Holden to make major announcement to staff today

[Pepscobra]

Just heard on the news that Holden has called a meeting with all staff and supplier representatives for later today... Any idea why?

The news report put a negative spin on it and mentioned Ford closure as a comparison.

Fingers crossed not bad news.

[EDManual]

hmm, could it be they join ford in a 2016 shutdown?

[ford71V8]

Someone told me yesterday that GM employees were being asked to accept a $200-300/wk paycut in order to "guarantee" their job for next decade

?
I have no idea how valid this comment is, but it was mentioned to me yesterday

[Dave R]

If it is just a paycut to staff, why are they calling in supplier reps?

[cobramania]

It's also rumoured Holden need at least 100 more workers to take redundancy to stay afloat.
If they don't get the more funding from the Government they're after, they'll go the way of Ford anyway.

[block58]

My prediction:

-Commodore as we know it to finish in 2017
-All manufacturing will be with complete knock-down kits like the Cruze
-Very few Australian components, hence why they require the suppliers at the meeting
-Job cuts

Holden are committed to manufacturing in Australia, so this will not be a Ford-like announcement.

[madmelon]

Originally Posted by block58

My prediction:

-Commodore as we know it to finish in 2017
-All manufacturing will be with complete knock-down kits like the Cruze
-Very few Australian components, hence why they require the suppliers at the meeting
-Job cuts

Holden are committed to assembling in Australia, so this will not be a Ford-like announcement.

Fixed that for you...

[Gobes32]

Article here suggests it is just a run of the mill "state of the nation" meeting. And unions have come out and categorically denied pay cuts were on the table..........

http://www.victorharbortimes.com.au/...s-union/?cs=12

[Pepscobra]

Originally Posted by Gobes32

Article here suggests it is just a run of the mill "state of the nation" meeting. And unions have come out and categorically denied pay cuts were on the table..........

http://www.victorharbortimes.com.au/...s-union/?cs=12

Thanks for that.

Are the Unions saying there will be no pay-cuts or that they will not accept a proposal of pay-cuts?

[Gobes32]

Say's there will be no pay cuts, does not say that Holden didn't ask...... ;-)

[pottery beige]

way around pay cuts.. more work out of less people's....

[KIWI-1]

Originally Posted by block58

All manufacturing will be with complete knock-down kits like the Cruze

Didn't know they were CKD. If they go CKD only they will still be on borrowed time like NZ was in the 90s.

[Professor Farnsworth]

announcement to be made at 2:45pm

[Pepscobra]

Originally Posted by pottery beige

way around pay cuts.. more work out of less people's....

Very true unfortuneatly. I wish the unions could help the workers understand this. What's better? Some people lose their jobs? Or everyone keeps their jobs, but earns a bit less and the Company keeps going?

This happened to my company recently.

[bobthebilda]

Down Days? Decrease in Production rates? They only need to make 100 cruzes a day to meet current sales, which leaves 240 commodore derivatives a day from a daily production of 340. That approx. 4800 commodores / Utes / Caprices in a 20 day work month.

[neptune blue]

Hang on a minute didn't the AMWU state that the new EBA that was negotiated with Holden some 10 months ago was unprecedented in the industry and now they have to take a pay cut ???

[turbodewd]

Thats a pretty big paycut!

Ultimately the demise of the AU auto industry was caused by the GFC. the US and Euro economies have tanked. Ours remained resilient due to China and our dollar remained high.

Our wages are just too high compared to europe and the US...

[Pepscobra]

Originally Posted by turbodewd

Ultimately the demise of the AU auto industry was caused by the GFC. the US and Euro economies have tanked. Ours remained resilient due to China and our dollar remained high.

Our wages are just too high compared to europe and the US...

not a bad summary, I would tend to agree.

[JC]

Originally Posted by KIWI-1

Didn't know they were CKD. If they go CKD only they will still be on borrowed time like NZ was in the 90s.

Most of Oz doesn't know that! You ask most people, and they tell you that the Cruze is made here. And it is, but not really - it's just assembled.

[Rodge]

Who's next Toy Otter ?

[nstg8a]

Originally Posted by JC

Most of Oz doesn't know that! You ask most people, and they tell you that the Cruze is made here. And it is, but not really - it's just assembled.

And half of them think anything else with a holden badge is made here too

[bobthebilda]

Originally Posted by JC

Most of Oz doesn't know that! You ask most people, and they tell you that the Cruze is made here. And it is, but not really - it's just assembled.

And Holden word it accordingly. To be called "Made in Australia", i think by definition more than 50% of it has to be done here, but Holden say the Cruze is "built" in Australia. They would be taken to court by the ACCC if they were to use "Made in Australia" for the Cruze.

[Pepscobra]

Has announcement been made yet?

[block58]

Originally Posted by Pepscobra

Has announcement been made yet?

I think so

http://www.news.com.au/business/hold...-1226665581042

[nstg8a]

Just looks like more jd dribble that hes been sPruiking for the last week?

[dallasv8]

5 to 7 bucks an hour is a large pay cut.some people will go backwards financially with a pay cut like that,possible lose houses and cars etc.
should the government make holden cut back sponsership of things like nrl etc to try and focus on their business ?
to me its just seems like all they want is to secure funding before the coalition get in power instead of focusing on their own business.

[olds]

Watch this snowball to other industries if this gets up . Hang on I think my boss is calling a meeting now !

[Gobes32]

As a member of Gen Y, it upsets me no end that not only did we cop house prices that were rising at astronomical rates, but we also become the first generation to go backwards in terms of jobs and remuneration.

[Wretched]

more info here

Holden chairman and managing director Mike Devereux says Holden will have to slash its labour costs in order to keep operating in Australia.

Devereux says Holden must make “significant labour related annual cost savings” and that “employees will be presented with a very difficult decision”

Speaking at a media conference this afternoon Devereux said current wage levels were not sustainable if the car maker is to continue producing the Commodore and Cruze until at least 2022.

“Our manufacturing costs are simply too high,” he says.
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“We’re talking to people about achieving labour-related savings in our costs per car.

“We can’t continue to make cars in Australia if we’re not competitive and can’t reduce those costs.”

The news comes just weeks after workers began producing the much-hyped VF Commodore, which Holden says is a make or break model for the company that last month posted a $153 million loss.

It also comes just weeks after Ford confirmed it would close the doors of its Broadmeadows production line in 2016, ending 88 years of local vehicle production.

The automotive industry has been in turmoil for the last few years, battling cheaper imports due to lower import tariffs and a strong Australian dollar.

That strong dollar has also eroded once lucrative export markets, reducing local vehicle production to record lows.

Holden’s Devereux – who has conditionally committed to producing at least two new models until 2022 - has said numerous times that unless the government continues to provide generous financial incentives to manufacture cars locally then Holden could pull out as early as 2016.

Sales of locally produced cars have been in freefall for more than a decade, led by an exodus from the large car that was once the choice of fleets and families.

Last year just 12.6 per cent of the 1.1 million new cars sold were built locally. In 2002 almost one-third of the new cars sold here were produced locally.

Key to the drop in sales have been booming SUV sales, with all but the Ford Territory imported.

http://theage.drive.com.au/motor-new...618-2offz.html

not a JD article either

[Alan D Segal]

EDIT: Was going to say something about Dowling's article as posted by another member, but the thread moved on since I finished. Apologies for any inconvenience.