Caltex Refinery to Close in 2014

About 630 jobs will be lost when Caltex closes its Kurnell refinery sometime in the middle of 2014.

The company announced this saying it is seeking to convert the refinery as an import terminal, providing imported fuel to Australian consumers.

The petroleum giant made this decision based on a yearlong assessment. Caltex chief executive Julian Segal said that employees stationed at Kurnell are already informed of the decision and that a series of consultations will take place between employees and employer.

The final numbers of people whose jobs will be affected, which will also include contractors, will be dependent on the type of work they do at the site.

Unions, however, blast Caltex’s decision saying that it was a “kick in the guts to every motorist in Australia.” A spokesman from the Australian Workers Union is apparently trying to get in touch with Caltex.

The union was earlier aware that Caltex was conducting an assessment, but the announcement today was unexpected. The union spokesman also said that not enough consultation was done among the workers who will be affected before this announcement was made.

Caltex stressed that their employees, including union representatives, were regularly informed about the progress of the review.

Prime Minister Julia Gillard said that it would be working harder with Caltex in order to make sure that at least 300 employees will still have jobs when the refinery closes.

Meanwhile, the Resources Minister said that this latest development will not, in any way, affect energy security in the country as imports of crude oil and petroleum products are still ongoing. Fuel prices will also not be affected.