Let’s ‘Homeshore’ print manufacture - news commentary by Andy McCourt

The Kraft move is on top of last month’s announcement that some of its biscuit manufacturing – along with packaging – was shifting to China, with 150 job losses.

According to the AMWU, the number of manufacturing jobs lost each week has escalated to 187. In a separate case, the AMWU reported on the closure of a Bendigo, pipe manufacturer – at 60 minutes notice to workers, with the production moving to China. On these and packaging job losses, AMWU secretary Doug Cameron comments:

“[The] ideological pursuit of free trade agreements and wage-cutting industrial relations policies are not addressing the areas where working people need support in the Australian economy.”

“Wasting the budget surplus on tax cuts for the rich, when we should have funded the development of high-tech industries with good jobs for workers, shows who John Howard is really looking after”, said Cameron.

It may help to understand why large companies are deserting Australian manufacturing so, in the Tetra Pak instance, here are the replies to questions posed but not received in time for last week’s Bulletin:

Q: Will all carton and PET manufacture in Australia cease by Tetra Pak?
A: Yes

Q: “Tetra Rex packaging printed offset...” does this indicate local printing by offset contractors will take place?
A: No, Offset will be done in Tetra Pak Factories

Q: What main skills are being retrenched: offset, flexographic and gravure?
A: Flexographic

Q: Will the presses/converting machinery doing these be decommissioned or sold offshore too?
A: Decommissioned and scrapped or sold to other Tetra Pak factories.

Q: Recent food contamination cases in Europe have been attributed to ITX, dyes and other substances used in packaging. How does Tetra Pak propose to re- assure Australian consumers that the highest possible health standards are guaranteed now that the process control is out of Australian hands and into unknown offshore countries?
A: All the equipment in Tetra Pak’s factories that previously used inks with ITX have been converted or in the process of being converted to electro beam curing where there is no need for such substances in the ink. Australian customers can be always be (sic) assured of Tetra Pak’s commitment to providing innovative and quality products while still enjoying Tetra Pak’s competitive pricing

Q: Did Tetra Pak explore other alternatives to closing local packaging manufacturing, such as becoming a sales/marketing office and contracting manufacture out to Tetra Pak-approved contractors?
A: All Tetra Pack packaging material will be produced by Tetra Pak factories only.

Q: Does [Tetra Pak] agree that Australia has some of the best packaging engineers/printers/converters in the world? Australian Flexographic printers/converters regularly win accolades across Asia and globally.
A: No answer.

Q: Where will the filling of Tetra Pak cartons take place? Also offshore or will empty cartons be imported and filled here?
A: Tetra Pak delivers empty cartons, which are filled locally at our customers’ sites. This has been regular practice and there will be no change to this.

Q: Were the NSW and/or Federal government, and relevant worker organisations consulted on this closure, with a view to industry assistance/tax relief to keep the jobs and production in Australia? If not, why not?

A: Tetra Pak’s decision to opt for a global sourcing strategy was about sustaining competitive pricing as well as providing customers with a greater choice of innovative products. Therefore the company did not engage in any consultation with Federal or State Government.

MY CALL

The telling part of Tetra Pak’s replies is that the company felt no compunction to consult with government. It goes without saying that this Federal government felt no need to consult with Tetra Pak, or Kraft or any of the many other global firms marching out of Australian manufacturing. This is where the problem lies.

So long as Australian’s policy is to ignore manufacturing – of which printing is the third-largest part; the exodus will continue. The only thing to do is automate as much as possible, encourage print runs to be shorter and ‘JITNOT’ (Just in the nick of time) and this will put bulk shipments of offshore printing at a disadvantage.

In the USA, a trend has emerged very recently of ‘Homeshoring.’ Where outraged manufacturers and their customers get together to bring back contracts that went offshore. We can all make a difference. Personally, I now look at the bottom of ‘bric’ packages I buy and if it says, ‘Visy Combibloc’ I am more likely to buy it over any imported product.