Job Cuts Fever Spreads to Other Australian Firms

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.

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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.