Engineers Group Says GM Holden Layoffs Costly to Oz

GM Holden will dismiss up to 400 product-development engineers responsible for designing new and updated vehicles as it continues the process of winding down its local assembly operation.

The engineers’ employee group, Professionals Australia, says it is disappointed over the job losses planned by the end of the year, but they were expected.

The VF Commodore will be updated for a final time in October 2015 and the Cruze small car will get a facelift before manufacturing ends in 2017.

Professionals Australia Victoria Director Sharelle Herrington says governments have failed to recognize the importance of these highly skilled people to the future economy.

“With very few jobs on the local landscape, we run the very big risk of a significant ‘brain drain’ as these guys are forced to go overseas for work,” Herrington says in a statement.

Melbourne’s The Age newspaper reports up to 400 engineers will lose their jobs before Christmas and another 200 workers by the end of next year.

Professionals Australia, until last year known as the Association of Professional Engineers, Scientists & Managers Australia, says the engineers have made a significant contribution to the economy and innovation.

“We need to ensure that they are not lost to our economy for good,” Herrington says. “Our economy needs more highly skilled workers, not fewer. Our governments, both state and federal, need to wake up to the risks of losing the knowledge and expertise of these workers.”

The Age quotes GM Holden as saying in a statement that it is doing everything it can to help workers transition into new jobs.

“As announced last year, Holden’s engineering workforce is largely tied to production of our locally manufactured vehicles and as such our engineering workforce will be scaled back over time,” the statement says.

“The company currently has a voluntary separation program open to engineering employees, which has been open since the first quarter of this year.”

The statement also says GM Holden is, where possible, moving a number of engineers to General Motors headquarters in Detroit.

“We are absolutely committed to a long and orderly transition but won’t engage in speculation on timing or the number of employees impacted and have nothing to announce.”

Herrington says her group’s priority is to support the engineers. “This is a very sad day for these remarkable engineers, many of whom have created the iconic Holden cars that we all love,” she says.

“Everyone has a Holden story, thanks to the skills and knowledge of these remarkable professionals. Our country is indebted to them for their contribution over many decades.

Herrington says research, design and innovation are keys to the future economy. “As a nation, we can’t afford to lose one of these engineers, let alone 300,” she says.

“Ford has made it clear that it plans to keep its 1,500-strong engineering and design hub in Australia after manufacturing ceases. But this is at risk if the government prematurely cuts off and fails to amend the Automotive Transformation Scheme.”

She says the country can’t afford to do anything that may jeopardize Ford’s plans to develop innovation and engineering in Australia.

“Our entire automotive manufacturing industry has left our shores. We now need to ensure that research, design and innovation capacities do not leave with it.”