The Prime Minister’s $40 billion pledge for the Adelaide ship building industry may come too late for many workers, the state’s peak defence industry association has warned.
On Monday, Tony Abbott unveiled plans to begin construction on a fleet of Offshore Combatant Vessels – from 2018 – and a fleet of frigates – from 2020 – at the Adelaide Submarine Corporation’s Osborne shipbuilding yard.
Abbott said the plans would see the number of Adelaide shipbuilding jobs fall to 1000 before rising again to 2500, for the construction of the multibillion dollar warships.
Defence Teaming Centre CEO Chris Burns told InDaily this morning that the high-tech skills of many who lose their jobs in the intervening period will “atrophy”, and those who find work in other industries before 2018 may not want to take the risk of returning to shipbuilding.
Burns said workers were bouyed by the Federal Government’s announcement of work by 2018, but worried about their prospects beforehand.
“We’ve got about 2000 out there working at the moment,” he said.
“That will gradually whittle down to about a thousand.
“We’re probably at the peak of work for the air warfare destroyer, although, already, they are … laying off some contractors.
“As we get closer to putting the third ship in the water, and that starts happening in the 2016-18 time frame … then the workforce will taper off.
“They may not want to leave the industry, but they’ll be virtually compelled to earn money and look for work in other industries.
“So, we’re just entering the valley of death.
“(However) we’re not only losing jobs, we’re losing skills.
“There are those that go off and secure themselves work … and won’t want to take the risk of coming back (to the shipbuilding industry) or changing jobs again.
“And there’ll be those who simply won’t be able to find work, and may become a welfare liability until such time as we can get the work going – but all the time they’re not shipbuilding, their skills are atrophying.”
“There are decades of experience in that workforce.
“If they don’t retain it, those skills will be lost, and it will require a significant investment of time, effort and money to recreate those skills and then build them back up.”
The industry would have “no trouble” recruiting workers for the industry the new contracts begin, but that reviving the skills lost will “come at a tremendous cost”.
“Because it’s advanced manufacturing and high-end technology, to rebuild those skills once you’ve recruited them is a very expensive undertaking.
“There’s a huge demand then for trainers and instructors with the necessary skills and experience to do it.
“If those guys have disappeared to another industry, or another state, or overseas, it becomes particularly difficult.”
However, he said the South Australian industry had demonstrated throughout its history that it was able to recruit quickly when work is there.
“We’ve done it before, we can do it again.”
Burns said the development of a strategic plan by stakeholders from across government was the key to retaining as much of the South Australian “skill force” in shipbuilding as possible.
Australian Manufacturing Workers’ Union Assistand National Secretary Glenn Thompson said the industry was concerned the Federal Government may not deliver on its shipbuilding plans.
“We are concerned to ensure this isn’t a déjà vu of shipbuilding promises,” Thompson said.
“We have already been burnt once on a promise to build the submarines in Australia. We don’t want to be burnt again.
“The industry has entered the ‘valley of death’ so we need to ensure this work comes online as soon as possible.”
AAP Image/Ben Macmahon
