The Australian Manufacturing Workers’ Union (AMWU) has called on the New South Wales (NSW) government to take immediate action to safeguard manufacturing jobs at Molycop’s Newcastle plant. The union’s demand comes after a warning from Molycop’s General Manager of Rail, Gregor Dalziel, indicating that the plant’s future and the positions of 150 employees are at risk due to competition from inexpensive Chinese train wheels.
AMWU’s NSW and ACT State Secretary, Brad Pidgeon, emphasised the urgency of implementing local procurement legislation. He expressed deep concerns about a trend towards sourcing rail components from offshore suppliers, which threatens local job security. Pidgeon highlighted the significance of establishing a Jobs First Commission to ensure public agencies, including Sydney Trains, prioritise local suppliers like Molycop, which are vital for sustaining local employment.
“It’s been over a year since the announcement of the Jobs First Commission,” Pidgeon stated. “While we have been waiting patiently and have taken a positive approach to working with the government, the delay is having an impact on our workforce. The question we need to ask Minister Courtney Houssos regarding the Jobs First Commission is, ‘If not, why not, minister?'”
He further explained that the procurement legislation the union advocates for is not solely about steel; it encompasses the livelihoods of workers and communities across NSW that depend on local manufacturing. Pidgeon urged the NSW government to renew its commitment to implementing the Jobs First Commission and protecting local industries.
In response, a spokesperson from Transport for NSW stated that Sydney Trains continues to procure rail wheels from manufacturers within NSW. The spokesperson noted that the Waratah train fleet, Millennium fleet, and Sydney Growth Train fleet are maintained by Downer on behalf of Sydney Trains, with Molycop supplying wheels for the remainder of the fleet under a contract that extends until 2029.
“Transport for NSW and Sydney Trains have mapped the rail manufacturing supply chain in NSW and identified significant rail manufacturing capability,” the spokesperson added. “This includes several companies that manufacture and supply rail wheels for trains in the region. The state government is committed to revitalising domestic rail manufacturing and supporting secure, skilled local jobs.”
The Future Fleet Program, according to the spokesperson, includes a minimum 50 percent local content target to ensure that Australian and NSW-based businesses are involved in delivering trains for the Sydney network. By shifting away from large, one-off overseas orders, the program aims to establish a long-term rolling stock procurement pipeline, providing certainty for local industries and the broader supply chain.
Minister Houssos confirmed the government’s intention to establish a Jobs First Commission during its term. She acknowledged that reversing the previous government’s inclination towards offshoring would take time and required significant policy changes.
“The government is committed to leveraging our procurement dollars to support local businesses, grow local industries, and create jobs,” Houssos stated. She highlighted the introduction of the “If not, why not” policy, which mandates that agencies engage with NSW suppliers before tendering contracts valued over $7.5 million. If a contract is awarded to an out-of-state supplier, agencies must provide an explanation detailing why a local business was not selected.
As the AMWU continues to advocate for local manufacturing support, the dialogue surrounding public procurement in NSW remains critical to safeguarding jobs and ensuring the longevity of the manufacturing sector in the region.
