Stokes' WesTrac job cuts stoke mining sector woes
The company, a division of Seven Group Holdings, provides Caterpillar machinery, such as bulldozers and trucks, to the mining and building industries.
WesTrac blamed "challenging market conditions" for the job losses.
"It is anticipated that the restructure will result in approximately 350 redundancies across WesTrac's NSW and ACT business, which will be implemented in the next month at an approximate cost of $10 million," the company said.
WesTrac had already started cost cutting over the past eight months, but has had to do more.
Across Australia, WesTrac has more than 3500 employees, primarily in Western Australia and NSW.
Earlier this week, the coal industry saw more than 1000 jobs axed as miners reacted to low contract prices, weak demand and high costs.
Most exposed are the steaming coal producers in the Hunter Valley, along with some of the higher-cost operators in Queensland. At the same time, the industry's largest players, such as BHP Billiton and Rio Tinto, are looking at selling some of their mines as part of moves aimed at reducing losses in the sector.
The deepening industry-wide cuts come as the federal government is considering either removing or reducing the size of the carbon tax, which may provide the industry with some relief.
But as many of the coal industry's pressures stem from rising competitive pressure from both the US and Indonesia in export markets, any impact from changes to the carbon tax may be muted.
The carbon price is fixed at $23, which is to rise to $24.15 on Monday and to $25.40 from July 2014.
A decision on a faster transition to a floating carbon price is expected as soon as next week.
Frequently Asked Questions about this Article…
WesTrac says the cuts are due to "challenging market conditions" in the mining and building sectors. The company—a Caterpillar machinery dealer and division of Seven Group Holdings—has been cutting costs for months and says a restructure is needed to respond to weaker demand.
WesTrac has announced it will make approximately 350 redundancies across its New South Wales and ACT businesses, with the restructures to be implemented in the next month.
WesTrac estimates the restructure will cost about $10 million to implement.
Across Australia WesTrac employs more than 3,500 people, with the majority based in Western Australia and New South Wales.
The article notes more than 1,000 coal industry jobs were cut earlier the same week as miners reacted to low contract prices, weak demand and high operating costs—part of deeper, industry-wide cost cutting.
Steaming coal producers in the Hunter Valley and some higher‑cost operators in Queensland are identified as the most exposed to current market pressures.
Yes. The article says some of the industry's largest players, including BHP Billiton and Rio Tinto, are looking at selling some of their mines as part of efforts to reduce losses.
The federal government is considering removing or reducing the carbon tax, which may provide some relief to the industry. However, the article cautions that much pressure stems from rising export competition from the US and Indonesia, so any benefit from carbon‑tax changes could be muted. The carbon price is fixed at $23, rising to $24.15 on Monday and to $25.40 from July 2014, and a decision on a faster move to a floating price was expected as soon as next week.
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