Adelaide car component manufacturer SMR Automotive to let go 140 workers

SOUTH Australia’s job crisis has deepened with 140 jobs to go from a Lonsdale car component manufacturer.

SOUTH Australia’s job crisis has deepened with 140 jobs to go from a Lonsdale car component manufacturer by the end of March.

SMR Automotive (SMRA) workers were told of the impending redundancies this morning, which will see 110 labour hire contractors and 30 permanent employees lose their job. This represents around a quarter of SMRA’s local workforce.

Employees have until next week to express their interest in a redundancy.

The job losses are largely a result of SMRA losing a major contract to supply mirrors to Ford trucks in the US.

In a statement, SMRA general manager of operations John Scott said the “regrettable” decision had to be made as the company transitions away from a reliance on the automotive sector.

“This restructure is necessary in SMRA’s transition from being a manufacturer of high volume, more conventional products to a provider of lower volume, niche products offering new technologies and higher innovation,” he said.

“As a company we must evolve or cease to exist, it’s as simple as that.”

Meetings between company management and union officials are continuing throughout the day.

Australian Manufacturing Workers’ Union official Derek Winter said SMRA had handled a tough situation as well as possible.

“The company has been in constant communication with the workforce and the union over the past 12 months,” he said.

“Today’s events come as no real surprise, but it’s still a shock for the workers.

“Unfortunately, job loss announcements are something that our union is getting used to.”

In recent years, SMRA has received several million dollars in state and federal funding to assist its move into niche manufacturing.

Last year, the company applied for global certification as a medical devices manufacturer. This process is likely to be completed by March and comes off the back of an ongoing partnership with light therapy glasses maker Re-Time.

Minister for Automotive Transformation Kyam Maher said the Federal Government had “chased the automotive industry out of this country” and that the State Government had been left to assist affected workers in their move to a “different future”.

“We will see more job losses as the automotive industry winds down towards the end of 2017,” he said.

Mr Maher said the State Government had representatives on site at SRMA providing counselling and career advice.

Opposition Leader Steven Marshall accused Labor of being “asleep at the wheel” in its handling of the state’s transition from a manufacturing economy.

“Every single week we’re getting more bad news and the Government isn’t taking action,” he said.

Local Federal MP Amanda Rishworth said the state and federal government must work together to support SMRA workers in transitioning to new employment.

The latest unemployment figures will be released tomorrow by the Australian Bureau of Statistics. Currently, SA has the highest seasonally adjusted rate in the country at 7.3 per cent, well above the national average of 5.8 per cent.

SMRA makes exterior mirrors, various interior components and advanced lighting products for the domestic and international automotive giants.

[e-mail]