Ford cuts to hit other Geelong companies

Martin Watters, October 18th, 2008 - Geelong Advertiser

MORE Geelong jobs could be in the gun as Ford's production cuts affect companies that supply the ailing car-maker, unions say.

The Australian Manufacturing Workers Union says the flow-on effect from Ford decision to cut another 450 jobs and slow output next month could lead to component makers along the line sacking staff.

State secretary Steve Dargavel yesterday said the Blue Oval's decisions this week could have a far-reaching effect in the automotive manufacturing industry.
"Ford has announced additional downturns and both the employees of Ford and employees of companies that supply Ford will suffer additional down days," he said.
"Our members are having negotiations with companies that supply Ford and there could be another round of redundancies on the back of Ford decision."

Mr Dargavel defended the work of local manufacturing employees at companies such as Ford, General Motors Holden and Toyota but criticised management structures that prevented export.

"There's one company that is exporting cars and hiring staff and expanding plant operations while conversely Ford are shedding staff and contracting out labour and they're losing plant capacity," he said.

"One company has a parent company that allows them to export but the other has one that does not.
"Ford is constrained by its parent company's actions and that has meant that our members in Geelong suffer as a consequence."

David Sykes, general manager of Geelong components supplier Backwell IXL, said the cutbacks would have a negligible effect on his firm, but acknowledged cutbacks were a worry for any large firm.

"In general terms anyone would be concerned when a major manufacturing company changes its operations," he said.

"(But) there's no negative impact (on Backwell IXL) because we've been aware of their volume of production."