Geelong Advertiser, Rebecca Tucker - August 23rd, 2008
MORE than half Ford Geelong's 1300 manufacturing workers will lose their jobs after the company yesterday announced it would slash production by up to 25 per cent.
The news sent shockwaves through the Geelong plant yesterday, still reeling from Ford Australia's decision in July last year to axe 600 jobs from Geelong when its six-cylinder engine production ends in 2010.
The latest cuts will be more immediate with Ford confirming between 300 and 350 jobs will be slashed at the Geelong and Broadmeadows plants in mid-November.
As the shock news filtered to staff, workers were also sent an email announcing Ford president Bill Osborne's resignation.
The email, which a worker showed the Geelong Advertiser at the plant, said Mr Osborne, previously the head of Ford Canada, had accepted a job in North America and that his decision was not related to yesterday's announcement.
Mr Osborne later said he would leave almost immediately to take a job that was not in the automotive industry and that his decision was personal.
Ford blamed fuel prices and other economic concerns for its decision to cut car production by 15 per cent, from 52 units an hour to 40. The cuts will reduce its car manufacture from 365 to 285 a day.
That was cold comfort to the Geelong workers who last night went home not knowing if they would have a job at Christmas time.
As the news hit the media, plant supervisors were meeting with workers to tell them the grim news.
Ford spokeswoman Sinead McAlary told the Geelong Advertiser she could not say how many Geelong jobs would be axed but said the losses would be voluntary and expected a 50 per cent split across both plants.
She said it was "a difficult day" for Ford but the company believed its future would be positive, with plans for a new engine in 2010 and production of the Focus to begin at Broadmeadows in 2011.
She denied staff had been kept in the dark about Ford's plans and said management addressed union representatives as soon as the decision was made this week.
Ms McAlary said Ford would continue to support Geelong and the news did not mean the death knell for the company, which has a historic base in the town.
She said Ford was committed to contributing to the Federal Government's $24 million Geelong Investment and Innovation Fund announced in time for last year's job cuts.
The Government on Thursday opened the final round of grants from the fund, which offers grants for projects to create new jobs and investment in the region, as Federal Innovation, Industry, Science and Research Minister Kim Carr was in Geelong to launch a $20 million innovative regions centre to be based at Waurn Ponds.
Former Premier Steve Bracks last week released his review of the automotive industry, recommending tariffs on imported cars be halved to 5 per cent by 2010, despite job loss fears.
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