Government stuck in neutral on car worker assistance

Senior car industry figures have blamed the Federal Government for delaying a $100 million assistance package for manufacturing workers made redundant when Australia's three remaining car factories close by the end of 2017.

The Federal Government has missed its own self-imposed deadline of March for announcing the details of the package designed to help workers change careers.

Ford is so far the only one of the three manufacturers to commit to the additional funding program -- which is on top of the redundancy payments owed to workers -- and has already started making instalments on the $10 million it pledged to the scheme.

Holden and Toyota are understood to have privately pledged at least $15 million each -- 50 per cent more than Ford because of their larger workforces -- but they have not handed over any money and the deals are yet to be finalised because the government has not detailed how the money will be spent.

"We're not going to be part of a government PR stunt, we want to fund programs that are meaningful," said a senior car company insider. The extra funding by the car makers is on top of the generous redundancy packages, said to be up to almost two years' pay for long-term workers, bringing the total payout for all three car makers to in excess of $250 million, based on conservative estimates.

Toyota's redundancy bill for its 2500 factory workers is expected to be at least $112 million, Holden's 1700 workers are forecast to receive in excess of $76 million while Ford's 1500 employees are likely to leave with at least $67 million.

Unions have argued for extra assistance because many of the employees at Australia's three car factories have never worked outside the industry before and will need specialised career advice.

"Holden has offered a substantial contribution to the Australian Government's Growth Fun, which was announced following Holden's decision to end manufacturing in Australia," said Holden spokesman George Svigos. Holden's contribution "will be directed to the skills and training measures to assist Holden employees in their transition to new careers," he said.

Toyota Australia spokeswoman Beck Angel said: "We are still finalising the details, however we will provide tailored assistance to all those impacted and will run regular job centres up until 2017."

The delay of the funding announcement comes as Australia's three car makers have taken the unprecedented step of putting aside their rivalries and working together because they are concerned about keeping their factories running until their planned closure dates.

With production output continuing to fall, Toyota, Holden and Ford are trying to ensure that parts suppliers can also go the full distance. "That's where we are most vulnerable," said an industry insider. "If the suppliers collapse early, the whole industry will collapse early."

To that end, Ford took the unprecedented step of inviting representatives from Toyota and Holden to a supplier conference it hosted in Geelong a fortnight ago. About 40 local parts suppliers met with about 20 senior purchasing and planning executives from Ford in Detroit, China and Australia, while Toyota and Holden each sent nine representatives from their purchasing divisions.

"We want to work together with our suppliers and work closely with the rest of the industry to make sure there is a more orderly transition (to the end of manufacturing)," said Ford Australia spokesman Wes Sherwood. "We are doing everything we possibly can to make it to October 2016." Mr Sherwood said foreign Ford executives also met with Australian suppliers about possible export deals.

"We've already helped nine Australian suppliers earn global business and we think the recent supplier fair will help generate even more opportunity, even though it will take time," said Mr Sherwood. "We want our suppliers to remain viable and hopefully find new opportunities."

Ford is due to host the first of its job fairs at its Geelong engine and stamping plants on Thursday April 3, followed by a similar jobs fair at the Broadmeadows car assembly line at the end of April. All 750 workers at the Ford Geelong site have been invited to meet with about 20 training organisations and potential employers.

Meanwhile, Toyota Australia announced promotions for the two most senior executives at the company. The current President and Chief Executive Officer Max Yasuda has been appointed to the newly created role of Chairman of the Board, effective 1 May 2014.

The Executive Vice President and Chief Operating Officer Dave Buttner has been promoted to President of the company, also effective 1 May 2014. Mr Buttner will be responsible for all operations, including Toyota Australia's transition to a sales and distribution company when it stops building cars by the end of 2017.

"The next few years will be a turning point for the company as we work hard to support our employees and shape our future direction," Mr Yasuda said in a media statement. "The new role will allow me to provide more independent advice and support the decision making processes of the Board."

This reporter is on Twitter: @JoshuaDowling