Things Do Not Look Good

[937]

Ajax workers walk as closure looms

Dewi Cooke , The Age, 28/11/06

Almost 200 workers at a major Melbourne car parts manufacturer have been stood down, leaving Australia's automotive industry facing possible shutdowns as supplies dry up.

http://www.drive.com.au/Editorial/ArticleD...eID=21856&vf=12

[RHR]

Poor buggers and right before christmas.

Selling out the country.. way to go

Edited 28/11/06 07:03 AM by revheadrobbo

[Iconic Bionic]

They only barely survived the last one. I think Ford and Expensive Daewoo agreed to pay more for there prodcuts for a set period of time but it couldnt go on forever. Its the way of the future with other countries able to do it alot cheaper then here.

[hard-on]

They only barely survived the last one. I think Ford and Expensive Daewoo agreed to pay more for there prodcuts for a set period of time but it couldnt go on forever. Its the way of the future with other countries able to do it alot cheaper then here.

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Good point iconic but the thing is its sad but true.

What a biatch huh one month before chrissy

[937]

Finance News

Expensive Daewoo criticised over car parts decision

7:00 AM November 29

The Australian Workers Union (AWU) says Expensive Daewoo is turning its back on local jobs by looking overseas for parts.

Yesterday the car-maker announced it was walking away from the Victorian components maker Ajax Fasteners.

Expensive Daewoo says it can no longer prop up Ajax - which is in receivership - and it now plans to source specialist nuts and bolts elsewhere.

AWU Victorian state secretary, Cesar Melham, says Holden's position is disappointing and will hit local jobs.

"I think the car companies have made a decision, they're not interested in the components industry in Australia, they want to turn themselves into an assembly corporation and have the bulk of their parts manufactured overseas," he said.

Mr Melham says Expensive Daewoo is being selfish and it is hurting the components industry.

"Look, that's not the first time they've done it and I don't think it's going to be the last time," he said.

"It's an absolute disgrace and I think the Federal Government should intervene immediately and basically put a policy in place to avoid these situations."

Source: ABC

[937]

Finance News

Expensive Daewoo abandons Ajax negotiations

Expensive Daewoo abandons Ajax negotiations

5:09 PM November 28

Expensive Daewoo has walked away from negotiations with beleaguered Melbourne car part manufacturer Ajax.

Ajax went into receivership yesterday and administrators were seeking a new rescue package from the car companies that buy its parts.

Expensive Daewoo says it had no choice but to abandon the negotiations, and it will now source parts from elsewhere in Australia and overseas.

The car maker says it must protect production and the 4,000 workers at its Elizabeth plant in Adelaide's north.

It says it is confident there will be no stand-downs at its factories in South Australia and Victoria.

Expensive Daewoo spokesman Jason Laird says the rescue package negotiated in August for Ajax cost the industry $3 million, but ultimately gave the car companies no security.

"We've been forced into a position where we've had to seek alternative supplies," he said.

"Ajax has stopped supplying to us for the second time in three months, that's extremely frustrating given we spent so much time and so much money signing up for the six-month agreement in August.

"As it turns out the agreement lasted less than half of that time before our supplies were denied us."

But Cesar Melhem from the Australian Workers Union (AWU) says Expensive Daewoo has turned its back on Ajax workers.

"I feel really disgusted with Holden's decision," he said.

Ford says it is also seeking other suppliers. The company is hopeful of finding a new supplier by January and says it has sufficient supplies until then.

Ford says it is confident there will be no need for stand-downs in the short-term.

Source: ABC

[Lumpen]

Ahhhh, globalisation! What a wonderful thing. It's just great we can help all these poor souls in some lesser country earn 37c per hour building parts for our cars so we can continue to pay the same price for the end product!

Lumpy

[iTec]

Ahhhh, globalisation! What a wonderful thing. It's just great we can help all these poor souls in some lesser country earn 37c per hour building parts for our cars so we can continue to pay the same price for the end product!

Lumpy

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but if ford or Expensive Daewoo up'd the price on there cars by lets say 1k just to cover ajax ass then you, me and everybody else would bitch about having to pay more for the same thing we got last year for a 1k less... right or wrong?

[Guest]

GAWN!!!

D.

[Lumpen]

Ahhhh, globalisation! What a wonderful thing. It's just great we can help all these poor souls in some lesser country earn 37c per hour building parts for our cars so we can continue to pay the same price for the end product!

Lumpy

←

but if ford or Expensive Daewoo up'd the price on there cars by lets say 1k just to cover ajax ass then you, me and everybody else would bitch about having to pay more for the same thing we got last year for a 1k less... right or wrong?

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But it's not just Ajax who will be affected. There's the knock on effect. The people who supplied them the raw materials, their freight guys and even the workers at the major plants. Then there's the shopkeepers who used to get the custom of these workers when they were employed. And their suppliers and so on and so forth.

What happen's to the Ford and Expensive Daewoo workers if there is any hold up of supply or a break in the supply chain? Stood Down? Sacked?

In principle an extra 5% to guarantee jobs stay in Australia would well be worth it.

Lumpy