Ford to cut 450 more jobs in Victoria

(AAP) Ford has announced 450 new job cuts at its two Victorian plants as the company struggles amid the global economic crisis.

Thursday's announcement brings to 1,400 the total number of job cuts at Ford
Australia over the last 15 months. The company has slashed 40,000 jobs worldwide in
that period.
It follows a warning from car component makers that more than 7,000 jobs will go
unless the federal government acts now to boost domestic vehicle sales.
Ford chief executive Marin Burela said the cuts, which will be felt equally at
Ford's Geelong and Broadmeadows plants, were essential to shore up the company in
the current economic climate.
"It's absolutely critical that we take a pro-active step, that we position ourselves
for strength in terms of where we're heading into 2009 and beyond," he said.
He said slashing 1,400 jobs "is the right course of action to ensure we can operate
profitably, effectively and efficiently as we move forward".
In August, it announced 350 jobs were to go from its Geelong and Broadmeadows
factories in mid-November, while last July it said 600 jobs were to be cut by 2010
with the closure of the Geelong engine plant.
Industry Minister Kim Carr told the Senate the latest cuts were another blow to the
industry but did not mean automotive manufacturing in Australia was in terminal
decline.
But, he admitted, the industry's situation was "particularly troubling".
"We all acknowledge that the automotive sector is facing exceptional difficulties as
a result of international difficulties," he said.
He said the government was "taking decisive action to support this industry and
every other Australian industry sector by increasing the liquidity and the stability
of the financial system".
Mr Burela said Thursday's cuts - which he variously called "rebalancing of our
staff", "outbalancing", and a "separation program" - would affect both factory and
office staff, and would occur between now and the end of this year.
Ford has about 4,700 staff at its Victorian plants.
Mr Burela said the global economic crisis and recent poor sales had affected Ford.
He said the cuts would be on a voluntary basis and all employee benefits and
entitlements would be provided. Financial and career counselling would also be
offered.
Mr Burela said he spoke to Victorian Premier John Brumby on Wednesday night "and he
was very sympathetic to our situation and the actions we had to take".
"If we didn't take action now, if we procrastinated, it would take us down a path
where it didn't make sense for any of us," he said.
Mr Brumby, however, said he was very disappointed with Ford's decision.
"I know it's tough, I know the global circumstances are as tough as you get, but we
need to hold people as long as we can otherwise this will keep spiralling onward and
more and more companies will simply reduce their labour force," he said.
Workers at the Geelong plant said they held concerns for the future of the industry.
Shop steward Darryl Palmer, who has worked at the plant for nearly 20 years, said
any further losses could be "catastrophic" for Victoria's biggest regional centre.
"It's the flow-on effect to suppliers," he told AAP.
Workers had been expecting the announcement, he said.
Many of the workers arriving for Thursday's evening shift said they would be
prepared to take redundancy packages.
The Australian Manufacturing Workers Union (AMWU) said it was concerned about Ford's
production of big cars and called on the federal government to intervene to protect
the industry and jobs.
"The AMWU has been thinking for some time the job market for large sedans was
problematic and we need significant intervention," said AMWU Victorian state
secretary Steve Dargavel.
"Today is disappointing to our members who work on the sites and for workers on the
supply chain."
Mr Dargavel said Ford had also announced "down days" at its Broadmeadows plant which
effectively means staff will be working two or three day weeks.
The cuts are a further blow to Australia's struggling automotive industry.
In June, Holden announced it would cease production of four-cylinder engines at its
Fishermans Bend plant in Melbourne, risking more than 500 jobs, while Mitsubishi
announced in February it would close its assembly operations in Tonsley Park,
Adelaide, costing 970 jobs.
A delegation from the Federation of Automotive Products Manufacturers on Wednesday
presented the federal government with a four-point strategy to stimulate domestic
vehicle sales.
It warned that Labor's multi-billion dollar plan for the automotive industry, due to
take effect next year, might come too late.
Among the changes sought by the component makers is for the government to bring
forward the replacement dates of its car fleets, possibly donating used cars as part
of its budget for overseas aid.
They also want fringe benefits tax reduced to a nominal amount for the next three
years for Australian-made cars bought for corporate car fleets.
Opposition Industry Spokesman Eric Abetz sought to blame the job losses on Labor.
"Well over 3,000 jobs - five per cent of the workforce - have been lost in the
Australian car industry since Labor was elected 10 months ago on a promise to 'save'
Australia's car industry," Senator Abetz said.