Automotive Transmission Manufacturer in Receivership

27 Feb 09

Hundreds of workers at a gearbox factory in Albury, NSW are likely to be made redundant following the firm going into receivership.

Almost all staff at the Drivetrain Systems International manufacturing and assembly plant in southern NSW were sent home without pay this week.

After meeting with receivers PricewaterhouseCoopers last week, union representatives said 227 workers would lose their jobs, including plant operators, management, maintenance workers and finance staff.

This is in addition to the company's Melbourne site have lost around two-thirds of its workers at Christmas.

However AMWU state secretary Paul Bastian said Drivetrain Systems was not a victim of the recent global economic downturn.

He said the company had experienced difficulties over a number of years, having restructured itself several times.

It is understood that Drivetrain Systems, a major employer in Albury for three decades, was in debt up to $50 million.

AMWU spokesman Dave Smith added that workers are likely to be notified this week if they still have a job.

Smith said two companies had expressed an interest in buying Drivetrain Systems - a large Indian-owned engineering company and a Chinese manufacturer.

However, it is believed staff would not necessarily retain their jobs under new ownership, as the plant, which supplies the Ford Motor Company, does not have enough contracted work.

Smith said workers made redundant would receive a redundancy package equivalent to three weeks' pay for each year of service, but the amount would be capped at 16 weeks.

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