Holden workers will vote on a three-year pay freeze and cuts to conditions to keep the Holden plant north of Adelaide at Elizabeth open. The company is looking to save $15 million annually in labour costs to stay afloat.
John Camillo from the Federation of Vehicle Industry Unions says the future of 1,700 Holden workers hangs on their vote on Friday next week. Holden has made it quite clear that if the workers vote no to the variation the company may decided to close the factory and all its operations down in 2016.
More than half of the workers must support the secret ballot for the changes to be accepted. Holden’s commitment to Australia is also dependent on continuing government support to facilitate replacement of the Commodore and Cruze models.
In the meantime Opel, General Motors’ German brand, is closing its doors in Australia. The network of 20 dealers and 15 Melbourne based head office staff were informed of the decision this week. Opel started operating in Australia less than a year ago, selling the smaller ‘Astra’ brand of performance cars previously sold for over two decades under the Holden badge.
Job losses are unlikely at dealer level because most dealerships are multi-franchise and sell a number of other car brands, while Opel staff may be re-employed by GM’s sister brand Holden. Opel started operations in Australia in September last year with three car models, with an SUV to join the line-up next month. Sales did not meet expectations and the company struggled to make a profit in the Australian new car market.
Because of the shut down, existing Opel dealer cars will be sold at low clearance prices, with a strong possibility that warranty claims, parts and service will be provided by Holden dealerships.