So, well might we ask, "Why" is this vibrant factory closing down in 2016?
Do they sell much product? 1300 units per day is not too shabby!
But we have to look at the trend as seen in the figures above which are from the Electrolux annual report for 2014.
WHAT....CAN WE DO.. TO SAVE THESE JOBS?
In an a globalized economic rationalist world, and when faced with a debauched and opportunistic competitive and adversarial political system rife with industrial relations scams... damn little!
But in the world or Nation that FORTITUDE will create, there's plenty!
Before outlining how this could be done, let's note some problems.
i) Electrolux made the decision to relocate the manufacturing of all these products in Thailand. Why? Cheaper labor. Why is it cheaper over there? Probably because the Government has more interest in being competitive, than it has in giving a wage wish list to the average Joe and Jill worker that ends up destroying that competitiveness and the enterprise.
LABOR COST/UNION GREED
Perhaps more importantly... why would 'labor cost' be the predominant reason for leaving Australia in a $70million per-annum hole? The total cost is actually double this, because our economy will have to find that money to just break even with now, which means we don't only 'lose' that amount, we also lose the same amount again as we try to cover the mess! LABOR cost is 'high'....because trade Unions only see one color, 'red'....they see their only role as being to ramp up the wages and conditions of 'workers' or.. 'their members'. In the case of Electrolux, it's the AWU Australian Workers Union.
THE CASE (High Court)
You don't need to read far into this case to realize that if you were an employer.. you'd be ripping your hair out saying "Why the hell do I need this?????? nope..the Union can screw itself, we'll go to Thailand and bugger them all"
The case seems to be about forcing non Union workers to pay Union fees. "Bargaining Agents Fee"
THE END DRAWETH NIGH... is the kind of sign that loony tunes religious nitwits display up and down the street. Usually based on some dingbat theology from Clarence Larkins 'Greatest book on Dispensational Truth" But for Aussie manufacturing and jobs, there is an absolute, etched in stone tablets future.. 'DOOM' unless we can demonstrate an effective method of making an enterprise work economically in Australia. This HAS to mean cuts in wages, improvements in efficiency's (usually means machines and lost jobs) because aside from this..there IS no future for Australian Manufacturing. (except mine which is 98% export to a niche market) but I don't employ anyone! My business could not afford it.
This could mean an expansion of innovative enterprises which rely on massive automation, and less employees who can probably attract much better pay than a simple process worker. The only way to have MORE of these higher paying jobs is by having more innovative, automated industries. That leads directly into my own "Higher Education Policy" which is to match the best professors with the brightest students as an 'overlay' on the existing system, to produce 'super' innovators based on science.