive past the start of next year without a fast-tracked order.
The Victorian Government is urging the Federal government to consider the “direct procurement” of three of the 12 new offshore patrol vessels from BAE.
Defence Minister Kevin Andrews’ spokeswoman, Chloe Petch, said it was too late to bridge the gap between jobs at Williamstown.
“The government’s commitment to a continuous build strategy will transform Australia’s naval shipbuilding industry and put an end to the boom-bust cycle that has afflicted the industry, which has led to the current shipbuilding ‘valley of death’ left to the nation by the previous Labor government.”
