Australia's strategic interests threatened by refinery shutdown: AWU

03 January 2010

Australia's strategic interests are threatened by the shutdown of the Caltex Lubricating Oil Refinery at Kurnell and should immediately be reconsidered, the National Secretary of The Australian Workers' Union, Paul Howes, said.

" This is the only lubricating oil refinery in Australia - and one of the refineries' key customers, indirectly by purchasing blended product, is the Australian Defence Forces.

Refinery shutdown announced without any warning: potential catastrophic consequences

Caltex announced - without any warning early in December - that they would be shutting down this refinery.

" If the unthinkable happened and Australia was at war with any of our Asian neighbours, and we were isolated from our allies, the failure to have an on shore lubricating oil refinery to service the defence forces, industry and transport would be catastrophic," Paul Howes warned.

Union, Caltex and Fed Gvt should look to saving this strategic operation

" Caltex has so far not given a final date for the shutdown of the refinery. We will early in the new year seek talks with both the Federal Government and the company to ensure that the strategic value of this site is recognised.

" The union, Caltex and the Federal Government must come up with a deal to keep this refinery operating.

" We are dumbfounded by the company's announcement which came without any forewarning. "

Refinery exports to a range of countries in our region

Typically the Caltex Lubricating Oil Refinery is capable of producing about 100,000 barrels a month.

As production often exceeds domestic requirements, base oils are exported to a number of countries including New Zealand, the Philippines, Hong Kong and Thailand.

The Kurnell site competes successfully with a number of regional refineries for these and other Asian export markets.

Quiet, understated shutdown announcement made without details could cost 200 jobs

Paul Howes said the shutdown will cost about 100 local direct jobs with a flow-on effect which will see at least another 100 jobs lost.

" The company has been quite secretive about the shutdown.

" They have given no exact details about the process. It has been quite cruel on the workforce - many of whom have worked at the refinery for decades - telling them before Christmas that the refinery will shut down, but not giving any exact details about when the shutdown will happen.

Caltex has been reporting healthy profits

" The AWU is puzzled by the announcement because Caltex has reported healthy profits and had recently proposed to buy out Mobil Service Stations (at a final cost of $480 million) but they were knocked back by the regulator.

" We are concerned that our members jobs are being used as pawns by Caltex management, angered by the Australian Competition and Consumer Commission decision scuttling their Mobil service station take over plans." Paul Howes said.

What the media said about this story

• Union slams Caltex shutdown plan (ABC)
  

• Union warns of risks in refinery closure (The Australian)
  

• Caltex decision to shut unit will cost 100 jobs (SMH)
  

• Save Kurnell refinery: AWU (AAP)