Thread: And Now, Bye Bye Toyota

Originally Posted by pannawonica

I heard. On the telly today that the average car worker was on 50k Shock horror and the unions where to blame. If true I would like to know what they consider a fair amount !

A Chinese auto worker earns between $US2 and $US6 per hour.

Would Australian automotive workers get out of bed for that sort of money?

After 2017 they won't have to get ot of bed! The Chinese will have all their jobs.

Australia’s huge manufacturing labour costs | | MacroBusiness

Some scary figures on Manufacturing. Portrait of a dying industry.

Originally Posted by LandyAndy

Heard on the wirless today that now tojo have bailed out it means there is no reason for a tax on ANY imported vehicle into awestralia.
Makes our Landys 5% cheaper
Andrew

Like THATS going to happen

Originally Posted by Mick_Marsh

Pity I'm not earning the cash to buy one.

Me neither Mick.
Saw a nice D4 online,Red with the black kit.Looks a million bucks,they only want $114000 for it.
See If my Lotto Godz look after me this weekend.
Andrew

Originally Posted by Lotz-A-Landies

A Chinese auto worker earns between $US2 and $US6 per hour.

Would Australian automotive workers get out of bed for that sort of money?

After 2017 they won't have to get ot of bed! The Chinese will have all their jobs.

I think you will find the going rate for blue collar workers in the good ole USA is only $12 per hour.
In no way do I suggest this is OK.
Andrew

In the US a worker may make $12p/h, but a $400K equivalent house can be got for $120K and food is half the price; fuel is cheaper, and so are clothes.

In China, it's only a few $USD per month to pay for food and accom.

Here a guy can make $50K and half of it goes to the mortgage. Take Tax and food out of that and it looks like the Chinese have a higher disposable income. - Just that they don't earn enough to buy a car.

Every time that the issue of production cost is raised, the solution it is to bring the wages down!
Forget about that, it is not that simple unless they do not care to finish the building and retail industry plus many small business because people will lost the purchasing power.
A better way to reduce costs is to make the production more efficient with more output and less labour.
That will require capital equipment investment like VW done with the Passat factory but for some reason the engineering industry management culture in Australia is reluctant in doing that.
There still in Australia engineering shops using machine tools 60 years old and pretending that the workers earn money according to productivity.

If you're using pre-CNC & robotic production in a mass manufacturing situation, you're dead in the water. Your QC & productivity just won't be up to the task.
I thnk a lot of people claim 'high labour costs' in Oz without having done any research. Take a look at the German car manufacturers. Iirc A production line drone @ BMW earns significantly more than I could in the UK at the time, with a higher education etc.
Apart from a significantly higher employer pension / super contribution, I'm about the same or slightly worse paid here than the UK, for doing the same job.

Management here makes the same simple mistake management in the UK makes - they don't actually put in any effort & look to see where they can make real, intelligent & useful savings within a business, they just let the accountants pick a number to reduce.

Protectionist policies don't work either, for any purchase that can realistically be privately shipped. Take books - we pay a ridiculous price for books in Oz, to 'protect & nurture local authors'. Well sorry, since the internet has made the business world flat, if the book is too expensive here I'll buy it overseas.
So that gov't policy has actually screwed the local printer, wholesaler & book shop. Nice one, Gov't.