General Motors’ Australian division, Holden, has issued a stark warning it may not survive unless drastic solutions are found to improve competitivity and reduce costs.
Holden this week fired a warning shot across labour body bows, including the Australian Manufacturing Workers’ Union (AMWU), as the automaker looks to secure unspecified “support” from its workforce, insisting all options are on the table.
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The Australian manufacturer maintained the current challenging economic situation, allied with the country’s high dollar exchange rate, meant “labour-related cost reductions” were actively being discussed, although it is unclear at this stage what form they will take.
“This is about giving Holden employees a direct say in their future,” said chairman and managing director, Mike Devereux, “We can’t survive as a local manufacturer if we’re not competitive and we don’t reduce our costs.
“All options for improving productivity are on the table. We will work closely with the unions and our people to develop a fair and reasonable proposal in line with other local manufacturers across all industries.”
The AMWU however, has responded robustly, insisting it was willing to implement flexible working practices for the sector, which remained “central” to Australia’s interest.
“This unionised workforce has always been open to discussions about how to maximise productivity at Holden,” said AMWU national secretary, vehicles division, David Smith. “We understand this industry is a fundamental part of the Australian manufacturing industry, which is in turn central to our national interest.
“These workers understand how important auto manufacturing in Australia is and support discussions around genuine productivity. Working one week on and one week off, which eventually led to moves to a single shift, recent down days and four-day weeks… are significant examples of this.”
Holden said details of discussions with unions and employees would remain confidential until the workforce voted on the automaker’s plans.
