GM Holden chairman and managing director Mike Devereux announces that 400 jobs will go at Holden's Elizabeth plant. Picture: Tait Schmaal Source: adelaidenow
THE boss of Holden, Mike Devereux, said he would resist any move to guarantee jobs in return for future taxpayer funding - a move which could put the company on a collision course if there is a change in Federal Government at the next election.
The comments come one day after News Limited revealed that Holden did not guarantee one job in return for the $2.17 billion in taxpayer dollars pledged to it over the past 12 years.
"I think it's quite a difficult thing to do (to guarantee jobs) and it's highly unlikely," Mr Devereux told News Limited.
"The current approach, and quite frankly the approach of past governments both Liberal and Labor, has been to not restrict the commercial decisions of the company.
"Our current agreement with the federal government does not include minimum employment levels. (The assistance) is designed to generate the capacity to build things ... and jobs flow from that."
"There are no guarantees in life," Mr Devereux said."I don't know how many cars Australians will buy in 2016."
Holden yesterday announced it would axe 500 jobs - it's biggest redundancy program since the GFC - and the supplier industry today said job losses would likely follow in its sector as well.
Sophie Mirabella, the federal shadow minister for industry, told News Limited that jobs guarantees should be part of any future government assistance packages to the car industry.
"I think the car industry can survive [but] there needs to be different guidelines and benchmarks. Obviously the issue of jobs needs to be part of the revised guidelines for funding," Ms Mirabella said.
"The South Australian Premier, Jay Weatherill, did a handshake deal to secure jobs (at Holden) for $50 million. What did the Federal Government ask for in return for a $215 million grant? There was obviously no commitment around the workforce.
"This current situation highlights the problem when there are individual ad-hoc deals done behind closed doors," Ms Mirabella said.
"Clearly the current government policies haven’t worked … because we’ve seen thousands of workers lose their jobs."
According to the latest Census data about 42,000 workers are directly employed by about 150 automotive suppliers that provide Holden, Ford and Toyota with the parts to build cars, including instruments, panels, bumper bars, glass, seats, rubber seals and steering wheels.
But 92,000 workers have lost their jobs in the manufacturing sector in the past five years, according to federal employment figures.
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