Williamstown’s BAE Systems shipyard could start shedding workers in the new year unless it gets more work.
This is despite last week’s news the Williamstown shipyard has been awarded a contract to produce three additional hull sections (blocks) under an $8.5 billion Air Warfare Destroyer (AWD) program.
The shipyard employs more than 1000 people and had been in danger of closing next year when current work runs out.
BAE maritime director Bill Saltzer said while the contract was good news, more work was needed.
He said current work on the Landing Helicopter Dock (LHD) ships would run out in the third quarter of next year, creating another gap.
“The first LHD will depart this week for Sydney and the second is scheduled to be delivered in the second half of 2015.
“Without more work for the yard, we will need to review our level of resources in the new year,” Mr Saltzer said.
“As any project-based company, we will have peaks and troughs in terms of staff numbers depending on the mix of project types and the stages of work on each project.
“The announcement of three additional blocks for the AWD program does not secure full employment in Williamstown, but it does mean we will have continuing block construction work on that program into the first quarter of 2016.”
The Australian Manufacturing Workers Union said a long-term fix was needed to save Williamstown’s shipyard.
“It’s good news, but it certainly isn’t enough. All that does is delay the inevitable,” union organiser Colin Muir said.
“We need governments to actually commit to an ongoing rolling build. They’ve got work scheduled out for the next 20, 30, 40 years. They know what that work is – they need to schedule it properly.”
State Manufacturing Minister David Hodgett said “timely decision-making” was needed and he was “disappointed” the Commonwealth had decided to source two navy supply ships from South Korea or Spain.
“The Victorian Coalition government will continue to work co-operatively with the federal government to secure the future of the Williamstown shipyard, which is not just of great value for Victoria but is in the best interests of Australia’s national security,” he said.
Gellibrand Labor MP Tim Watts said state and federal governments could be doing much more.
“Tony Abbott has excluded Australian shipbuilders from tendering for two new navy supply ships and he’s set to buy our new submarine fleet from Japan,” he said.
