Joe Hockey, Toyota at odds whether union to blame for car maker's closure

Date
    February 12, 2014


Treasurer Joe Hockey and Toyota are at odds over whether generous workplace conditions should be blamed for forcing the car maker to leave Australia.

And on Wednesday the Treasurer and the car maker gave conflicting accounts of a private meeting they held in December to discuss Toyota's future.      :-?




Mr Hockey backed reports that during the private conversation with Toyota Australia president Max Yasuda on December 3 that say Mr Yasuda blamed overly generous workplace conditions for pushing Toyota out of Australia.


“I saw the report this morning and it is a correct report,” Mr Hockey told Fairfax Radio on Wednesday of the story in the Financial Review.

The Treasurer proceeded to attack the Australian Manufacturing Workers' Union for placing unreasonable demands on Toyota.

But Toyota's management has strongly rejected the report of its December meeting with Mr Hockey, issuing a statement to deny allegations that it blamed the union for its decision to leave Australia in 2017.   :)      

“Toyota Australia has never blamed the union for its decision to close its manufacturing operations by the end of 2017, neither publicly or in private discussions with any stakeholders,” the company said in a statement.   :)      

“As stated at the time of the announcement, there is no single reason that led to this decision.

“The market and economic factors contributing to the decision include the unfavourable Australian dollar ... and low economies of scale for our vehicle production and local supplier base.

“Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future Free Trade Agreements, it is not viable to continue building cars in Australia.”

In a more positive consequence of Toyota's decision, Australians could be saving between $1000 and $2000 on each imported cars before the next election, with Mr Hockey giving his strongest indication yet that he will abolish tariffs on luxury and imported cars.

Now Toyota is stopping building cars in Australia in 2017, heralding the end of car manufacturing in this country, Mr Hockey admitted there was no longer a local industry to protect with 5 per cent tariffs.

“There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday.

“This is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election,” he added.

But the tariffs would be painful for the Abbott government to reject, with revenue of $920 million a year and rising to more than $1 billion over the forward estimates.

Industry Minister Ian Macfarlane said he would focus on improving skills and training systems which are currently a “convoluted mess” and “close to broken”. But he denied that training centres such as TAFE or research organisations such as the CSIRO need more money. Simply offering more funding was the “Labor way”, Mr Macfarlane told ABC radio on Wednesday.

“What we're saying is there will be efficient use of the money that's there,” he added.

“I can guarantee that the skills training that will be offered will be of a higher calibre and will present workers that are better work-ready than we've seen in the past.”

Despite his concerns about mounting government debt, Mr Hockey dismissed the idea of reintroducing Labor's plan to save the budget $1.8 billion by tightening the rules on tax benefits for salary-sacrificed cars. The Abbott government reversed Labor's pre-election decision, missing out on the much-needed revenue.

“My lord, if Labor had have gone ahead with their $1.8 billion hit on fringe benefits tax on motor vehicles, let me tell you [car makers] would've walked out the door in January rather than in 2017,” Mr Hockey said.

Read more: http://www.smh.com.au/federal-politics/political-news/joe-hockey-toyota-at-odds-whether-union-to-blame-for-car-makers-closure-20140212-32h1u.html#ixzz2t4DVQRR4

How about the Government just pass a law that any foreign car manufacturing plant that closes must pay a 5 trillion closure fee.

Probably breach the Trade Practices Act.

Why did Hockey lie??

:D ;D

BlOoDy RiPpEr wrote on Feb 12^th, 2014 at 12:10pm:

How about the Government just pass a law that any foreign car manufacturing plant that closes must pay a 5 trillion closure fee.

It may be unconstitutional, depending on the structure of such a law. I would have no problem though with a law that requires all the grants to be paid back.

Lobo wrote on Feb 12^th, 2014 at 12:23pm:

Why did Hockey lie?? :D ;D

Because he's putrid, conservative filth, that's why.

It's in their DNA. They couldn't tell the truth if they wanted to.

Bam wrote on Feb 12^th, 2014 at 12:30pm:

BlOoDy RiPpEr wrote on Feb 12th, 2014 at 12:10pm: How about the Government just pass a law that any foreign car manufacturing plant that closes must pay a 5 trillion closure fee. It may be unconstitutional, depending on the structure of such a law. I would have no problem though with a law that requires all the grants to be paid back.

;) ;)  Have to go with that one!   ;)

So the demonising of Australia's workforce continues.

Any here prepared to go to work uncertain if you'll make it home alive

Any here prepared to work 60+ hours for 30K or less a year?

Because that's where we are heading with the LNP.

Here's a few facts that destroy this furphy of wages & conditions destroying competitiveness


Quote:

For example, the rate of wage increase for employees in the last year was 2.7 per cent - the lowest rate of wage increase for more than a decade. That hasn't stopped Employment Minister Eric Abetz warning of an impending "wages explosion". To further illustrate my point, consider this: After two decades of consecutive economic growth, the share of that growth enjoyed by employee wages is at a record low; meaning the share enjoyed by capital is at a record high. This sits oddly with what appears to be the most pressing issue for employer associations at the moment. Which apparently is reducing our "unsustainably high" labour costs, including minimum wages and penalty rates. Even if an outbreak of constructive cooperation about industrial relations gripped us tomorrow, what would the key tenets of a grand compact look like?  Would the compact work towards increasing the rate of growth of wages beyond 2.7 per cent? Hardly. With labour productivity at the highest rate in more than a decade, the real productivity challenge is not labour productivity but a lag in the efficient use of capital. Would business seek union assistance on how best to allocate capital? Perhaps not.

http://www.abc.net.au/news/2014-02-12/bornstein-industrial-relations/5251960

Did you see that?

With labour productivity at the highest rate in more than a decade, the real productivity challenge is not labour productivity but a lag in the efficient use of capital. Would business seek union assistance on how best to allocate capital?

I.E - POOR MANAGEMENT DECISIONS

Not workers pay & conditions as the LNP wants you to believe.

As if we didn't already know this!

Bam wrote on Feb 12^th, 2014 at 12:30pm:

BlOoDy RiPpEr wrote on Feb 12th, 2014 at 12:10pm: How about the Government just pass a law that any foreign car manufacturing plant that closes must pay a 5 trillion closure fee. It may be unconstitutional, depending on the structure of such a law. I would have no problem though with a law that requires all the grants to be paid back.

They want promised on going grants to stay, they're not going to pay them back.

A lot easier to just pack up and go make cars some where cheaper.

2500 jobs at Toyota to go.

Move over seas and save (a very modest $5/h for each of those jobs).

$1/2 a million a week.

::) ::) ::)

wrote on Feb 12^th, 2014 at 11:34am:

“Toyota Australia has never blamed the union for its decision to close its manufacturing operations by the end of 2017, neither publicly or in private discussions with any stakeholders,” the company said in a statemen

Lobo wrote on Feb 12^th, 2014 at 12:23pm:

Why did Hockey lie?? :D ;D

OverBelly - Fat Joe... coming to a scream near you!

http://upload.wikimedia.org/wikipedia/en/a/a3/UnderbellyCast.jpg


Bit green.. but ah.. coupla days!

FriYAY wrote on Feb 12^th, 2014 at 1:16pm:

2500 jobs at Toyota to go. Move over seas and save (a very modest $5/h for each of those jobs). $1/2 a million a week. ::) ::) ::)

I think you'll find the Poms, Germans and Italians earn more than $5 an hr for building cars.
We are a western country so lets compare apples with apples.

Fat salaried unproductive management, not unionised low paid workers are the problem.

http://www.macrobusiness.com.au/2014/02/australias-divergent-wage-growth/

Quote:

The above findings highlight, once again, why the Government will have difficultly blaming Australia’s falling competitiveness on unionised labour.

http://www.macrobusiness.com.au/wp-content/uploads/2014/02/ScreenHunter_1155-Feb.-10-14.13-660x380.jpg

Setanta wrote on Feb 12^th, 2014 at 3:43pm:

Fat salaried unproductive management, not unionised low paid workers are the problem. http://www.macrobusiness.com.au/2014/02/australias-divergent-wage-growth/ Quote: The above findings highlight, once again, why the Government will have difficultly blaming Australia’s falling competitiveness on unionised labour. http://www.macrobusiness.com.au/wp-content/uploads/2014/02/ScreenHunter_1155-Feb.-10-14.13-660x380.jpg

First they emasculate the men of Australia, then they keep the prize steers to fatten up for the kill.  Pretty dead end breeding program there. It's a good thing some of us retain our balls and free range..... and get by on a weekly handout of feed from farmer Tony....

Added info which more and more people will be discovering the hard way...

And they're not to blame, either.

http://i55.servimg.com/u/f55/15/49/73/20/screen10.png

“There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday.

“This is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election,” he added.

Not only has fat Joe thrown car manufacturing out he now wants to make sure that nobody else can restart the industry in Australia, well done.

Any bet that Fat Joe's nick name was FJ holden at one time.

http://www.abc.net.au/news/2013-08-22/koukoulas-the-cost-of-living-furphy/4904924

Ya gotta love these guys with their blogs! One in the family earns $75k - the other $50k - therefore the average family makes $125k a year.

How many farken families make that?

Told you these dickheads base their farken cost of living concepts on THEIR idea that them and their mates earn so much so everyone else does too - so that's what we work it out on.

What about the farken families on $40k and less?

anyone starting to get what I'm talking about yet...I'll repost this since it is now old and just added to...

ADDING NOW:-  2007 this guy reckons the average family was on $3000 a week - PMSL....

These people are in dreamland - what about the farken 40% who will end up with nothing but the government pension that is their RIGHT?

Don;t they figure in any 'cost of living' calculations?

Have we already reached the phase where the 'serfs' are just ignored as anything of  value - apart from farken OzPolitic with a few, that is.....?

What price the looming civil war?  Which will take us first?  the Third World War or The Civil War?

WTF is wrong with these people's minds that they just go rabbiting on about their stupid ideology crap while Rome burns after they set a torch to it?

Kat wrote on Feb 12^th, 2014 at 3:58pm:

Added info which more and more people will be discovering the hard way... And they're not to blame, either. http://i55.servimg.com/u/f55/15/49/73/20/screen10.png

Looks about right.  :(

Kat wrote on Feb 12^th, 2014 at 3:58pm:

Added info which more and more people will be discovering the hard way... And they're not to blame, either. http://i55.servimg.com/u/f55/15/49/73/20/screen10.png

Time for a five-year salary freeze for the top 20% of workers so everyone else can catch up a bit!

Dnarever wrote on Feb 12^th, 2014 at 4:05pm:

“There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday. “This is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election,” he added. Not only has fat Joe thrown car manufacturing out he now wants to make sure that nobody else can restart the industry in Australia, well done. Any bet that Fat Joe's nick name was FJ holden at one time.

they were going anyway dna... no govt would keep them here...why???

I dont know they got on terrific with the unions..govt gave them trillions..maybe you have the answer..

oopps  thats right its Abbott fault.. ::) ::) ::) ::)

no need to comment.

although whats shortpantsdowns offer to them??????? ;) ;) ;)bet its something wicked.

cods wrote on Feb 12^th, 2014 at 5:07pm:

Dnarever wrote on Feb 12th, 2014 at 4:05pm: “There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday. “This is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election,” he added. Not only has fat Joe thrown car manufacturing out he now wants to make sure that nobody else can restart the industry in Australia, well done. Any bet that Fat Joe's nick name was FJ holden at one time. they were going anyway dna... no govt would keep them here...why??? I dont know they got on terrific with the unions..govt gave them trillions..maybe you have the answer.. oopps  thats right its Abbott fault.. ::) ::) ::) ::) no need to comment. although whats shortpantsdowns offer to them??????? ;) ;) ;)bet its something wicked.

Trillions hey. 

cods, someone is lying.  Hockey or Toyota.  We seem to have the same dilemma elsewhere on credibility issues with this Government.

Every country in the world that produces cars subsidizes the industry much more than Australia did.....The $AU will drop back to more historical levels but unfortunately the car industry will already be gone.....High wages and the carbon tax where not given as reasons for the car makers decision.....Hockey lied and the car maker has called him out!!!

>:( >:( >:(

Hockey and Abbott have been sprung lying about Aussie workers and they should resign.

philperth2010 wrote on Feb 12^th, 2014 at 5:19pm:

Every country in the world that produces cars subsidizes the industry much more than Australia did.....The $AU will drop back to more historical levels but unfortunately the car industry will already be gone.....High wages and the carbon tax where not given as reasons for the car makers decision.....Hockey lied and the car maker has called him out!!! >:( >:( >:(

Yeas, it seems that is the allegation.  The Government was quick to gag debate on the matter in Parliament.  Hopefully, the Senate will have a look.

(Gawd, I'd hate the day if either of the major parties controlled both Houses.)

cods wrote on Feb 12^th, 2014 at 5:07pm:

Dnarever wrote on Feb 12th, 2014 at 4:05pm: “There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday. “This is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election,” he added. Not only has fat Joe thrown car manufacturing out he now wants to make sure that nobody else can restart the industry in Australia, well done. Any bet that Fat Joe's nick name was FJ holden at one time. they were going anyway dna... Well no. They weren't. They opened a NEW engine plant ONLY LAST YEAR. no govt would keep them here...why??? Others have. Why not this one? I dont know No. You don't. they got on terrific with the unions..govt gave them trillions..maybe you have the answer.. Which part of 'The unions were not to blame' can't you comprehend? oopps  thats right its Abbott fault.. ::) ::) ::) ::) First accurate comment??? no need to comment. Oops. Too late! although whats shortpantsdowns offer to them??????? Whatever it took to keep them here (within reason) ;) ;) ;)bet its something wicked. You'd lose.

Kat wrote on Feb 12^th, 2014 at 5:25pm:

[quote author=cods link=1392168894/22#22 date=1392188866][quote author=Jim_Puddle-Duck link=1392168894/18#18 date=1392185143]“There's a legitimate case put forward to remove tariffs where there is no local motor vehicle manufacturing industry,” Mr Hockey told Fairfax Radio on Wednesday.

Well - in that case, I take it Fat Joe is prepared to forgo the revenue in order to 'make it fair' and 'right', which will enable his fat mates to run around in their satanic hearses relatively tax-free.

Now - while the fat cats are running around in a lower-cost Roller - where is the shortfall in revenue coming from?

Oh... sorry... take it from the bludging pensioners and nouveau pouvre whose livelihoods have been taken away.  meaningless lot of sycophants, blood suckers, and leeches.

You have to ask what ANY of these clowns use for brains on any side.

Kat wrote on Feb 12^th, 2014 at 12:33pm:

Lobo wrote on Feb 12th, 2014 at 12:23pm: Why did Hockey lie?? :D ;D Because he's putrid, conservative filth, that's why. It's in their DNA. They couldn't tell the truth if they wanted to.

Why did Max Yasuda lie?
:D ;D

Armchair_Politician wrote on Feb 13^th, 2014 at 9:09am:

Kat wrote on Feb 12th, 2014 at 12:33pm: Lobo wrote on Feb 12th, 2014 at 12:23pm: Why did Hockey lie?? :D ;D Because he's putrid, conservative filth, that's why. It's in their DNA. They couldn't tell the truth if they wanted to. Why did Max Yasuda lie? :D ;D

Yasude doesn't need to lie, he doesn't need your vote :D :D

http://1.bp.blogspot.com/-BoScnOBsrm0/TnCnxMaaw7I/AAAAAAAAAVY/QuCtKFFXHak/s1600/moron.jpg

this just goes to show how gutless Toyota management are...

still running scared of the Thug Unions and lazy workers...

there's evidence all over the place whereby Toyota thought the unions were stopping reform to keep the doors open in Australia...

and anyways...

why should Australians save Toyota when the fking lazy greedy workers wont save themselves...  >:(

True Blue... wrote on Feb 14^th, 2014 at 6:38am:

this just goes to show how gutless Toyota management are... still running scared of the Thug Unions and lazy workers... there's evidence all over the place whereby Toyota thought the unions were stopping reform to keep the doors open in Australia... and anyways... why should Australians save Toyota when the fking lazy greedy workers wont save themselves...  >:(

You just love to blame the victims rather than the perpetrators, don't you?