Vic auto parts company to close
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The union says auto parts suppliers are being squeezed by the car companies. (ABC TV)
The National Union of Workers has called on the Federal Government to offer more support to the car parts manufacturing industry, with the closure of another Victorian company.
Teson Trims is Euroa's largest employer with 92 staff and another 34 people work at the company's Mitcham site, in Melbourne's east.
Administrators announced the closure this morning, after failing to find a buyer for the financially troubled company.
Anthony Thow from the National Union of Workers said Teson Trims was the largest employer in Euroa, and the announcement is a huge blow to the community.
"It's going to have a terrible impact on Euroa and the surrounding regions," he said.
"Teson Trims was a major employer, 140 well paid manufacturing jobs. And our research has shown whenever you lose manufacturing jobs, it has a big flow-on effect to the wider economy."
He said the closure is largely due to the fact that the major car companies are squeezing suppliers to breaking point.
"We have what we'd term uncontracted cost write-downs, where they're constantly squeezing the contracts of suppliers, such as Teson Trims," he said.
"And that has resulted in job losses, and it's resulted in businesses not being able to survive."
Local mayor Greg Carlson says the council will be doing all it can to help the workers.
"In such a small community it will have a very significant impact," he said.
"Obviously we'll be meeting with State and Federal Governments in the coming weeks to see what can be done in terms of mitigating the impact of such a heavy economic big blow to such a small community."
The Victorian Finance Minister, Tim Holding says the Government will do what it can, given the changes in the global market.
"We won't be able to protect or insulate the Victorian economy from all those changes," he said.
"No one would expect a state government to be able to do all those things."
The company will wind down operations in early October.
