ABOUT 150 factory workers at the DSI factory at Lavington face a bleak Christmas and New Year after being warned they face being stood down for five weeks from December 8.
More details will be given to staff on Monday, including whether they will be paid when the factory is forced to temporarily cease production of transmissions for Ford and SsangYong cars.
A supply of vital components has dried up because castings manufacturer Forgecast has closed in Mitcham, Melbourne, with the loss of 63 jobs.
Forgecast has gone into receivership and will no longer be supplying castings to DSI.
The Australian Manufacturing Workers Union expressed dismay and disappointment last night.
Assistant federal secretary of the vehicle division Dave Smith said he and NSW state secretary Sean Morgan were awaiting more details.
“I have talked to DSI today and obviously the union is concerned,’’ Mr Smith said.
The company is wholly owned by Chinese car maker Geely and management at Lavington was not making any comment last night.
But factory sources suggested the plant had only two weeks’ supplies of aluminium castings in stock and would find it impossible to keep production going after that.
Although a five-week stand-down is being contemplated, the impact might not be so great because the factory normally takes a break of two or three weeks over the holiday period.
But the threat of more stoppages comes at the end of the rockiest year in the factory’s existence.
A year ago, the former Drivetrain International company was put on the market and staff ordered to take five weeks off, followed by a four-day week with the loss of one day’s pay each week.
On February 16 the 350 staff then employed were all stood down and more than 200 subsequently lost their jobs and much of their entitlements.
Production resumed in March but only 130 got their jobs back.
Geely’s $58 million purchase in June saved the factory and recently it has picked up more work.