Another One Bites the Dust

[maccamom]

When will this end? :




587 jobs go at tyre firm

Almost 600 jobs will be lost when a tyre factory in Melbourne's outer north closes at the end of the year.

Workers were delivered the devastating news that South Pacific Tyres at Somerton - which has been the subject of speculation about its future - will close on December 31.

In a statement this morning, the company said all 587 employees' full entitlements under their collective agreement would be honoured.

Chief executive Judith Swales said the factory's viability had long been under a cloud, primarily because of its high operating costs and low volume capabilities to produce the types of tyres consumers were now buying.

"To put this in perspective, conversion costs ... are almost double that of our average plants overseas and almost six times that of our most cost-competitive plant," Ms Swales said.