Flow-on effect from Ford cuts: industry

Job losses at Ford could have a knock-on effect on suppliers, industry and union groups warn.

Ford is cutting 440 jobs at its two plants in Victoria as it reduces daily production from 209 to 148 vehicles in November in response to an industry-wide slump in large car sales.

The cuts are a sign of tough conditions facing the manufacturing sector, including the high Australian dollar, says Australian Industry Group chief executive Innes Willox.

“The decision will have repercussions up and down the supply chain especially for local auto parts makers who are already under considerable pressure,” he said in a statement.

Mr Willox said both sides of politics needed to continue to develop policies to boost the sector.

“These policies and action by businesses themselves are critical to lifting manufacturing capabilities and boosting the resilience and productivity of the industry,” he said.

The proposed cuts raised concerns about the viability of the auto-component industry, said ACTU secretary Dave Oliver.

“There’s a significant concern about the knock-on effect. This will put significant pressure back on the component area,” he told reporters on Tuesday.

But the sector would continue to have opportunities with continued investment promised by Holden and Ford, he said.

Workers will be sacked if the 440 job target cannot be met by voluntary redundancies.

Officials from the federal employment department will be at the Ford plants on Wednesday to advise workers on assistance available to them, as well as job-search and training programs.

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