Australian car industry facing shutdown
From Ninemsn Just a day remains to broker a deal that will allow troubled Victorian auto component maker Ajax to resume its operations, and prevent a major shutdown of Australia's car industry. Up to 10,000 workers could be stood down at Ford and Holden factories in Victoria and South Australia from Tuesday, if a rescue package for Ajax cannot be agreed to by the administrator and car makers on Monday. Talks between Ajax's administrator and the car makers were held over the weekend and continued late into Thursday night. Administrator Stephen Longley would not be drawn on how much more time was needed when contacted by AAP about 11pm (AEST). "Talks are ongoing," Mr Longley said. "We don't have a timeframe". "Everyone is working through the day and night on this because operations won't continue until we have a resolution." Mr Longley, and unions, are hoping a six-month rescue package can be brokered to allow Ajax to continue operating until a buyer is found, saving 189 jobs. Ajax's workers were stood down by the administrator on Friday and will meet with Australian Workers Union (AWU) representatives at 7am on Monday. They could return to work on Tuesday if a rescue package is approved. Australian Workers Union (AWU) branch secretary Cesar Melham is confident a deal will be brokered, but he has also warned of the narrow timeframe. "I'm not sure whether it will come tonight or tomorrow but I'm confident we'll get a solution," Mr Melham said late last night. "There is no argument about whether the rescue package should be put in place because if they don't ... come Tuesday there won't be any cars manufactured in Australia for a while." "That's how serious it is. Holden will be moving to a shut down mode on Tuesday morning, with Ford to follow," he said. Mr Melham said he understood there was in-principle support for major elements of the rescue package, and talks were now centred on the wording. Ajax Engineered Fasteners, based in Melbourne's south-east, is a division of Global Engineered Fasteners (GEF) and it makes the specialised nuts and bolts that are used in more than 200 automotive parts required by the car makers. Ajax supplies the essential components on the so-called just-in-time system, which means they are provided when required, but no stockpile of parts is kept. If the manufacturers run out of components, they must halt production. The workers could be sacked without getting their owed entitlements if Ajax goes into liquidation.