A review has identified more jobs should go at Stanwell’s Tarong Power station (Photo: Stanwell)

‘A Kick In The Guts’

The decision has been greeted with dismay by local community leaders, who while supporting Stanwell’s decision agreed it would have an impact on the area.

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Mayor Wayne Kratzmann, above, said he could understand the reasoning behind Stanwell’s decision but it was still “a real kick in the guts” for the region.

“Jobs build a community, people build a community. We need jobs,” he said.

He said he had been having talks with Stanwell.

“I understand where they are coming from. They have been losing a million dollars a week, but it’s a very tough day again for the region,” he said.

Mayor Kratzmann said it seemed every time lately that the South Burnett could see “a little bit of light” something else happened.

“We are not disappointed with Stanwell, we understand what they are going through; but for the region, it is heartbreaking.”

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Member for Nanango Deb Frecklington said the loss of jobs was extremely distressing and disappointing.

She said she was concerned for the employees and the effect it would have on the region, however it was an operational decision by the Stanwell Board who had acted to ensure the long-term viability of the corporation.

She said Stanwell was under pressure because of the market conditions and the results of “crazy green schemes”.

Mrs Frecklington said she was pleased there would be no forced redundancies, and she had also been told eight of the 58 roles were currently unfilled.

She said the Board had acted to ensure a future role for Stanwell in the community rather than leave the decision “too late” which was what had happened with chocolate manufacturer Darrell Lea which went into voluntary administration last year.

July 10, 2013

Stanwell Corporation looks set to axe another 58 jobs at Tarong Power Station after racking up weekly losses estimated to be about $1 million.

Tarong Power Station Site Manager Dennis Franklin broke the bad news to power station employees this morning, although rumours have been circulating in the local community about potential job losses for a fortnight.

Stanwell, owner of the Tarong power stations and Meandu Mine, has been conducting a review of its Operations Division.

A Stanwell spokesman said the proposed changes from the review were necessary to reduce costs for Stanwell, which was making an unsustainable loss on power generation due to the lowest wholesale electricity prices in a decade.

Stanwell announced on March 5 this year that it was reviewing its largest division, Operations, which is responsible for electricity generation and the care of plant at Stanwell’s power stations across the State, as well as Meandu Mine in the South Burnett.

The review aims to improve the profitability of Stanwell’s core business of power generation.

Mr Franklin said Stanwell would commence consultation on its proposal with Tarong employees and unions from today, as required under its Enterprise Agreement, and that feedback would be considered prior to making a final decision.

There would be no forced redundancies.

The Stanwell spokesman said Queensland had an oversupply of electricity generation capacity that was forecast to continue for at least another two to three years. Wholesale electricity prices also were unlikely to improve for some time.

Mr Franklin said Stanwell had to change the way it operated to survive as a business, so it could continue to employ Queenslanders and generate power for the State.

The loss of jobs is the second wave of recent redundancies at the power station.

In October last year, more than 60 jobs were scrapped after a decision to mothball two power generating units; at the same time about 70 jobs were lost at the adjacent Meandu Mine after a shift restructure.

Sources within Stanwell have told southburnett.com.au the Operations division had been “over-staffed” since the decision in 2010 not to proceed with the Kunioon coal mine.

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“People are walking around here with their heads down; they’re absolutely devastated,” Electrical Trades Union organiser Jason Young told southburnett.com.au this afternoon.

Mr Young attended the half-hour presentation which was made to employees at Tarong this morning.

He said Stanwell had made cutbacks recently at its operations at Mica Creek and Swanbank, so workers had expected some cuts were likely “but not to this degree”.

“About one-quarter of positions are affected but they have not given us the particulars,” he said.

“It’s a complete shock.”

Mr Young said a meeting of ETU members would occur at 1:00pm today on site to discuss the ramifications of the announcement.

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ETU Media Officer Andrew Irvine said it was devastating news for the Tarong workers, their families and the local community.

“We believe the decision has been driven by the State Government,” he said.

“It’s going to have a devastating effect on an area already reeling from the job losses last year.”

He said more job losses could be likely in the area with the proposed closure of Ergon depots which have fewer than 15 workers.

Mr Irvine said the State Government was “Brisbane-centric” and seemed to be abandoning the bush.

“Without the bush, Queensland is going to become a backwater,” he said.

[UPDATED 1:00pm]

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