Australia’s manufacturing union (AMWU) is estimating anywhere up to 100,000 jobs could be at risk following today’s announcement by Toyota it was joining Ford and Holden in exiting production in the country.
Toyota is to cease manufacturing in Australia by the end of 2017, but the AMWU is warning of severe consequences, not just for vehicle production but also down the supply chain as the cumulative effect of manufacturing drawdown impacts on the industry.
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The AMWU claims the newly-elected Australian government has cut AS$500m in automotive support, leading to a “domino” effect in the industry.
“There are up to 50,000 workers directly employed in the major [s] and Tier 1s,” AMWU national secretary, Paul Bastian, told just-auto from Australia. “Then second and third tier suppliers.
“We estimate anywhere up to100,000 jobs in total will be [at] risk. The government needs to stop blaming workers for the problems besetting the industry. That means in the current climate they need to develop policies… [to] assist communities which have become dependent on automotive manufacturing.
“The time for rhetoric has to cease.”
Toyota will follow Ford and General Motors by exiting car manufacturing in Australia. It said it plans to finish Toyota vehicle and engine production in Australia by the end of 2017.
Around 2,500 jobs will be affected when the plant stops building cars in three years time.
Australian Prime Minister, Tony Abbott’s office was not immediately available for comment when reached by just-auto, but comments on his website today note:
“This is obviously devastating news for everyone involved with Toyota. It’s devastating for me and for the Government. It’s devastating for Premier Denis Napthine and for the Victorian Government as well.
“I will be talking further with Toyota later this evening. I’ll be talking with the Premier later this evening, but nothing that we say or do can limit the devastation that so many people will feel at this point.
“In the brief conversation I had earlier today with the very senior management of Toyota, they said they have had nothing but help and encouragement from successive Australian governments, including this one.”
