400 workers at Holden’s Elizabeth plant in SA are to lose their jobs. In addition, a further 100 jobs at the company’s Victorian plant have also been made redundant.
Announcing the jobs cuts, Holden chairman and managing director Mike Devereux said today that the decision was unavoidable and was caused by factors out of the control of the company’s management.
Pointing to issues such as the high value of the Australian dollar, currency revaluations by other countries and the ultra-competitive small car market, he said that there have recently been “historic structural changes to the Australian economy” which brought about the job losses.
He said the cost of manufacturing a car is 60% higher today than it was 10 years ago.
Devereux said that the Elizabeth plant will reduce its output from the current level of 400 a day down to 335 cars a day. The changes will come into force on 1 August this year.
The company hopes to handle the redundancies through a planned separation program and has offered support to all sacked workers.
“We are taking every possible measure to ensure people can make a smooth transition,” he said.
This announcement follows the loss of 170 Holden jobs late last year.