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No outcome in Arrium pay talks

AAP logoAAP 26/07/2016

Arrium workers in South Australia and the company's administrators remain at odds over a proposed pay cut.

Representatives from the Australian Workers Union and administrators KordaMentha held fresh negotiations on Wednesday but were unable to reach agreement.

KordaMentha had proposed a three-year pay reduction for workers across Arrium's mining and steelworks operations in Whyalla which would include a two per cent increase in the final year.

The union put forward a counter offer of a 7.5 per cent pay cut which would also pare back overtime entitlements.

With Arrium's restructure and sale expected to be finalised by the end of the year, both parties are thought to be keen to resolve the deadlock when talks resume on Thursday.

Administrator Mark Mentha has identified a total of $300 million in savings designed to make Arrium more attractive to potential buyers.

The cuts, mainly in reduced supply contracts and savings introduced by previous management, would allow the Whyalla steelworks to break even this financial year.

Arrium was placed in administration in April after negotiations with its lenders failed amid sustained low commodity prices.

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