Steelworkers in New South Wales have agreed to a new enterprise agreement that will see them forfeit working conditions to keep the BlueScope Port Kembla plant open.

About 500 jobs will be lost, pay increases will be frozen for three years, and a number of conditions for employees have been given up.

Over 1000 workers agreed to the deal in a secret ballot ordered by the Fair Work Commission.

“I'm glad overall that workers realised steel workers have to stick together,” Australian Workers Union South Coast Branch Secretary Wayne Phillips said.

“No one likes the agreement, it's not the best thing they've ever done, but in this particular time period, it's the only thing we could have done.

“Whilst I don't think everyone should be clapping their hands I just think that we need to realise it's hard times, the industry is in a bit of a crisis, and members made the right decision.”

Mr Phillips said the 220 redundancies on the shop floor will be voluntary.

“I understand we have about 15 people who are left without a role at this particular point in time, so I'm sure they can be accommodated, but no one out of this whole process have been forced out of a job,” he said.

“While it's sad to lose 200 members, it's much better when those positions go on a voluntary means not a forced means.

“This agreement has probably been the worst one I've had to negotiate with the conditions that we now face.

“I congratulate every single member who's put this hard time behind them, now let's move forward.

“I really do want to thank the community and the Illawarra for sticking by steel workers and giving them support, it's been a fight from everybody in this region,” Mr Phillips said.

The new agreement is expected to be in place from Wednesday.