Close to 1,000 jobs are likely to be lost across the whole auto sector as a result of Holden’s decision to cut 270 jobs in Adelaide, a union official says.
AAP reports that union officials believe most of the Adelaide job cuts are likely to involve voluntary redundancies.
However, according to Australian Manufacturing Workers' Union vehicles secretary Dave Smith, Holden’s decision to cut daily production at the Adelaide plant from 290 vehicles a day to 240 vehicles a day will have flow on effects throughout the auto component sector.
"For every job that you take out of a car plant there's two jobs that are going to be lost in the component manufacturers and the service providers," Smith said.
"We're talking 270 but it's actually closer to a four-figure amount."
As the ABC reports, Federal Member for Wakefield Nick Champion agreed with Smith’s assessment and said the job losses have been caused by the Government’s decision to not continue adequate industry assistance.
"The extent of these impacts is yet to be ascertained," Champion said.
According to Holden director of communications Sean Poppitt, production decisions are based on supply and demand. He did not say if there would be further reductions in car making this year.
"We acknowledge the human factor first and foremost," Poppitt said.
"All of our people have counselling services available to them, as well as career counselling, training and job-search assistance.
"Everyone has access to that before and after this process. We also have our early release program."
Holden plans to cease all local manufacturing operations by the end of 2017.