Article: Qld jobs go as rail factory moves offshore

[colinw]

Article in Brisbane Time: click here.

Qld jobs go as rail factory moves offshore
August 9, 2010 - 5:09PM

The axing of 120 jobs at a Queensland-based rail factory could be the first of many as companies choose to manufacture in China, the Australian railworkers' union says.

The global company Bradken has closed its coal rail wagon factory near Ipswich, west of Brisbane, after deciding to manufacture in China.

A total of 120 workers have been laid off during the past five months.

Premier Anna Bligh said the government was working with the company to find jobs for those workers.

"We've been working with this company for a number of months to help make them more competitive," Ms Bligh told reporters on Monday.

"Unfortunately they just haven't won contracts."

The Australian Manufacturing Workers Union (AMWU) spokesman Andrew Dettmer says it is hard to compete with China, which has cheaper labor and manufacturing costs.

"The company has decided to close its rail division because it feels rail manufacturing in Australia is no longer economic," Mr Dettmer said.

"That's disturbing to us as we believe the rail industry is the basis of Australia's heavy engineering - the sort of skills and methods that are used in the construction of major refineries like the LNG project."

"I was just with United Group Rail in Townsville on Friday and they've got work to March and that's good but we want there to be more work for rail manufacture in Queensland," Mr Dettmer said.

"Policies (from the federal government) have been working, but they've been labouring under the China-Australia free trade agreement that was negotiated under John Howard's watch."

AAP

[Dean Quick]

Just what was Howard thinking signing a free trade agreement with a country that has significantly cheaper labour costs and what the hell were we to get out of it apart from a rapidly disappearing manufacturing sector?  

[ozbob]

From the Queensland Times click here!

China move rejected by QR

China move rejected by QR

10th August 2010

QR NATIONAL has rejected claims it will follow Ipswich company Bradken and move its rail manufacturing to China.

QR's bulk coal rail company was split from the state-owned corporation on July 1 and will be floated later this year under the government's privatisation plan.

Yesterday, The Queensland Times reported Bradken had decided to make its rail wagon components in China.

General manager Brian Hodges said the company made the decision after continually being undercut by Chinese companies.

Mr Hodges said QR National could be fighting an uphill battle once it was forced to compete for contracts in an open market.

"QR is nowhere near as competitive as Bradken," Mr Hodges said. "Whoever the new owner is, they could continue making high-cost wagons, or get them from China. They might really struggle. They have never had to win anyone else's work and I don't think they will be able to."

But a QR National spokesman said it had a strong foundation to build a successful future on.

"QR National's rolling stock and components services division has a solid, diversified base strongly linked to Queensland's growing coal export market and the state's passenger network," the spokesman said. "Its activities include building high-quality wagons and components and the overhaul and repair of wagons and locomotives for QR National and Queensland Rail."

He said recent contracts included:

a $45 million contract to supply 160 wagons to support QR National's Hunter Valley operations.

70 wagons for QRN coal operations in Central Queensland in a contract worth $47 million.

a five-year $80 million contract for the overhaul, maintenance and supply of components for Queensland Rail's passenger fleet.

"QR's strategically-placed workshops at Redbank, Rockhampton and Townsville are a key competitive advantage for our coal and freight business," he said. "By having this capability in-house QR National has ready access to specialist rolling stock maintenance and rail manufacturing skills.

"This will be increasingly important to QR National as a private company in a highly competitive and rapidly expanding freight transport market."

[#Metro]

Cheaper wagons apparently.