AWU Members brace for more job losses in manufacturing

12 January 2012

The Australian Workers' Union has renewed concerns for the future of Australian manufacturing after yesterday's announcements by Hydro Aluminium to curtail production at their Kurri Kurri smelter and Tomago Aluminium's plans to restructure - with an estimated 250 jobs to go in the Hunter Region.

"This is yet another distressing day for manufacturing in Australia," AWU Newcastle Branch Secretary Richard Downie said.

"Yesterday's announcements are devastating for the families of more than 250 workers who will be feeling the pain that comes with the loss of a secure income.

"At the same time, it's another reminder of the crisis facing Australian manufacturing - the worst we've seen since the Great Depression."

Hydro & Tomago yet to confirm who will go

Hydro Aluminium has not yet confirmed what numbers of salaried or waged employees will make up the redundancies.

Tomago Aluminium's restructure will be finalised by mid-year.

Hydro Aluminium has made a public commitment to work closely with unions, employees and the community throughout the reduction in production.

"We welcome Hydro's commitment to working closely with our union to minimise the impact of these redundancies on our membership," Mr Downie said.

"The union will be working hard to ensure our members facing the awful reality of job losses will receive the best redundancy package possible - as well as access to the pathway program to help secure their future employment prospects."

Australian Manufacturing is under extraordinary pressure

Australian manufacturing is under extraordinary pressure from the booming dollar and record high terms of trade.

Local aluminium manufacturers are also now facing the added pressure of a slump in aluminium prices globally.

"Local manufacturers are struggling to survive with the resource sector driving the dollar sky-high," Mr Downie said.

"Manufacturing still employs close to 1 million Australians. Mining employs around 200 000.

"Our economy cannot simply just rely on mining. We can only dig up our mining resources once.

"This is yet another wake-up call to governments across the board to take more action to support domestic manufacturing."