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400 Jobs Lost As Another Auto Parts Manufacturer Shuts Down, Indefinitely

November 1, 2012 • News, Uncategorized

Around 400 workers have lost their jobs as another car parts maker in Australia shuts down, as the difficult Australian manufacturing industry makes it hard for local companies to compete. 

Image: http://www.autodom.com.au

ABC reported,  jobs have gone from Dair in Victoria and aiAutomotive at Woodville in Adelaide’s western suburbs. Australian Workers Union revealed about 130 Adelaide shift workers were told when they arrived at 6:00am ACDT they were no longer required because steel supplies had run out.

The report revealed, union official Wayne Hanson is worried about the wider industry.

“What’s even more alarming is that there will be a ripple effect right throughout the car manufacturing industry in terms of Toyota, Ford, Holden, so there is quite a widespread effect that will ripple through the automotive components and motor vehicle industry,” he said.

‘Dair has several Victorian operations, inncluding Gisborne and its main manufacturing plant at Dandenong in the south-eastern suburbs of Melbourne, where 165 workers received the news as they arrived for their shifts this morning,’ ABC revealed.

Parent company Autodom said in a statement it was closing the doors of aiAutomotive and Dair for an indefinite period and was in a trading halt on the ASX, while the company tries to negotiate a restructuring.

Autodom CEO Calvin Stead said “this issue highlights the problem with the Labor Government’s package to Holden. The $275 million deal did not include support for the wider automotive supply chain”

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