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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-01 Daily Xml
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GENERAL MOTORS HOLDEN

Mr SIBBONS (Mitchell) (15:42): I rise to speak about an industry that is very important to me and many South Australians. The recent announcement that the Holden plant at Elizabeth will resume a second shift in November is absolutely fantastic news for all South Australians, including many constituents who live in my electorate of Mitchell. The cancellation of the second shift occurred in May 2009 as a direct result of the global financial crisis. With a drop in demand for Holden exports of around 50,000 cars, this was an extraordinarily difficult time for the sector, following the closure of Mitsubishi just one year before.

In a step to bridge the downturn, unfortunately, many Holden employees had their hours and pay reduced. This was a unique example of large employers working together with unions and employees to retain skilled workers through an economic downturn and protect jobs in the long term. Each and every one of the workers who have hung in there through the difficult times deserves our utmost respect and admiration. There is now a light at the end of the tunnel, beginning on 15 November when these workers can return to full-time employment. The faith and loyalty they have shown the company over the past 12 months will now be rewarded.

This story is great news not only for the 2,500 workers at the Holden plant and their families but also for the thousands of other workers across the state who benefit from the employment created either directly or indirectly from Holden's operation at the Elizabeth plant. Workers in the components sector, supplying everything from car seats to brakes and fuel lines, will see increased job security as a result of this announcement. Companies such as Futuris and TI Automotive have already announced that additional jobs will be created when the second shift comes on stream. In fact, Futuris has announced an additional 200 jobs.

Then there are the indirect benefits to the economy through the service and retail sector. There is also a lot of confidence that comes out of full-time employment and there is a trickle-down effect through the broader community. Automotive manufacturing is an important industry for South Australia, employing around 7,000 people and with exports valued at approximately $1 billion in 2008-09.

Furthermore, the benefits are not limited to the northern suburbs, as some might assume. Many workers commute from the south to take advantage of the secure employment, decent wages and focus on workplace safety that are offered when working in the vehicle industry. Furthermore, the concept of the automotive manufacturing sector being classified as blue-collar, low-skilled work is highly outdated. Automotive manufacturing now utilises cutting edge technology from the manufacturing processes through to assembly and through warehousing, sequencing and quality control.

As a review of Australia's automotive sector in 2008 revealed, it is a major investor in innovation, accounting for nearly 17 per cent of all manufacturing business expenditure on research and development. The Bracks review confirmed that other manufacturing is dependent on the skills and expertise found in the automotive components sector. The automotive manufacturing sector is, therefore, crucial to our wider community, providing well-paid, highly-skilled jobs for all South Australians. I celebrate the return of a second shift at Holdens and congratulate the company and its employees on their return to sustainable growth for a long-term future.

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