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Hunter engineering firm Downer EDI has signed a billion dollar rail maintenance contract at a time when union officials are questioning job cuts at some of its Newcastle sites.
Downer has announced that it has signed a locomotive maintenance agreement with the big private rail freight operator, Pacific National.
The company, which has a major base at Cardiff, says it is an ongoing contract for a further 10 years of work.
CEO Grant Fenn said it is an important development for the company, providing what he calls rail asset solutions to its customers.
The contract comes at a time when the Australian Manufacturing Workers Union is liaising with workers at Downer's Port Waratah and Kooragang Island sites.
The ABC has been told 10 workers are facing redundancy at those sites, as Downer directs work to its sites at Port Kembla and Werris Creek.
Downer EDI will not comment, ahead of announcing its half yearly results tomorrow.
This article first appeared on www.abc.net.au
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