Wednesday, April 25, 2012

Ford Stand-Down of 1800 Draws Nearer

A temporary stand-down of 1800 Victorian workers at Ford is increasingly likely as state and federal governments join in a bid to resolve the crisis involving a financially troubled car parts maker.


Ford says the stand-down for an estimated one or two days from Thursday would be the worst-case scenario if the dispute involving supplier CMI Industrial drags on.

About 80 workers at CMI's Campbellfield factory have been locked out since last Friday after the landlord changed the locks in a dispute over rent payment, believed to be around $150,000.

Federal Workplace Minister Bill Shorten said he's been in talks with the Victorian government over the appointment of an administrator to CMI.

"We're looking to have confirmation of a particular company who's been appointed as voluntary administrator and I'll be in touch with them," Mr Shorten said.

Ford spokeswoman Sinead Phipps said the company hoped the situation would be resolved as soon as possible.

"If it's not, we would temporarily stand down at the end of Thursday," Ms Phipps said.

She said Ford would work with the union to bring forward scheduled days off to ensure employees at its Broadmeadows and Geelong plants were paid in the event of a stand-down.

Its other suppliers would also be affected if the stand-down went ahead, but it was difficult to quantify the impact.
Victorian Premier Ted Baillieu said the government was willing to help to restructure CMI.
"Obviously that has to take place. It's one of the key suppliers to Ford and other automotive manufacturers," he told reporters.

Manufacturing minister Richard Dalla-Riva said the government had been in talks with CMI Industrial and other key parties about the company's financial difficulties.

A spokeswoman for the minister said she could not comment on details of the talks.
CMI Industrial workers met outside their factory at 7am (AEST) on Tuesday, anxious to learn of the future of their jobs. The landlord did not attend and the factory remained locked, and union officials could tell workers little as talks between CMI and Ford continued.

AMWU Victorian Secretary Steve Dargavel said he hoped the state government would resolve the situation.
"If they fix it that's great, if they don't, Ford gets stood down and their supply chain potentially gets affected too, so that would be terrible," Mr Dargavel said.

He said many more workers who supply Ford will be affected if Ford stands down workers.
"There's a lot at stake here to get it sorted quickly."

Federal opposition industry spokeswoman Sophie Mirabella said the turmoil surrounding CMI Industries and Ford was the latest in a turbulent time for the automotive industry, which would only worsen once the government's carbon tax took effect.

"At a time when the car industry is already facing serious challenges, our industries can ill afford yet another blow," she said in a statement.

Sunday, April 15, 2012

Toyota Hires Extra Security As Axe Falls On 350 Jobs

Car maker Toyota has hired extra security staff for its factory in Melbourne's south west as the company prepares to sack 350 workers.

Toyota blames the job losses at its Altona assembly plant on the downturn in production levels and the strength of the Australian dollar.

Alison Caldwell reports.

ALISON CALDWELL: Toyota foreshadowed the job cuts in January, blaming the high Australian dollar for falling export sales.

Since then it's assessed more than 3,000 employees at its Altona assembly plant, testing them on workplace behaviour and skills.

The people with the lowest ratings will be forced to leave today and tomorrow - that's around 10 per cent of the workforce or 350 employees.

Paul Defelice is the assistant state secretary of the Australian Manufacturing Workers Union.

PAUL DEFELICE: They'd be very anxious because there is a number of people that will be told today that they are surplus to requirement. So until the morning passes, there's going to be a lot of anxious people.

ALISON CALDWELL: This was announced by Toyota back in January. What's been going on in the discussions with the union since then?

PAUL DEFELICE: There's been a whole host of meetings, I suppose on a weekly basis, to actually look at an appropriate and fair and transparent selection criteria, and out placement services and also the quantum of the final package for people to exit on.

ALISON CALDWELL: Now they've got security guards out there today to help people leave the plant. Is that an unusual situation?

PAUL DEFELICE: It is an unusual situation because I don't think in my history this has transpired. It's always been purely voluntary so it's been a pretty sort of amicable departure between the parties. So I don't know how people are going to take it when they get told that they're no longer required so I presume that's why the security guards are there.

ALISON CALDWELL: Do you know how they're working out who's going and who's not?

PAUL DEFELICE: Look it'll be based on skills, obviously, it'll be based on a whole host of other things - probably absenteeism will be one of them. So they are the main criteria, I suppose.

ALISON CALDWELL: Absenteeism meaning people who haven't been turning up for work?

PAUL DEFELICE: Excess to their entitled quota.

ALISON CALDWELL: Is that is for the time being at least? I mean, this number was expected but…

PAUL DEFELICE: It's not anticipated for the foreseeable future there's going to be any more because there's actually been a small increase in volume, I think approximately 3,900 - three thousand nine hundred - over the next three or four months. So should be right for three or four months.

ALISON CALDWELL: A spokeswoman for Toyota says the union requested the extra security to quote "make sure everything goes smoothly".

She says Toyota believes the redundancy packages, negotiated with Fair Work Australia, are generous.

Included in the 350 job losses are 84 voluntary redundancies.