Money well spent then!
If co-funding is designed to maintain job security and create additional positions for the Vehicle Manufacturing Sector. Why is it not working.
In this particular case it's very clear. The problem is naivety and/or greed on the part of the local AMWU shop stewards and the workers.
1/ The company was down around 25 - 30% on order volumes from their customers - Ford/Holden/Toyota.
2/ The company set to reduce it's workforce from 126 down to just above 100. The company then negotiated with the AMWU on a redundancy package for the workers in question. The company also warned that the company would fail unless the restructure occurred.
3/ AMWU recommended the company offer to the workers but the local AMWU Shop stewards recommended against the offer which the workers follow, voting down the offer.
4/ Receivers are appointed before the restart after the Easter shutdown.
Really, what we have here is an epic own goal from the dumarse workers. Socialistic "job for everybody" is just plain wishful thinking. Really, in times of contraction like now, when companies look to restructure it's often like being on a lifeboat. Say there are 100 workers but only places on a lifeboat for 90 (or it sinks). What do you do? Save 90 or drown 100?
Its time we realise this, and prepare for the inevitable, manufacturing in Australia must remain competitive on their own merit and pull their finger out.
Subsidised funding to companies which generate Billions in profit, threaten to windup operations locally, yet the support companies are the ones that are closing down.
GMH, Ford, & Toyota will have no problem sourcing these parts internationally or locally at the same rate but more likely cheaper if APV can't sort out their mess.
Time for a rethink on this position, if hundreds of millions of dollars on what seems to be an annually basis, can not support and retain jobs in car manufacturing then the writing is well and truly on the wall for everyone to see.
Actually, building cars is not an overly profitable enterprise. In just over 100 years of Automotive history, on average it's returns have been modest at best, with many long patches of massive losses. There were times of big profits too but overall it's not huge. In comparison with the rest of the world, overall our contribution to car manufacturing per car in Australia is one of the lowest.
Each time an announcement is made in regards to funding all the workers breath a collective sigh of relief. Now, surely they all know, its just smoke and mirrors. The biggest illusion, we all believe to be true. "Job security"
As I mentioned above - it's a workers own goal this time.
Reaper