The Big Issue: Securing a Future Made in Australia

High-profile site closures. Donald Trump’s tariffs on steel and aluminium. Gas supply risks expected to worsen on the east coast. Our manufacturing sector continues to bear the brunt of domestic and international pressures – some of which seem almost beyond the control of our governments. Can anything be done to save our struggling manufacturers before it’s too late?

This year’s federal election could well decide the direction of our manufacturing sector, whether we invest in both the here and now and the next generation of workers, or let our smelters, furnaces and factories crumble.

In recent months we’ve seen two major manufacturers with hundreds of AWU members plunge into administration. Their contrasting fates tell a story.

First was Oceania Glass. Australia’s last architectural glassmaker will transition to an import model, bringing over 150 years of manufacturing to an end. Oceania’s owner Crescent Capital blamed the influx of cheap imported glass from China devaluing locally made product. The company appealed over several years for tariffs to shield it from dumped products sold up to 78% below cost. A decision from the Anti-Dumping Commission on was delayed to later this year: too slow and far too late for 260 glass workers in Dandenong.

Less than three weeks later, South Australian Premier Peter Malinauskas announced that his government was placing GFG’s Whyalla steelworks into administration. Whyalla was being run into the ground by a negligent owner – racking up huge debts, dodging suppliers and delaying critical maintenance. Administration cuts the cord on this horrific mismanagement. It will also deliver billions of dollars in investment to modernise the site into a potential world leader.  It’s hoped this act of leadership will forge a new path ahead after years of uncertainty. 

These stories show why we need to start thinking differently about how we support manufacturing. Governments have always assumed natural responsibility for public infrastructure – our roads, railways, public schools and hospitals. Most Australians agree that these and other essential assets should belong to everyone, not sold off and run for a profit.

But a huge portion of that infrastructure contains steel forged by AWU members in Whyalla, glass cast by our members in Dandenong, and aluminium, cement, bricks and other products made in other AWU sites across Australia. If we lose the ability to make it all here, we can no longer reliably build and maintain our own infrastructure.

Relying on international suppliers puts us at the mercy of supply chains we don’t control. Dumping has already pushed Oceania and others to the brink – and that’s while imports are unaffected by conflict or government interference. On safety and quality, some imports fall well short of Australian standards: the recent collapse of a two-year-old wind turbine in Geelong should be cause for alarm.

Workers also get much more out of Australian Made: these and other manufacturing activities support hundreds of thousands of quality jobs, underpinning local supply chains and regional economies.

This is why it’s crucial for government to step up, and only Labor has answered the call. In just the last few months, the Federal Labor Government has committed nearly $20 billion for Australian manufacturing:

• $1.9 billion for the Whyalla rescue (in partnership with the SA Government)
• $500 million to support wind turbine fabrication in Australia
• $2 billion in green aluminium production credits
• $1 billion for investment in green iron facilities
• $14 billion in production credits for critical minerals and green hydrogen
• $750 million in R&D funding for steel, aluminium and alumina.

This is the kind of leadership this country needs if we want our manufacturing sector to survive and thrive. It’s a vindication of our campaigning. And it’s certainly a contrast with the other side, who have offered nothing but the axe for most of these programs, and an energy plan that locks in high prices and seems to assume big manufacturers will close. 

But funding isn’t the only thing needed, and we can’t let the recent flood of announcements be a one off. There’s still important work to be done to shore up facilities and protect workers. This includes strengthening the anti-dumping system, legislating buy local rules for government spending on infrastructure and buildings, and strong action on energy prices and gas supply. The AWU will continue to fight for these for as long as it takes.

In a few weeks, Australia faces a choice which may well decide the future of our manufacturing sector and workforce. One party has the vision, commitment and drive to take action. One party has pledged to put blue-collar workers first. One party is truly committed to a Future Made in Australia. Not Peter Dutton and his plan for collapse, and certainly not the Greens. Just one: The Australian Labor Party.