ADELAIDE—The South Australian and federal governments will provide $5.7 million to help 600 Bridgestone workers retrain and find new jobs when the local tyre producer shuts in April next year.
Bridgestone revealed plans on Friday to close the suburban Salisbury plant in Adelaide that has operated for more than 40 years.
The decision drew criticism from the state government over how the company handled the announcement, largely because of its lack of notice which would have allowed for workers to be offered counselling and other assistance.
But Premier Mike Rann said on Tuesday the state and federal governments and unions had been working with Bridgestone since then to put together a support package.
Mr Rann said the government cash would help fund training courses and provide practical assistance including help with applying for jobs, preparation of resumes and help with interview skills.
It will also be used to fund work experience opportunities.
The premier said a joint Commonwealth-state task force involving senior Bridgestone representatives and unions had been established to oversee the delivery and coordination of services and support to staff.
The training and job placement package is similar to one negotiated for Mitsubishi workers who lost their jobs when the car maker closed its assembly operations in Adelaide in 2008.
As with Mitsubishi, Mr Rann said Bridgestone would also be expected to meet all its obligations to workers made redundant.
"Anything less than this would be unacceptable to the government," he said.
Bridgestone Australia Ltd said the decision to close the Salisbury plant and a plant at Christchurch in New Zealand was in response to international factors.
The company said tyre production operations in both countries had been running at a loss for several years and had been under review for some time.
They two plants are the last tyre-manufacturing facilities in both countries with the Adelaide plant operating since 1965 and Christchurch since 1947.
Bridgestone said despite efforts to improve cost competitiveness, tyre manufacturing in Australia and New Zealand had become increasingly difficult.
But distribution, customer service and retail networks, which employed about 1,500 people, would not be affected along with its other manufacturing operations including golf products and carpet underlay.
Mr Rann said Bridgestone's decision was a devastating blow for its loyal workers.
"It reflects the very difficult circumstances that some parts of our manufacturing sector are in right now, particularly the automotive sector," he said.
"While I am disappointed about the decision that has been made by Bridgestone, I reiterate that this government's key commitment is to help Bridgestone workers.
"We will work with the commonwealth, unions and the company to deliver this package and ensure as many workers as possible find new jobs."
