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No room for doubt about Holden | comment

Holden needs to cut its production costs and it also needs an increase in government assistance.

If Holden workers were in any doubt about the seriousness of the dilemma facing the company’s manufacturing operations, there must surely be none now.

Australian Manufacturing Workers Union SA secretary John Camillo addressed two shifts of 300 or so employees on the front lawn of Holden’s car assembly line at Elizabeth yesterday afternoon.

In his opening remarks Mr Camillo said it wasn’t a media stunt -- as he stood on the back of a rented truck to address the gathered throng. More workers would have been able to attend if the meeting was held inside Holden’s secure complex -- an offer reportedly made by Holden.

Stunt or not, Mr Camillo is rightly rallying his troops, keeping them updated and assuring them it is taking action. Unfortunately Holden holds all the cards. Holden wants to bring the annual wages of its factory workers closer to the national manufacturing average of $54,000, rather than the $66,000 average inside the Holden shop.

Holden has already stated that it costs $3750 more to make a car in Australia than it does in other General Motors factories. Which begs the question: how on earth does Holden expect to save that much just in worker entitlements and other efficiencies?

The reality is that is only part of the equation. Holden is working both angles: it needs to cut its production costs and it also needs an increase in government assistance. If it can achieve both these things, Holden is in with a chance.

As of today, Holden is facing three scenarios:

* If the Federal Labor government is re-elected and Holden workers find the cost efficiencies and wage cuts that Holden needs, Holden will continue making cars until at least 2022.

* If there is a change of government and Holden workers find the cost efficiencies and wage cuts that Holden needs, there is a 50:50 chance Holden will continue making cars until at least 2022 -- because the Federal opposition has consistently said it will cut $500 million from industry assistance (and Holden wants more, not less assistance).

* If there is a change of government and Holden workers stand their ground and refuse to take a pay cut and/or find new efficiencies, Holden will probably stop making cars in late 2016, not long after Ford.

The workers have until the week of August 9 to vote on their new wages and conditions, Holden has a meeting with the top brass of General Motors in September -- before the next round of upgrades to the factory occur in the summer shutdown.

That’s why it is all coming to a head now. Holden is about to make the first of a series of multi-million-dollar investments that are the groundwork for the Cruze and Commodore sedans to be built beyond 2017.

Throw the uncertainty of a Federal election into the mix and you can begin to understand why Holden and its workers are feeling uneasy.

This reporter is on Twitter: @JoshuaDowling