It's a shame we lost both Holden and Ford. However, if you look into it, what killed Holden was their aggressive EBAs argued for by the workers and their union. I am not an pro-biz/anti-union guy at all FYI, just that the allowances, loadings, entitlements that were granted through their EBA for a Holden worker on the factory floor was completely unsustainable for the company to survive, let alone produce a product at a reasonable price.
FYI, car assembly sector workers in Australia make (or did make) around $50 per hour, while other manufacturing sectors in this country average around $32.
Some quotes (not the entire article). I've bolded the parts where on first read I was so shocked I had to pick myself back up on the floor:
Way back in the old days, before enterprise bargaining at Holden began, the wage of an entry-level process worker was $462.80 a week. In 1992, enterprise bargaining began, and by 2013 a worker at that same classification level had a base rate of $1194.50 a week.
This represented a 158 per cent increase, or a compound increase of 4.4 per cent year on year for 22 years. By 2013, wage rates for process workers were in the $60,000 to $80,000 a year range, while modern award rates for such workers were in the $37,000 to $42,000 range.
By 2013, union privileges were beyond the pale. The union controlled Holden sites, it vetted who was employed and dismissed, how they worked and how much they were paid. Union delegates worked full time for the union on the company’s time and acted as paid onsite enforcers for the rules. To hone their skills, Holden was compelled to pay them to attend 10 days of union training a year. The best two delegates, as nominated by the union, were entitled to one paid month off to “further their industrial and/or leadership development”.
An ex-employee from Adelaide was interviewed and described the workforce as “over-managed”, with one team leader for every six workers on the production line, when one for every 25 workers would suffice. He admitted their work was worth about “20 bucks an hour” and detailed how, years earlier, some of his mates had taken redundancy packages in the order of “$280k plus”.
All enterprises with fluctuating workflow need to hire casuals or agency staff in the peaks to supplement their permanent workforce. People are called on as the need arises, but at Holden a staggering list of requirements — more than one page long — must be met before the company can even consider hiring an extra body.
Providing the criteria are met, a shift plan must be given to the union, which must give its agreement before extra people can be hired. If a casual is hired and works full-time hours continuously for three months, Holden is compelled to give them a permanent job.
The union has to agree on which labour-hire company can be used — this is a clear pathway to potential corruption as union officials can set up labour-hire companies, take part-ownership or just demand kickbacks.
Holden’s provisions for forced redundancies are staggering in their largesse. Separation payments of four weeks’ pay per completed year of service are capped at 90 weeks’ pay. On top of this, add four weeks’ notice, another week’s additional separation payment per week of service, uncapped, a maximum of eight weeks’ unused sick leave payment, and pro rata long service leave payments from five years.
To put it simply, long-term employees can expect redundancy payments of two years’ pay or more. In stark contrast, Australia’s National Employment Standards provide redundancy payouts of no more than 21 weeks’ pay.
Perhaps the most telling section of the agreement is labelled “Information Sharing”. In a stunning display of idiocy and delusion, Holden management is compelled to provide updates for union officials four times a year, covering its business plan, business plan performance, key forward activities and events, continuous improvement activities, meetings of state committees and union meetings in each facility.
Now....why the f**k do we still have taxes on imported vehicles when the local car industry is gone?? That blows me away....greedy government!
EXR Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
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