Joe Hockey warns AMWU on Toyota's future

THE manufacturing workers' union is making it "extraordinarily difficult" for Toyota to continue producing cars in Australia, claims Treasurer Joe Hockey.

THE manufacturing workers' union is "at war with Toyota'' and is threatening the car maker's future in Australia, Treasurer Joe Hockey has warned.

The company wants to slash labour costs by $17 million by cutting pay and conditions but is facing strong resistance from staff and the Australian Manufacturing Workers Union (AMWU).

MORE: FORD GLOBAL BOSS WARNS AUSTRALIA

Mr Hockey says the AMWU is playing a dangerous game.

"The union, the AMWU, is at war with Toyota," the treasurer told ABC radio today.

"They are creating the conditions that make it extraordinarily difficult for Toyota to continue producing cars in Australia.''

The Victorian government this week presented its plan to save Toyota's local carmaking operations, asking the federal government to make a significant contribution to Toyota to ensure it builds the next-generation Camry in Melbourne beyond 2017.

Hockey, AM: "AMWU is at war with Toyota management". No proof offered. After daring Holden to close surely time for restraint? #ausunions

— AMWUnion Active (@AMWUnionActive) January 23, 2014

The plan follows last year's decisions by Holden and Ford to pull out of local manufacturing in the coming years.

Toyota headquarters in Japan will announce its decision on Australian manufacturing later this year.

News_Module: NN-WEB-PROMO-SENTIMENTRACKER

But Mr Hockey has again made it clear that he has no plans to extend subsidies.

"We are being fair dinkum with Australian business that you cannot continue to rely on government support, on taxpayer support, in order to remain profitable,'' he said.

"You actually have to be profitable on your own two feet like every other business in Australia."

Victorian Minister for Manufacturing David Hodgett says Toyota workers should work with unions and management to get good workplace reform.

Mr Hodgett said Toyota was going through a period where they were trying to reform some of their workplace practices.

"I would encourage workers and the union to work with Toyota management to try and get the best possible outcomes in the interests of jobs,'' Mr Hodgett told AAP.

"And to keep Toyota as a sustainable manufacturer here in Victoria.''

Mr Hodgett said he had been in close discussions with Toyota, who said they will find it enormously challenging, but will "give it their best shot'' to remain in Australia.

He said the announcement of Ford and Holden to cease manufacturing in Victoria had made things difficult for the company.

"We will continue to work with Toyota to give them the best possible chance of sustaining their manufacturing here,'' he said.

He said workers and the supply chain would have to diversify and tap into new markets.

###