NSW's shift to imported flatpack buses sparks job concerns

In a controversial move, NSW Transport Minister Jo Haylen has been criticised for potentially undermining local manufacturing jobs by opting for imported “Ikea-style” flatpack buses from China. This strategy deviates from her pre-election promise to boost local bus production in NSW, raising fears of job losses reminiscent of the decline in Australian car manufacturing.

Transport for NSW’s recent procurement of 300 zero-emission buses, intended to be operational by 2028, involves substantial overseas manufacturing. Local workers are relegated to merely assembling pre-made components, a significant shift from the previously more labour-intensive local production processes. According to industry experts, this could signal a troubling trend for the Australian bus manufacturing sector, which has been building buses domestically for over eight decades.

Former Transport bureaucrat and bus industry veteran John Lee criticised the move as prioritizing cost savings through cheap imports over nurturing the domestic industry. “We have always used European engines and chassis like Volvos and Mercedes, but this idea of Ikea-style imports where the seats, the flooring and even the drivers cabin are all pre-built in China, will just cost Australian jobs,” Mr Lee told The Daily Telegraph.

The government, however, defends its approach by highlighting a gradual increase in local content over time. Minister Haylen stated that the assembly of the new electric buses would start at a Nowra facility, with plans to source 50% of the bus components locally by 2027. Yet, union leaders argue that the initial phases of this plan involve minimal domestic manufacturing, undermining long-term industry sustainability and job security in NSW.

The debate continues as stakeholders watch closely to see if future adjustments to the policy will tilt back towards favouring more substantial local manufacturing contributions.

Picture: A Bustech VST bodied Scania K280UB (credit Bidgee, CC BY-SA 3.0 AU)