ADI merger fears

The workers were informed of the proposed merger between ADI and Tenix by ADI managing director Lucio Di Bartolomeo on Friday.

The proposed merger would see a new company formed which would focus on naval works including shipbuilding, repairs and upgrades.

Tenix would own 67 per cent, while 33 per cent would be owned by ADI's joint venture owner Thales.

Transfield would remain a 50/50 owner in ADI.

Australian Manufacturing Workers' Union Bendigo organiser Damian King said the workers were seeking assurances from Di Bartolomeo that the highly-skilled central Victorian workforce would not be lost.

Mr King said there was speculation the Bendigo naval shipbuilding and repair program could be shifted to Garden Island in Sydney.

He estimated about 20 Bendigo workers were involved in naval building and repairs.

``If ADI proceeded to implement these proposals, it would represent a major reduction in capabilities of the Bendigo plant and would reduce the plant's future workload prospects,'' Mr King said.

He said while ADI Bendigo's major business was vehicles, the plant's ability to contribute to a naval shipbuilding and repair program provided vital diversity.

Mr King said naval repairs and upgrades had been ``a mainstay of the Bendigo plant'' in the past and gave workers the opportunity to develop high-level engineering skills.

ADI spokesman Leigh Funston said the proposed merger would have no impact on Bendigo workers.

``Bendigo is an engineering and vehicle-building heartland,'' he said.

``The proposed merger is only aimed at the naval shipbuilding, upgrades and repair capabilities.''Mr Funston said the Bendigo plant continued to boast great strengths.

``Bendigo will still have to compete if the merger (happens),'' he said.

He said the proposed merger would best ensure the shipbuilding and repair capabilities ADI had built up would not be lost.