2nd Shift Returns to Holden - Elizabeth

[ghs]

A SECOND shift at Holden's Elizabeth plant will begin from November, as the carmaker prepares for a second series of the VE Commodore and the new small car, the Cruze.

Holden manufacturing operations executive director Martyn Cray said Holden was pleased to confirm the end of the temporary single-shift arrangement at Elizabeth, introduced because of falling new vehicle sales to protect jobs.

"Our team was relieved to hear the news today," he said.

"The last 18 months have been very tough for our industry, but bringing back a second shift and returning employees to full-time work is an important step in rebuilding our manufacturing business.

"There is already a huge amount of work going on at the plant including equipment installation and the building of pilot vehicles for our new locally built Cruze.

"We are also gearing up for the new Series II Commodore which will be launched in the coming months."

Holden introduced the single shift in April last year to protect jobs during the global financial crisis which saw a reduction in demand for Holden export volume by around 50,000 vehicles.

Under the reduced shift pattern, employees alternate work - ranging from one week on, one week off, to one week off in 12.

The second shift will return all employees who remain on alternating working patterns back to full-time employment in November.

Holden also anticipates hiring a small number of employees to support the second shift in the short term with the potential to increase employment further when demand significantly increases in the longer term.

Holden has a total workforce of 2300.

Industry Minister Tom Koutsantonis has welcomed the news.

Mr Koutsantonis said it had been a rough time for the industry and its employees, but things were looking up.

"Holden had to make some tough decisions to protect jobs during the global financial crisis," he said.

"But the company is bouncing back.

"Not only will all employees be able to resume full time work from November 15, the company expects to hire more staff to support the additional shift.

"It's hoped the workforce will be boosted further still as demand increases."

Mr Koutsantonis said both the state and federal governments had financially supportet the plant.

In December 2008, Cabinet approved a $30 million dollar grant to support production of the Cruze.

The project has also received significant assistance from the Federal Government, which last year executed a $149 million dollar grant from the Green Car Innovation Fund.

"Today's announcement demonstrates the car industry is still a major player in SA's manufacturing industry," Mr Koutsantonis said.

"The plant has shown its resilience by weathering a global storm that saw many manufacturers

around the world close their doors."

[Omicron]

The $149 million for the Cruze from the Green Car Fund (and $30m from the State, I see) is an absolute riot -it's an existing design using existing GM drivetrain technology. Even if it runs on flowers and sunshine, Holden's only direct influence will be styling a hatchback and building the production line at Elizabeth, and I didn't realise the Government was in the business of bootlids and conveyor belts. That's nearly as bad as the $35 million paid to Toyota for local manufacture of the Camry Hybrid.