Breaking News: Holden to cease manufacturing in Australia in 2017

[ryeman]

Originally Posted by UberKnee

Its just a fact of life, people lose their jobs everyday, but they go out and find more work. Thats how the world has been since, well since we created the concept of jobs.

Maybe no big deal in your mining state, but this is a manufacturing region also, mining is a capital intensive industry and no where near as labour intensive.

[b0son]

Originally Posted by Sprint

But there was a time you could have job safety and maybe a job for life

times change. would you prefer to still have a black and white TV, nor aircon, no mobile phones, etc etc

its really only the prospect of global sales that makes technology for the masses affordable. the trade-off is a more fluid job market.

at the end of the day, your employer only owes you a safe workplace and the agreed pay rate. you want a job for life? employ yourself, your employer has his own problems.

[Bill M]

Originally Posted by UberKnee

The building industry is taking off again, there's still work in the mining sector (not as much as there once was). Works still out there, it just wont fall into your lap.

That's a bit different to "plenty of work"
You must be buddies with bobdabilda.

[BroadyFord]

How did everyone miss this?

Detroit decides: Holden will close

http://www.theaustralian.com.au/busi...1226777543232#

GENERAL Motors decided to close its Holden operation in Adelaide as part of a global restructure that involves the closure of three plants worldwide.

The Detroit-based motor giant, which had planned to announce the closure yesterday, granted Holden a last-minute reprieve after deciding it didn't want to book the cost of the closure in this quarter's financial results.

The postponed announcement has left the Holden workforce in limbo, with deep uncertainty about the company's future in Australia and hardened rhetoric from the government that it would not increase financial assistance to the carmaker.

GM signed off on the plans last month, sources close to the decision said.

The other closures, which include one in Korea, are expected to go ahead but Holden was granted a stay of execution so that GM could spread its balance-sheet writedowns, which already include up to $1 billion this quarter.

Holden yesterday denied that a final decision had been made on the plant's future.

However, its closure announcement had already been drafted and circulated, sources said, with workers due to be informed of the decision at yesterday's 2.15pm change of shift.

A decision in the early hours of Wednesday morning forced a change of plan.

GM had decided "to cut Holden some slack" after it appealed for a stay of execution in the hope of winning over the government on additional funding.

Holden wants long-term commitments to help fund the replacement for the Commodore from 2016, which was scheduled to be the Malibu mid-size sedan, and eventually annual "rent" payments to keep its Adelaide plant alive.

Without the additional cash, Holden would pull out as early as 2016, at the same time Ford will shut its factories in Victoria.

The government dug in its heels yesterday. Tony Abbott said it would offer nothing beyond the $500 million in funding to 2017 promised at the September election. "We think there's more than enough money on the table," the Prime Minister said. "But there is no more.

"We took a policy to the election that ... includes very substantial ongoing support for the motor industry. We stand ready to make that support available."

He called on Holden to set the record straight on where it stood. "The message we're getting from Holden is they're in two minds; I would like them to clarify exactly what their position is," he said.

The government has asked the Productivity Commission to review the merits of providing financial assistance to the car industry, with a draft report due on December 20 and a final report at the end of March next year.

A source close to the government said it believed Holden had already decided it was going and the Coalition was now resigned to the decision. "It's game over," he said, "but this is political poison."

The government believes it is being painted as the villain when the decision to quit has already been made. "They have decided to leave Australia; it is now a matter of timing," one minister said.

Another raised doubts about the government's strategy.

Holden sources said Mr Abbott's comments were an "extraordinary" attempt by the Coalition to "bully" GM into an announcement before Christmas.

Coalition sources said Mr Hockey was told of the imminent decision on Wednesday morning, but by that evening GM had changed its plans.

Company insiders say Mr Hockey and Mr Abbott are trying to force Holden's hand by making the company's decision public. Sources say the Prime Minister and Treasurer want the bad news of Holden's closure finalised before the end of year.

South Australian Premier Jay Weatherill said "right-wing ideologues" within the Coalition wanted Holden to leave. He said Holden managing director Mike Devereux had denied reports about the decision and MPs committed to "scorched earth economics" were trying to undermine Holden. "The right-wing ideologues in cabinet are saying ... let's scupper this right now," Mr Weatherill said. "If Tony Abbott had any guts at all, he would be here looking these workers in the face and telling them that he has already made up his mind."

Australian Manufacturing Workers Union state secretary John Camillo said absenteeism was increasing at the Elizabeth plant because of the uncertainty surrounding its future.

"We've got workers, we've got families, we've got communities who are really worried about whether Holden is going to survive or not," Mr Camillo said.

GM is understood to have rescheduled the closure announcement for late January, after the Detroit motor show.

[Rico 110s]

Originally Posted by UberKnee

Its just a fact of life, people lose their jobs everyday, but they go out and find more work. Thats how the world has been since, well since we created the concept of jobs.

Wake up uberknee your in dreamland!

[UberKnee]

Originally Posted by Rico 110s

Wake up uberknee your in dreamland!

So people never lsoe their jobs, thats what your saying?

Originally Posted by Bill M

That's a bit different to "plenty of work"
You must be buddies with bobdabilda.

What do you want me to list every single available job in the country? There's plenty of work out there mate, don't pretend Australia's going to explode when Holden close shop.

Originally Posted by ryeman

Maybe no big deal in your mining state, but this is a manufacturing region also, mining is a capital intensive industry and no where near as labour intensive.

Mining has slowed down in WA admittedly, people are still finding new jobs though.

[danzvtil]

its an employers responsibility to pay the correct wage and entitlements, BUT its the employees responsibility to add value to a business in order for it to make a profit so it can continue to operate.When external influences mean its no longer viable to operate a certain business then you need to accept change.
I am currently employed full time in a great job with some nice perks, but if my boss shut the doors tomorrow, i would clean the floors of my local mcdonalds with a toothbrush in order to pay the bills until something better came up. Im still astounded at the privilege people think they deserve in this country for little effort.

[1TUFFUTE]

If your good at your job...or skill yourself accordingly for a prospective job, and apply yourself.....you will always have work.
The amount of well payed jobs I've been offered or seen floating around that are well payed is astonishing. The key is if your just another usseless tyre kicker wanting a job, you'll never be in demand.

All these guys whinging about these plants shutting down are kidding themselves. These people are being given YEARS to look for more jobs....in my industry there isn't any required limit......and I've never gone a day with out a good job since the day I was offered an apprenticeship halfway through a course after high school.
Maybe it's just an overwhelming problem of LAZINESS in Australia...I don't know.

[eb2fairmont]

Originally Posted by UberKnee

So people never lsoe their jobs, thats what your saying?



What do you want me to list every single available job in the country? There's plenty of work out there mate, don't pretend Australia's going to explode when Holden close shop.



Mining has slowed down in WA admittedly, people are still finding new jobs though.

True there is work if your skilled and good at what you do. Not all the jobs at Gmh would fit this category.

And jobs in wa minng bah. Ask all the geologists and 457's who are out of work still.

[fte50]

Originally Posted by 1TUFFUTE

All these guys whinging about these plants shutting down are kidding themselves. These people are being given YEARS to look for more jobs.....

This has got to be the biggest misconception bloated on FF since Fords announcement.
"Oh yes the blokes have 3 yrs notice too look for jobs".

Problem is you cant exactly in 99% of situations find a job today and start in 3yrs time. And to leave earlier at this stage means losing all the entitlements.

Originally Posted by 1TUFFUTE

The amount of well payed jobs I've been offered or seen floating around that are well payed is astonishing. The key is if your just another usseless tyre kicker wanting a job, you'll never be in demand.....

Congratulations on your success, but I can tell you of MANY examples where hard working people (and mate, im really talking hard) will either struggle or never be able to find work again.
These people were absolute masters in their work, believe me when I say they worked like literal bulls in Holden's Foundry, in conditions at many times so extreme a donkey would have better sense in walking out.
As an example, Holden's Foundry ceased operations in May 2009 and an average of 2in5 people still unemployed. Those that have found work describe it as fill in work, or non meaningful work.
Do they want work = Yes
Are they able or willing to be retrained = Yes
Do they have ALOT to offer = Yes.
Will they ever be given opportunity again = In many cases NOT.
The example I refer to is Non Trades process workers, majority of all trades are in work.

[Struggo]

Originally Posted by 1TUFFUTE

All these guys whinging about these plants shutting down are kidding themselves. These people are being given YEARS to look for more jobs....in my industry there isn't any required limit......and I've never gone a day with out a good job since the day I was offered an apprenticeship halfway through a course after high school.
Maybe it's just an overwhelming problem of LAZINESS in Australia...I don't know.

I'm saddened by the loss of jobs in industries like manufacturing, especially as these types of jobs typically sit in the secondary sector of our economy in which they convert a raw product and and value add. As we are a high cost economy, Australia must continue to value add, otherwise we are just fighting on price against economies with a lower cost position and a higher output. Value adding creates a point of difference and we aren’t too good at that anymore, we’d rather dig up a hole in the ground and let others value add, thus increasing ones ability generate revenue $$$

As 1TUFFUTE says above, change has been on the horizon for many years, I myself started in printing, became an apprentice, tradesman, production supervisor (foreman) and then moved into technical sales in which I’m currently in national role as a BDM. Was it easy, no way, one must overcome self doubt and back yourself and continue to add skills and experience. The biggest issue I have with the loss of jobs in the Auto industry is loss of knowledge and the pathway for younger generations to progress throughout their working lives, a pathway similar to that of my own. One I might add, a pathway that has all but disappeared in the print industry due to the digitalisation of print in some sectors, shopping trolleys full of foreign product (sound familiar) and also the lack of funding cut from Technical collages (TAFE) over the last 20 years.

As most young kids leave school, the loss of manufacting opportunities and the pathway they provide will be a vital loss to the up skilling of our economy. Don’t believe the pollies when they say we will become a skilled economy, they have no idea and currently have no sound plans on the table.

[Franco Cozzo]

Originally Posted by fte50

This has got to be the biggest misconception bloated on FF since Fords announcement.
"Oh yes the blokes have 3 yrs notice too look for jobs".

Problem is you cant exactly in 99% of situations find a job today and start in 3yrs time. And to leave earlier at this stage means losing all the entitlements.


Congratulations on your success, but I can tell you of MANY examples where hard working people (and mate, im really talking hard) will either struggle or never be able to find work again.
These people were absolute masters in their work, believe me when I say they worked like literal bulls in Holden's Foundry, in conditions at many times so extreme a donkey would have better sense in walking out.
As an example, Holden's Foundry ceased operations in May 2009 and an average of 2in5 people still unemployed. Those that have found work describe it as fill in work, or non meaningful work.
Do they want work = Yes
Are they able or willing to be retrained = Yes
Do they have ALOT to offer = Yes.
Will they ever be given opportunity again = In many cases NOT.
The example I refer to is Non Trades process workers, majority of all trades are in work.

Or the heavy maintenence guys from QANTAS here in Melbourne which got the ***, are still struggling to find work.

I think another problem is when there is a gap in your CV, it looks really bad and people won't want to employ you, thats what I've been hearing, gap year etc looks bad.

[fte50]

Struggo, that just about sums it all up - any person who truly believes different is in wonderland. Future opportunities, pathways, skills, knowledge forever lost. Amen.

[au2000]

im gonna throw in a comment here which will be from left field....
has anyone in part considered that part of the reason that Ford & GM either have or will leave australia is related to the us unemployment & financial crisis?
doesent the us government still own a large percentage of GM?
it just seems to me that U S companys are bringing their work in house so to speak, that way increasing employment opportunities back home thus creating more employment back home, taxpayers , confidence in consumer spending etc... ???
i know this is not the main reason but in the case of GM it just seems logical to me that if you are partially owned by the federal governement & you need to create savings/reducing operating costs by closing factories it would be political suicide to shut them in your own backyard & allow other countries to keep theirs???

[ryeman]

They've sold down to minor holding the last I read.

[Focusfan]

One thing overlooked. The true reason for Ford and Holden closures due to
high costs is GREED. This comes from both the workers, unions and all the
top end of the manfacturers staff. All want higher wages, all want more
time off, sick and holliday pay, all the upper staff want higher commissions
and this is some of the main reasons behind poor profits. Then we have
the massive increases in electricity prices supposedly from carbon taxes.
Just anounced today carbon tax has made no difference to polution
output but makes the polluters richer. Power companies are becoming
the new banks of Australia. Seems i am getting a bit off line but as this
suggests everyone wants more even if it costs jobs, they do not care.
Holden and Ford could continue in Australia if they reduced their output
to half the cars they produce and cut staff to enough to do the job at
a slower rate. Use solar power to power the assembly lines and make
a deal with Australian part suppliers and manfacturers to reduce prices
instead of importing most of the mechanical parts they use.
Next time you buy a part for your Aussie car look at the MADE IN
label to see where it was made. Not here i bet.
This would then increase jobs in Au in part manfacturing and sales.
Those loosing the job on assembly line would have a job to go to.
Now does this all make sense to others or am i being silly boy.

[ryeman]

The rest of the world wouldn't agree, quite the opposite.

[borough]

Originally Posted by fte50

This has got to be the biggest misconception bloated on FF since Fords announcement.
"Oh yes the blokes have 3 yrs notice too look for jobs".

Problem is you cant exactly in 99% of situations find a job today and start in 3yrs time. And to leave earlier at this stage means losing all the entitlements.

The whole thing of the workers not being able to look for work because they will lose their entitlements if the leave before the closure does not wash with me. It is their choice not to look for new job. Just after I purchased a house everyone at the company I worked for were brought in and told that the company was in receivership. So I went out the next day and started to look for a new job, entitlements didn't enter the equation as I needed to work. I found a more stable job and haven't looked back.

Frankly Ford and Holden have brought the closures upon themselves by not moving with the market and quality issues. I have had more problems with my Falcon in the two years of ownership than I had in six with my Suzuki Swift.

[UberKnee]

Originally Posted by 1TUFFUTE

If your good at your job...or skill yourself accordingly for a prospective job, and apply yourself.....you will always have work.
The amount of well payed jobs I've been offered or seen floating around that are well payed is astonishing. The key is if your just another usseless tyre kicker wanting a job, you'll never be in demand.

All these guys whinging about these plants shutting down are kidding themselves. These people are being given YEARS to look for more jobs....in my industry there isn't any required limit......and I've never gone a day with out a good job since the day I was offered an apprenticeship halfway through a course after high school.
Maybe it's just an overwhelming problem of LAZINESS in Australia...I don't know.

Thats the thing as well these plant workers have what a years pay after their 'fired', if you cant find work in a year its your problem. If I suddenly stop getting work through the building companies I currently do I dont get anything, I just have to go out there and find new work. But I dont complain about it, thats just how the world works. People are too entitled thesedays, nobody is too good to work at Maccas, if you need money and you cant get a better job then work there.

[BHDOGS]

Maccas wouldn't hire u ur to old now would ruin there profits

[BroadyFord]

I've just registered to attend the Prod Comm's hearing on Tuesday.

Devereux will be giving evidence. Should be very, very interesting...

[fte50]

Originally Posted by borough

The whole thing of the workers not being able to look for work because they will lose their entitlements if the leave before the closure does not wash with me. It is their choice not to look for new job. Just after I purchased a house everyone at the company I worked for were brought in and told that the company was in receivership. So I went out the next day and started to look for a new job, entitlements didn't enter the equation as I needed to work. I found a more stable job and haven't looked back.
.

Your example don't wash with me. A company going into receivership is in contrast a dam sight different to an individual voluntarily accepting to throw away on average 20+ yrs of entitlements.
Had your employer not have gone into receivership you would have had a lot more to lose. Talk is cheap.

[Bill M]

Originally Posted by UberKnee

So people never lsoe their jobs, thats what your saying?



What do you want me to list every single available job in the country? There's plenty of work out there mate, don't pretend Australia's going to explode when Holden close shop.



Mining has slowed down in WA admittedly, people are still finding new jobs though.

My bad! Not every one can understand the benefits of a balanced economy.

[Bossxr8]

Originally Posted by UberKnee

Thats the thing as well these plant workers have what a years pay after their 'fired', if you cant find work in a year its your problem. If I suddenly stop getting work through the building companies I currently do I dont get anything, I just have to go out there and find new work. But I dont complain about it, thats just how the world works. People are too entitled thesedays, nobody is too good to work at Maccas, if you need money and you cant get a better job then work there.

Maybe you need to spend some of your money on buying a clue.

People who have had 20+ years of experience will be getting redundancies in 6 figures. Who in their right mind would walk away now and get nothing, especially those over 50 years of age who will probably never get another job bar some trivial part time crap. And i'll bet both Ford and Holden have a hell of a lot of workers who are in that boat with decades of experience and an age that employers don't want to touch.

[FalconXV]

So I'm confused. Is it closing in 2016? Or is there going to be one generation after VF? If Korea closes too where will we get our Cruze?

[jpd80]

Originally Posted by FalconXV

So I'm confused. Is it closing in 2016? Or is there going to be one generation after VF? If Korea closes too where will we get our Cruze?

Probably a new or expanded GM plant in Thailand where labour costs are much cheaper...

[ryeman]

With the newly signed FTA with South Korea I guess GM will import duty free from their factory there.

[jpd80]

Originally Posted by ryeman

With the newly signed FTA with South Korea I guess GM will import duty free from their factory there.

Korean companies are looking to set up outside Korea due to the increased cost of wages and expenses there, not as cheap anymore..

[Spammy]

Isn't the root of the problem low sales of Aussie built sedans rather than some global conspiracy? And the drop in sales of sedans is just a reflection of changing tastes?

[cheap]

Originally Posted by Spammy

Isn't the root of the problem low sales of Aussie built sedans rather than some global conspiracy? And the drop in sales of sedans is just a reflection of changing tastes?

Here is my take.

In my opinion Holden/Ford in Australia have done a terrible job keeping up in a highly competitive and rapidly changing market. With the benefit of hind sight we'd all be able to point out dozens of times each manufacturer has stuffed up. The point I'm making is that there are people within GM/Ford who are paid big bucks to anticipate those rapid changes and provide a robust strategy for the business to survive. So unless the strategy was to close down Ford/GMH (in which case it worked), then it would be obvious to point out that the strategy/business models have totally failed. .

Secondly, there isn't really anything the Government can do to make the consumer public buy Ford/GM product. However the Government could have mandated that it's departments buy either Ford/GMH product, in my opinion that would have been taxpayer money better spent.

Instead the ex-government threw billions dollars of money (our money) at Ford/GMH and now don't have much tangible to show for all those dollars. In simple terms the Australian Government money was re-routed back to the USA as profits.

Socialism at its best, the system works well as long as someone's money keeps it all going, you could tell this was not going to end well (and it hasn't).