No assistance to Holden workers

With the release of MYEFO today, likely to reveal $400 billion or more deficits over four years, there is no reason the Government should provide further assistance to workers made redundant by the withdrawal of Holden from Australia.

These workers have helped themselves to huge subsidies over decades, and will receive Government-subsidised redundancy benefits of between $300,000 and $500,000.

The Prime Minister should not throw yet more money at these workers. Their redundancy benefits are more than sufficient.

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J has an economics background and is a part-time consultant
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36 Responses to No assistance to Holden workers

  1. Badjack

    If Abbott throws more money at the car workers, albeit for redundancies, he will lose a huge amount of support with the 53% of people who voted him into Govt. If he is listening to the people as some commentators are suggesting he will run a mile from anymore welfare for these overfed/paid labourers. Surely he wants to spend more than 3 years as PM.

  2. Muphin

    Samuel J. At last their is someone else who has the intestinal fortitude to stand up the unions. My advice to the unions is “Bugger Off

  3. Muphin

    @Badjack. Why would Abbott pay their redundancy packages?? It is Holdens responsibility to pay them, NOT Abbott.

  4. Sparkx

    The government should not be getting involved in the redundancy packages. Nor should they concern themselves with retraining. It should be the unions putting their hands in their pockets and coming up with ways to find new employment for their members. How much of the subsidies, given so generously by successive governments, have landed in the union coffers? Time for a bit of “give” rather than “take” from the unions.

  5. iamok

    They need to stop the handouts, and as importantly they need to sell the message.

    This govt really really needs a media strategy. At the moment they have none – or a very poor one – and it is slowing their ability to deliver what is needed. It is as fundamental in successful business to sell the benefits as much as it is to deliver the bottom line.

    It is also clear from trolls, polls and media jerks that the walking dead have no understanding or care about what needs to be done and why, so the selling becomes even more important.

  6. iamok

    Post script to my post above. I am not talking about spin – we are all sick to death of this from both sides. I am referring to considered and targeted marketing so that people understand what’s in it for them. Simple.

  7. Badjack

    @Muphin……..did I suggest Abbott should pay for redundancies? I think I suggested he run a mile from doing so.

  8. Cold-Hands

    Create a government funded redundancy package, as not to do so will be painted as politically heartless. Then means test it. Given that Holden employees will be receiving redundancy packages based on their generous over-award salaries, none of the Holden workers losing their jobs should qualify for the government money. Problem solved.

  9. entropy

    Of course they should offer Holden workers a retraining package. The ALP and the press gallery public will demand it.
    So construct a special package of a wide range of existing measures already generally available to retrenched workers in the community and make this special package available only to Holden workers. All in the one place.

  10. entropy

    Oh, asse C-H has improved my version with a means test. Soft claps.

  11. entropy

    Oops, must spell check.
    Asse= I see.

  12. AP

    Not to mention, 3-4 more years in the sheltered workshop in which to retrain (night classes? like the rest of us?) and find another job. I wonder how many of them actually take their own initiative and do something like this?

  13. egg_

    between $300,000 and $500,000

    So that’s 0.9 – 1.7 SnowCones (@$350,000 p.a.)?

  14. Crossie

    The horrible budget deficit figures show that what Rudd and Gillard governments did to Australia the unions did to the car makers. They are totally unsustainable.

    And no, the government should not give a red cent to Holden to fun their redundancies, or anything else.

  15. OldOzzie

    Having read the Holden and Toyota Enterprise Agreements – give them “Nothing”

  16. Fibro

    Just give them Thommo’s credit card. Apparently it takes years to work out it’s being used and rorted.

  17. Crossie

    Holden management are not very good at what they do. Most businesses saddled with an extortionate workforce made everyone redundant and then started again with contracts. Having governments give them money for nothing made Holden lazy. The parent company in US didn’t do any better.

  18. 2dogs

    Is this amount the normal income tax concession for redundancy payments, or is there a specific government subsidy for these redundancies on top of that?

  19. duncanm

    Create a government funded redundancy package, as not to do so will be painted as politically heartless.

    Why, why WHY?

    This country already has generous redundancy entitlements – to be paid by the employer.

    I’ve been made redundant three times… and each was a very nice chunk of money, thank you very much.

    No government subsidy is required or should be given. Why are a couple of hundred motor workers special?

    As said above, the unions should be getting in and finding these guys new employment, providing retraining and counselling where required, etc etc. THATS what unions should do.

  20. Ant

    Handouts?

    They should seize that redundancy money from those bludgers and hand it back to the taxpayers they’ve been shafting all these years.

  21. sabrina

    They have at least 3 years of work, and then have at least another 3 years worth of salary equivalent through redundancy. Why assist again, when they have enough time to adjust?
    Having said that, it will be good to know the redundancies received by the management people.

  22. Rabz

    They should seize that redundancy money from those bludgers and hand it back to the taxpayers they’ve been shafting all these years.

    This.

  23. candy

    Some retraining options to those interested in a new career is all that’s needed.

    I’d like to hear Tony Abbott say Holden workers are no different from any other worker who have been retrenched and found the wherewithal to move on and make the best of things.
    He shouldn’t worry about his popularity – he doesn’t have much anyway! so be tough.

  24. Johno

    Samuel

    You appear to be under the misconception that this government is actually interested in reducing its spending. Can you provide any evidence to support this belief?

    All I have seen is a lot of posturing, but very little real action.

  25. Motelier

    calculate the amount of government given to each Holden employee that is made redundant, subtract that from any future government assistance in the future like dole payments and subsidized retraining until the net is zero. Then the wukkers are level with the great unwashed.

  26. HK_Brother

    “The Australian automotive industry is going to die!”
    => Now the Australian people can focus on making something else that offers more value to the nation and possibly help recover from the bloody financial hole the previous Govt left us…We don’t have to make cars. We can specialise in something else that no other country does. Quality products and services is what sells.
    => There are also consequential benefits for Australians. We can eventually get rid of protection mechanisms that had increased car acquisition costs.

    “No assistance to Holden workers”
    => Their union representatives have already arranged a good redundancy package for them.
    => Why does the Govt need to give them more of our taxpayer’s money?

    “But what about those poor workers!”
    => The workers are not children. They are free to re-invest that money they will have received in order to set up a new future for themselves. Whether it be starting their own business or updating their skills for a new career path.
    => In fact, the workers will have 3 years to make the necessary arrangements BEFORE Holden shuts down manufacturing.


    Robotics, automated manufacturing, and 3D printing are the future. They require fewer humans. (People only needed for quality assurance, design, prototype and testing)…Effectively, individuals and technology will eventually make big manufacturing unions obsolete. I suspect these unions will become extremely desperate in the future. Dragged kicking and screaming to the end.

    The more I think about it, the more I realise the ALP as a whole is in serious trouble in the long term future. If everyone starts making their own stuff with automated tools…What’s the point of a big, industrial union?

  27. Combine Dave

    The more I think about it, the more I realise the ALP as a whole is in serious trouble in the long term future. If everyone starts making their own stuff with automated tools…What’s the point of a big, industrial union?

    The rise of admin/public sector unions protecting the millions employed in surplus-make-work-jobs made possible by automated factories/farms?

  28. Mr Rusty

    This govt really really needs a media strategy. At the moment they have none – or a very poor one – and it is slowing their ability to deliver what is needed. It is as fundamental in successful business to sell the benefits as much as it is to deliver the bottom line.

    I think a REALLY good move for the Coalition would be to hire Rowan Dean as a media strategist / advisor / director of comms.
    He is conservative, smart and been in advertising for years, would be absolutely perfect for getting the message out and informing the public.

  29. Rohan

    So we’re looking at 1700 odd Holden redundancy payments between $300k-$500k. Lets take the average being $300k.

    That’s a smidge over half a billion. Here’s a thought, why don’t these ex employees purchase the remnants of the business and make a go of it themselves? After all, the equipment will be going at bargain basement prices…

  30. egg_

    The rise of admin/public sector unions protecting the millions employed in surplus-make-work-jobs made possible by automated factories/farms?

    +1

  31. Yohan

    I have friends who took a payout from Holden’s, and others who currently work at Holden’s, and I know exactly what the severance packages are.
    Please stop quoting Grace Colliers retarded article in the Australian, it was just an unconfirmed rumour about payout figures and poor journalism on her part.

    New Holden’s workers start at $24 per hour, rising to about $30 per hour once they have completed VIC certifications (which takes about 18 months). So the base wage without overtime is $960 to $1200 per week.

    The redundancy payout is 4.5 weeks pay for each year of service, plus another $1000 for each year of service, plus accrued sick leave and annual leave (both are legitimate entitlements).

    A 10 year Holden veteran will be getting well under 100k payout.

  32. Pat Warnock

    Let’s see the redundancy packages first and remember the four years notice.

  33. Combine_Dave

    A 10 year Holden veteran will be getting well under 100k payout.

    That’s why there needs to be gov assistance but… why shouldn’t it be means tested?

    This would prevent the golden few that are getting 100k plus payouts from scoffing more of the taxpayers funds while helping those among them who were not as fortunateto find another job.

  34. Gab

    And when Holden does close, the average production worker stands to receive a redundancy package of between $300,000 to $500,000.

    Hopefully there are lessons in the Holden saga. Ordinary Australians cannot afford to prop up businesses that cannot make money.

    Ken Phillips is executive director of Independent Contractors Australia and author of Independence and the Death of Employment.

    Read more: http://www.theage.com.au/comment/holden-the-car-makers-australian-exit-is-a-good-thing-20131214-2zdvv.html#ixzz2nnc60YmU

  35. Gab

    The redundancy packages are so lucrative, Holden “workers” were falling over themselves to get the cash.

    Updated Fri 5 Jul 2013, 2:33pm AEST
    Holden redundancy offers go to workforce Photo: Holden redundancy offers go to workforce

    A union said many Holden workers were finding out today whether they would be offered voluntary redundancy.

    About 500 workers at the car maker’s Elizabeth plant in northern Adelaide put their hands up to take a package.

    The number interested was about 100 more than the company sought.

    http://www.abc.net.au/news/2013-07-05/holden-workers-getting-details-of-voluntary-separation-packages/4802302

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