Adelaide-based shipbuilding company ASC has decided to take on all of the workers who were set to lose their jobs after the Australian Government ended its $90 billion contract with France-based Naval Group.
The local shipbuilding company stated last Friday that it would reach out to all of those who were affected by the decision to scrap the deal to build conventionally powered submarines.
ASC chairman Bruce Carter stated that it was really important to hire the workers as their company needed the talent pool that the Australian Government tasked them to administer.
“We will welcome them into ASC if they want to come here,” Chairman Carter said.
“It is important those people are part of ASC and part of the defence community.”
France’s Naval Group, a global and major French defence contractor, has currently employed over 350 people in South Australia. The company also had about 40 workers relocated to France as part of the deal.
In order to help remedy the effects of the ended deal on the workers, the ASC provided Naval Group employees with a fact sheet. The shipbuilding company had also set up a website that will allow them to make contact with those affected.
“It is really tough what they are going through,” he said.
“We seek to reduce the anxiety by saying to them, you have a great future in ASC.”
Prime Minister Scott Morrison announced the end of the Naval Group plan last Thursday when he revealed the new nuclear-powered submarine deal with the US and the UK as part of a landmark security pact.
In line with the new deal, the Australian Government will be investing $6.4 billion to maintain and extend the life of the Collins Class fleet. This will help support about 1300 jobs in South Australia.
A further $5.1 billion will also be used to upgrade the Hobart Class destroyer combat management systems, creating a further 300 jobs in Adelaide.
Premier Steven Marshall stated that although it was “tough times” for those currently employed by the Naval Group, he encouraged them to stay in the state as the ASC would take “any or all” of the affected staff.
“We need every single person, hands-on deck, at the moment,” he said.
“We certainly stand should-to-shoulder with those people at the Naval Group and we will provide them with every single opportunity to stay right here.”
The Premier said the SA Government would also work with the Australian Government and Naval Group to aid those workers who have relocated to France to return to Australia.
ASC Chairman Carter said he was confident that the new nuclear submarines would include considerable local content.
“From a strategic capability, if you’re an island you need to be able to build all of the parts to make up the submarine here,” he said.
“For them to operate properly you need to build to sustain.”
With news from AAP.