Australian Workers' Union has warned that up to half a million jobs could be lost if the Australian steel industry collapses during the global economic crisis. It said that this would have a tsunami effect on areas such as Wollongong and Newcastle.

It may be noted that steelworkers from Port Kembla joined the AWU national secretary Mr Paul Howes in Canberra as the union released its AWU New Steel Plan. The plan puts forward a 10 point strategy in a bid to save steel jobs, and recommends greater collaboration with the Federal Government to weather the economic storm.

Mr Howes said that "If Australia fails to back this industry we will see a huge impact on regional Australia, including places like Port Kembla, Whyalla, Newcastle and Westernport. The implications for our sector are clear. Stay and fight with the assistance of government policy where possible or stand aside, and relinquish our position as a significant steel producer and exporter, turning instead to imports to supply the domestic market."

The 10 point strategy recommends that

1. Steel be declared as a strategic industry

2. Australian steel be used in major infrastructure projects for the duration of the global financial crisis

3. A Steel Price Monitor be established to provide real time information on prices, production costs, demand conditions and transparency in the assessment of dumping cases

Mr Howes said that massive infrastructure projects being rolled out by the Government would require large amounts of steel, which should come from Australia.

He added that "The impact of the global crisis has triggered a rapid slowing in forward orders for steel, despite the best efforts of employers, and workers alike in maintaining production and profitability. The long term viability of our steel industry is threatened. Now is the time to guide this industry though the choppy waters caused by the global financial crisis."

(Sourced from www.illawarramercury.com.au)