As Australia’s largest manufacturer of seatbelts and airbags, it is devastating that the Autoliv factory has been forced to cut more than half of its 900-strong work force in order to remain viable in the face of price competition from overseas suppliers. In addition to the 430 job cuts announced in 2003, Autoliv has now announced that a further 70 jobs will be lost over the next 18 months. In total, we are looking at the loss of 500 jobs by August next year. Thirty of these will be transferred to low-cost labour countries to ensure that Autoliv remains competitive in a climate of global sourcing, while the remaining 40 resulted from the changes to future contracts and restructuring requirements to meet competitive pressures.
As a flow-on of these job losses, over 65 jobs are at risk at Autoliv subsidiary, seatbelt textile maker Webco in Thomastown. Autoliv represents around 95 per cent of Webco’s business, and there is talk of a forced closure within 18 months as volume constraints affect productivity. Combine the 500 jobs at Autoliv with the 160 jobs at windscreen maker Trico in Springvale, the 170 jobs set to go at the radiator factory Calsonic in Port Melbourne and the 65 potential job losses in Webco in Thomastown and all this adds up to a disturbing trend for the automotive industry in Victoria. These cutbacks are not isolated incidences; rather, they will be followed by more closures and restructuring as tariff protection is withdrawn and jobs are lost offshore.
In a recent submission to the government, the Federation of Automotive Products Manufacturers argued that local car part makers would derive little benefit from a free trade agreement with China, noting that the removal of the duty on imports from China would most likely worsen the already substantial automotive trade imbalance in China’s favour. Australian Bureau of Statistics figures released as of June this year show that Australia has lost almost 30,000 manufacturing jobs in the nine months to May, divided evenly across New South Wales, Victoria and Queensland. In net terms manufacturing jobs have shrunk by 84,000 in the past five years and by almost 150,000 since tariff cuts began in the late 1980s. The dilemma we now have is: where do these employees who are about to lose their jobs go? What jobs are there for tradesmen and women who have spent their whole working lives, in some cases specialising, in work that is no longer required? Who will pay their mortgages and their bills as they commence the painful task of looking for work again? Many of them are in their mature years. I understand that this has been a tough decision for Autoliv and I appreciate that, to remain viable, the company needs to downsize to ensure the protection of as many manufacturing jobs as possible into the future.
Autoliv has been, and I am sure will continue to be, a good employer in my electorate and a good corporate citizen. This decision is very sad for everyone involved but is particularly devastating for those who are losing their jobs. The community will feel the effects of this halved work force, with Autoliv unlikely to contribute as generously to the community as it has previously done. Over the years Autoliv has contributed to many charities and fundraisers, including this year when its employees raised $18,000 during their Work for the Tsunami Survivors Day. Earlier this year this community minded company formed a partnership with the Northern Hospital, through which Autoliv staff the hospital kiosk one day a month and employees contribute to the volunteer drivers program, and a $15,000 fundraising goal has been set for the purchase of a diagnostic kit for the emergency department. In return, the hospital supports Autoliv staff by providing information and services, including flu vaccinations and checkups.
In conclusion, I would like to agree with the Leader of the Opposition, who made these comments about job losses. He refers to them as a ‘national disgrace’ and a further sign of the government’s failed export policy and failure to diversify and strengthen the nation’s manufacturers. Exporting Australian jobs is certainly not something my electorate can afford, and these job losses will be felt hard by the 500 families who have lost an income from Autoliv and who stand to lose even more as they find it incredibly difficult to find a new job for themselves in order to maintain their families and their lifestyles.
