The future of Australian Manufacturing

[Power Raid]

The Liberals are doing a poor job of hiding their glee.

Ford was always going to close.

What the liberals are smiling at is labor's deceitful behaviour of throwing subsidies without clauses to the industry. If these subsidies were bona-fide they would have been loans, equity positions or grants with commitments.

Instead these grants were designed to prop the industry up, so they wouldn't fall over during their watch. Fail!

Holdens and Toyota will both be gone by 2020. Hopefully we don't waste more money trying to buy votes.

 

[Power Raid]

I think eventually we'll see multinational workers unions established, with people striking in Melbourne to support workers in China etc.

It will be a good thing. We can't just accept the 1%'ers views on using offshore labor, we need to ensure those third world workers are given similar standards to our own. At the expense of profit if necessary.

The concept is great and progressive. However, can we get rid of the union and replace it with a progressive organisation?

Surely we need brains not thugs?

 

[RUNVS]

Abbott is using Ford Australia going under to score political points.

http://www.theage.com.au/opinion/po...edges-to-work-for-geelong-20130525-2n3b5.html

 

[Power Raid]

Abbott is using Ford Australia going under to score political points.

http://www.theage.com.au/opinion/po...edges-to-work-for-geelong-20130525-2n3b5.html

I why wouldn't you?

Rising costs and the AUD were cited as reasons for Ford's decision to leave.

Sure rising costs are a function of a wealthy nation but inefficiencies are not. How can you have an effective export business if the ports and shipping are controlled by the MUA mafia?

Not to mention if Gillard hadn't pumped the AUD they may not have made the decision they have.

It should be noted, car manufacturing in Australia is dead but smaller companies without Ford's voice will follow suit. Unfortunately, they won't have the same power to express their concerns.

Fortunately, for the unions they have achieved there goal of killing industry and thus reducing employment opportunities. Thus keeping people in poverty and creating a need for their services. Just amazing!

 

[LouisCK]

The concept is great and progressive. However, can we get rid of the union and replace it with a progressive organisation?

Surely we need brains not thugs?

Unions are much more progressive than you are giving them credit for. And if you want thuggery have a look at what the police do to union protesters.

 

[Power Raid]

Unions are much more progressive than you are giving them credit for. And if you want thuggery have a look at what the police do to union protesters.

can you provide an example?

please don't refer to the bikies at the grocon line representing the union and mascaraing as workers

 

[LouisCK]

can you provide an example?

please don't refer to the bikies at the grocon line representing the union and mascaraing as workers

Nah, cause you write total shit for the most part. I don't want to legitimise it by engaging someone who claims Gillard pumped the AUD up, when she actually took measures to try and lower the effect mining was having on manufacturing industries, as well as the fact interest rates are lower under the ALP than the Libs.

 

[JRoo]

I why wouldn't you?

Rising costs and the AUD were cited as reasons for Ford's decision to leave.

Sure rising costs are a function of a wealthy nation but inefficiencies are not. How can you have an effective export business if the ports and shipping are controlled by the MUA mafia?

Not to mention if Gillard hadn't pumped the AUD they may not have made the decision they have.

It should be noted, car manufacturing in Australia is dead but smaller companies without Ford's voice will follow suit. Unfortunately, they won't have the same power to express their concerns.

Fortunately, for the unions they have achieved there goal of killing industry and thus reducing employment opportunities. Thus keeping people in poverty and creating a need for their services. Just amazing!

What?

 

[Power Raid]

Nah, cause you write total shit for the most part. I don't want to legitimise it by engaging someone who claims Gillard pumped the AUD up, when she actually took measures to try and lower the effect mining was having on manufacturing industries, as well as the fact interest rates are lower under the ALP than the Libs.

Lol

No examples!

 

[tazzietiger]

The gov't is close to making another agreement on extra subsidies for Holden. This time with no job guarantee's.

HOLDEN is close to securing a new deal for a further $200 million in taxpayer money - a double dip that follows the $275 million pledged last year to maintain its manufacturing operations until 2022.
The struggling car-maker, whose sales are at a 20-year low, is trying to ink the agreement before the federal election is called to avoid the freeze on new contracts during the "caretaker period".

The details of Holden's latest rescue package was discussed at the Federal Government's Expenditure Review Committee last Friday, sources close to the negotiations have told News Corp.

This new round of funding is in addition to the $275 million pledged to Holden in March 2012 -- $215 million from the Federal government, $50 million from the SA Government and $10 million from the Victorian Government, to be paid over three financial years.

That deal was supposed to save Holden from any further taxpayer funding for the next 10 years.

The then Prime Minister Julia Gillard said at the time there was "a real risk that there would be no more Holden in Australia (and that) would've been a knockout blow for manufacturing in this country".

Since then Holden has sacked 400 factory workers and 100 engineers - its biggest round of job losses since the Global Financial Crisis - and its manufacturing workforce has shrunk to 1700 from a peak of more than 7000 in 2004.

The new deal - to be handled under the Automotive Transformation Scheme as opposed to the previous "co-investment" program - also will not require Holden to guarantee job numbers.

http://www.news.com.au/business/com...st/story-fnda1bsz-1226687117711#ixzz2aTFqMd1U

 

[medusala]

What?

The cost burden imposed by unions is massive. See the relative cost to make a car in Australia vs Europe. No reason it should be higher here. Yet it is. Unions fleecing companies, companies fleece taxpayers.

 

[JRoo]

The cost burden imposed by unions is massive. See the relative cost to make a car in Australia vs Europe. No reason it should be higher here. Yet it is. Unions fleecing companies, companies fleece taxpayers.

They have unions in Europe building cars!

No reason it should be higher here.

I will just roll eyes at this statement;

 

[medusala]

They have unions in Europe building cars!

And they have a different IR system. They still manage to get the job done far cheaper.

I will just roll eyes at this statement;

Do you have any idea at all on this topic or just attempting to defend the indefensible via liberal use of emoticons?

 

[tazzietiger]

Even with the our currency price falling our manufacturing sector is still contracting. Obviously a higher currency wasn't our only disadvantage.

A gauge of Australian manufacturing slumped in July as a decline in the currency and earlier interest-rate cuts failed to boost exports and local demand.
The manufacturing index dropped 7.6 points to 42 last month, the biggest decline since April, the Australian Industry Group said in a survey released today.
“Manufacturers are telling us that, while the fall in the Australian dollar and the May interest rate cut have been extremely welcome, they have not yet been enough to turn around a very challenging business environment, locally and internationally,” Innes Willox, AIG’s chief executive officer, said in a statement. “In fact, the drop in the currency has fueled higher prices for imported inputs without any real corresponding improvement in stronger exports into what remain fiercely competitive markets.”

http://www.bloomberg.com/news/2013-...ing-slumps-as-currency-fall-insufficient.html

 

[medusala]

http://www.theaustralian.com.au/opi...people-want-mike/story-fnbkvnk7-1226665919886

It was perfectly obvious that GMH was in for a rough trot, but the agreement provides for 3 + 3 + 3 per cent annual pay rises as well as a cash payment of $3750.

But, just in case the company did try to make any changes, the agreement says "no redundancies will . . . result from continuous improvement activities as defined in this agreement and any excess labour that may occur will be handled by transfers and/or natural attrition . . . Continuous improvement will not be used in a narrow job shedding way but more as a means of involving employees in the search for a better way of performing work through upskilling and job re-design."

And I just love all the allowances: confined space, dirty work, height money, extreme artificial temperature, high voltage - the list goes on.

But the kicker is the pay attached to separation. Upon redundancy, workers get four weeks pay, plus 3.5 weeks for every year of service, plus any long-service leave entitlement (paid out after five years' service) and unused sick leave up to 30 days. If you are wondering where our taxes are going, you need look no further than these generous conditions. My advice to GMH is simple - produce cars Australians want to buy at a price they're prepared to pay.

 

[tandino]

The quicker that we accept that car manufacturing is a lost cause in this country, the quicker we can stop pissing away good money after bad.

 

[tazzietiger]

Rudd is apparently going to announce a additional 200million dollars of funding to go towards the manufacturing sector today on the election campaign.

Article:

Labor has begun day one of its election campaign by announcing $200 million in new funding for the automotive industry.

Senator Carr has still not decided exactly how the $200 million will be spent.
''I will continue my discussions with industry as to how this additional funding can best support growth in sales,'' Senator Carr said.
''We are considering a range of options and will release implementation details following further consultation.''

http://www.theage.com.au/federal-po...y-to-gain-200m-in-funding-20130805-2r8by.html

 

[Caesar]

Holden has just announced that they will make a decision on their future in Australia after the result of the election is known.

 

[tazzietiger]

Holden has just announced that they will make a decision on their future in Australia after the result of the election is known.

Wouldn't surprise me if they are going to announce their departure date which could be a few years away similar to what Ford done but they probably just don't want to politicize it by announcing it before the election.

 

[Gough]

Isn't Tones gunna turn the tap off he gets in?

 

[tandino]

I would be surprised if the decision has not already been made in Detroit.

GM have already developed two versions of Global RWD architecture going forward and have made determinations on the future of the Chevrolet Camaro and the Chevrolet SS in terms of what platforms they will be built on and, more than likely, what plants they will use to build them.

Holden's manufacturing operations and it's future are intrinsically linked in those decisions.

 

[tandino]

Holden workers have accepted the new pay deal put.on the table by the company, supposedly to guarantee the future of manufacturing for the next 10 years.

None of which changes my opinion reflected above.

 

[tazzietiger]

Holden workers have accepted the new pay deal put.on the table by the company, supposedly to guarantee the future of manufacturing for the next 10 years.

None of which changes my opinion reflected above.

The deal was only a freeze in their wages for 3 years. There is no guarantee for their jobs. Holden originally asked the workers to take a pay cut. The sky business host said it is supposedly going to save Holden 15 million.

I agree with your opinion this has came to little to late to save the industry.

 

[tazzietiger]

The latest job cuts at Holden seems to point to more parts being imported for future models.

THE Holden Commodore of the future will be less Australian than ever before and threaten more jobs at parts suppliers.

Sacked staff have revealed the struggling car-maker last week let go of twice as many workers than was originally reported.
Critically, about 50 people from Holden's purchasing and administration departments in Port Melbourne were secretly sacked last week.
This is in addition to an estimated 50 designers and engineers that was reported last week.
The clean-out of the purchasing department - which buys raw materials and components for locally-made cars - is the clearest sign yet that the 2017 Commodore will be sourced from mostly imported parts.

About 50 per cent of the current Holden Commodore is made up of locally-sourced components, compared to 70 per cent for the Ford Falcon and 65 per cent for the Toyota Camry, according to figures supplied by the car makers.
But less than half of the parts that make up the new globally-developed 2017 Commodore are expected to be sourced locally, bringing it closer to the Cruze small car, which has 30 per cent local content.

http://www.news.com.au/business/com...re-foreign-parts/story-fnda1bsz-1226721200323