Why union leader says march of the robots a good thing for industry

The march of technology into the workplace seems unstoppable but a senior Queensland Labor Party figure and the head of the manufacturing union said it could be a great opportunity for Australia.

Jul 07, 2020, updated May 22, 2025
Australia could win from automation if we learnt to work together, AMWU national president Andrew Dettmer says.
Australia could win from automation if we learnt to work together, AMWU national president Andrew Dettmer says.

AMWU national president Andrew Dettmer said the mining sector was an area where technology, digitisation and robotics was a threat.

The industry’s two biggest players, Rio Tinto and BHP, both invested heavily in automation and BHP just announced a $100 million investment in automated trucks for its Queensland coal fields. Both have automation centres in the Western Australia iron ore projects.

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ā€œThey have some pretty advanced technologies but they work in silos, they don’t co-operate. They work in silos,ā€ Dettmer said.

That meant that technology marched in just one direction and benefitted only a small part of the economy.

ā€œClustering is the way you get a community of ideas,ā€ he said.

He said Australia also needed to bring back manufacturing from overseas and could do it without imposing tariffs. Other countries, such as Germany, had managed it despite higher labour costs than Asia.

ā€œIf you have the skilled workers, a supply chain and materials we could create and develop companies. The cost of labour is almost immaterial,ā€ Dettmer said.

He pointed to some of the countries with the biggest manufacturing base per capita and most of them were not in Asia and had similar labour costs to Australia.

The Brookings Institution in 2018 found the top-ranked nations in overall manufacturing environment were the United Kingdom and Switzerland followed by the United States, Japan, and Canada.

ā€œWe found these nations performed well due to their policies, cost considerations, workforce investments, and infrastructure,ā€ Brookings said.

China leads the world in terms of manufacturing output, valued at $US2 trillion ($2.88 trillion).

Australia did not make the Brookings top 20 countries.

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In contrast, since the 1970s the Australian manufacturing sector has fallen from 30 per cent of the economy to just 6 per cent, Dettmer said.

ā€œThere are many who believe who don’t have a viable sector below 6 per cent.

ā€œWe will always have manufacturing in Australia, but it’s a matter of whether it’s a vital part of the economy.

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ā€œWe have a skilled workforce, we can provide a stable environment for production and services.

ā€œOne of the attractions of the digital environment is the possibility of a return to artisanal production, where workers or teams of workers are responsible for the carrying out of all the functions needed to form a complete component or item, such as a car.ā€

ā€œWe’re not quite there yet in terms of this collaboration – and we can learn a lot from the German model,ā€ he said.Ā 

ā€œAnd for that to take place, unions, employers and governments have to create and develop a new way of working together so that the thoughts and ideas of all engaged can be brought to bear,ā€ Dettmer said.

ā€œPart of the problem we have … in the US and Europe the level of cooperation is created through government policy and that just doesn’t happen here.

ā€œWe are not that far behind and I think if we were given a boost to skills, given a boost to manufacturing capacity and R&D we not that far behind but that’s at this time.ā€

He said unless Australia took advantage of the COVID-19 crisis we could be ā€œwallowing in the shallows rather than surfing the wave of recoveryā€.

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