Banks got help, so should Alcoa: union

The Australian Workers' Union (AWU) has appealed to the federal government to help support Alcoa's struggling aluminium plant in Victoria until the Australian dollar returns to more normal levels of exchange.

The aluminium giant is reviewing the viability of the Point Henry smelter in Geelong in the face of falling aluminium prices, a high Australian dollar and rising input costs.

AWU officials and Alcoa workers met with Prime Minister Julia Gillard and Industry Minister Greg Combet on Monday to discuss their concerns about the future of the smelter, the aluminium industry and jobs.

AWU national secretary Paul Howes said the group, which included Labor MPs, did not come to Canberra with a "shopping list".

But there was a role for government to play in backing up troubled industries, as Labor did during the 2008-2009 global financial crisis when it supported the banks.

"The Australian dollar will return to normal levels and when that happens a plant like Point Henry will become extremely profitable again," Mr Howes told reporters.

"Now if we're to leave it to itself and let it collapse that will mean ... jobs right across Australian manufacturing will come under threat.

"Ultimately, if we are not making base metals in this country we won't be able to have value-adding manufacturing jobs.

"That's why there is a role for government to intervene into certain industries when there are unprecedented circumstances, to shore those industries up."

Mr Howes said the Australian dollar had ranged between 80 US cents and $US1.10 over the past two years and one cent increments in the currency could make a difference to whether a business survived or not.

He did not predict where the currency might trade in the future, saying the only thing that was clear was that "it will move".

The current issues facing the Alcoa plant - in particular the high local dollar - were short term, he added.

Victorian Opposition Leader Daniel Andrews said the meeting with Ms Gillard and Mr Combet was "really good" and the start of a process.

"A government focused on jobs will leave no stone unturned," he told reporters.

Alcoa plant supporters want the Victorian government to work with the federal government to develop a package to help keep the smelter going, saying it shouldn't be allowed to fail.

Later, Ms Gillard's office said the prime minister had made clear during the meeting she believed the manufacturing sector could and would have a strong future in Australia.

She had said the government would continue working closely with industry and the Victorian government to support innovation, increase productivity and boost Australia's international competitiveness.

The federal government will remain in regular contact with Alcoa during its five-month review of the Point Henry plant.