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Two elections key to car industry survival | comment

Holden workers will be required to be trained across more areas - and have fewer breaks.

The decision they collectively make in the vote for changes to their wages and conditions next Tuesday will not only affect Holden but communities far and wide — and the future of the entire Australian automotive manufacturing industry.

If the majority vote ‘no’ to the new conditions Holden is almost certain to lock the gates at the end of 2016, not long after FordToyota will likely follow in 2017 because the supply sector won’t be able to survive on the volume of one manufacturer.

If they vote ‘yes’ to the changes then Holden will approach whoever is leading the country after the Federal election on September 7 and ask for more money to get them over the line. In that scenario at least Holden management will be able to say they have done their best — as have the workers.

Holden workers have put their bodies on the line for “the Lion” before. They worked one day on and one day off during the Global Financial Crisis, and helped Holden soak up some down days when no-one knew what was around the corner. It’s a good thing they hung on because the then boss of Holden, Mark Ruess, navigated them out of certain disaster.

Did you know Holden narrowly avoided being shut down in 2009 along with General Motors’ US brands such as Pontiac, Oldsmobile and Hummer?
Four years on and now Mike Devereux is trying to save Holden from the heavyweights in Detroit. Fortunately, the Holden boss is an optimist. He can also see further in the future than we can (at least in terms of his company’s business plans).

He can see a time when the Australian dollar might not be riding a mining boom and the balance will swing back in favour of locally-made cars. He also genuinely believes in the importance of manufacturing (he must, because building cars is a loss-making exercise for Holden).

But Mr Devereux is also a businessman. Holden is asking its workers to swallow a bitter pill with some of the concessions we’ve revealed in our story — but in some cases it’s bringing them in line with other manufacturing sectors, and the real world. No-one denies that building cars is hard and highly technical work. But things are about to get tougher.

Workers will be required to be trained across more areas — and have fewer breaks. Even some of the suits in the office will have to roll up their sleeves and learn how to build at least part of a car. It’s all designed to keep the Holden factory running as efficiently as possible and as leanly as possible while fighting against wages in nearby developing countries that are a fraction of Holden’s.

The harsh reality is that it is cheaper and more profitable to make cars overseas. And that’s why we’re heading for two elections. The Holden vote will determine whether Australian manufacturing is in with a chance. But whoever the country decides should lead the nation after September 7 will have the final say.

This reporter is on Twitter: @JoshuaDowling