Phillip Barresi (Deakin, Liberal Party) Share this | Hansard source

On behalf of the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation, I present the committee’s report entitled Employment in the automotive components manufacturing sector, together with the minutes of proceedings and evidence received by the committee.

Ordered that the report be made a parliamentary paper.

I am pleased to present this report on employment in the automotive components manufacturing industry on behalf of the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation. This report comes at a timely period in Australia’s manufacturing history, particularly as I note some of the debate taking place today. The report makes an important contribution to the future of the automotive components manufacturing industry.

The automotive components manufacturing industry is an impressive one. It employs some 25,000 people and has an annual turnover of $7 billion. However, both employment and sales have been declining in the face of the challenge of increasingly competitive imports, changes in both employment and purchasing strategies by the vehicle manufacturers, and moves to offshore production. The findings of the committee reflect these challenges.

The inquiry was timely as it presented a valuable opportunity to address these issues. Unfortunately, a number of businesses declined to participate—in a number of cases citing the fear of retribution or contract losses as a reason. That is a shame, considering that the inquiry was set up to assist this very industry. So, while the report makes recommendations critical to supporting the future of the industry, the industry itself faces some serious cultural issues.

The committee examined skills shortages, recruitment and training strategies. Recommendations are made addressing the need for greater industry representation on training issues across the supply chain. On-the-job training taking place within the industry is recognised and options for formal skills recognition are proposed.

The shortage of skilled workers in the automotive components industry is accentuated by the automotive industry’s image problem. The outdated image of the greasy workshop and the constant talk of industry downturn only discourage young people from making it a first career choice. The committee heard about several industry programs to get school students out of the classroom and experiencing the workplace. Some of these programs, such as those offered by the Northern Advanced Manufacturing Industry Group in South Australia, are to be commended. These programs are an important means of exposing the attractions and opportunities in automotive manufacturing today.

Recommendations are made to extend these programs to other areas and to improve recruitment practices. In addition, the committee recommends the centralisation of resources for the establishment of a foundry to service the casting industries to improve the quality of training. This is an important recommendation as it notes that some sectors within the industry do not have the economies of scale to warrant the establishment of given courses in every TAFE college around the country. While some parts of the industry are facing recruitment difficulties, others have been hit hard by an industry-wide downturn in production and redundancies. Only as recently as last week, there was further evidence of some of these downturns and redundancies taking place.

Recommendations are made aimed at understanding the outcomes of labour adjustment programs and ensuring that future labour adjustment programs take into account the supply chain. There is a need to focus on how to best position the industry to ensure its ongoing competitive viability and success in the global marketplace. Recommendations are also made to focus on establishing a clear niche market position of the industry. They include enhancing R&D assistance measures to ensure that Australia retains a share of the lucrative innovation and design market. While we often hear of cases of companies struggling to survive in the Australian sector, there are also companies in the automotive component manufacturing sector that are doing it well and who have established clear niche markets both here in Australia and overseas.

The automotive components manufacturing industry has shown its potential to be innovative, dynamic and capable of meeting change. However, it must continue to change in order to take its place as a competitor in the global marketplace. With a skilled workforce committed to lifelong employment, and a capacity to meet the challenges facing it, the industry has the ability to secure its own future.

I would like to thank the many individuals, businesses and organisations that provided evidence. I would like to thank the committee, the deputy chair of the committee, the member for Gorton, and, in particular, the secretariat—Dr Anna Dacre and Siobhan Leyne—for their hard work in working through this inquiry, often with scant evidence that was provided to us by the industry itself. I hope that this report contributes to the positive future of the automotive components manufacturing industry.

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