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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-10-27 Daily Xml
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Ministerial Statement

BRIDGESTONE AUSTRALIA

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: On Friday, 23 October 2009, the Bridgestone tyre group advised the government that it would close its Salisbury manufacturing facility by April 2010, resulting in the loss of 600 jobs. This is a devastating blow for the loyal workers at Bridgestone and their families. It reflects the very difficult circumstances that some parts of our manufacturing sector are in right now, particularly in the automotive sector. Of course, members would be aware of the closure of other tyre plants around Australia.

The loss of 600 jobs at Bridgestone requires an immediate and significant response from government. Having been advised only on Friday about the company's decision, the government has been working with the commonwealth government, unions and the company to establish a support package to assist the Bridgestone workers.

I met with officers—indeed, the directors—of both the Department of Further Education, Employment, Science and Technology and the Department of Trade and Economic Development on Friday, and again yesterday, to discuss an immediate response to assist those workers transition to employment as soon as possible after their exit from the company.

Since Friday, discussions have been held with Bridgestone Australia Limited, the commonwealth government and the unions to determine how to best provide support for workers at this difficult time.

I can announce today that the state and commonwealth governments will provide a $5.7 million package of support for job search and training. This will include the following services offered by the state and commonwealth governments:

funding for training and upskilling, including help to gain licences, certificates and other qualifications;

skills development;

referral and placement into employment (a brokering system to help broker jobs);

practical assistance to begin applying for jobs, such as help with resumes, job applications, interview skills and presentation techniques;

access to job search facilities offered by Centrelink and Job Services Australia providers; and

work experience opportunities.

State and commonwealth officers will provide skills assessment and recognition of workers' competencies to formally accredit the skills these people already have. Training will then be provided to meet any gap that remains between a worker's skills and full qualifications that they will need.

Under the commonwealth Structural Adjustment Productivity Places Program, funding will be provided for workers to retrain that will include $2,500 for a certificate 2 qualification, up to $5,000 for a certificate 3 and as much as $10,000 for a diploma or higher level qualification. This will provide the Bridgestone workers with the skills needed in the key areas of employment growth.

The state government will also work closely with industry bodies to assist workers find employment and gain skills in areas of demand, and these projects will be undertaken in partnership with entities such as the nine industry skills boards, the Resources and Engineering Skills Alliance, and the Defence Teaming Centre. A joint commonwealth-state task force involving senior Bridgestone representatives and the unions has been established to oversee the delivery and coordination of services and support to staff.

The government's response is similar to the job placement and training components of the successful state and commonwealth Mitsubishi assistance package which was put in place following the closure of the Tonsley plant. The funds available for Mitsubishi exceeded the amount being provided for Bridgestone. However, the Mitsubishi package, of course, also included funds for industry attraction, which is not required in this case given the work already being undertaken in this area. As a result of that joint package for Mitsubishi workers, 735 workers affected by the closure (660 from Mitsubishi and 75 from supply companies) have been placed into employment in both manufacturing and non-manufacturing sectors.

The government expects Bridgestone to meet all of its obligations to those employees that have or will be made redundant by the decision of Bridgestone to close the plant and ensure that all employees receive their full entitlements. Anything less than this would be unacceptable to the government. The government assistance I have announced will not, of course, extinguish the obligations of Bridgestone to pay its workers the appropriate severance amounts. I have spoken with Bridgestone executives as recently as this afternoon, who have assured me that they intend to meet their obligations to their workforce.

There have been questions asked about the impacts that this closure will have on Bridgestone customers such as Holdens. I am advised by the company that the closure of the Salisbury plant will not have an impact on production at the Holdens Elizabeth operations, as Bridgestone will work to ensure continuity of supply. While there is no question that this is a difficult time for some parts of our manufacturing sector, I believe that the state's economic position provides grounds for optimism for those Bridgestone workers looking to find new employment. The state is experiencing jobs growth with an annual rate of employment growth that has exceeded the national average for eight consecutive months—in fact, there are now over 100,000 more South Australians in work than seven or so years ago.

In addition to major economic stimulus from both the commonwealth and state infrastructure projects, the ongoing diversification of the state's economic base will provide new employment opportunities. Opportunities in the defence and mining industries, in particular, are significant. While I am disappointed about the decision that has been made by Bridgestone, I reiterate that this government's key commitment is to help Bridgestone workers. We will work with the commonwealth, unions and the company to deliver this package and ensure that as many workers as possible find new jobs, just as we did with Mitsubishi workers from Tonsley.

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