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.

  • A very interesting discussion, A practical suggestion on how to save a company being put to an administrator. Anybody who has experienced an administrator is fully aware that you are dealing with the biggest vulture in the block. Administrators are only there to make sure the banks get their money and that the the real crooks who robbed the company do not go to jail. The idea that they are there to help save the company is similar to speaking with the mortician prior to the preperation of the body for viewing at the funeral in the hope that he will bring the person back to life.
    When the laws of Australia change so as proffessions such as administrators(undertakers) are held accountable to the communities and the families were companies get into trouble and not to the bankers and thieves that have run them into the ground we will begin to build our nation.

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