LNG workers axed, union's $3.5m jobs saving plan ditched

A DESPERATE proposition by workers and union members to save 14 operational jobs at Santos GLNG has fallen on deaf ears.

In the latest round of job cuts, it's expected 18 operational workers will be made redundant from four crews at Santos GLNG as the company continues to cut-costs to remain competitive among low oil prices.

BRIGHT FUTURE? High-profile figures will meet with Gladstone's industry leaders today to discuss what 2017 holds.
BRIGHT FUTURE? High-profile figures will meet with Gladstone's industry leaders today to discuss what 2017 holds. Santos

Union officials pleaded with Santos to consider their "jobs rescue plan" they claim would save 14 of the 18 jobs and the company approximately $3.5 million annually.

Australian Workers Union organiser Tony Beers said their proposition was to create a fifth crew, working fewer hours.

He said the workers would accept a pay cut as part of the bargain.

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But Santos declined the proposition and it is believed it started to cut some of the 18 jobs on Wednesday.

"Our proposition delivered a focus on safety, performance, drive productivity, and was sustainable for the short and long term," Mr Beers said.

"We were told this proposition wouldn't be accepted ... the company will pull the trigger on these jobs."

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Mr Beers said their rescue attempt highlighted factors including workplace health and safety, fatigue and working arrangements.

"The union has serious concerns not just at Santos but all major industry (in Gladstone)," he said.

"This approach to slash and burn jobs is compromising safety."

The latest round of job cuts were announced last month and come at a time when the gas giant was struggling to keep its head above water, amid high levels of debt and low global oil prices.

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It's understood planned cuts would hit on-site superintendent roles and reduce shift crews from 19 to 15.

"These changes will be managed appropriately to ensure GLNG continues to operate safely and reliably," a Santos spokesperson said.

"Santos is continuing to embed its new operating model to ensure it is sustainable in the current oil price environment.

"As this model is refined we are removing duplication and increasing efficiency across the operations. We are not providing redundancy figures as this is a rolling process but we will provide an update at our Investor Day in December."

Santos declined to comment on the union's job rescue plan.