CRESWICK Road institution Alstom will effectively cease plant operation for up to two years while final designs are completed for the new X'Trapolis 2.0 trains.
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Dozens of workers will be redeployed to Ballarat East's Bombardier plant and will be trained to work on maintenance of VLocity trains while final designs are completed for the new series of X'Trapolis models which could take up to two years.
The French multinational parent company Alstom bought the rail division of Canadian company Bombardier early this year, so effectively the shift will mean job transferals within the same operation.
Today the state government announced it would fund $12 million to Alstom to complete the design process of the next generation suburban rail carriages.
It will mean a skeleton staff will remain at the Creswick Rd plant in the meantime, however it says no jobs will be lost.
The Electrical Trades Union has welcomed the announcement of the work transfer agreement saying it both guaranteed jobs would continue, and it should give Alstom time to prepare for future construction opportunities.
The ETU said the move would ensure that tradespeople working in rail manufacturing and maintenance workshops in Ballarat have a clear pipeline of work "while Alstom gets ready to build the new X'Trapolis 2.0".
"Ballarat has a long history of building trains for Victorians and this commitment to continue the next phase of design work on the X'Trapolis 2.0 is a great step in securing a local build for the next generation of Melbourne's trains," ETU Victoria Secretary Troy Gray said.
"This collaborative agreement between the Andrews Labor Government, trade unions and the rail businesses will ensure that workers and their families are provided with certainty and that the core trades skills our rail industry needs are not lost.
"The ETU alongside other trade unions looks forward to working with government and industry to deliver the ambitious program of public transport projects Victoria is undertaking."
Those deployed to Bombardier will be trained to work on the VLocity train maintenance at the Ballarat factory of the Canadian-owned company.
Workers not deployed from Alstom will continue to work on rolling stock projects, including future design work, at Alstom. Front office staff, HR and other departments are expected to remain at Creswick Road.
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Public Transport Minister Melissa Horne said $12 million will be funded to Alstom to "enable the company to continue the next phase of design work for the X'Trapolis 2.0."
"We're helping keep these highly skilled manufacturing jobs in Ballarat - giving certainty to workers and their families," Ms Horne said. "Alstom workers will gain new experience and skills carrying out vital maintenance on our VLocity fleet - helping to keep services moving across regional Victoria."
But there are still no guarantees as to the long term future of the plant which first opened its doors in Ballarat in 1917, until potential future contracts are signed.
Buninyong MP Michaela Settle said this would help in securing manufacturing in Ballarat, and in doing so keep workers close to home.
Alstom has been delivering X'Trapolis trains for Victoria since 2015.
Ms Horne said workers from Alstom who are transferred to Bombardier would keep their existing entitlements.
She also promised the government will work closely to ensure necessary training and development is undertaken in the new maintenance roles.
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