The construction arm of the Construction, Forestry, Mining and Energy Union is urging its 100,000 members to only buy Australian-made safety boots.
"We are calling for construction workers around Australia to exercise the choice of not buying Blundstones," CFMEU national secretary Dave Noonan said.
Mr Noonan said he was outraged this morning to learn that Blundstone would shift production to India and Thailand, where labour costs are a fraction of what they are here.
"Lots of workers will feel that it's a betrayal of a national icon to go overseas based on cheap labour costs," he said.
Trade policy blamed for Blundstone move
The textile union is blaming the Federal Government's trade policies for the imminent closure of Blundstone's boot factory in Hobart, and warns more jobs in the sector will go if changes are not made.
Blundstone will shut its doors within months after 137 years of operation and move to Thailand and India to reduce high manufacturing costs.
Up to 300 workers in Tasmania and 60 in New Zealand will lose their jobs.
The company says rising costs have forced the Australian icon offshore.
"Since 2003, we have not been able to pass the price increases - fuel increases, inflation, and labour - on to consumers," Blundstone manager Steve Gunn told News Ltd.
"If we hadn't made this decision, the market would have determined Blundstone boots irrelevant in a relatively short period of time."
Mr Gunn said it was not worth asking governments for further assistance and said Blundstone would not be the last manufacturer in the sector to close onshore operations.
"I would make the point that we are not the first Australian manufacturer to make this call; there are others that have been identifying the need to do it," he told ABC Radio.
"I don't believe that manufacturing in Australia is a sensible option."
Tony Woolgar, national secretary of the Textile, Clothing and Footwear Union, said the Federal Government's trade policies were ruining Australia's manufacturing industry.
"We've got a Government hellbent on doing a free-trade agreement with China, we're allowing a flood of imports into Australia from China in the TCF sector, and unless the Government is prepared to change its policy on trade, then I think you'll see this sort of thing continue to happen," Mr Woolgar told ABC Radio.
Industry Minister Ian Macfarlane said the Government was disappointed, but said Australian companies found it difficult to compete with lower wages in Asian countries.
"The textile, clothing and footwear industry in Australia has been under big pressure since the mid-1980s and that pressure has come from right around the world, as other countries have moved and Australia's standard of living has continued to rise and ... wage rates rise, making this industry a little uncompetitive compared to that product coming out of Asia.
"We have committed almost $1.5 billion as a Government towards supporting the textile, clothing and footwear industry in Australia and the company itself has been a recipient of many millions of dollars worth of assistance."
All workers are expected to be paid their full entitlements.'Link-http://www.smh.com.au/news/business/construction-workers-could-boycott-blundstone-boots/2007/01/17/1168709787245.html
KEY POINTS
- Production of Australian made Bludstone Boots going overseas to Thailand and India
- Construction, Forestry, Mining, Energy Union urging members to only buy Australian Made Boots
- There are lower manufacturing costs in Thailand and India
- This is due to the increase in living expenses in Australia and the increase in wages.
Another Australian Icon having to move overseas in order to survive. These steel cap boots are icon in the construction industry, a lot like speedos are in the swimming world. This will mean Australian jobs going overseas.
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