Rheinmetall’s Melbourne workers fear being relocated to Queensland over Land 400 deal

MELBOURNE workers at a global defence giant are worried about being relocated to Queensland should the company win a multibillion-dollar defence contract ahead of BAE in Victoria.

MELBOURNE workers at global defence giant Rheinmetall are worried about being relocated to Queensland should the company win a multibillion-dollar defence contract ahead of BAE in Victoria.

The hotly contested Land 400 deal — worth up to $20 billion for the successful state — is likely to be signed off by the federal government’s National Security Committee in coming weeks.

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BAE Systems Australia and Rheinmetall Defence Australia are locked in a fierce ­competition to supply the ­Australian Army with 225 wheeled armoured combat ­vehicles.

Industry sources have told the Herald Sun some staff at RDA’s Melbourne headquarters don’t want to leave the city, casting doubt over Queensland’s capacity to ­attract a skilled workforce.

Victorian MPs met with Defence Industry Minister Christopher Pyne recently to push their case for Victoria to win the LAND 400 army project.

Victoria’s bid for the contract has centre around its ­established advanced manufacturing sector and the availability of a skilled workforce after the end of the state’s automotive industry.

BAE is partnering with the Victorian government to set up an engineering hub in Holden’s former manufacturing plant at Fishermans Bend should it win the contract.

It has also announced a partnership with chain company Marand to use Geelong’s Ford Factory to manufacture hulls and turret shells — ­creating about 60 jobs.

An industry source said the reluctance of RDA staff to ­relocate from Melbourne to Ipswich was “the talk of the ­industry” and Queensland would be forced to rely on a “FIFO-like” workforce.

But Rheinmetall managing director Gary Stewart said he was “very comfortable” it could attracting a “credible workforce” in Queensland.

“We are able to draw on the extensive aerospace and heavy vehicle engineering workforce successfully delivering programs in the Brisbane-Ipswich industrial corridor,” he said.

Queensland MPs and Senators sit inside a Rheinmetall Boxer CRV outside Parliament House.

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“Rheinmetall will continue to recruit and retain a credible workforce in all of our locations around Australia.”

Federal Liberal MP Sarah Henderson said there were compelling reasons Land 400 should be based in Victoria, including workforce security.

“Queensland has no history of automotive manufacturing and very few workers with the expertise to deliver Land 400,” she said.

“Proximity to a skilled workforce is critical to delivering the highest quality vehicle, on time and on budget.”

The Queensland government has criticised Victoria’s “desperate” advertising blitz — worth an estimated $600,000 — aimed at securing the project.

Defence Industry Christopher Pyne has said the project was on track for an ­announcement before the end of the financial year.

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