Australia to lose medical jobs after China cancels contract

The federal government has knocked back a request to help maintain Australia’s ability to manufacture medical ­devices locally after China ­cancelled a lucrative contract with AstraZeneca.

The federal government has knocked back a request to help maintain Australia’s ability to manufacture medical ­devices locally after China ­cancelled a lucrative contract with AstraZeneca.

This forced the company to lay off half its workers at its Ryde manufacturing plant.

The Daily Telegraph understands that the medical giant, which is producing the AstraZeneca vaccine onshore and providing it at cost to the Australian taxpayer, will be forced to halve its manufacturing workforce at the facility from 480 to 240 by November.

Unions fear the loss of pharmaceutical manufacturing skills will reduce Australia’s capacity to produce it’s own drugs and vaccines in any future pandemics or emergencies. Picture: Getty

The workers had been in production of what are known as respules — small plastic ­containers full of medicine that are placed in nebulisers to treat asthma — and have specialised skills, which will, once they lose their roles, be able to be utilised only overseas.
While pre-pandemic the facility was kept busy producing respules for the Chinese market, a change in Beijing’s policy has seen the country begin to manufacture the devices locally. Leading unions are calling for help to keep skilled workers in the industry and in Australia.

“The importance of keeping pharmaceutical production skills in Australia has never been clearer,” Australian Workers’ Union national ­secretary Dan Walton said.

“The government can’t sit by and simply let this happen. It needs to step up and see what’s required to keep these jobs and make sure Australia doesn’t lose this capacity.

“Next time a pandemic or some other major health crisis hits, we may not be able to rely on international supply lines.
“Australia needs to retain the capacity to make pharmaceuticals here.”

“The AstraZeneca vaccine is the only vaccine being produced in this country. If the government doesn’t step in here it will send a powerful signal about how much Australia values this sovereign capacity.”

Minister for Industry, Science, and Technology Christian Porter said there was little the government could do at this stage.

“It is disappointing that ­AstraZeneca Australia will be reducing production at its North Ryde manufacturing facility but, ultimately, this is a decision for business.

“Importantly, this decision will not impact the supply of Astra­Zeneca’s CovidD-19 vaccine, which is produced locally by CSL at its facilities in Melbourne,” he said.

“The resilience of the manufacturing sector through­out the Covid-19 pandemic is something Australia can be very proud of.”