Volvo cuts 130 jobs in Brisbane

Volvo has cut 130 jobs at its Brisbane commercial vehicles factory, the Australian Manufacturing Workers Union (AMWU) says.

AMWU assistant state secretary Warren Butler said the company announced on Wednesday it would lay off 130 workers, comprising 40 contractors and 90 permanent staff, effective from December 16.

Mr Butler said the union was shocked at the decision following the financial assistance package announced by the federal government for the car manufacturing industry.

"We implore both the state and federal governments to explore any avenues they can for providing financial assistance for these workers," Mr Butler said.

Volvo said the move came amid the global economic downturn and a gradual fall in the number of people buying trucks, the ABC reported.

"This is a measured response to reduced customer demand in Australia," Volvo Commercial Vehicles Australia spokesman Mark Hughes told ABC radio.

Mr Butler said Volvo made no mention of looming redundancies during recent enterprise bargaining agreement (EBA) negotiations.

"This is a restructure in order to reduce the number of vehicles the company produces from over 2,000 last year to around 1,500 this year," Mr Butler said.

He said the cuts came at a time when the manufacturing sector was under strain and workers could find it difficult to find new jobs quickly.

According to the Volvo website, the company employs approximately 475 people at its truck production facility at Wacol in Brisbane, the largest assembly plant for heavy duty trucks in Australia.