17 January 2013
Drastic action needed to save manufacturing
The Australian
THIS year will be a make or break period for manufacturing in Australia and a "swift and drastic" response will be needed from government to ensure the survival of the sector, says union chief Paul Howes.
Speaking after Boral announced today it would shed 700 jobs, the Australian Workers Union boss said it had been a “shocking start to the year” for the manufacturing sector.
The announcement by the building products manufacturer of 700 redundancies across all levels of its business operations follows BlueScope Steel's decision on Monday to cut 170 jobs from its Western Port steel mill.
“We know that Australian manufacturing is being hit for six, with the Australian dollar sitting at $1.06 (USD) as it is today, with record levels of illegal trade dumping occurring in this country at the moment,” Mr Howes said.
“We know that 2013 will be the making or breaking year for the future of Australian manufacturing.”
Mr Howes called for a greater focus on the manufacturing sector, which he said employed five times as many people as the mining industry.
“We want Australia to remain a country that makes things and the reality is Australia can't be a country that makes things if we put all our eggs in the resources basket,” he said.
Mr Howes urged the government to deliver a “strong response” to the recommendations made last year by Julia Gillard's taskforce on manufacturing.
The taskforce made 41 recommendations for the survival of the sector, including greater industry assistance and more investment in infrastructure.
“If those recommendations are implemented, I am very confident about the future of this sector but that will require a swift and drastic response,” he said.
“I believe in this election year jobs should be at the centre of both the Labor party and the Coalition's plans about how they see the future of this country being determined.”
Mr Howes said the union had already held urgent talks with Boral today and was confident it could work with the company to minimise the impact on union members.
But he said: “We are very disappointed that Boral has made this announcement unilaterally, without any discussions with the workforce, with the wider communities it will impact on and with the union.” The Coalition said the Gillard government had contributed to the Boral job losses through additional taxes and costs on the manufacturing sector.
Opposition industry spokeswoman Sophie Mirabella said job cuts were becoming all too familiar under Labor governments as excessive regulation and high costs hit home and business confidence in the government went into freefall.
“Labor's deliberate policies of more red tape, higher taxes and increased business burdens have slugged manufacturing business like Boral, making it more difficult for them to remain competitive,” Ms Mirabella said.