SA car component makers Monroe and Walker set to lose another 50 jobs
By state political reporter Angelique Donnellan
ABC News
Posted Fri at 6:40pm
Up to 50 jobs will be axed from car component makers Monroe and Walker in another blow to employment in South Australia.
The cuts flow on from carmaker Holden's recent decision to cut production and 270 positions at its Elizabeth plant, which is destined for closure in 2017.
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Australian Manufacturing Workers' Union (AMWU) assistant state secretary Colin Fenney said at least 12, and possibly up to 30, positions would go from Clovelly Park-based Monroe.
He said 20 redundancies would be offered at exhaust systems maker Walker at O'Sullivan Beach.
Both companies are owned by Tenneco.
"It's not surprising we're going to start seeing the ripple effect through the suppliers, the first and second-tier suppliers," Mr Fenney said.
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"They've also indicated that in six to nine months time that Walkers and Monroes ... will reassess where they're at and hopefully Holden won't have any more reduction in the build rate.
"Hopefully we can keep going and keep going to keep as many jobs until the finite date when they close."
The State Government is under pressure to deal with mounting job losses in South Australia, with more than 400 at Alinta Energy and 140 at BHP Billiton announced this month.
Treasurer Tom Koutsantonis is banking heavily on his transactional tax cuts, announced in the budget, to encourage business investment and reinvigorate the economy.
"The tax reform package is all about allowing our components manufacturers to consolidate," he said.
"We need the ones who can survive and diversify to consolidate so we've removed all the tax impediments.
"What [businesses are] saying to us in the feedback they've been giving us is that if you remove these taxes, we can buy the smaller companies, we can merge with the larger companies.
"What we're doing is giving them the incentives to grow."
But the Government's own union backers are sceptical.
The AMWU wants more action from both the state and Commonwealth.
"Just on the horizon we don't see any big jobs coming," Mr Fenney said.
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"They talk about little businesses and stuff but that, a lot of the time, only creates casual employment.
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"We're looking for high-skilled, high-paying jobs and that's what people need to transition into