The Australian Government regrets that General Motors Holden has decided for its own operational reasons to eliminate the third shift at the Elizabeth plant in South Australia.
Unfortunately this will mean up to 1400 positions will be lost by the middle of 2006. The Government understands that the company, in the first instance, will be seeking to reduce staff by voluntary redundancy.
Last night I spoke to Premier Rann and we agreed to establish a $10 million labour adjustment fund to assist displaced workers.
The Australian Government will contribute $7.5 million to the labour adjustment fund and the South Australian Government will contribute $2.5 million to the fund.
The package will involve labour market programmes to provide intensive assistance to displaced workers. The support will include access to individual consultants who will provide a range of specialised advice including: job search training and advice; access to job vacancies; access to Job Seeker Accounts and the Training Accounts for mature age and indigenous job seekers.
The package will operate in a similar fashion to the successful adjustment package that was offered to the Mitsubishi workers following the closure of the Tonsley engine plant in 2004.
In addition, funds remaining from the $40 million South Australian Structural Adjustment Fund, established at the time of the Tonsley plant closure, will help create suitable private sector employment opportunities for displaced workers.
While Holden's decision is regrettable, it comes at a time when the Australian economy is very strong, delivering South Australia one of the best employment positions in its history. The unemployment rate in South Australia is 4.6 per cent, in line with the 30-year lows of the national economy.
The labour adjustment fund will complement entitlements the workers receive from their employer.
The Australian Government understands that General Motors Holden has said it will honour all worker entitlements. The Government fully expects it to meet this commitment.