Workers rally to urge action for car jobs

Up to 1000 manufacturing workers will rally outside the Liberal Party headquarters in Melbourne this morning before delivering a formal demand to the office for urgent action to save jobs.

The Australian Manufacturing Workers Union has invited members from the automotive and metals divisions from around Australia, including South Australia, where it was announced last week that hometown car-maker Holden will shut its factory in 2017.

"Australia is in serious jeopardy of losing its manufacturing base entirely, leaving the entire economy and the prosperity of future generations in serious jeopardy," said AMWU spokesman Tom Skladzien. The shutdown of Holden's factory and the likely closure of Toyota will almost certainly grind the entire industry to a halt, the AMWU claims.

"The closure (of Holden) will have a profound and negative impact on the broader manufacturing industry and the economy as a whole," said Mr Skladzien. "The AMWU has been warning this Government since coming to office that in order to maintain a strong industrial base and to support a broad based economy, the Government must reconsider its policy of cutting automotive assistance." The industry estimates that up to 50,000 jobs will be lost if the automotive manufacturing industry dies.

Toyota Australia's manufacturing future is looking grim after workers won a Federal Court battle to abstain from voting on sweeping changes to wages and conditions. The Japanese giant said the changes were vital to the success of the Altona factory that makes the Camry.

Without workers prepared to agree to more flexible working hours -- including working over the Christmas and summer shutdown – Toyota said its chances of securing investment for the next generation Camry to be built in 2018 were "at risk".

Holden decision to shut its factories also weigh against Toyota, which had been relying on Holden's extra throughput at suppliers to achieve cost savings.The shutdown of Holden's manufacturing operations "will put incredible pressure" on firms in the supply chain, the AMWU says.

"This in turn will put incredible and likely irresistible pressure on Toyota, the sole remaining automotive manufacturer in Australia, to also cease manufacturing operations in Australia," the AMWU warns in its letter to the Liberal Party."The automotive manufacturing industry is the only complete global manufacturing supply chain that is present in Australia," said Mr Skladzien.

"It is the most advanced of our manufacturing industries and it brings with it skills, technologies, research and development and investment that will not be replaced once it departs."

The statement to be delivered to the Liberal Party says in part: "It is a tragedy and a disgrace that this Australian Government has failed to recognize this reality and has stood idly by and let automotive manufacturing in Australia cease due to an ideological aversion to the global reality of industry support and largely short term pressures brought about by the strength of the Australian dollar.

"There can now be no doubt that Australia is suffering from a serious and prolonged case of Dutch-Disease, where a broad based and well balanced economy is hollowed out by the currency effects of a mining boom. Without serious and urgent action, Australia risks an economic hollowing and a post boom hangover that will leave us out of the advanced industrial economies for the first time in our history."

This reporter is on Twitter: @JoshuaDowling