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Ford announces job cuts in Australia

27 July, 2007As many as 600 workers will be out of work at one of the oldest Ford facilities in Australia by 2010, further 3,500 other jobs will also be lost.

AUSTRALIA:  Confirming the worst fears of workers and their unions, Ford Australia announced on July 18 its intention to discontinue the production of a six-cylinder engine at its plant in Geelong by 2010. The plant, one of Ford's oldest operating in Geelong since 1925, produces a locally designed in-line six-cylinder engine used in its Falcon Ute and Territory vehicles.

According to IMF-affiliated Australian Manufacturing Workers' Union (AMWU), the announced 600 jobs losses would not only seriously affect Ford workers and their families, but could also result in at least 3,500 more additional jobs disappearing in local car parts and service industries.

Among others, reasons provided by the company to justify the plant closure include low sales, the rising value of Australian dollar, the introduction of tougher car emission standards and a cut in tariffs on imported cars from 10 per cent now down to 5 per cent by 2010.

"The Federal Government should be speaking directly with Ford headquarters to negotiate a package to save these jobs and in the long term they need to wake up and start supporting Australian manufacturing with things like research and development assistance and reviewing our tariffs and Free Trade Agreements," said AMWU national secretary Dave Oliver.