Automotive manufacturing giant Toyota has said no to bailouts that would help prop-up its Australia manufacturing operations and save 350 workers from losing their jobs.
Unlike its competitor, Holden, the Japanese car maker said it would not accept a lump sum payment from the Federal Government to prevent this set of redundancies as it would hinder the company’s plans to make it Australian-based operations efficient and economically viable, according to a report by the ABC.
Manufacturing Minister Kim Carr said that while he knew Toyota was considering to reduce its workforce, the government could not have done anything more to avoid the job losses, the Geelong Advertiser reported.
Toyota Australia had a shaky run last year losing millions in sales alone as a result of an ongoing industrial dispute over pay rises. However, it ended the year having reached an in principle agreement with unions which will see its factory workers get a 13% pay rise over 42 months.
Industry players and observers hoped the in principle agreement would put long-running tensions over pay between the car manufacturer and its workers at ease and allow the company to focus on its manufacturing future. But the latest round of redundancies is suspected to see more disruption to the company’s production as the company tries to manage any fall-out in employee morale.
Toyota said global economic stresses, a high Australian dollar and a slump demand were the reasons for its decision to sack 350 workers from its Altona plant.
According to a report by SMH, the axing of 350 Toyota jobs was not unforseen by automotive parts suppliers. Toyo Tyre and Rubber Australia managing director, Michael Rudd told SMH that had already scaled back the company’s operations in anticipation of Toyota's announcement on Monday.
Toyo Tyre manufactures individual rubber parts for the engine and suspension in the Camry and Aurion sedan. Rudd said the decline in Camry and Aurion sales began two years ago.
SMH reports that Toyo consolidated its two Sydney factories in December. The company closed down Enfield plant which made Toyota parts and transferred those jobs at the plant to the company’s main factory in Minto, which also makes rubber for third party suppliers to both Ford and Holden.
Toyota Australia has received more than $100 million in Federal Government funding over the past four years. It received $35 million in 2008 for its hybrid Camry engine and $63 million in 2010 for its Altona plant. It also received an undisclosed sum from the State Government.