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  Afternoon shift under threat ... Morning shift workers leave the Holden manufacturing plant at Elizabeth.

Holden has just confirmed significant work changes to its factory in Adelaide.

It is dropping to a single shift in the general assembly area responsible for the Commodore and Cruze but says it is maintaining a two-shift operation in the rest of the facility. There will be job losses among fixed-term contractors and casual labour, but full details are not yet available.

Holden says the change is a response to the poor export outlook for the company at a time when the strong Australian dollar is making things tough for all exporters.

“Holden has set a very clear business strategy to grow sustainably, lower its cost base and make a small car in Elizabeth to ensure we are profitable on domestic production,” says the managing director of GM Holden, Mike Devereux.

Holden intends to move to a 60-second production cycle by May that will allow the factory to produce up to 400 cars a day, allowing the company to maintain volume while reducing costs. Devereux says the new schedule will also help to manage complexity in a factory with two very different cars and improve quality. Output is planned to continue at 2011 levels, which means around 90,000 cars.

“At the current exchange rate we won’t be able to realise further growth in our export programs so the shift changes allow us to maintain production levels and do it more efficiently," says Devereux.

“With these tough economic conditions it’s our obligation to our people, and those that invest with us, to build a sustainable business and to continuously improve productivity. No voluntary or forced redundancies for permanent Holden employees are expected as result of the shift changes."