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Concern for job losses in South Australia aft -

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Reporter: Nance Haxton

ELEANOR HALL: In South Australia the Australian Manufacturing Workers Union is seeking an urgent
meeting with Holden's senior management to discuss the effect of the General Motors announcement
that it will slash 47,000 jobs worldwide.

The state secretary John Camillo says he's worried about workers being sacked before the new
fuel-efficient car comes off the production line in mid-2010.

But the Federal Industry Minister Kim Carr says he can't guarantee all the jobs at Holden, as Nance
Haxton reports from Adelaide.

NANCE HAXTON: The Australian Workers Union says it's worried about the future for more than 3,500
workers at Holden's Elizabeth plant in Adelaide's north.

JOHN CAMILLO: Because at the moment in some areas in the components sector workers are only working
three days a week and they can't continue receiving three days a week's wages forever and a day.
Something sooner or later will have to snap.

NANCE HAXTON: State secretary John Camillo says the union has asked to meet with senior Holden
executives as soon as possible to find out exactly what the General Motors announcement means for
Holden's operations in Australia.

JOHN CAMILLO: The concern we've got is that GM is indicating that they need to reduce the workforce
by another 26,000 GM employees right around the world. That will have a percentage in regards to
job losses here in Australia.

We don't know what the number at this stage is but we'll be sitting down with Holden in the next
week to look at what is the situation, how many people that will involve.

But we know that the Elizabeth operation is pretty sound and we know that the small fuel-efficient
vehicle will be coming down the production line about May, June, July of 2010.

The problem facing us now is how many jobs Holden is looking at and also the restructuring in
regards to how we go forward in these challenging times when vehicle sales in Australia is down and
we are facing some major hurdles over the next six months - not just Holden's but the components
supplier who are at work at this stage four days a week.

NANCE HAXTON: There's speculation that even up 300 jobs could go at the Holden plant at Elizabeth.
Have you got any idea of numbers at this stage?

JOHN CAMILLO: We don't know. There's the rumour of 300 Australia-wide and they have indicated,
again the rumour saying that there would be, you know, roughly around about 300 white-collar

The Elizabeth operation at the moment is on down days. People are at home right now and they won't
start work until the 2nd of March. Hopefully we'll be in a situation where we can sit down and see
what we'll be doing for next quarter, what is the production needs for Holden, how we'll manage
that, and how does the components supplier fit into the bigger picture.

So we have to sit down and try to manage how we go forward.

NANCE HAXTON: The Federal Industry Minister Kim Carr says there will be some job losses but he says
he's confident the local Holden plant in South Australia is in a better position than many of its
overseas counterparts.

KIM CARR: I can't guarantee every single job in the industry. I can't guarantee every single
supplier in the industry. But what I can say is that we are working with the automotive industry to
ensure that we move through this storm as quickly as possible, that we're in a much stronger
position than our competitors.

NANCE HAXTON: But not everyone is taking such a bleak view of the situation. Andrew McKellar is the
chief executive of the Federal Chamber of Automotive Industries which represents all the major car
companies in Australia. He says there's no indication that jobs are under immediate threat.

ANDREW MCKELLAR: I think there is some positive news in there for Holden. It's clear that they are
seen as a valuable part of General Motors' global network. They're a viable part and they're
expected to make a positive contribution in the future.

NANCE HAXTON: But given the General Motors announcement, surely job cuts are inevitable. It's
really just the degree that is yet to be seen?

ANDREW MCKELLAR: Well it's clear that around the world they will have to make those sorts of
stringencies. What the implications will be in Australia really it is too early to say.

ELEANOR HALL: That's the chief executive of the Federal Chamber of Automotive Industries, Andrew
McKellar ending that report by Nance Haxton.