Nissan Australia will outsource its current in-house parts warehousing and logistics operations to a third party from August, leaving 58 staff across Melbourne, Sydney, Brisbane and Perth redundant.
From next month, CEVA logistics will manage Nissan Australia’s parts, warehousing and “associated logistics functions” in the states of New South Wales, Victoria, Queensland and Western Australia. Nissan’s warehouses also house Renault and Infiniti parts.
The 58 positions to be made redundant comprise 42 near Nissan Australia’s headquarters in the Melbourne suburb of Dandenong, six in Sydney, and five in both Brisbane and Perth.
According to Nissan Australia, “all affected staff have been offered assistance relating to re-employment outside Nissan along with other related support services”.
In a statement provided to CarAdvice, the company said:
“Nissan Australia is making this change after a comprehensive review of its parts warehousing and logistics operations, which concluded that the company’s competitiveness in these specialist functions can only be improved by significant investments in areas such as distribution and IT infrastructure, property upgrades to meet increasingly stringent safety, technical and environmental compliance, and other major investments to improve expertise and processes for improved performance and efficiency.”
According to the ABC, the Australian Manufacturing Workers’ Union (AMWU), which represents the workers, has called on the company to redeploy all of the affected employees, some of whom have up to 26 years service.
The national broadcaster’s report said the union had been caught off guard by the decision.
“In a nutshell it was to do with the current infrastructure and we really haven’t got a handle on what that means,” Union official Paul Difelice said.
“I’ve got to say it’s a bit of a shock because after speaking to members and speaking to the delegates out there… they’ve always cooperated with the company to meet KPI (key performance indicator) targets.”
Mr Difelice said in the ABC report that the workers were “stunned” when they heard the news on Friday, and apparently want to know “why they were not consulted about the changes in line with the requirements in their enterprise bargaining agreement”.
It is understood that the union and Nissan officials plan to meet on Tuesday.
Nissan says the decision to out-source its local parts warehousing and logistics functions is unrelated to, and does not affect, its component manufacturing operation at Nissan Casting Australia. This is separate to Nissan Australia’s parts warehousing and logistics operations.
As we reported recently, Nissan Australia announced this plant was safe well into next decade, and is in fact flourishing and looking to add staff on account of strong global demand for its suite of products such as engine parts, bullbars and even electric motor components for the Leaf EV. We understand this remains the case.
Read more about that in our separate story here.
We have asked Nissan Australia if there is scope to re-deploy any of the 58 affected workers from today’s decision to the plant, or elsewhere within Nissan Australia.