4 days ago
More job losses flow from Whyalla steelworks administration
After 19 years in a job that had been his pride and joy, Dylan Leebody is being forced to hang up his boots as another company in the troubled South Australian city of Whyalla enters administration.
"It was a bit shocking at first to realise they're saying the days are numbered for this workshop … it was a bit disheartening," he said.
"A lot of people are stressed out obviously about finding work."
The workshop leading hand is one of 47 workers staying on at steel fabrication company Ferretti International, owned by GFG Alliance, until its final projects are finished.
More than 100 jobs have already been lost, with 34 active staff terminated and the cessation of employment formalised for another 65.
Mr Leebody said many employees were likely to find new roles but some could have to look beyond Whyalla.
But for workers like himself with two young boys, relocation or FIFO work was not an option.
Australian Manufacturing Workers' Union SA secretary Stuart Gordon said entitlements were also a major concern.
"There's around $2.1 million owed in entitlements currently, we hope they can find the money and that's paid out," he said.
He said there was still hope among workers OneSteel would buy the plant.
Speaking after the first creditors meeting for Ferretti on Monday, administrator Michael Brereton from William Buck said the business was reliant on OneSteel as "its major customer".
That was confirmed in a statement provided to the ABC by a GFG spokesperson, which noted that placing OneSteel into administration had resulted in "a significant downturn of Ferretti's revenue and operations".
"[Ferretti's] employees have valuable skills and while the continued employment of the Ferretti workforce is a matter for the administrators, it is hoped that some employees will transfer to OneSteel," the spokesperson said.
Ferretti was not the only business experiencing job losses that have been blamed on the town's struggling steelworks.
Rail haulage group Aurizon has also explored the reduction of its workforce.
According to a statement provided to the ABC by Aurizon, OneSteel had advised of an intention to "ramp down mining operations in FY2026", which would result in a reduction in train services from July 2025.
"Aurizon is consulting with our workforce on the impact of this decision on our Whyalla-based workforce, which is expected to see a potential reduction of up to 24 positions," it said.
Rail, Tram, and Bus Union (RTBU) SA secretary Darren Phillips said the organisation was planning to "explore options with Aurizon moving forward".
Whyalla City Council mayor Phill Stone said the community remained resilient in the face of more job losses and many hoped the eventual sale of the steelworks could turn things around.
