Job Cuts Fever Spreads to Other Australian Firms

More Australian workers would likely lose their jobs in the coming weeks amid fears of another round of global financial crisis. A day after major Australian firms such as BHP Billiton, Holden, Manildra and Reckitt Benckiser announced layoffs, more companies made similar announcements.

The first to disclose the bad news for workers and their families is Westpac Chief Executive Gail Kelly who said the bank would cut more than 400 jobs and send offshore another 150 jobs.

"This is the largest announcement that we are likely to make this year," ABC Radio quoted Ms Kelly, in effect assuring the remaining bank workers of some security of tenure.

She explained that the job cuts are part of the lender's response to a changing world and the company's need to have a strong banking system, and the 2008 merger of Westpac with St George.

ANZ Bank previously announced also layoffs which are part of the major manpower downsizing that Australian lenders would implement in the next two years as they reduce their workforce by about 7,500 employees.

In the manufacturing sector, carmaker Thales announced that it has axed 20 per cent of its employees or 50 workers. The firm, which manufactures the Bendigo vehicle, said that the layoffs are because of projected lower production rate in the next two to three years which makes it necessary for the company to trim workforce. The bulk of the jobs axed were from the shop floor while few were from the engineering, administration and technical units.

The projected lower production rate is the result of the high value of the Australian dollar and low value of the euro which led to the award of the Land 121 Phase 3 contract to Rheinmetall MAN, a German company, instead of to Thales. Had Thales won the contract to build 200 units of Thales Bushmaster Utes, it would have prevented the axing of the 50 jobs, said Steve Gibbons, federal member for Bendigo.

The Australian Manufacturing Workers Union (AMWU) said that Thales workers are bitterly upset and worry about their futures following the company's announcement of the job cuts. The union was also critical of a similar move by another vehicle manufacturer, Holden, which announced on Thursday the loss of 100 jobs held by temporary and casual workers at the carmaker's Elizabeth facility.

"We're disappointed with the way they informed out workers of the decisions that had been made without consulting anybody in the first place," Messenger quoted AMWU Regional Secretary for Vehicles Jon Gee.

Mr Gee said that when Holden was still mulling the layoffs it should have discussed the matter with AMWU so they could have come up with several options that would meet the needs of Holden and employees.

"This concept was obviously developed and brought to the point of making the decision in secret and only came to light once the media broke the story," Mr Gee said.

Similar to Thales' explanation, Holden Managing Director Mike Devereux pointed to the strong Australian currency as one of the major reasons behind the carmaker's decision to revise its vehicle production outlook downward which led to the layoffs.

The Thursday announcement by Reckitt Benckiser of 200 job cuts angered not only the affected employees, but also consumers who are venting their ire on the manufacturer of home care products such as fly killer Mortein.

Among the consumer backlash was to unlike the Facebook page of Mortein's mascot, Louie the Fly, to post links of rival brands and a growing move to boycott Reckitt Benckiser products. One irate consumer urged fellow shoppers to shun not only other Reckitt Benckiser brands such as Dettol, Harpic, Aerogard, Easy Off, Nurofen, Clearasil and Finish, but also retail outlets that carry these items. Another shared that he threw a full can of Mortein in the trash.

Along with the announcement of the job cuts by Reckitt Benckiser, the company also said that they will end the online campaign to save Louie the Fly, which was considered a clever PR stunt. The firm opened the Save Louie the Fly Facebook page in 2011 to check consumer interest in the mascot and their products.

The company initially said they intend to kill off the character, but instead decided to kill jobs in Australia and send them offshore to Europe, Asia, South America and North America. The firm explained that Australia's geographical distance from its other markets and the country's relatively small domestic market made it more difficult to embed its West Ryde operations into global arrangements.

AMWU State Secretary Tim Ayres accused Reckitt Benckiser of making a midnight decision which puts in question Australia's manufacturing capability.

To ease employee and consumer anger at the company's decision to sack Aussie workers and provide jobs elsewhere, Reckitt Benckiser Chief Executive Officer Lindsay Forrest issued a statement that the decision to cut jobs was incredibly difficult.

"Our commitment to provide the best support for those who may be leaving our employ is undiminished.... We will also remain committed to the hundreds of other Australians in our company and the ongoing provision of high quality products and service across the country," Mr Forrest said.

Opposition leader Tony Abbott seized the job cuts contagion to criticise the Gillard government. He said the reasons behind the growing number of layoffs goes beyond the strong Australian dollar, but are more because of the carbon and mining taxes and Fair Work Act which he said affect confidence in the country's economy.