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NEWS
Job losses threaten sustainable manufacturing: SAE
Holden's "voluntary separation packages" will snowball throughout the industry says Society of Automotive EngineersThe sustainability of Australian manufacturing is at risk due to a continuing loss of engineering R&D and design jobs, says the Society of Automotive Engineers – Australasia.
Following an announcement by GM Holden on September 12 that it is introducing a round of voluntary separation packages aimed at reducing its Melbourne-based engineering staff by about 45 people, the SAE-A’s executive director Natalie Roberts said the job losses are of "great concern" not only for the employees themselves, but for the industry at large.
"Design, research and development roles such as these are the backbone of innovation and new product development in Australia, which then flows to manufacturing. This latest loss of highly skilled jobs is the continuation of a worrying trend," she said.
This comes in the broadening wake of Ford’s decision to quit manufacturing in Australia – although Broadmeadows has stressed that R&D positions in its local workforce will be unaffected – and the continuing belt-tightening by GM-Holden as it struggles to maintain the viability of its locally-manufactured vehicles.
With the recent change in government, and statements by Liberal politicians about the ongoing future of the local car industry, there is some understandable nervousness at Holden and Toyota – the two manufacturers that will be left standing when Ford quits production in 2016.
The incoming government’s plan to scrap the $500 million additional assistance pledged by Labor paints a cloudy picture. This is despite claims by Tony Abbott that the industry will actually benefit from actions such as his planned abolition of the carbon and mining taxes, as well as the promise to reverse recent changes to the fringe benefits tax that have slugged car companies.
The SAE-A wants the new government to prevent "further weakening of the sector" through implementing the Productivity Commission review "in addition to an analysis of ‘what the underlying issues are’ in order to take immediate action to prevent a further weakening of the sector."
The SAE-A believes Australia is at a disadvantage compared with car manufacturers in other countries. "We do not believe that Australia’s engineering design, R&D and manufacturing industries receive the same level of support as our international competitors" said Natalie Roberts, as quoted in a press release.
"To make effective, long term policies, the government needs to understand where Australia’s R&D and manufacturing industries sit globally, in relation to government funding, protection and other less obvious trade barriers, such as restricted energy exports that keep the cost of manufacturing low in other countries.
"Automotive design, research, development and manufacturing contribute to a wide range of other industries that generate significant additional employment opportunities right through the supply chain, so we cannot afford to sit idly by," Ms Roberts concluded.
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