The jobs of more than 80 West Footscray textile workers are in jeopardy following a decision by Defence to award its latest uniform contracts to a Bendigo rival.
The Defence Materiel Organisation (DMO) has declined to continue using the Pacific Brands WorkWear Group to supply uniforms to the Australian Defence Force.
The standard combat uniforms will instead be made by Australian Defence Apparel (ADA) in Bendigo.
Textile Clothing and Footwear Union of Australia’s national secretary Michele O’Neil says the loss of the order could spell the end for the plant and 80 workers.
WorkWear Group has been producing the Multicam Combat Uniform (AMCU, used since 2011 by Australian fighters in Afghanistan’s urban, desert and green environments.
Victorian Industry Minister Lily D’Ambrosio has written to Defence Minister Kevin Andrews to argue that the closure of WorkWear would destroy jobs as well as the supply chain. “It’s as senseless as it is heartless,” she said.
Shadow industry minister Kim Carr said the job losses could seriously impact upon Australia’s capacity to manufacture its own Defence Force uniforms.
“This government can’t just turn a blind eye to the risk that Australia will lose knowledge, skills and capabilities in this highly specialised industry.”
Shadow assistant defence minister David Feeney said the government has repeatedly demonstrated “a flagrant disregard for Australian industry capabilities” on procurement.
“Look at the Future Submarines, the supply ships, or the Defence Force boots fiasco.”
Gellibrand MP Tim Watts said the potential loss of about 80 jobs in West Footscray comes on top of concerns for hundreds of local manufacturing jobs due to uncertainty of naval shipbuilding contracts.
“Workers at the BAE Shipyard in Williamstown and in shipyards right across Australia are desperately waiting for some kind of certainty about future build programs that their livelihoods depend on.”
A Defence spokeswoman played down concerns the move would send manufacturing offshore, with the Defence standard combat uniform to continue to be made in Australia.
“Unfortunately, due to Workwear Group significantly increasing its prices, its bid was not competitive with the alternative Australian manufacturer,” she said.
“As a result Defence will not be placing orders for Standard Combat Uniforms in financial year 2015/16 with the Workwear Group.”
In a statement, a WorkWear Group spokeswoman said the company was “reviewing the future of its facility amid challenging conditions in the defence uniform market”.
An announcement on the future for workers will be made by Thursday.
The fate of the 130 JBS Australia workers could remain unknown for months. Their ongoing work will depend on future supply and demand for lamb meat.
