The prospect of significant job cuts being announced at Electrolux today adds to further bad news on the jobs front for South Australian workers, Shadow Treasurer Rob Lucas said today.
“Electrolux Home Products Pty Ltd workers are to attend a meeting at the Beverley plant at 1.30pm where they believe that, at the very least, significant job cuts will be announced,” Mr Lucas said today.
“Workers believe the job cuts will be concentrated in the washing products plant at Beverley and the dishwashing division at Regency Park rather than the cooking products division at Dudley Park.
“Contrary to reported statements from the Premier, the Liberal Party has been advised from an Electrolux source that the Rann Government has been fully briefed on the details of the announcement to be made today.”
Mr Lucas said these job concerns came soon after job cuts announced by AGL, Bankers Trust and BankSA and ongoing concerns about the automotive industry, and that recent speculation about the future of Mitsubishi Motors Australia was also adding to workers’ concerns.
“Recent economic statistics have also sounded warning signs about the South Australian economy,” Mr Lucas said.
“The NAB August Business Survey released this week shows that business conditions in South Australia were rated as the weakest of all the states and that business confidence was actually the worst of all the states.
“In fact, the NAB net balance business confidence measure for August was negative in only one state – South Australia.
(See attached chart)
“These indicators come soon after last week’s economic growth figures were released by the Australian Bureau of Statistics (ABS) showing that economic growth (as measured by state final demand) in South Australia was the equal worst of all states.
State Final Demand – Trend Annual % change June 05 to June 06 (ABS 5206.0)
“It is now time for the Rann Government to heed some of these warning signs.
“As the man at the helm of the highest taxing government in South Australia’s history, Mr Rann must finally listen and provide tax relief such as on payroll tax to the thousands of small- and medium-sized businesses in South Australia.
“Whilst the tax relief might not assist the big companies, small- and medium-sized businesses would be able to employ thousands more South Australian workers if their tax burden was reduced.”