Holden will cease manufacturing cars in Australia in 2017

[Jessica Berry]

An update from news.com.au (18/12/13)

 

THE federal governmenthas thrown Holden workers a $100 million lifeline, but won't reveal the detailsof the assistance until the second half of 2014.

Prime Minister Tony Abbott onWednesday announced the government would contribute $60 million towards a newfund to support regions impacted by Holden's decision to stop producing carslocally by the end of 2017.

The Victorian and SouthAustralian governments will each contribute about $12 million and Holden willbe asked for $20 million.

The details of how the money willbe spent will be worked out in talks between Industry Minister Ian Macfarlane,the two states and industry groups, but the fund won't start operating untilthe 2014/15 financial year.

 

Mr Abbott also announced he wouldchair a task force to develop a national industry agenda - which would considersuch issues as the future of Toyota and its supply chain - to makerecommendations to the government by the end of June.

"I believe thatmanufacturing is a vital part of a strong economic future for ourcountry," he told reporters in Canberra.

"We've got the problem inthe motor industry we are dealing with specifically today. But, in sector aftersector, Australian manufacturing is continuing to do well."

Holden has indicated it has setaside at least $100 million for costs relating to the wind-down decision andworkers will be eligible for employment support through Job Services Australia.

Mr Macfarlane will head tworeviews, in SA and Victoria, to look at ways to boost the states' economieswith reports due in February.

Among the options are retrainingworkers, shifting federal government agencies to regional areas, newinfrastructure projects and ship building.

Mr Abbott said he expected Holdenwould continue to use some federal money already allocated to assist itsmanufacturing operations.

The prime minister said it wastime to end piecemeal decisions in relation to industry assistance.

"No country has eversubsidised its way to prosperity," he said.

Private companies struggling tosurvive had to get their houses in order and better manage their costs, hesaid.

"We are not here to build afield of dreams. We are here to make sensible, economically responsibledecisions."

Asked whether some Holden workerswould struggle, Mr Abbott said: "Some of them will find it difficult, butmany of them will probably be liberated to pursue new opportunities and get onwith their lives."

[spanners]

It could be the unions, tariffs, bale outs, over paid workers etc etc - so what. When it comes down to it words and statements of sadness are somewhat meaningless if you're driving a non Holden.

 

I have a new Holden ute. Its not a great car and I didn't buy it because its an Aussie car (its actually made in Thailand). It was a lot of car for little money. A company can't survive if it makes under rated cars that all look like they were designed in the early 80's. Not even Australians are that gullible.

[Diane]

Mr Abbott said: "Some of them will find it difficult, but many of them will probably be liberated to pursue new opportunities and get on with their lives."

 

Now that's a patronising statement if ever I saw one! Perhaps they'll all take advantage of their non-working status and head up to see the Great Barrier Reef while we still have one.....

[Jessica Berry]

Opinion piece in today's Sunday Mail newspaper (22/12/13) which I feel makes some valid points.....

 

[Diane]

It's difficult to read anything in the Advertiser/Sunday Mail without the awareness of Murdoch's guiding hand on the editorial tiller.

[Jessica Berry]

Another company asking for Government assistance....Holden gets a mention as well as part of the article...(The Australian 28/12/13)....

 

 

 

FOOD producer SPC Ardmona is under fire for telling 73 unionised workers they will be replaced next year with contract labour, as the company struggles to modernise its operations, rein in costs and boost productivity.

Unions accused the company of sacking its maintenance workforce as "sacrificial lambs" to appease Coalition demands to get its house in order, as SPC pleads for $50 million in taxpayer assistance from the federal and Victorian governments.

 

Sharman Stone, the Liberal MP for the Victorian electorate of Murray, which is home to the Shepparton cannery, said she trusted SPC's judgment that the job losses were necessary and the company was doing its best to increase "productivity and be sustainable in the future".

 

The Coca-Cola Amatil subsidiary broke the news to some of the workers at 7am yesterday after they returned from their Christmas break.

 

An SPC spokeswoman said staff were "aware of the critical and urgent need to transform our business" and the company had been assessing work practices for months, to identify significant improvements in productivity.

 

"Today, as part of the labour productivity review, 73 employees in the maintenance and trade function at SPC Ardmona, who had been previously advised their positions were under review are to be made redundant," the spokeswoman said. The work will be outsourced in May.

 

Electrical Trades Union Victorian branch organiser Damian King said it was unheard of to sack workers after they had returned from Christmas and tell them they would be replaced by contract labour.

 

"The federal government has been demanding so-called 'productivity improvements' before it will consider providing $25m to support a restructure of SPC Ardmona's Goulburn Valley operations," Mr King said.

 

"Today's announcement means that SPC plans to sack the maintenance employees as sacrificial lambs to provide the appearance of improvement at a time when Industry Minister Ian Macfarlane is preparing a cabinet submission on the issue."

 

Mr King denied the workers were "highly paid by industry standards", saying unions had put forward an offer of a two-year wage freeze and improved shift rostering to save costs.

 

"Our members and the members of other unions work a considerable amount of overtime, a considerable amount of shift work and a considerable amount of weekend work," he said. "That's not the demand of the union, that's the requirement of the company to process their product. The fact we have reasonable wages and conditions in Australia means those people get some pretty fair wage rates."

 

SPC employs about 1000 people at its Shepparton processing centre but is struggling to compete against cheap imports because of the high Australian dollar and popularity of Coles and Woolworths home-brand products.

 

The company is promising to invest $90m to refit its factory if it can secure $25m from Canberra and a matching amount from the Victorian government.

 

The demand has become the latest flashpoint in the debate over taxpayer assistance in the wake of General Motors Holden's decision to end Australian carmaking by 2017 and proposals for a debt guarantee for Qantas.

 

Tony Abbott has taken a hard line on handouts, saying he wants to stamp out "corporate welfare" and companies such as SPC need to get their houses in order

 

Cabinet has been critical of SPC's request for assistance, with concerns companies are turning to the government for cash while agreeing to workplace conditions that push up costs. Ministers believe the food company bears the blame for its cost pressures, amid suggestions it is paying $120,000 or more to dozens of workers.

 

Dr Stone told The Weekend Australian that "everyone knows the extraordinarily difficult time the company is in - under threat of closure".

 

"Without federal and state government support, they will close," she said.

 

Asked whether she thought the workers were being sacrificed by the company, Dr Stone said she understood the particular group of workers had been in negotiations with the company over a long period before reaching a stalemate. "It's very sad, of course, but it's about the greater good at the end of the day."

 

She said there were another 6000-7000 jobs at stake.

 

Australian Manufacturing Workers Union Victorian secretary Steve Dargavel said SPC's decision was most likely a "panicked reaction" to demands made by the federal government.

 

"It's quite clear there's been a number of senior Coalition members who have been campaigning to eliminate the concept of industry assistance and running a campaign that SPC's problems are the workers' fault," he said.

 

"That's a dishonest campaign. Maintenance overheads are not enormous and these workers' wages are below the industry average, regional average and Victorian average. They're working on antiquated equipment and they're working hard," he said.

 

Mr Dargavel said the union would hold mass meetings with its members in the lead-up to a meeting with SPC on January 9. "We'll be engaging with the company about the increased risks associated with using a contractor. It's a regrettable decision," he said.

 

Last week, a Productivity Commission report found the food processor's operations had suffered from declining demand, greater supermarket competition, reduced export volumes and extreme weather rather than from an influx of cheap food imports.

 

A spokesman for Victorian Deputy Premier and Minister for Regional and Rural Development Peter Ryan said the state government was a strong supporter of SPC.

 

Mr Macfarlane declined to comment on the ETU's claims.

[jim and adel]

I notice that two British made cars have just won the large and small SUV categories in the 'What Car?' car of the year awards: the Nissan Qashqai and the Range Rover Sport. Interesting how many of the 13 award winners are made in Europe.

 

I've just read something on an Aus motoring website about the Sunderland Nissan factory where the Qashqai is made (which will be imported into Aus later this year, replacing the Dualis):

 

"It has an annual capacity of 550,000 vehicles, double Ford/Holden/Toyota combined. Started in 1986 it has a single-union agreement and has never had a strike.

NMUK is one of the most productive car plants in Europe, producing more 'cars per man' than any other factory. There are 4,500 staff directly employed by NMUK, and approximately 500 contracted, indirect staff. A '3-shift' system has been introduced at times of high demand, meaning that the factory is active 24 hours a day. In July 2011, Nissan announced that it would be recruiting a further 200 jobs at the plant to deal with "record" levels of production."

[Jessica Berry]

Update on Holden posted today (21/1/14)....

 

 

 

PREMIER Jay Weatherill has announced a new package of skills training and measures to create jobs for car industry workers when Holden shuts down in 2017.

 

They include a $60 million spend on 14 separate programs over four years, starting immediately.

 

But he said the Federal Government must commit an immediate $333 million to support his four-year plan, as "well in excess" of that figure had been saved by pulling back on direct industry support.

 

The plan's key elements, many of which will rely on Federal Government funding or co-operation, include:

 

CENTRES designed to help displaced workers to be set up in the northern and southern suburbs.

RESKILLING programs and a targeted employment strategy for the northern suburbs.

A $200 MILLION industry loan scheme to be funded by the Federal Government, which would provide funding to supply chain firms looking to expand or reconfigure their business.

A NEW community building fund for small-scale urban infrastructure projects.

ACCELERATING major infrastructure projects like the South Rd upgrades.

 

Around 13,000 SA jobs - both at Holden and affiliated supply chain companies - will be lost when the car maker shuts its local manufacturing operations.

 

Mr Weatherill said the money would be spent in consultation with councils and focus on small scale jobs-creating projects, such as landscaping.

 

"For automotive workers, this plan means you will be provided with support to retrain, to find new work and get counselling that helps you manage the impacts on your budget and family life," Mr Weatherill said.

 

"For people who live in the northern suburbs and southern suburbs most directly affected, this plan means local employment opportunities will be strengthened in your streets and neighbourhoods to help prevent a cycle of disadvantage taking hold.

 

"For workers and industries, this plan means that government will be making investments that help your industry grow faster, create more jobs sooner and enable you to plan your future in SA with confidence."

 

Mr Weatherill said affected workers would be able to access the state Skills for All training program and employment assistance under existing federal programs.

 

A "one stop shop" for worker aid will be located near Holden's Elizabeth plant. A similar site will be set up near the former Mitsubishi site at Tonsley.

 

Services will include financial literacy counselling and psychological support.

 

Mr Weatherill called for the reinstatement of the federal infrastructure grants program, cut by the Coalition to aid the return to a national surplus.

 

To help diversify the manufacturing sector, Mr Weatherill has committed to review existing businesses and identify opportunities for retooling and industry transition.

 

He says the existing Holden site remains a "significant economic asset" and the Government will seek agreement from General Motors for it to be repurposed for an alternative business use.

 

A major component of the package is the creation of a $200 million industry loan scheme to be primarily funded by the Federal Government and administered by the SA Economic Development Board.

 

EDB chair Raymond Spencer said it would provide funding to firms looking to expand or reconfigure their operations. SA small and medium enterprises often struggled to get access to standard bank loans, he said.

 

Under the scheme, the state would provide capital to businesses seeking to raise debt if the investment could be shown to increase the company's long-term sustainability.

 

Adelaide and Bendigo Bank has also agreed to engage with local businesses needing capital aid.

 

Mr Weatherill pointed to existing government plans - including its Manufacturing Works strategy and plans to create business clusters - as a way to support industry innovation.

 

He has also renewed calls for Federal Government funding commitments to the Torrens to Torrens and Darlington Interchange upgrades on South Rd.

 

It includes the Federal Government picking up a greater share of the projects, increasing its contribution from half to 70 per cent of the total cost.

 

In total, Mr Weatherill is seeking more than $2 billion in federal aid and wants Prime Minister Tony Abbott to fully fund the $1.1 billion Northern Connector roadway.

 

Mr Weatherill has over the past two months met with business and community groups to examine needs for worker training, new infrastructure spending and economic stimulus.

 

The closure of Holden is expected to cost the state up to 13,000 jobs and SA already has an unemployment rate significantly above the national average.

 

The Federal Government has announced a $100 million plan, $60 million of which it will provide, to undertake an audit of the SA and Victorian economies.

 

The audit is intended to assess competitive advantages in the economies and opportunities for future growth.

Edited January 21, 2014 by Jessica Berry

[Guest BurgessFamily]

Even if the federal government put even more money into Holden, Holden already mentioned they would have sourced a greater % of parts from overseas due to new models being of imported designs rather than Australian.

 

Ford will also cease production in 2016, but there doesn't seem to be as much singing and dancing about that - probably because it's less of an impact in SA. Still $300m isn't something to be sniffed at though I think it might be more about the hole in JW's budget that's made him ask for it (SA has been as near as it can get to a recession even before the holden announcement http://www.theaustralian.com.au/national-affairs/state-politics/state-in-recession-third-fall-in-demand/story-e6frgczx-1226671100631#) .

 

(it would be interesting to know the impact of Fords withdrawal on the state).

 

From a personal point, I was in the automotive industry in the UK when the likes of Rover and LDV ceased production. The actual greater impact is often hard to measure as a large majority of parts where imported, as is with Holden currently.

[Jessica Berry]

Resilient SA won't crash with Holden - economic report

• by: DANIEL WILLS STATE POLITICAL EDITOR
  
• From: The Advertiser
  
• January 28, 20148:28AM
  

SOUTH Australia's economy faces years of slow growth but "won't crash" when Holden shuts the doors on its Elizabeth plant, according to a new economic report.

Deloitte Access Economics' quarterly update on the state of the nation finds SA is set to lag the national averages for economic and job growth until at least 2017.

 

But it also argues the likely impact of Holden's exit from the state has been "often exaggerated" and SA's economy "is larger and more resilient than many realise".

 

Holden's CEO says the decision to pull manufacturing out of Australia was based on years of deliberation.

 

"Let's make one thing clear up front. Holden may crash, but SA won't," the report finds.

 

"The economy is already weak and the hit to it may be relatively concentrated in time, rather than spaced out over a number of years.

 

"Growth is projected to be weak, not negative."

 

The likely impact of Holden's exit from the state has been "often exaggerated", a leading economics report says.

 

It identifies agriculture and education as possible new growth industries for SA and says the Olympic Dam expansion, put on ice in 2012, must go ahead "at some stage".

 

"This is a world class asset and demand for its potential production will continue to rise over time," the report states. "Moreover, initial exploration completed in the Arcaringa Basin suggests there may be enormous shale gas opportunity in the area surrounding Coober Pedy."

 

SA's share of the national population and economic output are both forecast to fall.

 

The report predicts annual economic growth in SA of around one per cent for the next four years, compared to projections that national growth to be more than double that.

 

A BusinessSA confidence survey also to be released today shows a temporary improvement in employer sentiment following the federal election has now receded.

 

Last week, The Advertiser revealed Cabinet had received updated figures predicting negative jobs growth this year and falling tax revenue had blown a $376 million hole in the Budget.

 

Mr Weatherill said the report underscored the need for action on his Our Jobs Plan, released last week, which seeks $333 million in funding from the Federal Government.

 

Mr Weatherill has put $60 million toward the plan, which focuses on skills and infrastructure.

 

"Deloitte's report highlights that SA's economy has faced challenges from the high Australian dollar and the downturn of the manufacturing sector, but that some of these problems are easing," he said.

 

He said agribusiness and education were targeted in the Government's jobs plan.

 

Opposition Leader Steven Marshall said the findings "painted a grim picture" of economic conditions in SA, which could be turned around by cutting business costs.

 

"Today's report is extremely concerning given the dire jobs reduction revealed in Mr Weatherill's damaging leaked Cabinet document last week," Mr Marshall said.

[Guest BurgessFamily]

I think Labor will be out of office in the up and coming state election. :-/

[Guest BradClark]

Question is though, how long will Toyota stick about? The way manufacturing is going in Oz, I don't think there will be much left in any industry by 2020.

[zealander]

Australia's Detroit. With Mitsubishi closing, ford reducing work force, holden closing and all associated industries and shops being affected, it's not looking good. With people out of work, money getting tighter nobody spending, house improvements being held back and building possibly being held up.

 

Poms competing with Australians for limited jobs, casual positions and zero hour contracts being offered, in construction, manufacturing and a lot of other aspects in the labour market.

 

The state still on a massive migration drive whilst more and more Brits returning home to the UK, other poms reporting to family back in the UK that everything is fine and the dream is being lived. Working and begging for a job that every day is a grind, realising that maybe the UK wasn't all that bad after all.

 

SA is great, hypocrisy at its best.

 

Looking at properties on the internet from the UK that have been airbrushed to encourage poms to come over and live "the dream".

 

Reality is, that it's going to get a lot harder. As the UK is pulling itself out of recession Australia is starting down that road.

 

good luck to all who have plans to get to Oz, take off your rose tinted glasses and be prepared. It's not always as it's portrayed on here. Watch out for the drop bears too.

 

Not forgetting Electrolux is shutting down too in Orange laying off approx 500 in the factory as well as all associated shops industry and suppliers going to be affected.

 

Whilst the UK unemployment is running at 7.1% and SA running at 6.9% the UK is reducing whilst SA is increasing.

Edited January 30, 2014 by zealander

[Guest BurgessFamily]

You make it sounds bad. Papers are saying it's going to be boom time here in the housing market. Adelaide is in the top 10 places to live. Even state Labor are still saying we'll have a massive surplus in a year or two.

 

When we were looking at migrating back in 2005, all talk was of being mortgage free and spending the 'extra' on jet skis, a jacuzzi, new pool etc. Whilst living on the 'quarter acre' block, just 20 minutes from the city (aka '20 minute city'). I was just hoping we could have a similar standard of living to what we had in the uk.

 

When did it all change...has it? Or does the state do a good job of selling itself to potential migrants?

 

..the federal government are pushing the 'Work for Benefits' policy, so the unemployment rate should be dropping soon (as they will be classed as income support I guess). Though Labor feel this will mean many casual jobs becoming voluntary jobs.

Edited January 31, 2014 by BurgessFamily

[zebedee]

I think every story is going to be different.

 

The time we came over was certainly swimming uphill - terrible conversion rate devalued our money but I've been lucky with work and we have managed to buy our own home - though we are back to square one of the home loan front. We don't have much spare monies for the fun stuff but I know from our experience in the UK that it takes time to build back up after a move.

 

Are we living the dream? Not sure about that - work gets in the way, bills to pay, issues to deal with but I feel like we are living our lives again - not stuck in for 6 months and praying that the summer will have a few sunny days. It's not better, it's different - good different.

 

Has it fulfilled what we though it would be? Yes, I think so - but then we knew it wasn't going to be a case of everything handed on a plate - those days, it would appear, are long gone (if they existed?)

Edited January 31, 2014 by zebedee

[Diane]

...... Papers are saying it's going to be boom time here in the housing market.....

 

:biglaugh: When do they NOT say that??? My days of believing anything I read in the Advertiser are long past!

[zealander]

Federal government introducing "work for benefits", either it's slave labour or it's going to push a lot full time unskilled employees out of work for a "cheep benefit" employee. It might work for the boat people but there are poms trying to get into the employment market competing with bogans, dole dossiers etc. in all honesty it's going to get a lot harder harder...IMO it's cooking the un employment figures to encourage more migrants to come over.

 

Im im not trying to make it sound bad, just making it sound real life and not the usual "make believe".

[Guest BurgessFamily]

The policy will offer 'voluntary' labor to charities, local councils, age care groups etc... and is expected to have a maximum period at any one placement set at 3 months to protect permanent positions.

 

This sounds good though.. "The government will also pay employers up to $3250 for each mature-age worker, aged 50 or older, they hire."

 

This is a bit damning... "The number of Australians on the dole jumped 20 per cent last year"

Edited January 31, 2014 by BurgessFamily

[zealander]

The policy will offer 'voluntary' labor to charities, local councils, age care groups etc... and is expected to have a maximum period at any one placement set at 3 months to protect permanent positions.

 

This sounds good though.. "The government will also pay employers up to $3250 for each mature-age worker, aged 50 or older, they hire."

 

This is a bit damning... "The number of Australians on the dole jumped 20 per cent last year"

 

"Voluntary" or forced labour to get the benefit, call it what you want. I call it slavery in the 21 century. Rudd only apologised a couple of years ago for wrong doings towards the indigenous, the only difference now with this policy is that there is no colour discrimination this time, everyone on benefit will be a slave.

 

so local authorities are going to employ free benefit labour, then off set the cost to employ the elderly.

plastic accounting and sound bites. IMO.

 

If the government has to impose such extreme measures, it shows me that there are greater social problems and issues than what's made out in the propaganda published in the press and on TV.

 

Trouble in utopia me thinks.

Edited January 31, 2014 by zealander

[Lazy Cow]

"Voluntary" or forced labour to get the benefit, call it what you want. I call it slavery in the 21 century.

everyone on benefit will be a slave.

 

I can't see a down side to people volunteering, even if forced, whilst claiming benefits.

 

SA is ( certainly used to be anyway) known for our high level of volunteering. It's a worthwhile community activity and offers a good few benefits.

 

Unless you're an actual bludger and don't want to work, volunteering offers a chance to gain employment, recent references, experience different career possibilities and meeting new oeople whilst 'earning' your benefits, and keeping mentally and physically active.

 

Someone I know of has chosen to volunteer whilst claiming Centrelink and she has committed to 20 hours a week. Personally, I feel happy that my taxes are helping to pay her benefits because I know our community is being paid back.

 

Way better than people who claim every benefit under the sun and spend all our hard-earned money on the pokies and bottleo.

 

I don't think the government is skewing unemployment statistics to encourage migration, I think they are pollies and that's what they do to justify their continued employment.

 

I am looking forward to the next election - as a way to earn a bit more money, not because I think anything will really change lol!

 

LC

[zealander]

Nice cropping of my post LC.

 

as per usual, selective reading within the forum and distortion of posts.

 

i accept that volunteering helps the community and those who want to help are already helping. Forcing those who don't want to work into work just to get their benefit will be pushing those who are already doing a great job and want to do it out.

 

as an employee I would rather work with somebody who wants to do the job and wants to be there, rather than someone who goes through the motions for 3 months.

Edited January 31, 2014 by zealander

[Lazy Cow]

Nice cropping of my post LC.

 

as per usual, selective reading within the forum and distortion of posts.

 

i accept that volunteering helps the community and those who want to help are already helping. Forcing those who don't want to work into work just to get their benefit will be pushing those who are already doing a great job and want to do it out.

 

as an employee I would rather work with somebody who wants to do the job and wants to be there, rather than someone who goes through the motions for 3 months.

 

Sorry, zealander, didn't intend to cause any offence!

 

I usually pick out the bits that I want to comment on - it seems a bit of a waste of space to copy the whole post particularly when both are on the same page.

 

Could you please let me know how I have distorted your post or appear to have read it selectively as I honestly don't understand

 

Thanks,

 

LC

[Guest Claire-n-tel]

Hi Zealander,

 

I am sure LC was not being offensive to you, she is a nice lady

 

but whatever you or others opinions on this are, i really think that you cannot make comments like.....

 

I call it slavery in the 21 century

 

......in your posts and expect that noone will react to it. It is an emotive subject on which many people will have a strong opinion on.

 

Forums are difficult in that any part of what you have written may, and probably will, be taken as a stand alone comment. If that happening is going to upset you then maybe reword something or don't say it at all?

[zealander]

Thank you for your advice, no offence taken CnT.

 

Must have put something right within the post as it's been liked.

 

Just pointing out a fact and an opinion.

[Guest BurgessFamily]

I guess we'll get used to more jobs going as time goes by...

 

Jobs to go at Marshall Power as car battery maker plans move to Philippines

 

http://www.abc.net.au/news/2014-01-31/car-battery-maker-heads-offshore/5231692?section=sa

 

bye bye to manufacturing in Australia.