| In the news: General Motors Corp.’s GM | | | | decision of the company to end its production of |
| Australian unit has announced last Monday that it | | | | the older VZ Commodore range and to focus on |
| will shed 15% of its workforce at its Elizabeth | | | | the production of its new VE models which |
| plant in South Australia State by the end of April. | | | | according to the automaker is much easier to |
| GM Holden Ltd. will offer voluntary redundancy | | | | make. |
| packages to 600 workers who will be included in | | | | For the past years Holden has invested A$532 |
| the 15% labor cut that GM’s Australia | | | | million in the plant which has been described by |
| subsidiary will implement at its plant, north of | | | | Holden as one of the world’s most flexible |
| Adelaide. Such is the result of improved efficiency | | | | and efficient plants. It is expected that production |
| of its automated assembly which allows the auto | | | | output will decline after the layoff from the |
| maker to maintain production with fewer workers. | | | | current 620 cars to 520 cars a day and will return |
| But according to some analysts the cutting down | | | | to its maximum capacity of 620 cars by October. |
| of workers by GM’s Australian unit was due | | | | Keane also said that they are expecting to |
| to the decline in sales of Holden’s locally built | | | | produce 145,000 cars for this year. |
| Commodore range as Australian consumers opt | | | | The layoffs will surely humiliate Federal Industry, |
| for smaller and more fuel efficient vehicles. | | | | Tourism and Resources Minister Ian Macfarlane |
| According to Rod Keane Holden executive | | | | who even went to Detroit early this year just to |
| director, manufacturing operations in an interview | | | | report to GM—world’s largest automaker |
| with reporters in Adelaide, “If Holden is to | | | | and producer of quality GM fuel pumps --- and |
| remain as one of the worlds most competitive | | | | Ford Motor Co. that Australia is expecting more in |
| and flexible plants we need to be as efficient as | | | | return for the A$7.3 billion Automotive |
| possible. And at this stage we have more | | | | Competitiveness and Investment Scheme that |
| resources than we need to achieve that.” | | | | would support the industry through 2015. In a |
| Holden announced the job cut at a meeting | | | | statement made by Macfarlane last Monday, |
| participated by both white and blue collar workers. | | | | “Globally, the automotive industry is going |
| The automaker has given the workers until March | | | | through challenging times and the Australian |
| 21 to decide whether they would accept the | | | | industry is not immune to this. Holden is |
| redundancy and retraining packages offered by | | | | recognizing this and is making the difficult |
| the automaker. | | | | commercial decisions it needs to make to stay |
| Keane also added that no jobs would be lost at | | | | competitive in a tough environment.” |
| Holden’s Melbourne engine manufacturing plant. | | | | Similarly the layoff of the 600 workers will |
| It should be noted that Holden has already laid off | | | | definitely hurt the federal Liberal National coalition |
| 1400 jobs at its Elizabeth plant in August of 2005. | | | | government during the election in South Australia |
| Holden has currently 4050 employees and will be | | | | State where Holden is currently the largest |
| reduced further by shedding 600 workers | | | | private employer. The Elizabeth plant is situated in |
| resulting to 3450 workers at the plant. Keane also | | | | the seat of Wakefield which is held with a 0.7% |
| said that it is not guaranteed if there won’t | | | | margin while most of the plant’s workers live |
| be any more job cuts in the future. “You | | | | in nearby Makin electorate which held by a 1% |
| can’t rule out anything in this business, | | | | margin. The car making industry of Australia |
| obviously the market changes. We can never | | | | employs about 70,000 workers which represents |
| guarantee what the future holds.” | | | | about 0.8% of Australia’s total workforce as |
| The decision for the job cut was also due to the | | | | of August of 2006. |