three green bullets

Cooperative approach to closure

Following the decision to close down production at Hydro’s Kurri Kurri smelter in Australia, Hydro entered into a dialogue process with the union and local authorities.
Paul O'Brian
Paul O'Brien

The process included a meeting with HunterNet, the Hunter Business Chamber, the Department of Trade and Industry, and the Department of Employment, Education and Workplace Relations. The purpose was to discuss what more could be done to connect jobless employees with prospective employers. For comments and more information on the dialogue process, see separate stakeholder interviews.

At the end of the meeting, Tony Sansom, a Regional Director at the Dept of Trade and Industry (NSW Government) stated that he had never seen a company acting like this, and that he had only seen more brutal approaches to shedding jobs. 

In contrast to this are some comments by Paul O’Brien, Site Senior Delegate, representing The Australian Workers’ Union: “Even though the financial climate may have made the outcome inevitable, the decision by Hydro to fully close the Kurri Kurri smelter was particularly upsetting following the remarkable effort and hard work from the employees, the union and local management to address the fixed cost and efficiency issues.”

On the other hand, he points out that the local management and human resources (HR) team at Kurri Kurri performed reasonably well throughout the closure process making financial and emotional counselling available to any employee that needed it.

“Resources and funding for outsource training of our redundant workers was generous and support services to help them find new jobs was admirably provided – Often from the HR department’s own initiative. Approval by Kurri Kurri senior management to fund a commemorative day for redundant employees and publish a booklet commemorating the Kurri Kurri smelter was also commendable”, he says.

“Overall, our employees were treated well and respectfully under these terrible circumstances and I thank the company for that. This cooperative approach from the company allowed workers to focus on the job at hand and respond with a safe and efficient closure of the plant,” he says.

Jack Ritchie, Local Employment Coordinator, Department of Employment, Education & Workplace Relations, says he is impressed by how the closure of the plant has been handled.

“I have been in discussion with colleagues Australia-wide who are also involved in working with redundancies and they agree with me that the way Hydro has handled this is a best practice example. The early discussions with staff to prepare them for this possible eventuality, the tireless efforts to support people who prepare to seek employment with other employers and the partnership with DEEWR around the development and delivery of the Hydro Jobs Market was all done willingly, enthusiastically and professionally,” he says.

Les Covey, Casthouse Senior Delegate, describes the transition as very smooth. “Workers and management worked together to make sure employees were well looked after,” he says. “We were aware of the services available such as counselling, resume creation, training and assistance from Human Resources”.

Trevor Morris, Carbon Plant Senior, Delegate Australian Workers Union, comments:
“I can honestly say I don’t hold any ill feeling towards Hydro Corporate over the closure of the smelter. It’s only common sense that says you can’t keep running a business that is losing money and trying to keep shareholders happy at the same time. I can also say from a workers point of view that we did our best to stay open!!” 

Updated: June 3, 2013
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