AWU warns local steel industry "on the brink of collapse"

The Australian Workers' Union will host an emergency meeting of more than 80 steelworkers from across Australia in Melbourne today. The meeting between the steelworkers, government and industry representatives will discuss the worsening crisis facing the domestic industry.

AWU national secretary Paul Howes said steel manufacturers were on the brink of collapse, largely due to a high Australian dollar. The meeting also will discuss what the AWU calls a "lack of action" from the Reserve Bank of Australia (RBA) on interest rates, which it says is hurting the manufacturing industry.

Howes said the government must urgently review the RBA's charter on monetary policy. A high exchange rate and falling commodity prices have hurt local steel manufacturers for some time, with OneSteel announcing 430 job cuts in February and rival BlueScope shedding 1000 workers in August last year.

Federal Industry Minister Greg Combet and Victorian Opposition Leader Daniel Andrews will address the steelworkers, followed by presentations from Onesteel and BlueScope on Thursday outlining current market conditions. The emergency meeting will come ahead of a meeting of the Prime Minister's manufacturing taskforce due later on Wednesday.

Source: AAP NewsWire