Union asks Hockey to defend steel industry

A union representing BlueScope workers has urged Treasurer Joe Hockey to use emergency safeguards to protect the steel industry in Australia.

BlueScope last week flagged the axing of 500 jobs from the 5000-strong workforce at Port Kembla, in Wollongong, as part of the steel producer's pursuit of $200 million in savings.

More than 600 workers met with BlueScope management on Wednesday with mediation between the company and unions starting next week.

South Coast Labour Council secretary Arthur Rorris has penned a letter to Mr Hockey asking the government to use "every available weapon in its arsenal".

"We call on you to impose emergency safeguards by way of temporary targeted import tariffs on specified steel products immediately, to restrict the importation of dump sub-cost steel product into Australia," Mr Rorris said.

He said job losses were inevitable but the safeguard could save the industry in Australia.

"It is clear that our workers, their families and the Illawarra community as a whole will shoulder much of the pain of the job losses that result from cost-cutting at BlueScope Steel," Mr Rorris said.

"If you don't act now as governments around the world have already done, Australia will have the dubious honour of being the only steel making country in the world to have surrendered our steel industry and our market to illegal dumping without having fired a shot."

Wayne Phillips, from the Australian Workers Union, said Wednesday's meeting had been an opportunity to "sort out the blues between us and the company".

"We have one shot at trying to restructure the company ... I know we can do it but it may leave a sour taste in the mouth," he said.

NSW Opposition Leader Luke Foley called on the Baird government to support the Port Kembla operations by cutting imposts like payroll tax.

"We are extremely concerned about the prospects for BlueScope Steel," he said.

"We've put a range of options on the table including relief from state government taxes and charges for the company, at least in the short term.

"And of course the question of minimum Australian content in major government projects is something that the government ought to be considering."