The Whyalla steelworks of troubled steel and mining group Arrium is rife with duplication and waste, a former worker says.
The man, who was made redundant from an engineering role earlier this year and doesn't want to be named, has written to Arrium and administrators KordaMentha with various cost-saving suggestions but says they haven't been acted on.
In a series of emails seen by AAP, he says the steelworks uses fly-in, fly-out contractors instead of local employees and has too many managers and support staff.
"When the economy is booming [and] iron ore prices are high and steel prices are high, we can have short term contractors as per the need but not at this moment," he said.
"People required in Whyalla should live in Whyalla in this economic environment."
The man also said there were "too many chiefs but very little indians" working in IT.
Mark Mentha said the administrators were looking at the man's suggestions in the context of numerous efficiencies.
"We then prioritise as not everything can be done at once," Mr Mentha said.
KordaMentha has been negotiating with Arrium's lenders to secure about $200 million in funding so the company can continue its normal business operations.