Holden to make major announcement to staff today

[Wretched]

and so the revolution begins.....

[Fordman1]

Originally Posted by 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.......

This.

If they are trying to cut labour costs, they are stuffed !!

[jpblue1000]

Its an incredible social phenomena we have occurring right now. the affordability of life ever increases due to so many factors so to meet these the demand for higher wages increses further putting pressure on cost of production and cost of living which continues to spiral, which is sustained (not sustainable)in a health economy... Until the bubble bursts no we will see a downward spiral too the balance point maybe beyond and back again ad infinitum. It is a consequence and mechanism of our capitalist market.

Accentuated by the biggest ever generation flexing their particular market philosophy and power.

JP

[fte50]

Originally Posted by Wretched

and so the revolution begins.....

At some point within this decade, the Greeks will be watching Australia run riots on their TVs.

[Fordman1]

Originally Posted by fte50

At some point within this decade, the Greeks will be watching Australia run riots on their TVs.

This will happen.

Printing money won't help.

[Mighty Reds]

Originally Posted by fte50

At some point within this decade, the Greeks will be watching Australia run riots on their TVs.

Not on their national broadcaster.

[FPV+fteT3]

An interesting extract taken from another site:

So Holden have announced that they are asking their workers to take a massive pay cut to keep the manufacturing the their cars viable here in Australia... But here's the thing, Mike Devereux, the managing director of Holden and his team of corporate chiefs have received a reported 30% perk and pay increase over the last financial year... Something sound a little bit wrong with this to you?

[Nikked]

Originally Posted by FPV+fteT3

An interesting extract taken from another site:

So Holden have announced that they are asking their workers to take a massive pay cut to keep the manufacturing the their cars viable here in Australia... But here's the thing, Mike Devereux, the managing director of Holden and his team of corporate chiefs have received a reported 30% perk and pay increase over the last financial year... Something sound a little bit wrong with this to you?

Typical

[GCRXR6]

Currently watching 7 news up here in the best state... no Holden story yet .... obviously not as newsworhty as Ford.

[fte50]

Steve it aint really suprising - back in 2009 when they closed all Foundry & FII operations, approx. 700 folk lost their jobs (media reports were 450) and corporates again were awarded a massive increase justified by the offset of business cost savings.
Funny thing is GMs Melb. workforce & business module was stripped back to less than 1/3 but they continue receiving bonuses.

[jpblue1000]

Originally Posted by FPV+fteT3

An interesting extract taken from another site:

So Holden have announced that they are asking their workers to take a massive pay cut to keep the manufacturing the their cars viable here in Australia... But here's the thing, Mike Devereux, the managing director of Holden and his team of corporate chiefs have received a reported 30% perk and pay increase over the last financial year... Something sound a little bit wrong with this to you?

Floor/factory staff are there to make cars, when the cars need to get cheaper the inputs must fall hence asking for a reduction to input costs such as wages. the management are there to turn a profit, from building cars, if they manage to get cheaper input costs by securing lower wages they are doing their job. **** poor economy we have made for ourselves

JP

[Cabbage]

Wouldn't like to buy the first Commodore off the line after the pay cuts take effect. VN commodore anyone?

[Rob 351]

There is a country singer in America named John Rich (big and rich), who wrote & recorded a song a couple of years ago called 'Shutting Detroit down'. If you can get your hands on it have a listen. It's lyrics are brilliant and are so on the money with what is happening in the Australian car industry at present! Just change 'shutting Detroit down' to 'shutting Oz car industry down'. :-(

[mr smith]

Originally Posted by Road_Warrior

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.

Bring back the House price thread.........

I think we will see some more wage deflation in the coming years, we are screwing our suppliers and contractors and are we are being screwed hard by our customers. The spiral down has begun.
Bad news for anyone thinking capital gains and in big debt.

[4stanger]

Originally Posted by FPV+fteT3

An interesting extract taken from another site:

So Holden have announced that they are asking their workers to take a massive pay cut to keep the manufacturing the their cars viable here in Australia... But here's the thing, Mike Devereux, the managing director of Holden and his team of corporate chiefs have received a reported 30% perk and pay increase over the last financial year... Something sound a little bit wrong with this to you?

Management will get a bonu$ for getting the pay cut from the work force.

[mr smith]

Originally Posted by Arnaldo

Management will get a bonu$ for getting the pay cut from the work force.

He said tonight on 3AW that all management and salary not under an award have had no pay increases in the last 3 yrs?

[4stanger]

Originally Posted by mr smith

He said tonight on 3AW that all management and salary not under an award have had no pay increases in the last 3 yrs?

Did he (whoever 'he' is) mention Individual Performance Based Bonuses?
I'll bet that will not be mentioned.
Performance based on getting improvements in the system, ie. pay cuts from the work force!

[fte50]

No pay increase per say, but a generous super scheme, topped with delicious performance incentive bonuses + 2 fully serviced company cars etc equates to more than 20% over 3 yrs which is obviously a much larger increase than any EBA over the same time.
Select words can 'bend' the truth.

[mr smith]

Originally Posted by Arnaldo

Did he (whoever 'he' is) mention Individual Performance Based Bonuses?
I'll bet that will not be mentioned.
Performance based on getting improvements in the system, ie. pay cuts from the work force!

Mike Devereux.
So I take it you have never negotiated a rate or price down?

[BENT_8]

Originally Posted by Road_Warrior

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.

I tried to say this a few years ago, but that was during the big property spruik and I was laughed out of court.
It would seem that some heat in the property market was fuelled by easy credit, funded by a sudden spike in wages.

For those that aren't aware, Holdens is the largest employer in the northern area of Adelaide, It is the hub around which an entire satellite city was built, almost all industry is associated with the production of the Holden cars, the impact of a pay cut like this to every other business out here is going to be felt strongly, from the dealerships to coffee shops and everything in between.

I feel sorry for whomever is playing the Doggies at the Ponderosa this weekend, gonna be some cranky employee's/supporters in the crowd.

[mr smith]

Originally Posted by BENT_8

I tried to say this a few years ago, but that was during the big property spruik and I was laughed out of court.
It would seem that some heat in the property market was fuelled by easy credit, funded by a sudden spike in wages.

For those that aren't aware, Holdens is the largest employer in the northern area of Adelaide, It is the hub around which an entire satellite city was built, almost all industry is associated with the production of the Holden cars, the impact of a pay cut like this to every other business out here is going to be felt strongly, from the dealerships to coffee shops and everything in between.

I feel sorry for whomever is playing the Doggies at the Ponderosa this weekend, gonna be some cranky employee's/supporters in the crowd.

The death of manufacturing and the mining slow down is going to smash house prices.
$900K asbestos shack in some dead mining town = $0.
Houses in Broadmeadows, Geelong or Elizabeth = 2/3 of FA.

[FPV+fteT3]

http://www.topgear.com/au/car-news/holden-paycut-180613

Devereux has previously warned there's a chance Holden could close its factories, too, if the Coalition was elected and fulfilled its promise to cut $500 million of government assistance to the local car industry.

Holden executives get defensive about their own pay

Devereux would not comment on whether executives would take pay cuts or salary freezes, instead saying: "Every person in this company is doing everything they can to secure Holden's future as a local manufacturer."
Journalists at today's press conference, however, were quick to point out reports that the pay and perks packages of Holden's key executive team - which includes Devereux - increased by 30 per cent this year financial year despite the company's recent economic woes, which have necessitated plans to axe 400 workers from the Elizabeth plant due largely to a $152.8 million loss in the most recent financial year.

According to company accounts, the management team shared a remuneration pool which totalled $6.8 million in 2012 - an increase from $5.3 million in 2011. And while the exact salary of Devereux himself remains unclear, executive members received on average a salary package worth $455,000 last year, which was up from $442,600. The rest of the increase is largely attributed to Holden hiring three more executives during that financial period.But Devereux today said executives were feeling the pinch, too, arguing that in the last three years, their salaries haven't increased in-line with that of executives in other industries.

Kind if says it all really "our salaries have not kept up with executives in mining and banking etc.. we are so hard done by having to manage on excess of $400k PA.

[Nikked]

Ones has to wonder if the VF/SS has failed to meet any targets for orders too, as it seems like there is a worry about making money off its sales...perhaps made worse due to the aggressive pricing...

[BENT_8]

Originally Posted by mr smith

The death of manufacturing and the mining slow down is going to smash house prices.
$900K asbestos shack in some dead mining town = $0.
Houses in Broadmeadows, Geelong or Elizabeth = 2/3 of FA.

Its already dire out here, sentiment is way down.

Only last fortnight the local government spruiked a big population expansion for the northern areas around Elizabeth.
Was supposed to be something like 38000 new houses and 100,000 people.
The concern then was about jobs for everyone, its a bit hard to envisage confidence in an Auto manufacturing hub on its knee's.
I doubt industry will want to invest in a region with uncertain economic forecasts either.

Funny part is, existing houses out here aren't selling and rentals are a dime a dozen, its hard to be optimistic when your amongst it, and on the back of this announcement it can only get worse.

[fte50]

Originally Posted by mr smith

Mike Devereux.
So I take it you have never negotiated a rate or price down?

Try doing that on a locked in fixed rate with the bank .... your in contract or pay hefty fees to break a contract.
An EBA is also a contract , but Holden break it without penalties, instead forcing the penalty onto employees in the obvious guise of job losses.

Now im not suggesting employees dont consider this option if it means securing their future, but one must ask how often will this ploy be used on employees whenever a manufacturer doesnt meet their projected target, and furthermore considering the Holden EBA is relatively fresh, why did the company agree to the pay claims / conditions awarded ... had they not had even an insight in their forward vision to a degree suggests incompetent management in control of the helm.

[dallasv8]

asking the workers to drop 5 to 7 an hour when the executives are making 455g a year is a bit off.

[BENT_8]

I guess the positive to take from this is that as a Holden employee they have been invited to work through the issues facing the industry with GM.

Not only have they guaranteed them work until the same time as Fords closure, but they have offered them an alternative to redundancy going forward.

Personally, I believe it will go ahead, they are a tough bunch out here, they'll stick together for the community and the Brand.
They have had a pretty good run with wages and discounts, time to give something back is how it will be perceived.

[mr smith]

Originally Posted by fte50

Try doing that on a locked in fixed rate with the bank .... your in contract or pay hefty fees to break a contract.
An EBA is also a contract , but Holden break it without penalties, instead forcing the penalty onto employees in the obvious guise of job losses.

Now im not suggesting employees dont consider this option if it means securing their future, but one must ask how often will this ploy be used on employees whenever a manufacturer doesnt meet their projected target, and furthermore considering the Holden EBA is relatively fresh, why did the company agree to the pay claims / conditions awarded ... had they not had even an insight in their forward vision to a degree suggests incompetent management in control of the helm.

I agree it should have been highlighted at the EBA negotiations, but I bet the EBA has a clause in there to cover for a "downturn"

[MITCHAY]

I'd rather less workers and same or more pay personally because that sort of pay cut is not trivial and unless you're on decent money to begin with you'd have to look elsewhere anyway.

If you're working to the max they have less reason to cut your job. This what always amuses me about people who complain they have too much work.

Of course it would be a lottery as to who keeps their job initially but you'd be better off in that situation in the end in my opinion.

[SumoDog68]

What difference will it make even if workforce accepts the paycuts ? It is still much cheaper to make cars in Thailand or China.