Carbon tax link to Hobsons Bay job losses denied

Claims that repealing the carbon tax will ease pressure on two of Hobsons Bay’s biggest employers who are axing 130 jobs before Christmas have been disputed. Federal Industry Minister Ian Macfarlane made the claim last week.

But BAE Systems’ Williamstown shipyard and Toyota’s Altona manufacturing plant said the job cuts had nothing to do with the carbon tax.

The Australian Manufacturing Workers Union (AMWU) is calling on the government to provide certainly about what naval and maritime engineering work is available to Australian shipyards. The union also wants the government to reveal its plans for co-investment to support Australia’s automotive industry.

Asked to respond to union concerns specifically relating to BAE and Toyota,
Mr Macfarlane’s spokeswoman, Kylie Barron, said the government was working on a structured and methodical approach to put Australian manufacturing on a path to a sustainable future.

“This will include repealing the carbon tax to ease the upward pressure on energy costs,” she said. “Repealing the carbon tax will remove a cost pressure on electricity prices.”

BAE, which employs 1100 people, this month announced 30 boilermakers and welders would be made redundant once work on current projects is completed.

Spokeswoman Mary-Anne Lane warned there would be more job cuts unless the company secured government contracts to avoid a gap in work. She said defence contracts were not Mr Macfarlane’s responsibility.

Toyota, which employs 2500, last month announced up to 100 voluntary redundancies, which follow 350 compulsory redundancies last year. Spokeswoman Beck Angel said the carbon tax cost was absorbed by the company and had not been passed on to customers.

“I can say that our recent redundancies were due to a drop in exports from the Middle East – a decrease of around 5000 vehicles,” she said.