THE Global financial crisis is now hitting automotive component manufactures, with several Adelaide firms employing hundreds of workers said to be on the brink of collapse.
The Manufacturing Workers Union will not name the components makers but warns at least one may go into receivership within months.
Union official John Camillo says there are also concerns that workers at those firms will lose their jobs when Holden winds back production during the next few months.
“They only have about two weeks’ annual leave credits up their sleeve and I have got some grave concerns that the component suppliers’ people will be going home with no money whatsoever,” he said.
Unions have now reached a pay deal with Holden for its workers to receive 4.5 days pay each week during production shutdowns which start from Thursday.
Holden is cutting its Adelaide production due to the global financial downturn, at the same time as Ford is slashing hundreds of jobs from its Victorian plants.