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Forge Group cut more staff

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A further 70 workers of the collapsed Forge Group have been sacked after one of the company’s remaining contracts was terminated.

The move comes after Forge receivers KordaMentha were unable to reach an agreement with Horizon Power which would have seen its employees complete the commissioning work at a power station in South Hedland.

The contract had been one of two remaining projects Forge had retained after other companies opted out of nearly $1 billion in contract agreements since Forge went into administration last week.

It is believed KordaMentha rejected a deal which would have seen Horizon pay the wages of Forge workers if the receivers took care of Forge’s outstanding liabilities on the project, West Business reported.

"It is disappointing that so close to completion the Forge workforce has been released, despite our efforts to work with KordaMentha to complete the project with the existing workforce," Horizon managing director Frank Tudor said.

Tudor said the project would suffer a slight delay as a result of the move, but reaffirmed it would not come in over budget or affect power supply.

The Diamantina power station project in Queensland is the last of Forge’s contracts it has been left to complete.

Last week 1300 Forge employees were sacked as administrators confirmed there is no money to pay employees.

KordaMentha partner Mark Mentha said it would assist workers apply for entitlements.

"There is no money to pay employees and no work to perform," Mentha said.

Around 94 Forge workers who were sent home from Gina Rinehart’s Roy Hill mine have been rehired by Skilled Group.

A spokeswoman for the labour hire provider said it would continue to hire people where it was appropriate.

Forge was awarded an $830 million contract it was awarded in September to supply engineering, procurement and construction services at the Roy Hill project.

A spokesman for the mine said it was ensuring construction would not be disrupted.

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