Macfarlane appeals to Toyota workers

Federal industry minister Ian Macfarlane has warned there is a “very high chance” Toyota will cease manufacturing in Australia if workers do not accept a revised workplace agreement.

Toyota Australia is attempting to reduce its manufacturing costs as part of its bid to compete with a number of other nations to secure production of the next-generation Camry from 2018.

It has agreed to honour two pay increases as part of its current workplace agreement but wants to axe a number of conditions and penalty rates it says makes vehicle production in Australia unviable.

Toyota Australia, which says it needs to reduce the cost of every car it makes by $3800, will learn the fate of its manufacturing future by mid-year.

Speaking to the ABC today, Macfarlane said talks between the federal and Victorian governments had so far not produced a plan to save the Japanese brand’s Altona plant in Victoria, and the scores of component supplies that rely on it and Ford and GM, which will cease making cars in Australia in 2016 and 2017 respectively.

He also warned that Australia’s last remaining car-maker was doomed if workers did not agree to change “archaic” workplace arrangements.

“What I’m saying to the workers of Toyota is think very carefully about the current situation, with the current reforms that Toyota is trying to put in place,” he said.

“If those reforms don’t take place then there’s a very high chance that Toyota will not be able to compete and, therefore, the last car manufacturer in Australia will close.

“The reality is that unless we can reduce the cost of producing cars in Australia, then the Toyota workers will not have a job in the long term.”

Toyota Australia is currently appealing a Federal Court decision to prevent it from making changes to it workplace agreement.

“We need to make sure that in terms of the work practices, that they are allowing the productivity we need out of that plant for it to be competitive internationally,” said Macfarlane.

“An archaic workplace practice system, such as having four hours off to give blood, will not make that plant competitive.

“On that basis nothing, nothing, the Commonwealth does and nothing the Victorian Government does will save that plant from closing.”

However, Australian Manufacturing Workers’ Union national secretary Paul Bastian said the government – not workers – was to blame for the state of the Australian car industry.

“We are not going to stand by and cop any government or any government minister seeking to apportion their failings, blaming workers. It’s not on,” he told ABC.

“It’s not about sacrificing conditions. It’s about having a dialogue with the company about all the issues.”