Almost 2,000 Ford employees are about to be laid off due to a dispute involving car parts supplier CMI Industrial.
Ford announced that 1,800 employees may be temporarily laid off from its Geelong and Broadmeadows plants, until the dispute is solved. Since last Thursday, April 19th, car parts manufacturer CMI Industries and its 60 workers have been locked out of their factory at Campbellfield because of a dispute over unpaid rent, believed to be around $150,000.
“We’re looking to have confirmation of a particular company who’s been appointed as voluntary administrator and I’ll be in touch with them,” said Federal Workplace Minister Bill Shorten.
If the situation is not solved as soon as possible Ford and other suppliers will be affected. The government had been in talks with CMI Industrial and other key parties about the company’s financial difficulties.
“If they fix it that’s great, if they don’t, Ford gets stood down and their supply chain potentially gets affected too, so that would be terrible,” said AMWU Victorian Secretary Steve Dargavel.
Such a turmoil between Ford and CMI was the last thing needed in such a turbulent time for the automotive industry, which faces serious challenges.