Boeing's Melbourne factory will stay open despite the loss of up to 300 jobs, Victorian Premier Denis Napthine says.
The US-based aerospace manufacturer will cut 300 workers, mainly on fixed-term contracts, from its Boeing Aerostructures Australia plant in Port Melbourne by the end of the year.
Boeing has a significant presence in Victoria with more than 1000 employees, Dr Napthine said.
He said the job cuts were planned and were part of predicted changes in the production cycle.
"Boeing indicates that this is a fluctuation due to workflows but their main workforce of over 1000 will be continued and will continue well into the future," Dr Napthine told reporters on Thursday.
Boeing's job cuts are likely to be less than 300, a union official says.
AMWU acting state secretary Craig Kelly, who had talks with Boeing on Thursday, said some contract workers had been transferred to full-time employment while others would face redundancy.
Mr Kelly said workers had been hired on two-year contracts to meet production targets.
He said the company could potentially offer 80 or more permanent jobs.
"This place is one of our better news stories as it is a centre of excellence for what they do, building wings for the Boeing fleet," Mr Kelly told reporters.
"They say they are profitable."
Boeing on Wednesday said the move was a natural part of the manufacturing cycle and the end of the contract positions was in line with a long-established financial forecast.
Boeing's announcement means the Abbott government faces an even greater task to meet its pledge to create a million new jobs, says Labor's employment spokesman Brendan O'Connor.
Labor says there have been about 20,000 job losses announced since the Abbott government came to power.
"The government made a commitment that it would create one million jobs in five years," Mr O'Connor told reporters outside the Boeing plant.
"We now have unemployment at six per cent, the highest for a decade.
"These job cut announcements have yet to take effect and are yet to be counted as part of the unemployment number."
