Friday, 24 May 2013

Closing Down of Ford

Closing Down of Ford


 Media Release – 24 May from Des Moore
Founding Director of the Institute for Private Enterprise 

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Nothing could better illustrate the inflexibility of Australia’s system (sic) of workplace relations than the announcement by Ford that it will stop production in 2016.

Why has Ford done this?

There is more than one reason, of course. But Ford rightly drew attention to the high cost of production in Australia. And this is not simply the usual excuse trotted out by the ACTU and unions generally viz the higher exchange rate that has applied but now looks like moving down.

A major problem has been the inability of Australian businesses to negotiate wages and other terms and conditions that allow those businesses to compete internationally.

An important factor in the recovery of the US motor car industry was its ability to negotiate lower wages than had previously been agreed but were clearly out of line with more competitive industries in Japan and other countries.  (emphasis added)
Such a solution was never considered here (or if it was it was discussed behind closed doors). Instead taxpayers have in effect subsidised the wage rates determined by our “fair” award system.

Why wasn’t a negotiation approach considered? The simple answer is that, under the disastrous arrangements for regulating wages and conditions, it would never have been accepted by our so-called Fair Work system – a system that has set wage rates that are unfair to the workers now out of a job.

Nor could the Gillard government have suggested such a process because it is beholden to the union movement.

If Australia is to prevent the decline of our manufacturing industry it is vital that our next government take early steps to allow freedom for employers and workers to negotiate terms and conditions that allow our businesses to compete.

Des Moore
Director, IPE


  1. it was the unions that put 15,000 ppl out of work at hostess here in the us..

  2. People should get their fact right ford closure had nothing to with Australia unions, wages, or carbon tax infact it has nothing to do with our Australia industral laws.

    Four years ago like European car manufacturing were in deep crisis due to a huge down turn in the markets caused by America banking system loan scandal that started in 2002 under president
    George Bush who like Former Prime Minister John Howard allowed banks and business to do what they want without any supervision which lead to the global financial crisis.

    The car industry in American totally went under by 2007 because they had heavily borrowed from the banks to expand by 2009 they were asked to repay that money under a federal American tax deal part there of was to close its foriegner operations by 2018 and move most to China new plant where they can produce 250000 cars while keeping its head quarters in Amercia until 2021.

    This was coined by shareholders meeting and president of ford industres as a way to repay the debt USA 390 billion dollars plus interest,

    Australia plant was actually mention to close in 2012 but was maintain for another year while ford CEO in Amercia decided if they could keep this plant which is over 75 years ago an could only produce 20000 or more compared to its China operation new plant even American plant are set to go by 2018.

    The high dollar and carbon tax is excuse by liberal party and media to bash unions and labour but behind the scenes it is a total different ball game it is all about a deal to consolidate ford industries in China to be able to meet the tax agreement deal made in 2009

  3. Individual contacts between employers and employees are a farce and they lead to employers abuse it failures under John Howard,

    Which was proven by current affairs, today tonight, four corners, and by Howard's own industrial umpires which concluded work choice laws were being exploited on the most vulnerable Australia low income earners.

    Howard liberal party lied and keep this report from being exposed and it also lied about the surplus that never was but a figure on paper.

    1. Amazing grasp of the English Language Anonymous 2.

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