Toyota workers worst fears came true yesterday when the company announced that it ax 350 jobs at its plant in Altona North.
Toyota Australia, said the president Max Yasuda drop in international demand for Australia Toyota built as a result of the high Australian dollar had led to the decision.
The move has raised fears of job losses could snowball the parts supply industry, including the viability and 40,000 jobs depend on the number of cars manufactured locally.
Toyota Australia exports normally more than 80,000 cars a year in the Middle East and other overseas markets, but Mr. Yasuda said he looked a little more than half of that amount this year.
''We have strong sales forecasts for the domestic market, but the reduction in the export market is so large that we can not cover the incremental sales in the domestic market,''he said.
The company plans to make 95,000 cars this year, nearly 40 percent of its peak production of 149,000 vehicles in 2007.
Federation of Automotive Products Manufacturers CEO Richard Reilly said the number of cars produced in Australia was vital for employment levels in the components industry, including 180 to 200 companies.
Yesterday, more than 3,300 workers gathered at the factory for a briefing on all of the company knew that more than one in ten jobs will be terminated in mid-April. The job losses in vehicle assembly and painting, and management.
Mr Yasuda said the plan would make the company more competitive, but just look at the end of the current model cycle, about the next five years. All work will be initiated compulsory redundancies.
The federal secretary of the Workers Union Australian Manufacturing Division vehicle construction, Ian Jones, said Toyota had failed in its commitment to the bargaining agreement the company signed last month to consult the union before No reduction of jobs.
''It's amazing that there are procedures in the agreement presented for how to handle these things, and Toyota is not just follow one of them,''said Jones.
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