Ford cuts could cost 2000 jobs: union

Ewin Hannan August 22, 2008

TWO thousand jobs could be lost in the automotive components sector as a result of Ford Australia¿s decision to cut 350 positions from its Victorian plants.

Unions warned today that for every job removed at Ford, six to seven could be lost across the industry. Ford blamed economic conditions, rising petrol prices and changing consumer demand for the fresh round of redundancies at its Geelong and Broadmeadows plants from November.

The cuts follows Ford's announcement earlier this year that 600 jobs would be lost when local six-cylinder engine production ends in 2010. Dave Oliver, national secretary of the Australian Manufacturing Workers Union, said workers were concerned about the ramifications of Ford’s decision. “”The rule of thumb that’s applied is for that every one direct job you lose in the car plant, there’s another six or seven lost in services and indirect jobs in the auto components sectors,’’ he told The Australian Online.

Mr Oliver said the recent review by former Victorian Premier Steve Bracks found there were ‘’significant stresses and strains in the auto component industry’’. “”We’re worried that today’s announcement may tip some companies over or put them right to the edge,’’ he said. “”That’s why it’s important that Kevin Rudd doesn’t sit around for too long on the recommendations contained in the Bracks report.

"They need to be making decisions sooner rather than later particularly the backend about creating the environment which would attract investment, and give some certainty for potential investors. ”At the same time, (the Government) should reject the notion about reducing tariffs further from 10 to five per cent. Today’s another good example of the pressures that are on the industry and it makes no senses to us that if you would move to reduce the tariffs at a time when the industry is going on to transition’’.

Federal Industry Minister Kim Carr said he expected further job losses.

``We know that the industry is facing these acute challenges and I can't say with any certainty that there won't be further announcements in regard to job losses,'' he told Sky News. Senator

Carr continued to insist that tariff levels were a secondary issue, blaming the Howard government for a decade of inaction.