In a further blow for manufacturing in the Hunter region, another 19 jobs are set to be slashed at the United Group Rail (UGL) Broadmeadow plant.
The Australian Manufacturing Workers Union (AMWU) will begin talks with the company this week, in a bid to mitigate the redundancies.
With a new light rail system planned for Newcastle's CBD, the union's state secretary Tim Ayres said it is crucial the Baird Government awards any contracts to local companies.
"Train maker United Group Rail is considering laying off 19 tradespeople," he said.
"This is going to further reduce the capability of United Group.
"It's really a result of the NSW Government delaying rail work, not investing in infrastructure, and sending rail projects offshore to low-cost destinations."
Mr Ayres said it is crucial contracts for the construction of Newcastle's light rail wagons are given to Hunter manufacturing firms, in a bid to stem the 'blue collar' jobs crisis.
He said local firms must be part of the equation when it comes to Newcastle's public transport overhaul.
"The New South Wales Government, against considerable opposition in the Hunter, decided to rip up the train line into the city," he said.
"That means there's an opportunity for light rail.
"Another opportunity for the government to demonstrate that Hunter Valley manufacturers can do the job, and that people in Macquarie Street have got the faintest interest in the interests of working people in the Hunter Valley.
"Representatives of the union will be in close talks with the representatives of United Group Rail trying to mitigate every redundancy that we can, save every job that we can.
"And make sure that United Group Rail has got the capacity and the capability to tender for all these rail opportunities in the future.
"This is a fight, not just for jobs, but for maintaining the capacity of Hunter Valley industry."
The Australian Manufacturing Workers Union (AMWU) will begin talks with the company this week, in a bid to mitigate the redundancies.
With a new light rail system planned for Newcastle's CBD, the union's state secretary Tim Ayres said it is crucial the Baird Government awards any contracts to local companies.
"Train maker United Group Rail is considering laying off 19 tradespeople," he said.
"This is going to further reduce the capability of United Group.
"It's really a result of the NSW Government delaying rail work, not investing in infrastructure, and sending rail projects offshore to low-cost destinations."
Mr Ayres said it is crucial contracts for the construction of Newcastle's light rail wagons are given to Hunter manufacturing firms, in a bid to stem the 'blue collar' jobs crisis.
He said local firms must be part of the equation when it comes to Newcastle's public transport overhaul.
"The New South Wales Government, against considerable opposition in the Hunter, decided to rip up the train line into the city," he said.
"That means there's an opportunity for light rail.
"Another opportunity for the government to demonstrate that Hunter Valley manufacturers can do the job, and that people in Macquarie Street have got the faintest interest in the interests of working people in the Hunter Valley.
"Representatives of the union will be in close talks with the representatives of United Group Rail trying to mitigate every redundancy that we can, save every job that we can.
"And make sure that United Group Rail has got the capacity and the capability to tender for all these rail opportunities in the future.
"This is a fight, not just for jobs, but for maintaining the capacity of Hunter Valley industry."
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