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Nine workers sacked

Saturday, 9th May, 2009

South Australian company Cavpower sacked nine of its Broken Hill workers yesterday, citing a downturn in business.

Cavpower said falling sales, increasing costs and a bleak outlook left them with no choice but to dismiss 20 per cent of its workforce.

Six diesel mechanics, two boilermakers and a trades assistant were given either voluntary or nonvoluntary termination. Workers were asked by the company just last week to give expressions of interest in termination.

A spokesman for the company said a number of people took up the offer of voluntary termination.

"It is with regret that on Wednesday 29 April, 2009, Cavpower Broken Hill branch employees were advised of the need to reduce their employee numbers by approximately 8-10 operational employees," a statement from Cavpower management said.

"Employees will be able to express their interest in voluntary termination and all employees terminated will receive their full entitlements.

"Decreasing sales and increasing costs over the last six months together with lower than expected forecasted sales for the upcoming f inancial year contributed to the decision.

"The decision was not taken lightly and was made in consideration of all available alternatives." When the downturn in the mining industry began last year with local mine Perilya sacking 440 of its workers, Cavpower said it was able to keep workers employed by moving them to other areas where business was still buoyant.

Employees relocated on temporary arrangements. "However with the general downturn our whole business is seeing a reduction," the spokesman said. He said the workers would not be offered work with Cavpower in other locations as it was not available. Five apprentices that Cavpower employed were safe for now.

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