The job losses will mainly affect workers at the carmaker's production plants in Geelong and Broadmeadows.
The car giant has been in talks with employees and union officials. The job losses will be spread 50-50 across the company’s Geelong and Broadmeadows plants.
Workers at the two plants were informed the job losses will cut almost a quarter of the company’s factory floor staff.
Opposition leader Daniel Andrews said the jobs cut were significant. "The announcement by Ford today is just one more reason why Victoria needs a jobs plan," he said.
"How many more hard working Victorians need to lose their job before Ted Baillieu does his." It comes after Ford received a $103 million lifeline from the Federal and State Governments, and the parent company in the US, in January.
That fund was supposed to secure the future of the Australian operations until at least 2016. But the motor giant announced a $290 million loss in May, partly due to weak sales of its flagship Falcon model. Problems within the supply parts industry, with the collapse of key supplier CMI Industrial, also slowed Ford’s production lines.
The total number of factory workers was 1800 before the redundancies, bringing the headcount down to under 1360. The sackings come after 240 jobs were cut at the plant last year. There are grave fears that Ford will no longer be viable in Australia beyond 2016, putting the entire car industry at risk. Unions say the industry needs three major car manufacturers to be viable.
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