How the unions and subsidies wrecked Holden

Ford is closing down its taxi plant and Holden’s own taxi plant is precarious.

Both companies have taken literally billions in handouts and subsidies all to feather-bed and support rapacious union labour.

It turns out that if Holden’s workforce accepted wages for what they were actually worth the company would be immediately profitable.

In the past, Holden has misinformed us on its workers’ salaries, claiming the average worker earns $55,000….

While the Modern Award base salaries for vehicle builders are in the modest $37,000-$42,000 range, the base rates in Holden’s agreement are in the $60,000-$80,000 range. Add on to this loadings and penalties and I am comfortable betting that if Holden was compelled by government, as it should be, to produce the group certificates of workers, earnings would show in the $100,000 to $150,000 range.  

Putting aside wages, the agreement does not let Holden manage its own business. It cannot even hire a casual for one hour without union permission. You just cannot run a business like that. There is, of course, an easy way to fix all this and save Holden. If the workers want to keep their jobs, they can. If Holden wants to stay in Australia, it can. If the union wants its members to have ongoing work, it can.

If the Holden workers went back on to the award, Holden would be miraculously transformed. Labour costs would drop by somewhere between 50 and 75 per cent.Productivity would skyrocket. No productivity inquiry would be needed. Holden might even make a profit and pay the country a dividend as return on its many years of “co-investment”.

Feather-bedding unions and poor productivity, just like at Ports of Auckland. And now the real salaries are revealed we sit and wonder how they ever truned an honest dollar.


Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to daily code cracker?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.

Tagged:
39%