1 in 5 Newcastle jobs to be cut: Forgacs CEO

Engineering company Forgacs will cut a fifth of its workforce at Newcastle due to
a lack of shipbuilding contracts.

The company, whose workforce at Newcastle peaked at 900 and
now stands at 600, has been warning about the shipbuilding “valley of death”
for more than two years, said CEO Lindsay Stratton.

This follows the company dropping out of contention for work on new Sydney Ferries, unable to find a design partner.

“For Forgacs, it is here now and further jobs
unfortunately have to go,” Stratton told The Newcastle Herald.

The Herald reports that Stratton said between 100 and 150 jobs
would go in a further round of redundancies.

Work from the Air Warfare Destroyer hull block project, which
Forgacs was awarded in 2009, will likely dry up in December.

Stratton has previously urged the federal government to bring
forward defence contracts, warning that waiting until after the Defence white paper is delivered.

Last month he told the ABC that the Newcastle shipyard would
close by August 2016 without new work.

Image: ABC News/Dan Cox

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