Holden shift cuts 'shore up long-term future'
Fri Apr 3, 2009
The Motor Trade Association (MTA) says Holden is wise to revise the shifts worked at its Elizabeth car plant in Adelaide, to deal with a fall in sales.
Ending months of uncertainty and production shutdowns, the car maker has told its production workers that the afternoon shift will be scrapped, meaning lower penalties for some workers.
Holden says no jobs will be lost, but there will be two production teams working week-on, week-off.
The head of the MTA, John Chapman, says it will create more certainty for components suppliers and should help ensure Holden's longer-term future in South Australia.
"What we're seeing is a good result in terms of that there will be some consistency in terms of their production," he said.
"That provides certainty for workers. It also provides certainty for component suppliers and that's very important to the economy of South Australia."
Holden says axing the afternoon shift from next month will help overcome the problems created for dealers and customers from its rolling production shutdowns of recent months.
Managing director Mark Reuss says it has been hard to supply dealers with a steady stream of cars.
He says a single shift operation producing 310 cars a day will overcome the problem.
"We look to be able to supply in a much more continual way cars that our customers are really demanding," he said.
Still committed
Mr Reuss says Holden remains committed to starting small car production at the Elizabeth plant late next year.
But he has not ruled out more staffing changes because of the global economic situation.
"We're looking at creating a new Holden here. We're looking at our business with a new small car and beyond here for the next five to 10 years," he said.
"We're re-inventing the company here, so we're not through with what that means for the entire workforce, we're just not through."
Mr Reuss is hopeful for the future of Holden in Australian at a time when parent, General Motors, in the United States is facing bankruptcy, with two months to submit a revised viability plan to the US Government.
"It's very important to know that bankruptcy of the parent company in North America does not automatically mean bankruptcy of any of the subsidiaries," he said.
Mr Reuss says Holden almost broke even last year but he will not reveal current figures until the end of the financial year.
South Australian Treasurer Kevin Foley says Holden is facing the same market conditions in Australia as car manufacturers in the US are facing.
He says the SA Government will not be giving Holden any financial support beyond $30 million already pledged to support its new model.
The Federal Industry Minister, Kim Carr, has applauded Holden for its efforts to protect jobs.
"This is about keeping people on the payroll and keeping skills in the company," he said.
"It's about re-inventing the company to make its operations in Australia sustainable in the longer term.
"Around 3,150 workers at Elizabeth plant will face reduced pay but everyone in the organisation is sharing the sacrifice."
Senator Carr concedes it is a tough time for families faced with reduced incomes.
"There's no question that scaling back production at Elizabeth will have a serious impact for many families and communities. The critical thing is that there are no retrenchments," he said.
The Industry Minister says there are no plans to cut shifts at Holden's Port Melbourne plant.
Entitlements
The Australian Manufacturing Workers Union says it will not be making any push for redundancy packages to be offered at Elizabeth.
Union official John Camillo says a key issue is entitlements.
"Our biggest issue is that workers take-home pay will be reduced and we are trying to manage how we do that in regards to, you know, long service leave annual leave," he said.
"We will be talking with the State and Federal Government in regard to training initiatives not only just for Holden but for the component sector and it is tough times for the next two months."
Northern Adelaide Business Enterprise Centre general manager Ron Watts says northern residents will feel the pinch as Holden cuts back.
"Any disposable income that they may have had will now dry up and probably go only into the essentials that they need to have to survive," he said.
"This is what then takes money out of our local economy and I think we're talking about many, many millions of dollars per month literally disappearing out of our local economy.
"Local government's got a big role to play here, they are the people who collect the rates and taxes, they are the people who should be really concentrating now on what is their strategy to assist small businesses to survive. If you don't help small business to survive, there is no industry."
The SA Treasurer says Holden's problems are quite different from those which brought an end to Mitsubishi's Adelaide car production last year.
"What Holdens could not predict or foresee is the complete meltdown in the automotive industry globally," Mr Foley said.
"But the difference with Mitsubishi to me is quite stark. You know, Holden's already are the market leader. They have a proven track record. They produce great cars and I think will do so for many years to come in this state."
News Source: ABC (Australia)
Fri Apr 3, 2009
The Motor Trade Association (MTA) says Holden is wise to revise the shifts worked at its Elizabeth car plant in Adelaide, to deal with a fall in sales.
Ending months of uncertainty and production shutdowns, the car maker has told its production workers that the afternoon shift will be scrapped, meaning lower penalties for some workers.
Holden says no jobs will be lost, but there will be two production teams working week-on, week-off.
The head of the MTA, John Chapman, says it will create more certainty for components suppliers and should help ensure Holden's longer-term future in South Australia.
"What we're seeing is a good result in terms of that there will be some consistency in terms of their production," he said.
"That provides certainty for workers. It also provides certainty for component suppliers and that's very important to the economy of South Australia."
Holden says axing the afternoon shift from next month will help overcome the problems created for dealers and customers from its rolling production shutdowns of recent months.
Managing director Mark Reuss says it has been hard to supply dealers with a steady stream of cars.
He says a single shift operation producing 310 cars a day will overcome the problem.
"We look to be able to supply in a much more continual way cars that our customers are really demanding," he said.
Still committed
Mr Reuss says Holden remains committed to starting small car production at the Elizabeth plant late next year.
But he has not ruled out more staffing changes because of the global economic situation.
"We're looking at creating a new Holden here. We're looking at our business with a new small car and beyond here for the next five to 10 years," he said.
"We're re-inventing the company here, so we're not through with what that means for the entire workforce, we're just not through."
Mr Reuss is hopeful for the future of Holden in Australian at a time when parent, General Motors, in the United States is facing bankruptcy, with two months to submit a revised viability plan to the US Government.
"It's very important to know that bankruptcy of the parent company in North America does not automatically mean bankruptcy of any of the subsidiaries," he said.
Mr Reuss says Holden almost broke even last year but he will not reveal current figures until the end of the financial year.
South Australian Treasurer Kevin Foley says Holden is facing the same market conditions in Australia as car manufacturers in the US are facing.
He says the SA Government will not be giving Holden any financial support beyond $30 million already pledged to support its new model.
The Federal Industry Minister, Kim Carr, has applauded Holden for its efforts to protect jobs.
"This is about keeping people on the payroll and keeping skills in the company," he said.
"It's about re-inventing the company to make its operations in Australia sustainable in the longer term.
"Around 3,150 workers at Elizabeth plant will face reduced pay but everyone in the organisation is sharing the sacrifice."
Senator Carr concedes it is a tough time for families faced with reduced incomes.
"There's no question that scaling back production at Elizabeth will have a serious impact for many families and communities. The critical thing is that there are no retrenchments," he said.
The Industry Minister says there are no plans to cut shifts at Holden's Port Melbourne plant.
Entitlements
The Australian Manufacturing Workers Union says it will not be making any push for redundancy packages to be offered at Elizabeth.
Union official John Camillo says a key issue is entitlements.
"Our biggest issue is that workers take-home pay will be reduced and we are trying to manage how we do that in regards to, you know, long service leave annual leave," he said.
"We will be talking with the State and Federal Government in regard to training initiatives not only just for Holden but for the component sector and it is tough times for the next two months."
Northern Adelaide Business Enterprise Centre general manager Ron Watts says northern residents will feel the pinch as Holden cuts back.
"Any disposable income that they may have had will now dry up and probably go only into the essentials that they need to have to survive," he said.
"This is what then takes money out of our local economy and I think we're talking about many, many millions of dollars per month literally disappearing out of our local economy.
"Local government's got a big role to play here, they are the people who collect the rates and taxes, they are the people who should be really concentrating now on what is their strategy to assist small businesses to survive. If you don't help small business to survive, there is no industry."
The SA Treasurer says Holden's problems are quite different from those which brought an end to Mitsubishi's Adelaide car production last year.
"What Holdens could not predict or foresee is the complete meltdown in the automotive industry globally," Mr Foley said.
"But the difference with Mitsubishi to me is quite stark. You know, Holden's already are the market leader. They have a proven track record. They produce great cars and I think will do so for many years to come in this state."
News Source: ABC (Australia)
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