Shipbuilder ASC to shed up to 223 jobs despite Government declarations against 'valley of death'

ABC News
April 23 2018


Government-owned shipbuilder ASC is poised to shed up to 223 jobs from its Adelaide shipyard by June, despite declarations from the Federal Government that the so-called naval shipbuilding "valley of death" is over.   

The taxpayer-owned company today advised workers that 197 blue collar and 26 white collar staff were surplus to requirements.

In a written statement, the company said both voluntary and forced redundancies would be offered.

"The company anticipates that the number of people required to leave the business will be reduced due to transfer opportunities to ASC's submarine's business," the statement said.

"Today's announcement starts a minimum six-week consultation process with the permanent workforce.

"No workers will be departing the business today."

The announcement is the latest in a long line of job cuts unveiled by ASC as work on the Air Warfare Destroyer program dries up.   

The second of the three destroyers constructed for the navy, Brisbane, is now in the water, while work is continuing apace on the third ship, Sydney.

Last year, ASC was awarded work to construct the first two of 12 offshore patrol vessels for the navy, in part to keep Adelaide's naval shipbuilding workforce occupied until work can start on a fleet of future submarines and frigates.

But construction of the OPVs ships is not expected to begin until the end of this year at the earliest.


The company is also hopeful of winning work on the future frigate program.

The Federal Government is expected to decide on competing bids from international shipbuilding rivals BAE, Fincantieri and Navantia in coming months.

In October, Defence Industries Minister Christopher Pyne said "the valley of death is over and we are now seeing an upturn in employment".

Signing a deal with construction company Lendlease to expand the Osborne shipyard, Mr Pyne suggested shipbuilding workers being laid off because of the end of the Air Warfare Destroyer program could take one of the 600 jobs required to build the new yard to accommodate the submarine, OPV and frigate work.

The Manufacturing Workers Union said Mr Pyne's comments rang hollow.

"Minister Pyne looked shipbuilders in the eye and promised them that the work and their jobs were now secure," said AMWU National Assistant Secretary Glenn Thompson.

"This promise has been broken. He's tossed workers aside.   

Valkie wrote on Apr 23^rd, 2018 at 5:10pm:


Priced out of a job by Union demands for unjustifiable wages, conditions and perks. Just like LAME's at Qantas were priced out of a job by their Union making ridiculous demands of Qantas, who then got the work done cheaper offshore.

Priced out of a job by Union demands for unjustifiable wages, conditions and perks. Just like LAME's at Qantas were priced out of a job by their Union making ridiculous demands of Qantas, who then got the work done cheaper offshore.


Oh come on AP,, anyone knows there is no correlation between costs of production and price of the end product.
In fact its not even a problem if the cost of production is higher than all your competitors
I bet even Lefty knows that.
Its all just a big con.

I may have to consider you for a Bam Award"

Now the TRUTH comes out - the union controlled LABOR is to blame for the workers losing their ASC jobs.

Union interference has resulted in the Air Warfare Destroyer project being marred by delays and cost blow-outs.

See another Socialist Govt managed business goes off the rails.



Shipbuilder ASC to shed 223 jobs in South Australia
Lisa Martin and Kathryn Bermingham 6:11pm, Apr 23, 2018


More than 220 job losses have been announced at the federal government-owned shipbuilder ASC in South Australia.

The federal government-owned shipbuilder ASC is laying off 223 workers in South Australia ahead of the Air Warfare Destroyer project winding down.

The third and final ship, Sydney, is expected to be ready by late 2019.

An ASC spokesman said up to 223 positions would be reduced by early June.

“The company anticipates that the number of people required to leave the business will be reduced due to transfer opportunities to ASC’s submarine’s business,” the spokesman said.

Voluntary and non-voluntary redundancy packages will also be offered.

The company flagged there will be six weeks of talks with its workforce.

The Australian Manufacturing Workers Union says it understands the bulk of the job cuts are permanent full-time and highly skilled positions and has vowed to fight the job cuts.

SA assistant state secretary Peter Bauer said Defence Industry Minister Christopher Pyne had broken a promise to the workers.


AMWU assistant state secretary Peter Bauer calls on Christopher Pyne to explain the job losses. Photo: AAP

“Only a few months ago, minister Pyne was out, with a silver shovel, turning over soil at ASC and saying that the valley of death is over,” he told reporters in Adelaide.

“He needs to explain to those workers and to the workers behind me why that statement was made and today we had 197 workers be told that they’re going to be leaving the ASC workforce.”

Mr Bauer said the union had rung Mr Pyne’s office a number of times during the day and was waiting for a response.

After delivering a speech in Canberra on Monday about the rosy future of the Australian defence industry, Mr Pyne blamed the previous federal Labor government for the ASC job losses

“The slowdown of work for the ASC is the direct result of Labor’s failure to commission a single vessel from an Australian yard,” Mr Pyne said.

He pointed out the Osborne shipyard is being built and pylons are being “rammed into the ground”.

“Many of (the laid off workers) will walk across the car park and start work on the Osborne South Shipyard and will walk down the road and start work on the (offshore patrol vessels) at the end of the year,” Mr Pyne said.

He maintains his government has bridged the “valley of death”.

Labor’s defence spokesman Richard Marles hit back.

“A competent government would have seen this coming. A caring government would have done something about it,” he told AAP.

“This government is neither, and the result is people losing their jobs.”

ASC is expected to start work on the first two offshore patrol vessels later this year and hopes to build the Navy’s new fleet of frigates.

The Air Warfare Destroyer project has been marred by delays and cost blow-outs.

https://thenewdaily.com.au/news/national/2018/04/23/shipbuilder-asc-shed-223-job...

Valkie wrote on Apr 23^rd, 2018 at 5:10pm:


And these are the 1 million rubbish jobs that Mal talks about all of the time to the rest of the world.

juliar wrote on Apr 23^rd, 2018 at 10:07pm:



Rubbish - the work is slowing down as it enters it final run.... get a life.

What needs to be done is get rid of ASC and its overpaid and over-entitled 'board' members and staff duplicating those already within the Department of Defence Procurement and the Department of Defence.

Just a set of free rides for some old mates - and a real reason the costs are running high.

Might be a different story if we got our five destroyers to build here in our country instead of giving this work to the French.

FFS did the French elect our government or did we.

Sack the f@rken whole lotta them.

Ajax wrote on Apr 25^th, 2018 at 9:11pm:


Our three Air Warfare Destroyers are actually being built here in Australia, in fact.