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Arrium pay negotiations set to continue

Negotiations on a proposed pay cut for Arrium workers in South Australia are set to continue.

Representatives from the Australian Workers Union and administrators KordaMentha will meet again on Thursday after they could not reach agreement during talks on Wednesday.

KordaMentha have 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 has put forward a counter offer of a 7.5 per cent pay cut which would also pare back overtime entitlements.

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

The restructuring and sale of the group is expected to be finalised by the end of the year.