Ford to cut 450 more jobs

October 16th, 2008, Geelong Advertiser

BREAKING NEWS Ford will cut another 450 jobs in Australia, chief executive Marin Burela (Marin Burela) said today.

Today's announcement brings to 1,400 the total job cuts at Ford over the past 15 months.
In August, it announced 350 jobs were to go from its Geelong and Broadmeadows factories in mid-November, while 600 jobs are to be cut by 2010 with the closure of the Geelong engine plant.

Ford chief executive Marin Burela said the economic crisis was having a severe impact on Ford.
He said the cutbacks would ensure that Ford could operate profitably and would help Ford move forward in the market.

``This is a proactive step to position ourselves for strength,'' Mr Burela told reporters.
The 450 job cuts will be from both Geelong and in Melbourne, Mr Burela has just said.
``Ford is determined to change its brand it the eyes of consumers and in the market,'' Mr Burela just said. ``The realitiy is it's something we need to move forward in the marketplace''.
The jobs will go by the end of the year, Mr Burela said.
The job cuts were the ``right thing to do'' to position the company in the current environment and to respond to what the market was looking for, he said.

Mr Burela said the job cuts - which he described as a ``separation program'' - would be carried out on a voluntary basis and all employee benefits and entitlements would be provided. Financial and career counselling would also be offered, he said.

``We don't take these steps and these actions lightly, but we are committed to working with our employees and our union partners to provide a smooth transition for our people as we move forward,'' he said.

``However we do need to take these steps. The steps are necessary actions to ensure that we right-size the business, to ensure that we can operate and operate effectively in a very dynamic and changing marketplace here in Australia.''

Mr Burela said the cuts, which he also called a ``rebalancing of our staff'', would affect both factory and office staff.
``It's absolutely critical that we take a proactive step, that we position ourselves for strength in terms of where we're heading into 2009 and beyond,'' he said.

He said slashing 1,400 jobs over the last year ``is the right course of action to ensure we can operate profitably, effectively and efficiently as we move forward''.

Earlier today, Victorian Premier John Brumby said he spoke to Ford yesterday and was very disappointed with their decision.

``They would argue obviously that times have never been tougher, they've put off something like 40,000 people around the world over the last few weeks, so we are not immune from that.
``I just appeal to employers, as we go through what is a difficult short-term economic environment, to hold people for as long as you can.

``I know it's tough, I know the global circumstances are as tough as you get, but we need to hold people as long as we can otherwise this will keep spiralling onward and more and more companies will simply reduce their labour force.''

The cuts are a further blow to Australia's struggling automotive industry.
In June, Holden announced it would cease production of four-cylinder engines at its Fishermans Bend plant in Melbourne, risking more than 500 jobs, while Mitsubishi announced in February it would close its assembly operations in Tonsley Park, Adelaide, costing 970 jobs.

The Australian Manufacturing Workers Union (AMWU) said it was concerned about Ford's continued production of big cars and called on the federal government to intervene to protect the industry and jobs.``The AMWU has been thinking for some time the job market for large sedans was problematic and we need significant intervention,'' said AMWU Victorian state secretary Steve Dargavel.

``Today is disappointing to our members who work on the sites and for workers on the supply chain.''
Mr Dargavel said car parts suppliers would also lose jobs as a result of Ford's cuts.