In the next few days, the highly-controversial carbon tax will come into play, leaving in its wake an industry shake up that is predicted to be unparalleled.
Heralded as ludicrous by some and imperative by others, there is no denying the impact this system will, and already is having on the building industry at large.
In a time of industry uncertainty, especially for those in the mining sector – home to some of Australia’s highest carbon emitters and therefore those who stand to be hardest hit by the tax – major companies across the country are having to make tough decisions, including staff dismissals, in order to stay afloat economically.
One such company is copper and gold miner Ivanhoe Australia, which has just announced it will be cutting up to 50 jobs in order to reduce company costs.
Although the company has not drawn parallels between the implementation of the tax and their own cost cutting, a tightening of company belts will be undertaken nonetheless.
While they have not identified which positions will be cut from the company, Ivanhoe has stated that in reducing overall numbers they stand to save approximately $10 million over the next two weeks.
“These are difficult, but necessary first steps to improve the performance of the company and begin to create a sustainable platform for future growth,” says Ivanhoe Australia managing director Ines Scotland.
The company is also aiming for further savings in the range of $20 million through various other reductions.
The cost cutting measures have been put in place after a board review of procedures upon acquiring new board directors.
Mining has seen a massive boom in this country and job cuts and shortages in a sector that is so characteristically skills-short is almost unheard of. Moving forward, belts will need to be tightened, which is sure to affect our national economy.