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Manufacturing union proposes plan to minimise impact of Holden closure in Victoria

January 17, 2014 • News

The Australian Manufacturing Workers Union has submitted a plan to minimise the job losses in Victoria which would follow the impending closure of Ford and Holden’s automotive manufacturing plants.

Image: Free Digital Photos user Gualberto107

Image: Free Digital Photos user Gualberto107

AMWU believes the current policy in response to the closure of the car makers is inadequate, and has presented its own set of policy which it deems “significant enough to mitigate the worst impacts of closure”.

A National Institute for Economic and Industrial Research analysis indicates 24,000 Victorian jobs will be lost in one year as a result of the Holden Closure, as well as $2.7 billion in Gross State Product.

In a media release, AMWU’s Victorian State Secretary said the impact of job losses from Holden can be minimised through the range of programs proposed by the Union.

“These would be spread between providing finance opportunities to assist for new and existing local business affected by Holden’s closure while they diversify into new products and markets, plus useful assistance to suburban areas affected and re-training of workers,” said Mr Dargavel.

“The $100 million in the Prime Minister’s Holden package comprises only $60 million in federal funding.”

“That’s not only totally inadequate, it hides the fact that this Government is effectively sucking $211 million out of the components industry.”

According to the submission, the package includes expanded training for workers, support for affected communities, comprehensive support for supply chain diversification and investment, as well as stimulus support through improved government procurement rules and defence and infrastructure investment.

“Failure by the Government to embrace a much more comprehensive and ambitious manufacturing support package will lead to the collapse of the entire automotive manufacturing industry, mass unemployment and massive economic and social flow on effects across the entire country,” AMWU said in the submission.

Read the full submission here.

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