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ASC announces reduction of permanent workforce numbers on AWD Project

05/01/2016

Adelaide-based shipbuilder ASC has announced that approximately 45 permanent tradespeople will be let go from the Air Warfare Destroyer Project by the end of the year because the roles are no longer needed as part of the current build activity.

ASC Shipbuilding Interim CEO, Mr Mark Lamarre, said the decision would see a reduction in the number of boilermakers and welders working at its Osborne shipbuilding facility.

“While ASC has seen contractors come and go in the normal peaks and troughs of shipbuilding activity, this is the first major reduction we have had to make to our permanent production workforce,” Mr Lamarre said.

“It is never an easy decision, but ASC is obligated to do all it can to operate as a highly efficient, productive and competitive shipbuilding organisation,” he said.

Mr Lamarre said further reductions in staff numbers were likely as the project neared completion.

“The reality is that ASC’s workforce profile on the AWD Program has reached its peak and will now progressively decline as we head towards the end of the project and various trades complete their component of the build activity,” Mr Lamarre said.

“Until the outcomes of the Competitive Evaluation Processes for the Future Frigate and Offshore Patrol Vessel projects are known, it is not possible to maintain the current number of employees on this project as work winds down,” he said.

“We have achieved major productivity improvements during the last 12 months, and by drawing on lessons learnt from the first ship we have seen a greater than 30 percent improvement on Ship 02 over Ship 01 on a cost per percent complete basis, and a further 10 percent on Ship 03.”

The affected employees will be provided with support through ASC’s employeeassistance program and career transition advice will be made available to employees who leave the business.

ENDS

More information: Amy McDonald, Communications Manager, 0466 535 968 

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