The Prime Minister’s decision to require local content statements from companies in receipt of more than $20 million in government funding will mean a major boost for local manufacturing.
The announcement came at the conclusion of a one-day Jobs Forum in Parliament House, Canberra, where the AMWU had raised the issue of local content.
“This decision will give us and Australian manufacturing firms the ability to test the claims made by resource sector companies that they are contributing to the community and buying local. This is an excellent result,” said AMWU National Secretary, Dave Oliver.
“This decision will allow us to campaign to name and shame anyone not providing a fair go in a transparent process.”
Under the plan, companies which receive more than $20 million in government grants will be required to fill out Australian Industry Participation plans and make them public. This will allow manufacturing firms which have been missing out on work to scrutinise tendering processes.
“Manufacturing workers have been missing out because mining and gas companies have been importing their fabricated steel and components like conveyor belts, pipes, refrigeration units and even footpaths on worksites.
“Despite this, resource companies have spent millions of dollars on advertising campaigns exaggerating their commitment to supporting local jobs.
“The Prime Minister’s announcement will mean that taxpayers no longer subsidise companies that aren’t prepared to put their commitment back to the Australian community on the record.”
The AMWU will continue to work with the government to ensure Australia’s manufacturing sector achieves its full potential in resource sector and clean technology projects.
“Australia’s one million manufacturing workers have a lot to be pleased about in the outcomes from the Future Jobs Forum.
“We would expect the same rules to apply to grants funded from the $14.8 billion Clean Energy Future plan.
Local content and real productivity on AMWU agenda for Jobs Forum
In the lead up to the announcement at the Jobs Forum, the AMWU had lobbied hard for outcomes on local content. The AMWU and AWU released a joint paper for the Jobs Forum. (insert link)
Mr Oliver also told the forum of CEOs, government ministers and industry experts that better management was needed to address declining productivity.
“Employer groups and Coalition figures have recently been spruiking a return to IR policies which lower workers’ rights, under the cover of ‘productivity’ and ‘flexibility’, but ABS figures show multi-factor productivity fell by 0.3% each year during the cycle from 2004 to 2008, coinciding with the introduction of WorkChoices.”
The AMWU highlighted a major report into Australian management which showed that management skills had fallen behind.
The Manufacturing Matters report, headed by Dean of Business at UTS, Professor, Roy Green, found that ‘the top 27% of Indian and Chinese manufacturers are better managed than half of Australian manufacturing firms’.
“The biggest productivity gains could be made by focussing on improving the skills of managers, not cutting wages,” said Mr Oliver.
“That’s the debate business and the Government need to be focussing their energy on today. Unions look forward to getting back to these issues and delivering real productivity that benefits both workers and businesses,” he said.