Unions calls for commitment to car sector

Toyota will axe 100 jobs at its Melbourne facilities in response to a fall in export demand. Source: AAP

UNIONS have called for a strong commitment from the federal government to ensure the future of Australia's car manufacturing industry in the wake of job cuts by Toyota.

Toyota said on Tuesday it would axe 100 jobs at its Melbourne facilities by the end of November in the response to a fall in export demand.

It will also cut production from December and will look to slashing the cost of building each car in Australia by $3800 by 2018 to remain viable.

ACTU president Ged Kearney says the car industry must remain and unions believe it is an industry worth supporting.

"It's always terrible news when we hear that jobs are going to disappear," Ms Kearney told reporters in Adelaide.

"In light of the latest announcement we would like to see a really strong commitment from the federal government that they are keen to keep our car industry alive and vital."

Ms Kearney said the ACTU remains a strong supporter of ongoing assistance to the automotive sector, something other countries seemed to understand was necessary.

"The industry assistance that is given to it is vital, not only to the car industry but the rest of our manufacturing sector," she said.

The latest job cuts by Toyota follow the 350 the company axed last year and Holden's decision to cut 400 jobs earlier this year.

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