UGL Rail has confirmed the company will be reducing staff numbers at their Taree manufacturing facility.
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The decision has been made in response to a slowdown in manufacturing activity and a deferral of capital expenditure in the Queensland and New South Wales resources sectors.
A spokesperson for the company said an expression of interest has gone out to staff, to see how many may be interested in moving to a four-day week and how many would prefer a voluntary redundancy.
"Sixty percent of employees have indicated that they are willing to move to a four-day week to reduce the number of redundancies required, and it expected that these four-day weeks will commence in the first week of July for 12 weeks. This will provide cost reductions for this period while UGL pursues additional work for the site," the spokesperson said.
UGL will review its workload requirements at the end of this 12 week period and depending on the outcome of the initiatives implemented, a decision will be made as to whether further redundancies are required.
It is anticipated the majority of employees at the site will remain employed.
There are currently 169 employees at Taree engaged in the manufacturing and supply of bogies and platforms for international and domestic rail markets.
UGL is continuing to actively tender for work for the Taree site, and there are currently no plans to close the site.
