Looks like another factory set to go in Orange. Governments considering a bailout. http://www.smh.com.au/business/electrolux-shuts-last-local-fridge-plant-20131025-2w6g7.html
"Thailand's labour cost is a quater of Australia's" that kind of says it all..... How can we compete with that and there would be a lot more "compliance" issues in Australia like environmental and OH&S.
Also today; http://www.abc.net.au/news/2013-10-25/ibm-australia-cuts-jobs-tech-industry/5044782 http://www.abc.net.au/news/2013-10-24/simplot-decision/5042482
Golden Circle's canning 123 workers (excuse the pun) http://www.abc.net.au/news/2013-10-24/golden-circle-sacks-123-workers-at-melbourne-plant/5044106
Which is fine until we need a new fridge, not much in the way of options and you can't really haggle with the staff at Harvey Normans (though we always seem to be there during a special sale) You will be paying $1k for any fridge. Kind of conflicted on this news. Sounds like a Swedish company is making all the decisions based on how expensive it is to get anything done in Australia and here is the Australian government bending over backwards to give money to this swedish company. Sad to see jobs being lost but to give to an overseas company to save 900 jobs seems a lot of money, especially as it will still be cheaper to get the work done in Thailand, not fixing anything, not making Australia more competitive, just taking Australians' money and giving it to a foreign country so that they can give a pittance back to the workers.
Australians don't want to pay Australian businesses for their "expensive" products and prefer to buy the cheap overseas product so Australian businesses are choosing not to buy expensive Australian labour and are preferring to buy cheap overseas labour. Good luck buying all your stuff from Amazon and Book Depository and American online stores after your boss "lets you go" or the Australian business that you own is no longer making enough to sustain itself. I saw a friend who I know buys most of her consumer items online complaining on Facebook last week that she is being made redundant and her job moved offshore. I wonder if she will make the connection?
Well that factory, among others, was Australian owned until the owners at the time (Southcorp) decided to sell off their whitegoods businesses and focus on wine.
SPC, Just a short OT anecdote. My grandfather was an original shareholder in the original float of SPC in Shepparton, about 1917. In about 1960 he remarked to me that his ANNUAL dividend income were equal to 400% of his purchase price. ...and now our CBA shares are nearly the same, well. maybe not, but still $4 a year for a $5.40 purchase price. OC
Labour cost: Australia $25 hr compared to Thailand's labour cost of $2.50...You just can't compete. Regards Errol 43
The defence budget will not be cut..The new sub deal for SA & Vic will be announced soon.. The green army should take up some of the slack. Be it red or blue team, how the hell can we compete with Asian labour in manufacturing jobs. Manufacturing jobs will go. Free trade agreements may help the farming, education and mining industries but say goodbye to the Manufacturing Industry. If the USA couldn't save its manufacturing jobs, how can we, a small nation? Regards Errol 43
What I find unusual is that I did not know it was the last fridge manufacturer in Oz. All being equal I always buy Australian. True, I don't buy many fridges but I wonder why it was not greater knowledge. If more people knew, then I'm sure sales would have been higher. We Australians have the best hindsight in the world!
Williams Refrigeration Australia is still going strong, however we are in the commercial market. We are the only one left now.
When you say we, are you in the team? How much do you push the Australian aspect? Does it help? Are parts and service better sourced? Do blondes have more fun?
I was a supporter of 'Globalisation' when it first became trendy. It has become clear that it was nothing more than the industrialised world's suicide note, OC
