Thursday, December 12, 2013

Bad Management

It is always a sign of bad government when a country starts on a downhill slide, just as it is a sign of bad management when a company fails or has bad worker relations. Wars and worker strikes/lock outs begin because of the inability of those in power to successfully negotiate.

Clearly our PM, The Abbott, was not prepared to negotiate and thousands will be added to the unemployment lines with the closure of of GM car manufacturing in Australia, as was the announced closure of the Ford plant under the previous Labor Government.

I think our car manufacturing is reasonably efficient. I don't think that the workers were overpaid and that high wages to assembly line workers led to the closure. Car manufacturing is very automated now with little hands on to be done.

Third world countries avoid high tech assembly lines and mechanisation that will do away with many jobs. They know they have to keep workers in jobs.

Not so in Australia. I don't know if that is right or wrong, but I think what is the best for the country is a good idea, with qualifications.

I'm trying to find someone to blame. I dislike people who are so sure they are correct about a matter that many argue about. It is shows extreme arrogance. Former Prime Minister Keating has been on the tv of late and his pure certainty about himself and his actions when he was PM and earlier the Treasurer was disturbing.

The principal reason car manufacturing is closing in Australia is that we are a small domestic market, we don't do it well enough to export much and the high Australian dollar.

Who is responsible for the high dollar? Many are but why can the Australian dollar be manipulated by overseas money markets? You whistle and I will point, one Paul Keating who floated the Australian dollar and let go of government control of the dollar so that the government can set its world value to our Australia's benefit.

 

12 comments:

  1. I've no idea who is in the wrong or why, I just know manufacturing costs are cheaper in the third world countries and the bean counters costs must be kept low so there is enough profit for the shareholders. Bloody shareholders. Damn bean counters. Eventually workers in those third world countries will be wanting better conditions and more pay and costs will rise there too. What will the companies do then?

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    1. Correct River. Car manufacturing in Japan is dying as it can be done cheaper elsewhere, except Japan was once a country that produced cheap cars.

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  2. What high dollar? Our dollar had a heart attack, went into a coma a long time ago and may never be resuscitated again. I believe Abbottoir wants the working families of this nation one cheque away from unemployment.

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    1. Hels, it seems to be falsely high to me, but maybe I listen to too many capitalists. Abbottoir, love your work. Yes, that is a tactic of capitalism. Keep the workers afraid, fearful and distable. Kennett was a master at the game.

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    2. Distable? Unstable or destabilised.

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  3. We deal with these issues a lot over here as well (the closing of a lot of large manufacturing plants and the fallout associated). I keep hoping the world's economy will eventually get better...

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    1. Keith, we can't expect charity from GM when it has its own big problems at home.

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  4. We poor people won't suffer too much, we're already used to living on less $$$

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    1. River, it is a lot less money in the community to go around. But Australia adjusted to the loss of clothing and footwear manufacturing and has survived. We need to concentrate on what we do well. Green food grown sustainably is a good start.

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  5. Then there's the 'own goal' of non-reciprocal free trade agreements ...

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  6. Oops, pressed enter too soon! I think it's a bit simplistic to blame Abbott - a few years ago Obama had to bail the US GMH out - maybe their inefficient management practices just aren't sustainable?? I would rather see the money spent on retraining/business incentives/kickstarting new business opportunities for the workers in Australia than going into a black hole in Detroit.

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    1. Red, these free trade agreements trouble me greatly. I hope they can be broken if they turn out to disadvantage us, and on the face of them, they do.

      I didn't blame Abbott, did I? No, Keating is the one I blame. The world money markets play our currency like a cat plays with a mouse.

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