End of the line for Holden

[tomcat racing]

Originally Posted by LoBelly

NYTimes article on Harley Davidson, productivity and labour

worth a look when considering (if that's what you call it) the role of unions

LoBelly

Sensible company,

Unlike GM.

[400TT]

I certainly understand to some extent the struggle of manufacturing locally vs manufacturing or sourcing components from low cost overseas centres.

Our business will be affected by Holden ceasing manufacture of the Commodore here.

I'm not sure when we will feel the effect. But it could be as early as a few months time or we might not feel the affect for a year or so.

At the moment we quantity source quite a few GM components from Holden. We don't use any Australian specific parts, but global GM parts sourced locally and used in Commodore product line. Holden provides us with competitive pricing and much shorter lead times compared to overseas. And I am sure they are making a good buck in the process and also employing people to supply these parts to us.

When we are forced to source these parts from the USA it looks like our purchase pricing at that time will increase substantially.

I am also concerned about other Australian based component manufacturers we use. With the changes we are seeing to local production from Ford and Holden, will local Toyota manufacturing plant be enough to keep them viable. As I am sure low volume customers like myself won't be enough . Even if just the pricing increases as a result of Holden/Ford ceasing production, I and many others will need to purchase the parts directly from the USA, UK etc to stay competitive.

[sambo]

Looks like Toyota is gone too.

Toyota to stop making cars in Australia, follows Ford and Holden

[Gav]

The writing was on the wall with that one Sambo.

[guye]

Originally Posted by LoBelly

NYTimes article on Harley Davidson, productivity and labour

worth a look when considering (if that's what you call it) the role of unions

LoBelly

Yes, interesting article. And great outcome. I'm promoted to ask, though, what remaining a union-workforce had to do with the outcome? Harley might have achieved that result regardless of their workers' union affiliations. Is the suggestion that the union actively participated in the restructuring and process changes, designing the new factory, etc?

I suppose the (valid) point the article is making is that unions need not be 'broken' to achieve a corporate turnaround.

[Jethrow]

from Grace Collier (The Australian):

TOYOTA is leaving Australia because it knows there is no hope of changing its terrible enterprise bargaining agreement. If you want to blame someone, blame the company and the union. Don’t blame Tony Abbott, the workers or the law…

Toyota locked itself into a substandard, expensive and restrictive agreement many years ago. It was a pay-off to the unions for getting it taxpayers’ money. In recent times, Toyota had to ask staff to downwards bargain and reduce conditions. The company was not asking for much and, in exchange for the concessions, jobs would be saved. However, the EBA says, “The parties agree they will not take any steps to terminate or replace this agreement without the consent of the other parties.”

Consent denied. Company closed.

[Towmaster]

England suffered this same fate back in the seventies. I only know this because of Top Gear...... Lost all their local manufacturing because of long term strikes from unions / employees over better wages etc or whatever.
They are back now..... I am guessing they waited till all the union members retired then started afresh...... Not a bad ides, like it has been said before, they will never back down once they have what they want. Until of course there is no jobs for them to protect.

[guye]

It occurs to me, though, there might an upside. Lots of pretty decent machinery for our man caves to be had when they shut down the factories maybe?

Especially for you @Aussie_Mike

[Aussie Mike]

Yep, wouldn't mind an industrial robot to play with.

[Towmaster]

Originally Posted by Aussie Mike

Yep, wouldn't mind an industrial robot to play with.

That's a little disturbing......

[Aussie Mike]

Originally Posted by Towmaster

That's a little disturbing......

Depends on what you are thinking.

I'm of the opinion that the only reason to grow up is to get bigger/fancier toys to play with. I'm still just a big kid.

[byroncobra]

I am guessing they waited till all the union members retired

.....or emigrated to Australia

Ever noticed how many union spokesmen have a touch of the old dart...

[TheExtreme]

Greed is universal. Detroit learned it the hard way.