ARI (Arrium) : At Rock bottom, ore not?

[Snoopy]

2/ Arrium warned Wednesday that unless it can cut another $60m in costs out of Whyallla, on top of the $100m signalled last October and cut iron ore mining costs by 1/3, both operations will be shuttered.
(A decision will be made by mid year.)

As we all know a rather different decision has seen the company move into the hands of adminstrators. But KordaMentha are tightening the screws themselves.

http://www.whyallanewsonline.com.au/...ssing-pay-cut/

"A spokesperson for Arrium’s Administrator, KordaMentha, has confirmed that they are in discussions with Arrium’s OneWhyalla employees and representatives in relation to a pay reduction."

"The Administrators require a $25-30m reduction in annual labour cost across the mining and steelworks operations."

"The spokesperson said the pay reduction was one aspect of a broader cost-out strategy to ensure the OneWhyalla business, as part of Arrium Australia, presents as best as possible to market."

“We understand this will have an impact on each and every employee, their families and the entire Whyalla community, but it is essential and the right thing to do for the long-term success of the OneWhyalla business,” they said.

Knucklebusters (from the other channel) who was at the workers meeting sounds none too impressed.

"It is 17%, we have taken no cut at this stage (only staff have) and they are wanting 17% from us (1450 employees) we will also have to lock in a new EA for 3 years stating no pay rises for this term. Arrium will be no longer and will be put up for sale at the end of this month. KM want our decision next week for a sign off the following week. They can get stuffed in my opinion, KM can't even guarantee a sale and have told us today it will shutdown in December if there is no interest from a buyer(s), So f**k it we may as well earn what we are earning now and get our redundancy payout."

SNOOPY