Ford to Close Plants, 1200 Australians to Lose Their Jobs
Hundreds of Ford workers in Australia were in shock as the company announced its plan to shut down operations by October 2016. As the news broke out, hundreds of workers were devastated. It did not matter whether they worked there since three decades back - people will lose their jobs in three years time.
Ford president Bob Graziano said the company is planning to shut down their Broadmeadows and Geelong plants leaving around 1,200 Australians jobless. The announcement came after Graziano admitted the company lost more $141 million in the past year amounting to a staggering loss of $600 million in just five years.
"Our costs are double that of Europe and nearly four times Ford in Asia," Graziano told the press. "The business case simply did not stack up, leading us to the conclusion [that] manufacturing is not viable for Ford in Australia in the long-term." He added.
Despite the pending job loss, Ford says its dealerships along with research and development will continue. The company will continue employing over 1,500 Australian beyond 2016.
According to Leigh Diehm form AMWU, workers were not happy to hear the news, some were devastated.
"We have great concerns about the flow-on effect into the auto components industry and the supply chains for Ford," Deihm explained.
"Our members have just been faced with the reality they are going to be unemployed in October 2016. Unemployment in this state is at a high and they are very concerned about their futures concerned and where to from here."
"We will be sitting down with Ford this afternoon working our way through and talking to our members on the two sites over the coming months and years." He added according to ABC.
In defense of the company, Graziano told the press the company did not leave any stones unturned. Ford Australia has exhausted all means to earn profit and avoid job loss. Prime Minister Julia Gillard said the government will continue to push for its pledge to support retrenched worker. Federal Opposition Leader Tony Abbott said the company's devastation could not have been more upsetting.
