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The SparkleHunter™
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10,144 Posts
Discussion Starter #1
One question I have about this whole debacle is why are there no alternate supplier for these parts? Surely there is a company somewhere that manufactures the same components...

Another question is how can one companies IR dispute effect the whole industry? Maybe it's time to look elsewhere for these components. The whole thing is a plain disgrace.. :fmad:
 

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Interloper from LS1.com
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768 Posts
I agree - we've got Holden in Elizabeth shut down, Broadmeadows and Geelong shortly I think, Mistsubishi is shutting down.

There should be alternate or parallel suppliers. Ford, Holden and Mitsi should be just terminating the contract with this company and sourcing elsewhere.
 

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Territory TS - AWD
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2,374 Posts
C'mon guys don't be so harsh.

The Austalian auto industry isn't that large, it doesn't surprise me one bit to know that they all buy from one supplier. There is effeciencies in volume that help reduce price-per-unit on these components and keep the cost of our cars reasonable. It is also an Australian company isn't it?

I'd rather see components sourced locally than imported from an alternate supplier, for whom most likely the Aussie volume would be small and unimportant anyway.

From what I know of the dispute (about 60secs of the news last night) what the employees are asking for, that their entitlements such as Super & Leave, be secure should the company fold doesn't sound unreasonable to me. NO, I'm no supporter of industrial action or mindless union power either.

Don't blame or punish (by sourcing elsewhere) the employees for asking for what is their's to remains secure.
That said I'm sure there is probably more to it than that.
 

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Pursuit Reincarnation Dog
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7,777 Posts
I think protection of entitlements should be law. Too many times employees have been left with nothing and that is what these people are asking for. Without knowing the full story I guess the company involved said no which makes me wonder.... :rolleyes:
 

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The SparkleHunter™
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10,144 Posts
Discussion Starter #5
I agree Pete. Entitlements should be law.

My point is why isn't there another local supplier for these components? I'd love to see everything sourced locally but sometimes that just isn't possible.
With the reported walk off by monroe staff going out in sympathy it just makes it worse. If monroe staff are in dispute with their companies management then fair enough, but if they're just going out in sympathy with the mob from Sydney then they should be shot.

Another point I'd like to make is why haven't the IRC sent these workers back to work and told they company to sort the issue out? The last 2 times we and our company went to the IRC we were told in no uncertain terms to get back to work and told the company to get behind a desk and sort out the problem post haste.
 

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Banned
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You could also argue the management practices of the motor companies buying these components are partially responsible for laying off workers in their own plants.

Just-in-time management means Holden, Ford, etc buy as many of the steering components as they need them. This means no localised warehousing or stockpiling of these components.

Holden, perhaps due to the volume of cars they are pushing through, have suffered most from this practise. Ford and the others do it too, and will suffer also, but makes you wonder if this would have been front page news if car manufacturers kept stocks to last them a week or two, should such things occur. Tristar are carrying over $40m worth of debt, and how long the company remain active is uncertain. With that in mind, shouldn't they be stockpiling components in case the company does go bust, and it takes time to source alternatives?

The result of these practices means that related companies, such as Walker, Monroe, etc are also affected. Not a good situation all 'round is it?
 

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The SparkleHunter™
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10,144 Posts
Discussion Starter #7
Venom S said:
Just-in-time management...
Not a good situation all 'round is it?
Damn straight Venom S... We also suffer from the "just in time" principle and I have to say it's horseshyte. If you're going to use certian components or products all the time then why not have a small stockpile somewhere? To have under 1 weeks supply (as we do) of important components is madness. At least they could have an emergency back up supplier in place should such crisis eventuate..
I'm just really struggling to understand how one supplier has brought car production in this country to a grinding halt.. :confused:
 

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Without just in time companies would be spending big time for no real reason.

The porblem is that this that you cant' OR you are meant to strike just like that. If the strike is found to be illegal the workers can find themselves open to all sorts of actions form the companies invloved.

Where do you draw the line. I am involve in JUST IN TIME protocal and there is no answer. You can afford to allow for things like this and if you try to where do you draw the line!
 

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How bloody Hot is it ??!!
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I think protection of entitlements should be law.
Unfortunately the problem here is that the Union is demanding that Long Service leave, annual and Sick leave entitlements be paid into this fund, before they have been accrued yet, tying up valuable capital.
Th other big sticking point is that is demanding that it be paid into their specified Fund, which has been investigated by the firm and found to be poorly set up, Terribly managed and the employer has no control of the monies they pay into the fund
These two points are the sticking point of the dispute.

There was a good column in the Daily telegraph today on it all....
 

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Territory TS - AWD
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2,374 Posts
Dammit! JUST-IN-TIME just isn't Australian.

Whatever happened to JUST-IN-CASE!
 
T

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I have built, run, and designed warehouses for most of my life, and I can tell you this J.I.T does not work in the auto industry.
 
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