SHOCK waves continue as the 210 full and part-time employees and local management of the Visiocorp Australia manufacturing plant in Taree come to terms with the announcement last Thursday that the company will cease operation at the end of the year.
The plant, which produces lamps, switches and electronics for car makers, will be closed in a staged manner, with all operations ceasing by the end of 2009.
“It is a sad day for Visiocorp and the people of Taree,” plant manager Todd Watkin said. “We completely understand the impact this decision has on our staff, their families and the local community but we were left with no alternative, except to close the Taree plant.”
Mr Watkin said the Taree facility has been under threat for some time owing to the current economic downturn in the domestic and international automotive industry. While the Taree plant has managed a reasonable profit over the last five years, the downturn has reduced sales by 50 per cent in the last 12 months with a loss of millions of dollars.
“It is just not economically viable to continue and we believe a controlled closure is a sensible approach,” he said.
“The Taree plant has been operating just four days a week since the beginning of 2009 and a lot of our employees were probably expecting the outcome – they may have expected more wind-up time but this way we can assure that all entitlements will be honoured.”
Mr Watkin said the budget for closure includes all employee entitlements (including sick leave entitlements) according to the company’s certified agreement which, he added, were generous by state and federal government standards. Employees have been offered transfer to the remaining Australian operation at Lonsdale, South Australia, at the company’s expense.
“While emotions are raw and it’s too early to predict what most of them will do. This is a good workforce and we have a lot of long-term employees with the average service 11 years.” Mr Watkin said while he couldn’t predict what the morale will be like over ensuing weeks and months, he was heartened that there was very little absenteeism on the day following the devastating announcement.
As plant manager, Todd Watkin is also looking at his options. After 10 years with this company, it is the second time for him to work through the closure of a business in Taree, when as an employee of National Dairies he transferred to Melbourne after the closure but returned two years later to work for Visiocorp (then Schefenacker).
Mr Watkin said like his fellow workers he is coming to terms with the situation and for now he has no plans because over the next six months there will be plenty of work to fulfil the committed orders and oversee a smooth closure.
“We will do whatever we can and provide whatever support is necessary to help our workers through this difficult time,” Mr Watkin said.
Ironically workers at Visiocorp will have full time work for the first time in six months to enable the orders to be completed. “We need the skills of our staff to help make this a successful transfer,” he said.
Staff who choose to leave prior to the plant’s closure will be treated as a normal resignation and could therefore lose their redundancy entitlements.
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