Domino Effects Of Toyota Altona Plant Shutdown, 600 Added To The 2,500 Job Losses & Counting…

Feb 02, 2017 10:57 PM EST | Gerone Trish


Following the announcement of Toyota to close its plant in Altona, where 2,500 employees will lose their jobs, three partners would be greatly affected. An additional 600 job losses are reportedly resulting from the shutdown of two car component factories tied with Toyota Altona plant plus a third partner who has not confirmed number of affected employees.

Toyota Altona has declared to close its factory on October 3, which will affect 2,500 factory workers. However, the 1,300 employees in the head office will be retained to handle sales, marketing and parts distribution in Australia.

The automaker will allegedly give a redundancy package, estimated to be $150,000, to the workers who will lose their jobs. The redundancy package covers four weeks of pay for each year of service rendered, which has a 90-week capping, plus 13 weeks (instead of just 10 weeks, for those who are entitled to it) of long service leave, plus the uncapped one week salary for each year of service, plus 75 percent of unused sick leave, plus other entitlements. In a nutshell, the amount $150,000 is almost equivalent to the worker's two years' pay, reported.

Due to the shutdown of the factory, the business operations of the automaker's partners will come to an end too. Unfortunately, two car component factories tied with the Toyota Altona factory have already confirmed to cease operation too.

Toyota Boshoku, a manufacturer of car seats in Derrimut, Melbourne, is reportedly set to make the official announcement of the company shutdown. This Friday, February 3, Toyota Boshoku will announce that all 350 employees will also be terminated in October.

In addition, car air-conditioning unit and ignition system manufacturer Denso, in Croydon, has reportedly hinted its shutdown once Toyota proceeds with its shutdown. There are about 250 workers who will lose their jobs from the closure of Denso.

A worker from Toyota Boshuko told ABC that the unfortunate fate was not a surprise to them. Apparently, the company has been struggling for about three to four years already.

Moreover, the publication also mentioned that a third company has hinted on possible massive job losses too. Toyota Tsusho, a components importer and manufacturer, told ABC that the company is also bound to downsize as an effect of the Toyota Altona plant shutdown.

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