ROCKHAMPTON and Mackay will be hit in a job slashing exercise as Hastings Deering decides to cut 200 jobs Australia wide, focusing on these two CQ sites.
In a memo to staff, the company explains it is reviewing all branches, departments and functions across Australia.
"The immediate focus will be on the Mackay and Rockhampton operations," the memo states.
"We anticipate about five per cent of the Australian (Hastings Deering) workforce is likely to be affected. This represents about 200 employees across the business."
The memo stated it was anticipated all first-round consultations regarding potential redundancies will commence from Monday June 24.
A press release issued by the company yesterday states the decision was due to a slowdown in the Australian resources industry.
Hastings Deering announced over the next two weeks, the company will be consulting with employees regarding a reduction of about 200 staff members from workshop and support functions across the business.
The company's coal mining support operations in Mackay and Rockhampton (primarily servicing the resources industry) will mainly be affected, although other areas of the business will also be impacted.
In the past 12 months, the Australian resources industry has experienced a significant slowdown as a result of reduced demand for resources, lower commodity prices, falls in productivity and a significant reduction in capital expenditure.
"While the group remains optimistic about the long-term outlook, anticipated customer demand is not expected to increase in the near term," Mr Scott Cameron, Managing Director, says.
"In addition, competition to provide products and services into this sector has increased."
To date, Hastings Deering's response to the downturn has involved reducing recruiting activities, adapting the workforce through selective employment freezes, changing rosters, minimising contractors and implementing more stringent cost controls.
"Despite these initiatives, costs have continued to increase. As a result, the business needs to focus on further cost reductions and productivity improvements," Mr Cameron adds.
"We appreciate that redundancies in our workforce will be unsettling and appropriate support services will be provided."
Affected employees will be consulted and the company will review alternatives to facilitate redeployment to other roles where possible.