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Major Melbourne manufacturing plant closes

13-04-2012
by 
in 
Major Melbourne manufacturing plant closes

Cussons, one of Australia’s largest soap makers, is closing its Dandenong plant in Victoria, leaving 92 workers out of a job.

Cussons, whose products include Imperial Leather soap and detergents Trix and Morning Fresh, said from July manufacturing will shift from Dandenong to a plant interstate, with the remainder outside Australia.

The Dandenong facility will be maintained only as a warehouse with eight employees.

“The decision was made after serious consideration and investigation of a number of other alternatives, according to a statement on the company’s website says.

“Generous redundancy packages will be offered.”

The closure comes as seven companies, BlueScope Steel, Amcor, CSR, Rheem Australia, Capral, Boral and Incitec Pivot demand a government commitment to overhaul four areas: anti-dumping and industrial participation, industrial relations, access to energy and resources and regulation.

In a prepared statement Manufacturing Australia said: “Australian manufacturing is fighting multiple fires on multiple fronts, beset by challenges from high input costs and excessive or inconsistent regulation to the high Australian dollar.

“There is no ‘silver bullet’ solution to the sector’s challenges, but one thing is certain: the pattern of allowing Australia’s iconic manufacturers to decline, before being rushed into intensive care to be patched up with taxpayer funded subsidies, is simply not sustainable.

“As a nation, we must not allow the current difficult economic challenges to support a dangerous line of argument which contends that Australian manufacturing is beyond saving.”

Manufacturing Australia has called on the government to reduce the amount of cost, time and resources spent on administration and compliance with the Fair Work Act by removing the legislated default of third party employee representation.

It has asked the government to strengthen anti-dumping regulations and to roll back manufacturing regulations generally especially where the regulations add no economic value or competitive advantage.
 

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