Exide Batteries, a battery supplier which counts auto makers Holden and Toyota amongst its clients, will sack 27 workers.
The ABC reports that the company, which is owned by Marshall Batteries, will also cut an afternoon shift at its factory in the Adelaide suburb of Edinburgh North.
The company says that it needs to cut the workers because of decreased sales. It is seeking voluntary redundancies.
Commenting on the redundancies, Frank Mateos from the Australian Workers Union said, "All of those employees will be finishing up by the 13th of December. My reps on site inform me that there shouldn't be a problem achieving the redundancies voluntarily.”
Ford will cease manufacturing cars in Australia in 2016 and the futures of the other two car manufacturers, Holden and Toyota are problematic.
If they follow Ford’s lead, many more job losses will definitely occur. There have been several estimates of exactly how many, but according to the AMWU, the closure of the car manufacturing industry will cost 50,000 jobs and reduce economic activity by $21 billion.
News Corp obtained the union’s submission to the Productivity Commission. It states, "We face the stark reality that in the next six months decisions could be taken that would result in the automotive industry closing before 2020."
"Alternatively decisions can be taken that would mean the industry goes through a process of restructuring and consolidation."