GM’s Holden decision a ‘hammer blow’ for staff, dealers

As many as 800 workers will lose their jobs and 200 dealerships will be without cars to sell following the death of Holden.

AMWU national vehicle division secretary Dave Smith said a significant proportion of the workers to be made redundant were members of his union. Picture: Aaron Francis

As many as 800 workers will lose their jobs and 200 dealerships will be without cars to sell following General Motors’ announcement that it will cease selling Holdens in Australia and New Zealand next year.

AMWU national vehicle division secretary Dave Smith said a significant proportion of the workers to be made redundant were members of his union, some of whom had been redeployed from the Fishermans Bend Holden ­assembly line in Port Melbourne after manufacturing ceased there in 2016. He said the news had come as a surprise, despite redundancy packages having been successfully negotiated last year.

“It’s come about with no indication that this was going to occur,” he said. “In terms of redundancy, all of that has been taken care of. It’s really now about getting out and talking to the workers and ensuring the proper support mechanisms are in place to help them transition to new employment.”

He said the decision would mean job losses at Holden’s proving ground at Lang Lang, southeast of Melbourne, as well as at the Port Melbourne head office. Parts warehouse operations at Dandenong South will not be immediately affected.

Mr Smith blamed the closure on globalisation, free trade and the Abbott government’s 2014 decision to cut automotive industry subsidies. “If you have open markets there are winners and losers, and blue-collar workers have been a major loser out of this,” he said. “That decision of the Abbott government has really cost Australia thousands and thousands of jobs.”

Mr Abbott said on Monday that it “wasn’t the job of the Australian government to run down the street waving a cheque book at foreign car producers”, but that it was “impossible not to feel sad and sorry” that Australian-made cars were no long sold.

Australian Automotive Dealers Association chief executive James Voortman said the news would come as a “hammer blow” for 200 dealerships, their employees and their customers.

“Holden is an iconic Australian brand with one of the biggest dealer networks in the country, and the social and economic effect of this development should not be underestimated,” he said.

“This was a decision made in Detroit and highlights the vulnerable position in which franchised new-car dealers can find themselves. It underscores the importance of the decisions the government will be making on the future of automotive franchising.”

Mr Voortman said it was “crucial” dealers were compensated for the investments they had made in “capital, time and ­effort”.

“GM has announced that Holden will honour all warranties, servicing offers made at time of sale and recall and safety-related ­issues,” he said. “Dealers will ­naturally step up and help service the large base of Holden customers.”

Melbourne Holden dealer Phillip Mance said the decision was disappointing, but not ­surprising.

“For us, we sell several brands, so it’ll be a matter of rejigging the business. The service and parts side of Holden will still go for 10 years,” said the 55-year-old, whose father Alan Mance founded their Footscray dealership in 1978.

“It’s very disappointing, but it’s out of our hands. Everyone’s been trying their guts out to sell as many cars as they can, but you’ve just got to grit your teeth and keep going, the Australian way.”