South Australian community struggling as fate of steelworks hangs in balance

The potential closure of troubled steelmaker Arrium could threaten the entire future of one South Australian town and potentially cost South Australia's economy close to a billion dollars.

Whyalla church employees Link Engineering

Workers from Link Engineering in Whyalla discuss the future in a church hall. Source: SBS News

In a church hall in the South Australian town of Whyalla, a close-knit group of workers are worried about their futures.

The are all boilermakers, originally from the Philippines, who moved to Australia as skilled migrants to work for the same company.

Angel Azuceni moved to Australia a decade ago. He's since become a citizen, bought a house and made Whyalla his home.

His teenage son became an apprentice at the same firm, Link Engineering.

"I had a lot of dreams here," Mr Azuceni said.

"But suddenly [things] change, because something came up, and I did not expect it."

Link Engineering went into liquidation in April after the death of its owner Vince Marino.
Whyalla's apex employer Arrium owed money to Link Engineering.

The troubled steelmaker Arrium is currently in the hands of administrators, and is expected to be put on the market in July.

Angel Azuceni and about 40 co-workers all lost their jobs, and Link Engineering closed down.

They're now looking for boiler-making work anywhere they can find it.

Another former Link Engineering worker, Alvin Yanaza, says some of their former colleagues have already left town, heading for Melbourne, Adelaide or Western Australia.

But for some who have mortgages and families, it is harder to be flexible.

"Especially me, I've got kids," he said.

"Four kids, and they go to school."

New Flinders University research released last month warns up to 40 per cent of Whyalla's workforce could be left jobless if the Arrium steelworks closes.

The impact will be felt across South Australia, with the state losing between $678 million and $770 million and 5000 jobs, the report says.
Whyalla, South Australia
Link Engineering is the major employer in Whyalla, South Australia Source: SBS News
Though Arrium's administrators are seeking buyers, there are no guarantees the loss-making steelworks will remain open.

Whyalla's Acting Mayor Tom Antonio says the business, which is by far the biggest employer in town and supports many smaller businesses, cannot be allowed to close.

He believes support should be given to help the plant keep running, with a longer-term plan put in place to make it more profitable in the future.

"We have to diversify the products that we make, as a steel plant," he said.

"And that has to come with investment not only from the state but the federal government, but also with the administrators."

In the centre of Whyalla, many shop fronts stand empty, with 'for lease' signs in the windows.

The upmarket harbourside Foreshore Motor Inn is just the latest to close its doors, its management blaming a sagging local economy.

Locals say Whyalla's economy was on a downward trend even before Arrium went into administration, but losing the steelworks would plunge the town of 22,000 into crisis.

Peter Munn, Chief Executive of Centacare Country South Australia says the number of people seeking financial and emotional support is increasing.

"Will I be able to pay my rent, will I be able to pay my mortgage? All those issues have certainly come to the fore for many people," he said.

For Alvin Yanaza and his former co-workers, Whyalla's economic state may mean having to find work elsewhere.

"If there is no work, no money," he said.

Plummeting housing prices mean his family will, most likely, have to stay behind. But that's a sacrifice Mr Yanaza says he is willing to make, in order to support them.


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4 min read

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Updated

By Rhiannon Elston
Source: SBS News


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