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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."
Topics: business-economics-and-finance, defence-and-aerospace-industries, unions, work, government-and-politics, manufacturing, adelaide-5000
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