Sneaky, Sneaky: The Caltex Way of Treating Workers

Jul 26, 2012
Essential Research

To the long list of sneaky and dishonorable ways of doing business in the corporate world, we can now add Caltex. You may remember that the Australian Workers Union was trying to engage the Woolworth’s-Caltex partnership in a dialogue about the future of the Kurnell refinery in Sydney. And, then, boom, the axe comes down and, poof, 630 people will lose their jobs in a bolt from the blue announcement this morning.

Per the Sydney Morning Herald today:

Petroleum company Caltex will close its Kurnell refinery in Sydney in a move that will cost up to 630 jobs, with unions claiming the announcement is a “kick in the guts” to Australian motorists.

Caltex said the refinery would be closed in the second half of 2014 and would be converted to a “major import terminal” to supply imported fuel for Australian customers. The closure would eliminate about 330 direct positions, and as many as 300 contracting jobs.

It isn’t just the refinery that smells here. It’s the whole disregard for the community, per the AWU:

“It’s the first we heard of the announcement,” the spokesman said.

“We knew [shutting the refinery] was an option and that the company was holding a review, but until today we were hopeful.”

The spokesman said the AWU would be pressing Caltex for answers, and would hold a noon press conference at the Kurnell refinery. He believed the consultation had been “very limited” and said the figure of about 800 jobs at risk was accurate. [emphasis added]

Skilled trades workers — 300 permanent workers and many more casuals and contractors — will be hit as well, as we learn from Tim Ayers, state secretary of the Australian Manufacturing Workers Union, who sent the Broadside Blog these comments:

“These are highly skilled workers. Today’s announcement is a blow to them. It will also have knock-on effects for industry supply chains across NSW and undermine prospects for the next generation of skilled blue collar workers in NSW.

During the O’Farrell Government’s short term in office, Sydney has lost both its major refineries, hitting jobs and leaving the state dependent on imported refined oil products.

Barry O’Farrell has not lifted a finger to ensure jobs and production capacity were maintained at Sydney’s Kurnell and Clyde refineries,

This government appears to have no plan for supporting local jobs and industry.

The company basically decided this, on its own, workers and communities be damned.
We’ll keep people updated on the developments, especially from today’s presser.

@jonathantasini

Sign up for updates

Receive the Essential Report in your inbox.
  • This field is for validation purposes and should be left unchanged.

3Q: This week's episodes

» More Vision