Australian Steel Industry Creates Strange Bedfellows That Unite to Accomplish a Common Goal

In a move that may be unprecedented in Australian steel industry history, organizations that are normally at odds with one another have joined forces for the sole purpose of achieving a single, but important, economic goal.

It’s shockingly true. Three months ago, give or take a week or two, a rare alliance was formed between employers and unions, each of whom was determined to see that more Australian-manufactured steel was bought and used during the current mining boom.

This is critically important for both sides and that’s why they decided to work together. In fact:

The Australian Steel Institute and the Australian Stainless Steel Development Association have been fighting alongside the Australian Manufacturers Workers Union (AMWU) in a concerted effort to lobby the Queensland government to enact legislation that forces major resource projects to utilize a specific percentage of Australian-manufactured steel.

Industry insiders consider this a staggering development, but it is taking place. And this newly- formed alliance has made other demands it considers to be important, as well. Consider …

It has called for tendering processes to be longer and in English only. Plus, it wants the process to be done on a scale that “levels the playing field for local suppliers,” something that was not done in the recent past.

In yet another demand, the employer-union team has asked for mining companies to provide regular reports on how they directly involve local engineers, detailers and fabrication businesses in their current and ongoing projects. And … they have demanded that the reports be made public.

All of this bodes well for local steel professionals and businesses operating in the Queensland area. And it is happening at a time when it is definitely needed. In truth:

AMWU state secretary, Andrew Dettmer, stated that the alliance came about because of dire need. According to Mr. Dettmer, there have been dramatic losses in the Queensland steel-making industry over the past year.

As proof, he indicated that companies in the area, such as Brisbane’s Gay Construction and Beenleigh Steel Fabrications had been forced to dramatically downsize their workforces, putting many qualified men and women out of work.

The secretary further stated that job losses in the local steel industry were or had been occurring all over Queensland.

In a final statement, Mr. Dettmer conceded that Australian steel generally costs more than foreign steel, but he also said that it is produced to a higher standard and it is a far better and longer-lasting product. And that, of course, makes it more cost-effective.

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