Holden to make major announcement to staff today

[b0son]

Originally Posted by 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.

and if the alternative is a job loss, they'll go even further back financially.

supply and demand is a two-way street. just like when you're in demand your employer has to be prepared to pay you more, when you ARENT in demand but want to keep working, you have to be prepared to for a reduction in your pay/conditions. at least, thats the way its supposed to work, but unions are good at ensuring that never happens...

http://blogs.news.com.au/heraldsun/a...money_with_it/

Between 1997 and 2010 the company gave pay increases of 63.33 per cent, a median increase of 4.87 per cent a year, hardly appropriate for a struggling business relying on government support… Yet the agreement prohibits the company from increasing, decreasing or rearranging the workforce without union approval… Holden cannot choose the labour hire company; they can only use a business selected by the unions.

GM Holden has agreed to an extraordinary wage deal that will lift the income of 4000 employees by up to 22 per cent by 2014, despite the carmaker seeking a taxpayer-funded assistance package from the Gillard government. In a deal hailed by union leaders as “spectacular”, workers will receive a “guaranteed” 18.3 per cent increase over the next three years, with some workers to receive up to 22.3 per cent… The Australian has obtained full details of the agreement, which the union said contained no productivity trade-offs…

[pottery beige]

BOOM... Drops a big bomb......

[Chopped]

Take a pay cut OR lose your job.....I'd take a pay cut. Some people don't even get that chance.

There is a reason not much is made here anymore.

[jpblue1000]

Originally Posted by 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.

Yep damn hard times, but I suppose a 5-7 an hour pay cut is better than redundancy. the true test is if all vote to take cut or not and await the inevitable job cuts.
If they are going to turn on themselves now is the time for the staff need to get smart and point out the fat in the organisation and show how they can be smart and trim the fat without affecting the productivity and quality.

All industries face this, as we have ridden the bubble, it has burst and now a re-setting of value needs to occur, has happened before and will again.

We all need to look deeply at our own industries to see the future, If we don't look we will never be prepared for the next wave 10 to 15 years hence, many of us will be older next time it happens and many of us wont make it through, If we make it this time. I don't think you want to be made redundant in your mid to late 50's

JP

[dallasv8]

take a pay cut and start shooting off resumes, or put your hand up for a redundancy if its on the table.

[Pepscobra]

Originally Posted by Adrenaline

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

I would assume supplier contracts will also come under renegotiation?

[Fordman1]

The pay cuts are just a temporary measure to keep the business afloat.

Labour is only 14% of the cost of auto manufacturing in Auatralia. It is the other costs that are the killer especially the strength of the AU dollar.

I'm betting Holden have cash flow problems.

I'm also betting that unless the AU dollar drops to 60 c US fast Holden will be making another Annoucement in 12 months.

[Gobes32]

Media is reporting Holden have asked workers to reduce costs, no confirmation yet if that includes a reduction in hourly rates. Will be interesting to see how this plays out. If the workers agree to a $5 an hour cut, that is around 18% reduction in pay. It will open the floodgates for all other industries to ask the same of their workers.

[jpblue1000]

Originally Posted by Barraxr8

Labour is only 14% of the cost of auto manufacturing in Auatralia. It is the other costs that are the killer especially the strength of the AU dollar.

Im not arguing this I just want to know how our High dollar adds cost to Holden? I cant see it, can someone explain please.

JP

[Pepscobra]

Originally Posted by Gobes32

... It will open the floodgates for all other industries to ask the same of their workers.

But isn't that just how the employment market works? Supply v demand.
I can't understand how they (inc the union) could think that digging their heels in will help... If the employer (in this case Holden) cant make the numbers stack up, they'll just pack up shop... everyone loses then.

[Gobes32]

Originally Posted by jpblue1000

Im not arguing this I just want to know how our High dollar adds cost to Holden? I cant see it, can someone explain please.

JP

Our cars become more expensive to purchase for other countries.

[Gobes32]

Originally Posted by Pepscobra

But isn't that just how the employment market works? Supply v demand.
I can't understand how they (inc the union) could think that digging their heels in will help... If the employer (in this case Holden) cant make the numbers stack up, they'll just pack up shop... everyone loses then.

Exactly, how many people here are willing to take an 18% pay cut? And it's not like as if $26 an hour is astronomically high in the first place.

[b0son]

Originally Posted by Gobes32

Our cars become more expensive to purchase for other countries.

We basically dont sell our cars to other countries... head office doesnt want us competing against their existing foreign-made product.

[Fordman1]

Originally Posted by jpblue1000

Im not arguing this I just want to know how our High dollar adds cost to Holden? I cant see it, can someone explain please.

JP

It makes labour and other localised costs uncompetitive against Asian and other countries' cost structures.

[jpblue1000]

Originally Posted by Gobes32

Our cars become more expensive to purchase for other countries.

But they are talking about cost of manufacturing, not of selling? I still don't get it

[Fordman1]

Originally Posted by jpblue1000

But they are talking about cost of manufacturing, not of selling? I still don't get it

It doesn't make sense to manufacture locally, you can make money importing from Asia.

[Gobes32]

Originally Posted by jpblue1000

But they are talking about cost of manufacturing, not of selling? I still don't get it

It restricts your market, when Holden were exporting to the middle east they were producing nearly double the cars they are now. It helps amortallize costs if you are running at full capacity. The irony is that when the dollar is low, we pay a lot more for the steel our cars are made out of.

[Fordman1]

Originally Posted by Gobes32

It restricts your market, when Holden were exporting to the middle east they were producing nearly double the cars they are now. It helps amortallize costs if you are running at full capacity. The irony is that when the dollar is low, we pay a lot more for the steel our cars are made out of.

It makes exporting uncompetitive, but also makes it difficult to compete against imports from other countries ( especially new plants in Asia ).

[jpblue1000]

Originally Posted by Barraxr8

It makes labour and other localised costs uncompetitive against Asian and other countries' cost structures.

But a vast number of components are manufactured Overseas and imported, High dollar equals cheaper, then the cost of australian input is not affected by dollar unless their components are also imported and thus cheaper with a high dollar.
Sure understand the increase in cost to OS purchasers of our product but the High dollar is being blamed for input costs being too high, I don't see it

JP

[b0son]

Originally Posted by Gobes32

It restricts your market, when Holden were exporting to the middle east they were producing nearly double the cars they are now.

How many cars were going to the middle east per year?

[Fordman1]

Originally Posted by jpblue1000

But a vast number of components are manufactured Overseas and imported, High dollar equals cheaper, then the cost of australian input is not affected by dollar unless their components are also imported and thus cheaper with a high dollar.
Sure understand the increase in cost to OS purchasers of our product but the High dollar is being blamed for input costs being too high, I don't see it

JP

Freight, taxes, utilities, labour coats all add up.

The Australian Auto industry was doomed when the free trade agreement was signed with Thailand.

[fte50]

Originally Posted by jpblue1000

Yep damn hard times, but I suppose a 5-7 an hour pay cut is better than redundancy. the true test is if all vote to take cut or not and await the inevitable job cuts.
If they are going to turn on themselves now is the time for the staff need to get smart and point out the fat in the organisation and show how they can be smart and trim the fat without affecting the productivity and quality.

All industries face this, as we have ridden the bubble, it has burst and now a re-setting of value needs to occur, has happened before and will again.

We all need to look deeply at our own industries to see the future, If we don't look we will never be prepared for the next wave 10 to 15 years hence, many of us will be older next time it happens and many of us wont make it through, If we make it this time. I don't think you want to be made redundant in your mid to late 50's

JP

True, but will the utility companies and all other costs of living also be revised - me thinks not...

[jpblue1000]

Originally Posted by Barraxr8

Freight, taxes, utilities, labour coats all add up.

But none of them are affected by the high dollar and if they are external to OZ they are cheaper for aussie companies with a high dollar

JP

[jpblue1000]

Originally Posted by fte50

True, but will the utility companies and all other costs of living also be revised - me thinks not...

I wasn't saying it should happen, Just saying it will happen. But as each industry falls due to excessive wages and other costs there is a wave of resetting, over half to full generation costs come down. Im not saying Im happy about it but just trying to be prepared for next time it happens

Be prepared

JP

[Fordman1]

Originally Posted by jpblue1000

But none of them are affected by the high dollar and if they are external to OZ they are cheaper for aussie companies with a high dollar

JP

They all are. All have an AUS dollar base.

In the end Fixed costs due to the low volume and inability to be competitive overseas with exports has caused the current situation, the AU dollar has a lot to do with that.

[fte50]

--------------------------------------------------------------------------------

As ive stated in another thread, GMs agenda here is to try and reduce its costs by asking its workers for a cut/business revision etc. but ultimately collecting another handout from scared govts knowing a fall of two majors in a short time frame will have catastrophic social and economic effects.
The second is the 'slow conditioning of the nation', before they too say bye bye -times are tough and Holden is struggling to remain viable etc.

They are playing on Fords departure and using the timing/circumstances to their full advantage.
"Not to say they arent somewhat legit, but also ready to milk the cash cow'.

[Gobes32]

Originally Posted by b0son

How many cars were going to the middle east per year?

Year by year info is hard to find but in 2005, a record 60,000 units went overseas with the Caprice accounting for 64% of those exports............ WOW!!!!!!

http://www.holden.com.au/corporate/e...ehicle-exports

[Nikked]

So, Holden want to force workers on a pay cut or redundancy...

Will they cut down the salaries of their V8 supercar drivers, team investment, and other areas of multi million sporting sponsorship?


I think there is some milking going on...just a month out from a federal election...

[Road_Warrior]

Originally Posted by fte50

True, but will the utility companies and all other costs of living also be revised - me thinks not...

Housing affordability.

Think about it, what is one thing that everyone needs apart from food and water? A place to live, be it renting or buying. Housing affordability in Australia is ridiculous, and I’ll bet it has been one of the main drivers in wage growth in Australia over the past 10 years – which coincidentally is also the same period in which house and rental prices have skyrocketed. The growth in utilities costs pale in comparison to median house prices and rentals. WA is by far the worst.

Sure it’s probably not the only factor, but I reckon it is one of the main ones.

[buggerlugs]

If they are talking about this, it's only a matter of time. You can't keep makings cars at a loss, day in , day out.......