If you've had the misfortune to see any of the coverage of this on the news, the workers are complaining about what a raw deal they've got and how they're losing their jobs.ABC News wrote:Tyre factory workers to get full entitlements
Posted Thu Jun 26, 2008 9:08am AEST
Updated Thu Jun 26, 2008 2:35pm AEST
About 600 Victorian automotive workers will lose their jobs when South Pacific Tyres closes its Somerton plant, in Melbourne's north, in December.
The Goodyear-owned company says the plant's high operating costs mean it is no longer internationally competitive.
It says it will work with unions and governments to help the workers find new jobs.
But Anthony Thow from the National Union of Workers says the 587 employees will struggle to find new jobs.
"The reality for manufacturing workers who are made redundant is it takes a long time to find alternative work," he said.
"We're going to do everything we can, the union is going to support its members and try and place them in jobs, but we're under no illusions.
"It's going to be a very difficult process for members to get high-paying jobs, highly skilled jobs that they currently have."
He says the news was announced at 7:00am (AEST), after the Goodyear board made the decision overnight in the United States.
Alexander Jayasuriya has been with the company for 13 years and says the news is upsetting.
"I have a home loan, I have to do everything in my house. My wife has no job, so I have to find another job like that," he said.
Mr Thow says the decision ends 50 years of manufacturing of tyres at the Somerton plant.
He says all production of Goodyear tyres, including Olympic and Dunlop tyres, will end in Australia in December.
He says tyres will come from factories in Asia such as China.
Company defends decision
South Pacific Tyres CEO, Judith Swales, says the factory has high operating costs and is no longer competitive.
She says it was a difficult but necessary decision.
"Despite the best efforts of our workers and their improvements in the area of quality, safety and wastage, the Somerton factory remains one of our least competitive plants," she said.
"Conversion costs for raw materials at Somerton is almost double that of average plants across the Goodyear network, and six times that of our most competitive plants.
"The Somerton factory remains one of our least competitive plants.
"The capital investment of more $150 million to upgrade the factory to produce the tyres is simply not feasible, considering Somerton's overall lack of cost competitivenes."
Ms Swales says the company's primary concern was for workers and their families, who are affected most by the announcement.
She says workers' full entitlements under the EBA will be honoured.
"Support services will be made available over the months ahead to help associates find suitable future employment, she said.
"It is important to note the closure is no way related to any lack of support from Federal or State Governments.
"South Pacific Tyres appreciates all the support and advice it has received from Governments at all levels.
"We recognise the potential economic and social repercussions of this announcement, and we will work with Local and State Governments as appropriate to ease its effect.
"We will also work closely with suppliers affected by this decision to ensure an orderly conclusion to current supply arrangements."
Goodyear spokesman Keith Price says the factory cannot produce the tyres now required for most Australian vehicles.
"The Australian plant would be producing tyres that the customers there don't want, so we are going to import tyres from other plants," he said.
The plant manager, Grant Rowley, says it was a difficult decision.
"This is a very, very sad day for the Somerton factory and the people that work there," he said.
"We've got a group of people that have tried really, really hard over a number of years and have made some significant improvements, and despite those best efforts we still can't become competitive globally, and we've got equipment that can't make what the customers at present want."
Plant closure 'disappointing', Brumby
The Victorian Premier, John Brumby, says the decision to close the plant is disappointing.
"It's a lot of jobs," he said.
"It will be very difficult obviously for all of those families.
"My understanding is they were still producing a competitive product and we've been proud of the fact this is the last tyre manufacturing facility anywhere in Australia, and now it would seem irretrievably, that it's gone."
He says Victoria is still the manufacturing capital of Australia.
"We want to keep it that way. Everybody is aware that it is getting tougher and tougher to maintain manufacturing jobs in the environment."
"It's made tougher by the fact that our dollar is nearly now on parity with the U.S. dollar, it's tougher because of the emergence of new giants around the world, Russia, Brazil and China, and so it does make it more difficult."
The Premier says he was only advised of the decision yesterday.
The State Opposition has called for a review into the manufacturing industry in Victoria.
For fucks sake! You've been given six months notice that the plant will be closing and you're getting EIGHTEEN FUCKING MONTHS PAY after that. So, effectively - you have two years to find a new job.
But to hear these fuckers talk, you'd think that they'd suddenly been thrown out of work one afternoon with weeks of pay still owed.
What is their problem? Oh yeah, that's right - how it's not fair that all this manufacturing is going overseas to India, China et al. Yet, I bet that these are the same people who'll complain when they have to pay 50% more for a product because it's produced in the first world with actual labour standards and pay.
