Ford factory falters

FORD Australia claims it is losing $11 million a day as its production lines lay idle while workers at a leading components supplier continue strike action. The Blue Oval's bill is believed to have already pushed past $35 million, with Ford Australia having already lost three and a half days of vehicle production.

The strike at Campbellfield plastic component supplier Venture Industries has not yet been resolved.

Venture supplies more than 1500 parts to Ford Australia, including front bumpers, instrument panels, centre consoles and door panels.

About 1850 staff at Ford’s Geelong and Campbellfield plants have been stood down without pay since last Thursday.

Most of those workers have already lost four days work, while some have lost three.

Ford Australia would have produced 1250 Falcon and Territory models since the strike began.

The Australian Industry Group said the strike was also having an effect on related component suppliers, with as many as 400 workers to be stood down if it was not resolved quickly. Some workers at component suppliers are believed to have already been stood down.

Manufacturing union sources told Melbourne radio yesterday that Ford would not be affected because it had 4000-5000 cars in stock at its Campbellfield headquarters.

Ford Australia spokesman Edward Finn today told GoAuto this was not the case.

“As with any manufacturer we have some degree of stock on site before the cars are delivered to dealers, but we certainly don’t have anywhere near the amount of stock as has been claimed,” Mr Finn said.

He said anyone requesting a vehicle of a particular specification or colour would face an extended wait due to the strike action.

Mr Finn said it was not yet clear how Ford sales would be affected by the strike action.

“That will really depend on how long it lasts,” he said.

Venture Industries management and union leaders are meeting in the Industrial Relations Commission in a bid to bring an end to the strike.

About 500 Venture employees have refused to return to work over concerns entitlements for around 230 staff about to be made redundant would not be honoured.

The action has been protected as it has been conducted during a bargaining agreement period.

Ford this week lodged a request to suspend the bargaining agreement period in the IRC and therefore end the legal protection of the strike in a bid to get Venture employees back to work.

Using the ‘just in time’ supply method, Ford no longer keeps a supply of components on site and is believed to have run out of Venture-supplied parts within 40 minutes of deliveries ceasing on Thursday morning. Victorian Automotive Chamber of Commerce senior manager of government policy, David Russell, said the Venture strike was affecting a lot of workers who played no role in the dispute and said Ford Australia sales could also suffer.

“It is bad for everyone,” Mr Russell said.

“No manufacturing plant can afford to stop and not have any products come out the door.” Mr Russell said the VACC, which represents a range of automotive companies, urged employees not to halt production in such situations. “It is much better for all concerned that work continues as these types of things are sorted out,” he said.