Vic jobs to go if Shell sale fails: union

Written By Unknown on Kamis, 04 April 2013 | 11.25

HUNDREDS of jobs at Shell's Geelong refinery face the axe if the company can't find a buyer to keep the plant open, a union says.

The global oil giant plans to sell the refinery to keep it open, but it may convert the site to a fuel import terminal if a buyer isn't found by the end of next year.

"Shell will be seeking a buyer who will show due care for employees, provide reliable supply for the company and its customers, and run the facility safely with respect for the environment and the Geelong community," Shell's Australian downstream vice-president Andrew Smith told reporters on Thursday.

Australian Workers Union (AWU) Victoria acting branch secretary Ben Davis says the refinery's 450 full-time staff and 150 contractors have been rocked by Thursday's announcement.

"They're all wretchedly concerned for their futures," he told AAP.

"This is going to be a long, drawn-out process; it's going to take months, not weeks."

Mr Davis said he would pessimistic about a successful sale, and up to 450 full-time jobs at the refinery would go if the plant was converted to a fuel terminal.

"The potential number of buyers is probably only about three or four," he said.

Federal MP for Corio Richard Marles was more optimistic.

"This is one of the largest refineries in Australia, so it ought to be able to have a future," he told AAP.

The Geelong refinery opened in 1954 and supplies about half of Victoria's and 30 per cent of South Australia's fuel.

The company wanted to grow its retail and bulk fuels business, along with terminals and pipelines, Mr Smith said of the decision to sell the site.

Shell last September shut down its 79,000-barrel-a-year refinery in Clyde, Sydney, converting it into a fuel terminal.

The same month, the company's global downstream director Mark Williams described the Geelong refinery's future as questionable and borderline, blaming increased competition from Asia and reduced margins.

Geelong Trades Hall secretary Tim Gooden says unions will meet on Monday and are seeking urgent talks with Shell management to discuss its proposal in more detail.


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