Forced redundancies start at Holden

GM HOLDEN has started a process of forced redundancies at its South Australian Elizabeth factory after it failed to find takers for the 270 voluntary redundancy packages it announced last month.

The company has already started winding back production from 290 cars per day to 240 and will ultimately cease all production in two years, with a series of job cuts expected to accompany the wind-down.

In a statement, the car-maker confirmed it had failed to find voluntary takers of the initial 270 packages and it, reluctantly, had to force redundancies.

“As previously announced, Holden’s workforce at Elizabeth has unfortunately needed to be reduced by 270 positions, in line with the plant’s new production rate,” it said. “The majority of this downsizing has been on a voluntary basis, however we have unfortunately had to carry out a number of involuntary redundancies. This very difficult process is now complete.”

Holden was unable to confirm what proportion of the 270 positions were involuntary, but it is believed up to 90 people were subject to the first round of forced redundancies.

The official release highlights the company's commitment to helping the employees affected by the job cuts to transition into new roles.

“Our overriding goal is to treat our people with the respect and dignity they deserve and we appreciate the impact decisions like this have on employees and their families,” it said. “Holden is committed to supporting staff through this transition process.

“Through Holden’s $15 million contribution to the Federal Government Growth Fund, all our people have access to career counselling, training and job-search assistance, and will continue to have access to this support network after they leave Holden.”

The statement also allays speculation that the company is preparing to shut down production ahead of the current 2017 date.

“Holden remains committed to building world-class cars at our Elizabeth plant until the end of 2017 and selling world-class cars in the Australian market for many, many more years after that.”