Federal govt to help out workers if car parts maker folds

02/11/2012 - The federal government will help 400 staff who could lose their jobs if car parts manufacturer Autodom folds.

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The company, who supplies parts to Ford, Holden and Toyota, was given $6 million from the South Australian government on Thursday to assist its Adelaide operation, aiAutomotive.

All three car makers will have to halt production if Autodom does not receive financial help, the Seven Network reported.

Federal Minister for Population and Communities Tony Burke said the government was prepared to help but Autodom was still yet to determine how it was going to restructure, and whether jobs would be lost.

"If we end up in a situation where we're facing redundancies, there's some immediate help that goes in then," he told the Seven Network on Friday.

"They've flagged these concerns, but they haven't yet decided that shutdown is exactly where they're staying."

Burke would not commit to a government bailout but said "we have programs that they they may be eligible for".

Shadow Treasurer Joe Hockey told the Seven Network the best way to ensure the longevity of the manufacturing and automotive industries was to stop burdening them with tax.

He also said industrial relations and "restrictive workplace practices" coupled with the high dollar were also hurting manufacturers.

Source: AAP

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