Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Uncertain future for 160 Silcar employees

Staff could be without a job in the new year following Bluescope Steel's decision to end a maintenance services agreement with Silcar

Silcar, which has won several multi-million contracts for the National Broadband Network (NBN), will potentially lay off 160 staff in January next year.

The company made the announcement yesterday following a decision by Bluescope Steel that it would not renew a maintenance services agreement for its Western Port site when the contract expires 26 January.

“Bluescope’s decision to not renew this agreement means Silcar may lose the services of 160 loyal and valued staff. With the expiry of this agreement, Silcar will cease operations at Bluescope Hastings on 26 January, 2013, following nine years of service,” Silcar said in a statement.

Silcar said it was working with its employees and unions to find alternative employment for staff.

Silcar is a 50/50 joint venture between Siemens and Thiess Services. The company was awarded a contract in September this year worth up to $78 million to install NBN equipment in Queensland, New South Wales and the Australian Capital Territory.

It was also awarded a $380 million contract in June 2011 to construct and deliver a passive fibre network covering New South Wales, Queensland and the Australian Capital Territory.

Dan Birmingham, project director of the Silcar/Thiess Services joint venture, recently told an NBN forum that over the next three years, the company will be responsible for delivering 25,000km of fibre for the NBN.

Birmingham noted a challenge for the company was filling staffing requirements.

“If we were to rely on [the] existing sub-contractor base within Silcar Comms or their resources, I don’t think we’d handle the volume, so we need to start to look at different areas where we can build this capability,” he said.

“The first one is obviously from the sub-contractor market. It is very important to support those lower tier sub-contractors in the market to bring them with us on the journey.”

Birmingham also said Silcar would look to its parent companies to help fill resource requirements.

“We are building capacity, not just relying on existing capacity in the market, but building it,” he said.

Silcar will eventually need to pass 150 houses an hour at the peak of the rollout, with “full speed … just over the horizon”.

Silcar was not available for comment.

Follow Stephanie McDonald on Twitter: @stephmcdonald0

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Silcar, National Broadband Network (NBN)
Latest Blog Posts
Whitepapers
  • Research firm Radicati names Google Apps for Business the leader in cloud business email
    Radicati Market Quadrants illustrate how individual vendors fit within a specific technology market, classifying them as niche specialists, up-and-coming pioneers, today’s top players or yesterday’s leaders. In August 2013, Radicati used this model t o assess and compare 14 cloud business email providers, including Google.
    Learn more »
  • CISO 2013 Security Insights: A new standard for security leaders
    Insights from the 2013 IBM Chief Information Security Officer Assessment which uncovered a set of leading business, technology and measurement practices that help to address the questions CISO's and security leaders have in managing diverse business concerns, creating mobile security policies and in fully integrating business, risk and security metrics.
    Learn more »
  • The CIO Paradox
    As there are timeless leadership principles underlying IT value, there are unfortunately also timeless challenges that thwart the IT organisations efforts and make for a rocky path to CIO success. These are the inherent contradictions we call the CIO Paradox.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments

Computerworld
ARN
Techworld
CMO