The factory which Scott Morrison toured to spruik the Coalition's job-creation agenda is poised to shed workers as part of a restructure which will see more products made overseas.
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Mr Morrison, two senior ministers and a local Liberal candidate toured Rheem Australia's factory in western Sydney on Tuesday morning, as they pledged to create 1.3 million new jobs over the next five years if elected next month.
But while Mr Morrison used the hot water heater manufacturer to promote his government's record on job creation, ACM can reveal a cloud hangs over the more than 500-strong workforce at the Rydalmere site.
The union which represents manufacturing workers claims a third of the work undertaken at the Western Sydney factory is set to be shifted to Rheem's site in Vietnam, putting more than 100 local jobs on the line.
Rheem Australia's managing director in Australia and New Zealand, Chris Taylor, confirmed jobs would be lost at Rydalmere as part of a restructure designed to ensure the wider business remains competitive and viable.
The company told staff about the restructure last year, raising questions about why the Prime Minister would choose the site for a campaign stop aimed at promoting the government's record on employment.
ACM sought comment from the Coalition camp, but did not receive a response before deadline.
Mr Morrison put job creation and economic management front and centre on the election campaign's second day, capitalising on Labor leader's Anthony Albanese embarrassing failure to name the unemployment rate.
The Prime Minister talked up commitments to local jobs and manufacturing as he toured the Rheem site with Maria Kovacic, the Liberal candidate hoping to win the battleground seat of Parramatta.
"We are very fortunate to have a facility like this in our electorate that employs almost 600 local people," Ms Kovacic said.
There was no mention of Rheem's planned restructure.
Mr Taylor did not put a figure on the job losses at the Western Sydney factory, but was confident that the majority would come through "natural attrition" and voluntary redundancies.
He confirmed that under the restructure Rheem was expanding its Vietnam factory to be able to manufacture a wider range of products, which would increase imports to Australia.
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In turn, the Rydalmere site's capacity to manufacture "next generation water heaters" would be expanded.
"Rheem believes that Australian manufacturing has a critical role to play in this future," he said.
"Rheem's expectation is that there will be a substantial growth in demand for renewable energy and smart electric water heaters, which involve greater man hours to manufacture, and which will be made at Rydalmere," Mr Taylor said.
"This should provide ongoing demand for Australian made products."
Mr Taylor said there would be no loss in manufacturing capability across Australia as a result of the restructure, with Rheem to retain its position as the nation's larger producer of water heaters.
Rheem's other factories in Moorabbin, Victoria, and Revesby, NSW, wouldn't be affected, he said.
Australian Manufacturing Workers' Union national secretary Steve Murphy accused Mr Morrison of not supporting the local industry.
"Scott Morrison showing up in hi-vis means nothing when he has continually failed to support Aussie made," Mr Murphy said.
"Real wages are going backward and this government has refused to invest in the future of our industry."
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