Phillip Barresi (Deakin, Liberal Party) Share this | Link to this | Hansard source

On behalf of the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation, I present the committee’s report entitled Employment in the automotive components manufacturing sector, together with the minutes of proceedings and evidence received by the committee.

Ordered that the report be made a parliamentary paper.

I am pleased to present this report on employment in the automotive components manufacturing industry on behalf of the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation. This report comes at a timely period in Australia’s manufacturing history, particularly as I note some of the debate taking place today. The report makes an important contribution to the future of the automotive components manufacturing industry.

The automotive components manufacturing industry is an impressive one. It employs some 25,000 people and has an annual turnover of $7 billion. However, both employment and sales have been declining in the face of the challenge of increasingly competitive imports, changes in both employment and purchasing strategies by the vehicle manufacturers, and moves to offshore production. The findings of the committee reflect these challenges.

The inquiry was timely as it presented a valuable opportunity to address these issues. Unfortunately, a number of businesses declined to participate—in a number of cases citing the fear of retribution or contract losses as a reason. That is a shame, considering that the inquiry was set up to assist this very industry. So, while the report makes recommendations critical to supporting the future of the industry, the industry itself faces some serious cultural issues.

The committee examined skills shortages, recruitment and training strategies. Recommendations are made addressing the need for greater industry representation on training issues across the supply chain. On-the-job training taking place within the industry is recognised and options for formal skills recognition are proposed.

The shortage of skilled workers in the automotive components industry is accentuated by the automotive industry’s image problem. The outdated image of the greasy workshop and the constant talk of industry downturn only discourage young people from making it a first career choice. The committee heard about several industry programs to get school students out of the classroom and experiencing the workplace. Some of these programs, such as those offered by the Northern Advanced Manufacturing Industry Group in South Australia, are to be commended. These programs are an important means of exposing the attractions and opportunities in automotive manufacturing today.

Recommendations are made to extend these programs to other areas and to improve recruitment practices. In addition, the committee recommends the centralisation of resources for the establishment of a foundry to service the casting industries to improve the quality of training. This is an important recommendation as it notes that some sectors within the industry do not have the economies of scale to warrant the establishment of given courses in every TAFE college around the country. While some parts of the industry are facing recruitment difficulties, others have been hit hard by an industry-wide downturn in production and redundancies. Only as recently as last week, there was further evidence of some of these downturns and redundancies taking place.

Recommendations are made aimed at understanding the outcomes of labour adjustment programs and ensuring that future labour adjustment programs take into account the supply chain. There is a need to focus on how to best position the industry to ensure its ongoing competitive viability and success in the global marketplace. Recommendations are also made to focus on establishing a clear niche market position of the industry. They include enhancing R&D assistance measures to ensure that Australia retains a share of the lucrative innovation and design market. While we often hear of cases of companies struggling to survive in the Australian sector, there are also companies in the automotive component manufacturing sector that are doing it well and who have established clear niche markets both here in Australia and overseas.

The automotive components manufacturing industry has shown its potential to be innovative, dynamic and capable of meeting change. However, it must continue to change in order to take its place as a competitor in the global marketplace. With a skilled workforce committed to lifelong employment, and a capacity to meet the challenges facing it, the industry has the ability to secure its own future.

I would like to thank the many individuals, businesses and organisations that provided evidence. I would like to thank the committee, the deputy chair of the committee, the member for Gorton, and, in particular, the secretariat—Dr Anna Dacre and Siobhan Leyne—for their hard work in working through this inquiry, often with scant evidence that was provided to us by the industry itself. I hope that this report contributes to the positive future of the automotive components manufacturing industry.

Brendan O'Connor (Gorton, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak to the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation report, Employment in the automotive components manufacturing sector, tabled by the member for Deakin. Firstly, I acknowledge all members of the committee, particularly the chair, the member for Deakin, as well as the member for Werriwa, Chris Hayes, and the member for Shortland, Jill Hall, who were very attentive to their obligations in this inquiry. Margaret May and a number of other members also put a lot of effort into this. I also join the chair in thanking the secretariat—Anna Dacre and Siobhan Leyne, but also Loes Slattery and Daniel Miletic—without whom we would not have a report as good as this.

As the chair indicated, it is true to say we had some difficulties with getting cooperation from parts of the industry. That is a concern. Whether that is a cultural thing with respect to the industry not wanting to speak directly to the federal parliament I am not sure, but it certainly did not provide us with confidence that all in the industry know what the best approach is to solving some of the pressing problems it confronts.

There is no doubt that this inquiry came at a very important, indeed critical, moment in the industry’s history. As the report asserted, it has been said many times that automotive manufacturing in Australia is in a period of transition. However, this report, I hope, will certainly assist the industry and assist government in seeking out the best answers to the problems that it currently confronts.

There is no doubt that the inquiry focuses on skills shortages in the industry and the need to attend to those skills shortages. You have a paradox in the automotive parts industry: on the one hand there are skill shortages, but on the other you have redundancies. Surely we can solve this problem, particularly when, in the case of many redundancies—redundancies that really hurt ordinary working families across the country in this industry—there is significant lead time before they lose employment. Surely we can attend to providing proper skills and ensuring that there are fewer redundancies, if there have to be any at all, so that the industry is not crying out for particular skills.

We think governments should attend to that. I think the unanimous report suggests quite clearly that all members are concerned that not enough has been done with respect to skill shortages, attending to those shortages and attending to the labour adjustment policies that have been wanting. There are some very practical recommendations in this report. It is also important to note that there is no dissenting report. This is the third report for me as deputy chair and the first time that there has been no dissenting report. This is unusual for an employment committee, given the current policies of the Commonwealth.

I have to say that, almost to a witness, the employers and unions did not focus upon IR. It certainly does raise the question as to why the Commonwealth wants to proceed with Work Choices, because, in my view, clearly the major issues confronting the industry are not about changing industrial relations laws, and they are certainly for the worse for employees in this country. I think the report is worth reading. It is unanimous and it says a lot of things about what the government should be doing to help the industry.

David Hawker (Speaker) Share this | Link to this | Hansard source

It being 1.45 pm, the member is interrupted in accordance with standing order 34. The time allotted for statements on this report has expired. Does the member for Deakin wish to move a motion in connection with the report to enable it to be debated on a later occasion?

I move:

That the House take note of the report.

In accordance with standing order 39, the debate is adjourned. The resumption of the debate will be made an order of the day for a later hour this day.