Collapse of Car Manufacturers in Australia and the Role of Unions

This essay discusses the collapse of car manufacturers in Australia and the role of unions in mitigating the risks. It also highlights the need for vocational training for employees to find alternative jobs.

Running head: AUTOMOTIVE INDUSTRY
Collapse of the car manufacturers in Australia and the role of the union
Name of the Student
Name of the University
Author Note

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Introduction
The change in the economies has resulted in the restructuring of the companies so that the
employers can meet the necessary demands of the employees in the market. The use of effective
strategies will result in avoiding the increment in the unemployment factors that affect the
industry. Toyota Motor Corporation Australia, Ford Motor Company of Australia and General
Motor Holden are planning to stop their units of car manufacturing within the country by the end
of 2017 due to the higher cost of operations and the low cost of the structures [1]. This will result
in creating a significant impact on the economy of Australia in certain parts such as the western,
southeastern and the northwestern part of Melbourne, Geelong and the northern part of Adelaide.
Regions such as Playford in the northern part of Adelaide and Dandenong in the southeastern
part of Melbourne have experienced a higher level of unemployment due to the closure of these
units. The shutting down of the companies has created an impact on the human and the lives of
the people, as their families are suffering as well. This essay will mainly focus on the role of
unions and the vocational training that could have been given to the employees so that it could
have mitigated the risks in closing the car manufacturing companies in Australia[2].
Discussion
The automotive industry that is present in Australia includes many industries under it
such as manufacturing medical equipments and electronics as well. This has provided livelihoods
to many people such as the technicians and the sales workers so that they can earn a better living.
The educational qualification of most of the workers is III/IV certificates that help them in
getting the job. Apart from that only 15 percent of the workers have a degree equivalent to
Bachelor’s or higher [3].

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The relative contribution of the manufacturing industry that is present in Australia has
shown a decline in the economy when compared to the other developed countries. The Gross
Domestic Product (GDP) was high as 13.2 percent in 1975 where as in the year 2013 it reduced
to 6.6 percent. The Australian Bureau of Statistics (ABS) has shown that in a period of ten years
that ranges from 2005 to 2015, there had been a decline in the rate of employment of 10.4
percent to 7.8 percent respectively within the manufacturing industry [4]. The major reason for
this decline is the advances in technologies along with the changes in the preferences of the
customers and the policies of the government as well.
According to [5], the automotive manufacturing sector results in employing 5 percent of
the total population that is present in Australia, which shows that there is no heavy demand of
being employed within the industry. It also employs people indirectly through the various levels
of supply chains that are present in the market for the transportation of the products and the
services. There were around 45,000 people who were employed within the manufacturing of
automotives and its parts in the year 2013 out of which the three major car companies that is
Ford, Toyota and Holden consisted of employing more than 11,000 employees. They had also
employed more than 50,000 employees in manufacturing the supply parts and the services that
were necessary in the supply chain.
In the southern part of Australia, the government had estimated that due to the closure of
the automotive manufacturing plants, it would result in the loss of more than 1500 workers who
were directly related to the company but it would also hamper around 4000 employees who were
included in the supply chain and more than 7000 people within the economy. The estimation f
job losses in the southern part of Australia have been much higher and have resulted in loss of
more than 20,000 jobs due to the closure of Ford and Toyota plants [6]. This has resulted in the

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loss of the economy and hampers the lives of the local people as well due to the loss of their
jobs. On a national basis, it has been estimated that there will be a loss of more than 200,000 jobs
due to the shutdown of the manufacturing plants of Toyota, Holden and Ford. The impact of the
loss of the jobs can be determined the way in which the manufacturing companies can diversify
their products and services in the markets along with the ability of the employees in finding new
jobs in the market [7].
The development of the workers by providing them adequate training and skills had to be
present in the initiatives that were taken up by the government so that it can help the employees
in looking for jobs after the closure of the industry. The union in the manufacturing plants did
not take up proper training methods so that it could have helped in enhancing the skills of the
workers, as they were not fluent with the English language. The union had to take up the effort
for providing better courses to the employees so that their recognized skills can be developed in a
better manner. The foundation courses that will help the employees in enhancing their skill sets
will help them in having a better opportunity of employment after the shutdown of the
manufacturing plants in Australia [8].
The unions had to make sure that early intervention can be ensured within the work place
so that it can enable the workers in reaching the dates of retrenchment and monitor the process as
well. The responses of the employees on a regional manner will allow the employees to stay
within the locality so that they can maintain their family ties as well. The screening and
processes of assessment will help the labor unions in getting the appropriate training procedures
so that it can increase the level of skills among them as well [3]. The unions need to provide the
training that are based on the level of knowledge possessed by the employees so that it can help
in filling the cracks in their own level of skills such as digital literacy and skills related to

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employability. The employees need to be provided the training that will help them in developing
their skills on a rapid manner so that it can be easy for them to compete in the market after the
closure of the automotive manufacturing plants in Australia. The employees need to be provided
with promotional services so that they can show case their skills in the market that will help them
in getting the job at a faster rate [5]. It will also enable the other companies in looking forward
for the required set of skills that they want from the employees so that they can be absorbed
within the new companies. Proper help from the experts need to be taken so that it can help in
providing sufficient training to the employees along with counseling as well so that they can be
able to get the jobs in the market in an easy manner [9].
The main focus of the unions is that the skills have to be transferred to the employees so
that they can improve their level of skills and benefit from it. It will also help them in getting a
competitive advantage in the market against the other employees who have applied for the jobs
after the automotive manufacturing plants have shut their factories [2]. The Learning and Skills
Council that is present within the country assigned almost 100 advisers so that they can advise
the employees regarding the skills that they have and the suitable options of working in a
company. The council also advised the union to pursue the education of the employees so that
they can get a better opportunity in the other companies. The training of the employees have to
be done on the community level so that specific training and education can be provided to the
employees that will help them in getting the opportunity of being employed within the
community [6].

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Conclusion
Therefore it can be concluded that after the closure of the automotive manufacturing
plants in Australia, it has been difficult for union to find alternative jobs that will help in
supporting their families. The training of the employees is required at the earliest so that it can
help them in developing their set of skills and broaden their horizon of knowledge as well so that
they can find better alternatives in the market. It will allow the employees to gain a competitive
advantage in the market against the freshers who are also looking for jobs in the market. The
training has to be provided at a local level so that they can stay within the area and find better
alternatives. The help that has been provided by the council will allow the employees to achieve
a higher level of education so that they can be qualified to get an alternate job opportunity. The
union needs to look after the employees so that they can get the adequate training, which would
help them in increasing their knowledge.

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Reference List
[1] Clibborn, Stephen, Russell D. Lansbury, and Chris F. Wright. "Who killed the Australian
automotive industry: the employers, government or trade unions?." Economic Papers: A journal
of applied economics and policy 35.1 (2016): 2-15.
[2] Murray, Georgina. Capitalist networks and social power in Australia and New Zealand.
Routledge, 2017.
[3] Toner, Phillip, and Frank Stilwell. "Why does Australia need manufacturing
industry?." Australian Options 75 (2014): 21.
[4] Vernon, Guy, and Mark Rogers. "Where do unions add value? Predominant organizing
principle, union strength and manufacturing productivity growth in the OECD." British Journal
of Industrial Relations 51.1 (2013): 1-27.
[5] Wilde, Peter D. "Economic restructuring and Australia’s changing role in the world economic
system." Industrialization in Developing and Peripheral Regions. Routledge, 2017. 16-43.
[6] Levinson, Charles. International Trade Unionism (Routledge Revivals). Routledge, 2013.
[7] Law, Christopher M. Restructuring the global automobile industry. Vol. 4. Taylor & Francis,
2017.
[8] McPhail, Ruth. Employment Relations: An Integrated Approach with Student Resource
Access for 12 Months. Cengage AU, 2015.
[9] Bieler, Andreas, John Hilary, and Ingemar Lindberg. "Trade unions,‘free trade’, and the
problem of transnational solidarity: An introduction." (2014): 1-9.

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[10] Miller, Seumas. "Trust, Conflicts of Interest, and Fiduciary Duties: Ethical Issues in the
Financial Planning Industry in Australia." Capital Failure: Rebuilding Trust in Financial
Services (2014): 305.